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HomeMy WebLinkAbout07-049 - Resolutions RESOLUTION NO. 07-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, APPROVING AFFORDABLE HOUSING INCENTIVE AGREEMENT DRC2006- 00916, TO IMPLEMENT DEVELOPMENT REVIEW DRC2005- 01060 BY MODIFYING CERTAIN DEVELOPMENT STANDARDS FOR THE CONSTRUCTION OF 40-WORKFORCE APARTMENT UNITS ON THE VACANT PROPERTY IN MEDIUM-HIGH RESIDENTIAL DISTRICT (14-24 DWELLING UNITS PER ACRE), LOCATED IMMEDIATELY EAST OF THE EXISTING RANCHO VERDE VILLAGE MULTIPLE-FAMILY RESIDENTIAL DEVELOPMENT AT THE SOUTHERLY TERMINUS OF SIERRA MADRE AVENUE -APN: 0207-254-67 AND 68, AND MAKING FINDINGS IN SUPPORT THEREOF A. RECITALS. 1. Pitassi Architects, Inc., on behalf of Southern California Housing Corporation, filed an application for Affordable Housing Incentive Agreement No. DRC2005-00916, as described in the title of this Resolution. Hereinafter in this Resolution, the subject Affordable Housing Incentive Agreement is referred to as "the application." 2. On February 21, 2007, the City Council of the City of Rancho Cucamonga conducted a duly noticed public hearing on the application and concluded said hearing on that date. 3. The subject property of the Affordable Housing Incentive Agreement is legally described herein. 4. A true and correct copy of the proposed Affordable Housing Incentive Agreement is attached as Exhibit "A". 5. All legal prerequisites prior to the adoption of this Resolution have occurred. B. RESOLUTION. NOW,THEREFORE, it is hereby found, determined, and resolved by the City Council of the City of Rancho Cucamonga as follows: 1. This City Council hereby specifically finds that all of the facts set forth in the Recitals, Part A, of this Resolution are true and correct. 2. Based upon the substantial evidence presented to the City Council during the above-referenced public hearing on February 21, 2007, including written and oral staff reports, together with public testimony, the City Council hereby specifically finds as follows: Resolution No. 07-049 Page 2 of 48 a. The application applies to approximately 1.75 acres of the property located immediately east of the existing Rancho Verde Village multiple-family residential development at the southerly terminus of Sierra Madre Avenue, and which is presently unimproved; and b. The property to the north is developed with single-family homes and zoned Low Density (2-4 units per acre) Residential, the property immediately to the south is zoned General Industrial (Sub Area 1), and is presently used as a railroad right of way, to the east are single- family residences in the Low Density(2-4 units per acre) Residential zone, and the to the west is the existing Rancho Verde Apartment Complex within the Medium-High (14-24 units per acre) Residential zoning district; and c. The application to which the Affordable Housing Incentive Agreement applies contemplates the construction of 40-workforce housing units and associated improvements, on 1.75 acres of land at above described location which are permitted within the Medium-High Density residential zoning district; and d. The proposed design of the new units is a contemporary interpretation of the Spanish/Mediterranean architectural style that is complementary to the existing complex. On January 10, 2007, the Planning Commission approved the project contingent upon City Council approval of the Affordable Housing Incentive Agreement; and e. The Agreement proposes modifying certain development standards for the construction of 40-workforce apartment units pursuant to California Government Code Sections 65915-65918 and Development Code Chapter 17.40. 3. Based upon the substantial evidence presented to the City Council during the above-referenced public hearing and upon the specific findings of facts set forth in paragraphs 1 and 2 above, the City Council hereby finds and concludes as follows: a. That the proposed project to which the Affordable Housing Incentive Agreement is associated with is consistent with the objectives of the General Plan in that, if approved, the project will advance the goal of providing affordable housing units for families within the community; and b. That the proposed design for the affordable apartment units and associated improvements is in accord with the objectives of the Development Code and the purposes of the district in which the site is located, in that the new units will complement the appearance of the existing complex; and c. That the proposed affordable units will be in compliance with each of the applicable provisions of the Development Code except as modified for specific standards by the subject Affordable Housing Incentive Agreement for the associated project; and Resolution No. 07-049 Page 3 of 48 d. That the proposed design, together with the conditions applicable thereto, will not be detrimental to the public health, safety, or welfare or materially injurious to properties or improvements in the vicinity. The development of apartment units on the subject site will result new opportunity to improve the neighborhood by eliminating the unsightly vacant lot and abandoned house which has been the setting for undesirable impacts to the adjacent neighborhood. 4. A Mitigated Negative Declaration has been prepared for the project to which the Affordable Housing Incentive Agreement applies, is in compliance with the California Environmental Quality Act of 1970, as amended, and the State CEQA guidelines promulgated thereunder;that said Mitigated Negative Declaration and the Initial Study prepared therefore reflect the independent judgment of the City Council; and, further, this City Council has reviewed and considered the information contained in said Mitigated Negative Declaration with regard to the application. 5. This City Council hereby approves the Affordable Housing Incentive Agreement attached to the staff report. 6. The City Clerk shall certify to the adoption of this Resolution. Please see the following page for formal adoption,certification and signatures Resolution No. 07-049 Page 4 of 48 PASSED, APPROVED, AND ADOPTED this 215`day of February 2007. AYES: Gutierrez, Kurth, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None V V Donald J. Kurth, .D., Mayor ATTEST: `L Debra J. Aclamg, CMC, City Clerk I, DEBRA J.ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 21 s`day of February 2007. Executed this 22"d day of February 2007, at Rancho Cucamonga, California. ebra J. A s, CMC, City Clerk Resolution No. 07-049 Page 5 of 48 Recording Requested By -- and-- And When Recorded Mail To: This document is exempt from the SPACE ABOVE THIS LINE FOR RECORDER'S USE payment of a recording fee pursuant to Govt.Code§27383 HOUSING INCENTIVE AGREEMENT THIS HOUSING INCENTIVE AGREEMENT is dated for identification purposes as of , 200—, and is by and between the CITY OF RANCHO CUCAMONGA, a public body, corporate and polific(the"City") and THE SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation(the "Owner")(City and Owner are sometimes referred to herein individually as a"Party" and collectively as the"Parties"). RECITALS A. The Rancho Cucamonga Redevelopment Agency(the "Agency") and Owner entered into that certain Affordable Housing Agreement dated as of June 28, 2005, as amended by that certain First Amendment to Affordable Housing Agreement dated as of March 9, 2006 (as amended, the"AHA"). Among other things, the AHA provides for Agency financial assistance to Owner to aid in acquisition of certain real property(the"Site")described on Exhibit"A" attached hereto, construction of 40 three-bedroom apartments as well as amenities including a community center,jogging paths and a hardcourt play area to serve larger families (collectively, the"Improvements") and operation of those Improvements to provide rental housing for families of very low,low and moderate income within the City. The Site and Improvements constitute a project commonly known as East Rancho Verde Village("East Rancho Verde Village" or "Project"). i i Housing Incentive Agreement 1 EXHIBIT A Resolution No. 07-049 Page 6 of 48 B. Owner currently owns and operates a 248-unit affordable multifamily apartment community adjacent to and west of the Site commonly known as Rancho Verde Village, described on Exhibit"B"attached hereto(" Rancho Verde Village"). C. The City has adopted Chapter 17.40 of the Development Code (the"Affordable Housing Ordinance")to implement Sections 65915 and 65917 of the California Govermnent Code,to facilitate the development of affordable housing and to implement the goals, objectives and policies of the Housing Element of the City's General Plan. D. Pursuant to applicable provisions of the AHA, a Regulatory Agreement and Declaration of Restrictive Covenants between the Agency and the Owner(the"Regulatory Agreement") and an Operation and Maintenance Agreement between the Agency and the Owner (the "O&M Agreement")were recorded on July 22, 2005 as instrument Nos. 2005-0530600 and 2005-0530601,respectively,of Official Records of San Bernardino County, California. The Regulatory Agreement restricts rental of 19 of the 40 apartment units in the Project to "very low income households," as defined in Section 17.40.20 A of the Affordable Housing Ordinance and an additional 13 units for occupancy by"lower income households," as defined therein. The Regulatory Agreement also restricts the rents which can be charged by Owner to qualifying tenants who will occupy the Project,by requiring that all apartments in the Project shall be rented at an "affordable rent," as defined in Section 17.40.020 of the Affordable Housing Ordinance. E. Under paragraph 3.1 of the Regulatory Agreement, the term thereof is"in perpetuity,"but in the event that a term"in perpetuity"should be determined to be in violation of any state or federal law,then the term of the Regulatory Agreement expires July 21,3004(a term of 99 years following recordation). F. In order to construct all of the Improvements on the Site so that the same may be operated to provide affordable housing to the tenants identified in the Regulatory Agreement, Owner has requested that the City grant certain incentives to the Project including a reduction in Site development standards and a modification of the requirements of the City's Development Code which are applied to the review and approval of the Improvements. The grant of such incentives is necessary to make the Project economically feasible and to enable construction of the Project. G. The unit sizes and number of bedrooms of apartments in East Rancho Verde Village targeted for rental to very low income households and low income households as restricted in the Regulatory Aggreement are as follows: Number of Average Square Number of Apartments Footage of Apartment Bedrooms Very Low Income Households 19 1084 3 I Lower Income Households 13 1084 3 Housing Incentive Agreement 2 Resolution No. 07-049 Page 7 of 48 Consequently, 80%of the 40 apartment units to be constructed in East Rancho Verde Village qualify as"Target Units"under the Affordable Housing Ordinance, enabling the Project to qualify for a density bonus and three incentives thereunder. Based on its finding of the necessity therefore,by this Housing Incentive Agreement the City has approved reductions and modifications to the Development Code as applied to the Improvements, as are specified herein. H. Although Owner will own and operate Rancho Verde Village and East Rancho Verde Village as two separate and distinct projects, because they are contiguous Owner has also requested that certain amenities be shared between the two communities, including ingress and egress over Rancho Verde Village for residents of East Rancho Verde Village, use by the residents of Rancho Verde Village of the community room and other amenities constructed on East Rancho Verde Village, and use by the residents of East Rancho Verde Village of certain amenities constructed within Rancho Verde Village, including guest parking spaces located on Rancho Verde Village. I. City and Owner hereby declare their understanding and intent that the burden of the covenants,reservations and restrictions set forth in this Housing Incentive Agreement touch and concern the Site in that the Owner's legal interest in the Site and the Project is rendered less valuable thereby. The City and the Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the Site by enhancing and increasing the enjoyment and use of the Project by persons and families of lower income and very low income, who are the intended beneficiaries of such covenants,reservations and restrictions, and by furthering the public policies for which this Housing Incentive Agreement is adopted. Further, the parties hereby agree that such covenants, reservations and restrictions benefit all other real property located within the City. OPERATIVE PROVISIONS NOW,THEREFORE, City and the Owner hereby agree as follows: 1. Reduced and Modified Standards Pertaining to Development of East Rancho Verde Village. City agrees that pursuant to the application of Section 17.40.040 B. of the Affordable Housing Ordinance,the following incentives may be incorporated into the final site plan and ancillary and associated plans (grading, landscaping, etc.)for East Rancho Verde Village submitted by Owner to the City for development review: (a) Location of buildings of various heights shall be subject to approval during the Development Review process,but,notwithstanding the generality of the foregoing, i three-story apartment buildings shall be allowed to be located a minimum of 53 feet from the east and north property lines of East Rancho Verde Village,measured to the face of the closest patio/balcony of such building. Housing Incentive Agreement 3 Resolution No. 07-049 Page 8 of 48 (b) Garages, carports,trash enclosures and other improvements which might be constructed as a part of the East Rancho Verde Village project shall be permitted to be constructed with a zero setback from the north, east and south property lines of the East Rancho Verde Village property, subject to approval of final location during the Development Review process. (c) Height,materials and design of the perimeter wall proposed for the south, east and portions of the north property line of East Rancho Verde Village shall be subject to review and approval during the Development Review process,but,notwithstanding the generality of the foregoing,the height of the perimeter walls located on the south and east property lines may be up to,but may not exceed, a maximum of 11 feet,measured from the finished grade at the interior side of the wall, which forms a part of the garage buildings located on the property lines, and the height of the perimeter wall at the north property line may be up to, but may not exceed, a maximum of 8 feet high,measured from finished grade at the interior side of the wall. (d) The City agrees that the following items,which are available as incentives j under Section 17.40.040 B(1)(a)of the Affordable Housing Ordinance,shall be applied during the Development Review process for the East Rancho Verde Village project,which shall be permitted variances from those same restrictions as currently contained in the Development Code of the City: (i) The minimum building setback from a drive aisle shall be not less than 12 feet; (ii) The minimum building setback from the curb of a drive aisle or other paved area to the face of a patio or balcony wall shall be not less than 6 feet; (iii) The minimum setback from the face of a patio or balcony wall to the nearest portion of any carport shall be not less than 6 feet; i (iv) The minimum width of landscaped area between patio wall and sidewalk shall be not less than 2 feet; (v) The minimum separation from building to building for a two-story and a three-story structure shall be not less than 30 feet; (vi) The minimum separation from building to patio wall or balcony may be not less than 20 feet, and from patio wall or balcony to patio wall or balcony shall be not less than 14 feet; (vii) The minimum number of washer/dryer facilities shall be calculated at not less than one(1)washer and one(1) dryer for every six (6) apartment units; and Housing Incentive Agreement 4 Resolution No. 07-049 Page 9 of 48 (vii) The minimum number of trees required to landscape the East Rancho Verde Village project shall be not less than twenty-five(25)trees per gross acre. (e) Although the area within East Rancho Verde Village totals less than the 5- acre minimum noted in the Optional Development Standards,because of the operation of East Rancho Verde Village in conjunction with the Rancho Verde Village community, and because the two projects will contain in excess of 13 acres, construction of the East Rancho Verde Village project will be permitted on the Site,which is currently zoned Medium-High Residential. I 2. Ingress and Egress. Upon approval of Development Review of the Project,the Declaration of Reciprocal Easements for Ingress and Egress and Common Use attached hereto as Exhibit"C"(the"Reciprocal Easement Agreement")shall be recorded providing, governing and controlling the joint ingress and egress for residents of Rancho Verde Village and East Rancho I Verde Village over each respective project and joint use of the community facilities located on the two projects including the community center and recreational amenities (tot lot and hardcourt play area)located on East Rancho Verde Village and swimming pools, tot lot, guest parking spaces, leasing office and jogging path located on Rancho Verde Village. The area subject to the reciprocal ingress and egress agreement is depicted on Exhibit"C"to the Reciprocal Easement Agreement, and the community center and related recreational amenities are depicted on Exhibit "D"to the Reciprocal Easement Agreement. I 3. Recreational Amenities. Because some recreational facilities in both Rancho Verde Village and East Rancho Verde Village will be used by residents of both communities, consideration and tabulation of required amenities shall be determined during review of the Project as if both Rancho Verde Village and East Rancho Verde Village were one project; items will be permitted to be duplicated between East Rancho Verde Village and Rancho Verde Village to achieve overall compliance with the Development Code. 4. Completion and Occupancy. A schedule of completion and occupancy of the apartment units in East Rancho Verde Village targeted for occupancy by very low income households and low income household is attached hereto as Exhibit"D"and incorporated herein by reference. 5. Recitals. The Recitals are part of the agreement between the parties and shall be enforced and enforceable as any other provision of this Agreement. I 6. Binding Effect of Agreement. The Owner and the City hereby declare their specific intent that the covenants, reservations and restrictions contained within this Housing Incentive Agreement shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors and assigns in title or interest to the Project. Owner agrees that this Housing Incentive Agreement shall be recorded to subject the Project and the Site to the covenants,reservations and restrictions set forth herein. Each and every contract, deed, regulatory agreement or other instrument hereinafter executed, covering or conveying the Project, Housing Incentive Agreement 5 Resolution No. 07-049 Page 10 of 48 the Site or any portion thereof shall conclusively to be held to have been executed, delivered and accepted subject to the covenants,reservations and restrictions expressed in this Housing Incentive Agreement,regardless of whether such covenants,reservations and restrictions are set forth in such contract, deed or other instrument. 7. Relationship of Parties. It is understood that the contractual relationship between the City and Owner is such that the Owner is an independent party and is not the agent of the City and is not to be considered as an agent of the City for any purpose whatsoever. 8. Regulatory Agreement. In addition to the requirements of this Housing Incentive Agreement,the Owner shall comply with all of the terms and conditions of the Regulatory Agreement and O&M Agreement with the Agency. 9. Term of Aereement. The term of this Housing Incentive Agreement shall commence on the date of execution hereof by the City and shall expire concurrently with expiration of the Regulatory Agreement. This Housing Incentive Agreement shall be deemed to be terminated automatically if Owner does not obtain a certificate of occupancy for all of the Improvements witlrin three(3)years from the effective date hereof. 10. Indemnification. Owner agrees to indemnify, defend and hold City and its elected officials, officers, agents and employees free and harmless from liability for damage or claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect operations of Owner or those of its contractors, subcontractors, agents, employees or other persons acting on its behalf which relate to the Project. Owner agrees to indemnify and shall defend City and its elected officials,officers, agents, and employees with respect to actions for damages caused or alleged to have been caused by reason of Owner's activities in connection with the Project with legal counsel reasonably satisfactory to the City. Tlvs indemnification provision applies to all damages and claims the operations referred to in this Housing Incentive Agreement regardless of whether or not the City prepared, supplied or approved the plans, specifications or other documents for the Project. Notwithstanding the foregoing,this provision shall not apply to any such claims which arise out of, or by reason of, the gross negligence or willful misconduct of the City, its elected officials, agents and employees. I 11. Non-Liabilityof Officials, Employees and Agents. No member,official, employee, or agent of the City shall be personally liable to the Owner or any permitted successor- in-interest of the Owner in the event of default or breach by the City or the Agency under this Housing Incentive Agreement or for any amount which may become due to the Owner, its successors or under any obligation under the terms of this Housing Incentive Agreement. 12. Amendments. This Housing Incentive Agreement may be amended or canceled, in whole or in part, only by mutual written consent of the Parties and then in the manner provided for in the Ordinances of the City. i Housing Incentive Agreement 6 Resolution No. 07-049 Page 11 of 48 13. Administrative Modifications. Minor conflicts resulting from the strict interpretation of the application of the City's development regulations with this Housing Incentive Agreement may be modified administratively by the City Planner. 14. Enforcement. In the event of a default under the provisions of this Housing Incentive Agreement by Owner, City shall give written notice to Owner(or its successor) at the address of the Project, and by registered or certified mail addressed to the address stated herein, and if such violation is not corrected to the reasonable satisfaction of the City within thirty(30) days after such notice is given, or if not corrected within such reasonable time as may be required to cure the breach or default if said breach or default cannot reasonably be cured within thirty (30) days (provided that acts to cure the breach or default must be commenced within said 30 days and must thereafter be diligently pursued by Owner),then City may,without further notice, declare a default hereunder and may bring any action necessary to specifically enforce the obligations of Owner growing out of the operation of this Housing Incentive Agreement, apply to any court, state or federal,for injunctive relief against any violation by Owner of any provision of this Housing Incentive Agreement or apply for such other relief as may be appropriate. After completion of the Project pursuant to the terms of this Housing Incentive Agreement, any default may alternatively be enforced as any normal violation of the standards and provisions of the Rancho Cucamonga Municipal Code. Accordingly,the following penalty is specifically included as part of this Housing Incentive Agreement: "It shall be unlawful for any person,firm,partnership, or corporation to violate any provision or to fail to comply with any of the requirements of this Housing Incentive Agreement. Any person, firm,partnership, or corporation violating any provision of this Housing Incentive Agreement by failing to comply with any of its requirements shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding One Thousand Dollars ($1,000) or by imprisonment not exceeding six (6)months, or by both such fine and imprisonment. Each such person, firm,partnership or corporation shall be deemed guilty of a separate offense for each and every day or any portion thereof during which any violation of any of the provisions of this Housing Incentive ' Agreement is committed, continued or permitted by such person, firm,partnership or corporation, and shall be punishable therefore as herein provided." 15. Event of Default. Owner shall be in default under this Housing Incentive Agreement upon the happening of one or more of the following events or conditions: i (a) If a material warranty, representation or statement is made or furnished by Owner to City and is false or proved to have been knowingly false in any material respect when it was made; (b) If a finding and determination is made by City following an annual review, upon the basis of substantial evidence that Owner has not complied in good faith with any material terns and conditions hereof, after notice and opportunity to cure; or Housing Incentive Agreement 7 Resolution No. 07-049 Page 12 of 48 (c) A breach by Owner of any of the provisions or terms hereof, after notice and opportunity to cure as provided herein. 16. No Waiver of Remedies. City does not waive any claim of defect in performance by Owner if on periodic review City does not enforce or terminate this Housing Incentive Agreement. Nonperformance by Owner shall not be excused because performance by Owner of the obligations herein contained would be unprofitable, difficult or expensive or because of a failure of any third party or entity, other than City or the Agency. All other remedies at law or in equity which are not otherwise provided herein or in City's regulations governing housing incentive agreements are available to the Parties to pursue in the event that there is a breach hereof. No waiver by City of any breach or default of Owner under this Housing Incentive Agreement shall be deemed to be a waiver by City of any other subsequent breach or default hereunder either of the sane provision or any different provision hereof. 17. Rights of Lenders under this Aereement. Should Owner place or cause to be placed any encumbrance or lien on the Project, or any part thereof,the beneficiary("Lender") of said encumbrance or lien, including,but not limited to,mortgages, shall have the right at any time during the term hereof and the existence of said encumbrance or lien to: (a) Do any act or thing required of Owner hereunder, and any such act or tiring done or performed by Lender shall be as effective as if done by Owner itself; (b) Realize on the security afforded by the encumbrance or lien by exercising foreclosure proceedings or power of sale or other remedy afforded in law or in equity or by the security document evidencing the encumbrance or lien(hereinafter referred to as the"trust deed"); (c) Transfer, convey or assign the title of Owner to the Project to any purchaser at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court i order or pursuant to a power of sale contained in a trust deed; and (d) Acquire and succeed to the interest of Owner by virtue of any foreclosure sale,whether the foreclosure sale be conducted pursuant to a court order or pursuant to a power of sale contained in a trust deed. The City agrees that the terms of this Housing Incentive Agreement are subordinate to any such financing instrument and shall execute from time to time any and all documentation reasonably requested by Owner or Lender to effect such subordination. 18. Notice to Lender. City shall give written notice of any Owner default or breach hereunder to Lender and afford Lender the opportunity after service of the notice to: (a) Cure the breach or default within sixty(60) days after service of said notice, where the default can be cured by the payment of money. Housing Incentive Agreement 8 Resolution No. 07-049 Page 13 of 48 (b) Cure the breach or default within sixty(60)days after service of said notice,where the breach or default can be cured by something other than the payment of money and can be cured within that time; or (c) Cure the breach or default in such reasonable time as may be required where something other than payment of money is required to cure the breach or default and cannot reasonably be performed within sixty(60) days after said notice, provided that acts to cure the breach or default are commenced within a 60-day period after service of said notice of default on Lender by City and are thereafter diligently continued by Lender to completion. 19. Action by Lender. Notwithstanding any other provision of this Housing Incentive Agreement, a Lender may forestall any action by City fora breach or default under the terms hereof by commencing proceedings to foreclose its encumbrance by order of court or under a power of sale contained in the instrument creating the encumbrance or lien. The proceedings shall not,however,forestall any such action by the City for the default or breach by Owner unless: (a) They are commenced within sixty(60) days after service on Lender of the notice described hereinabove; (b) They are, after having been commenced,diligently pursued in the manner required by law to completion; and (c) Lender keeps and performs all of the terms, covenants and conditions of this Housing Incentive Agreement requiring the payment or expenditure of money by Owner until the foreclosure proceedings are complete or are discharged by redemption, satisfaction or payment. 20. Rent Control. In consideration for the limitations herein provided, City agrees that it shall not,during the term of this Housing Incentive Agreement, take any action,the effect of which will be to control, determine or affect the rents for those low income rental units located in the Project, except as otherwise provided herein. Enforcement of the Regulatory Agreement and/or the O&M Agreement by the City and/or the Agency shall be specifically permitted and reserved to the City and the Agency, as applicable. 21. Notice. Any notice required to be given by the terms of this Housing Incentive Agreement shall be provided by certified mail,return receipt requested, at the address of the respective parties as specified below or at any other such address as may be later specified by the parties hereto. Owner: The Southern California Housing Development Corporation 9065 Haven Avenue, Suite 100 Rancho Cucamonga, California 91730 Attn: President Housing Incentive Agreement 9 �I Resolution No. 07-049 Page 14 of 48 City: City of Rancho Cucamonga 10500 Civic Center Drive P.O.Box 807 Rancho Cucamonga,California 91730 22. Attorneys' Fees. In any proceedings arising from the enforcement hereof or because of an alleged breach or default hereunder, the prevailing party shall be entitled to recover its costs and its reasonable attorneys' fees incurred during the proceeding as maybe fixed within the discretion of the court. 23. Binding Effect. This Housing Incentive Agreement shall bind, and the benefits and burdens hereof shall inure to,the respective parties hereto and their legal representatives, executors, administrators, successors, and assigns, wherever the context requires or admits. i 24. Applicable Law. This Housing Incentive Agreement shall be construed in accordance with and governed by the laws of the State of California. 25. Partial Invalidity. If any provisions hereof shall be deemed to be invalid, illegal or unenforceable, the validity,legality or enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. 26. Recordation. This Housing Incentive Agreement shall, at the expense of Owner, be recorded in the Official Records of the County Recorder of the San Bernardino County. I IN WITNESS WHEREOF, this Housing.Incentive Agreement shall be effective on the date it is signed by the City(the"effective date"hereof). CITY OF RANCHO CUCAMONGA Dated: —, 200— By: Name: Title: ATTEST: City Clerk By: Name: [signatures continue on following page] Housing Incentive Agreement 10 Resolution No. 07-049 Page 15 of 48 Approval as to Form: City Attorney By: Name: THE SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORPORATION, a California nonprofit public benefit corporation Dated: 200_ By: Name: Title: Housing Incentive Agreement 11 i Resolution No. 07-049 Page 16 of 48 EXHIBIT "A" [legal description of East Rancho Verde Village] Housing Incentive Agreement Resolution No. 07-049 Page 17 of 48 LEGAL DESCRIPTION Parcel 1: 8819 Sierra Madre Avenue That portion of Lot 29 in Section 9,Township 1 South, Range 7 West, San Bernardino Meridian, according to Map of Cucamonga Lands, as per Map recorded in Book 4, Page 9 ,of Maps, in the Office of the County Recorder of said County,described as follows: Beginning 895.96 feet East of the Northwest corner of said Lot, thence South 474.09 feet to the North line at and Santa Fe Railroad right of way; thence Easterly along said right of way to the East line of Lot 29, thence North to the Northeast corner; thence West to the point of beginning. Excepting therefrom that portion lying West of the Southerly extension of the.West line of Sierra Madre Avenue and excepting the North 97.01 feet and excepting the South 240 feet thereof. I II A-1 Resolution No. 07-049 Page 18 of 48 Parcel 2: 8839 Sierra Madre Avenue II i PARCEL 1: The South 240 feet of that portion of Lot 29, Section 9,Township 1 South, Range 7 West, San Bernardino Meridian, according to the Map of Cucamonga Lands, in the City of Rancho Cucamonga, County of San Bernardino, State of California, as per Map recorded In Book 4, Page 9 of Maps, in the Office of the County Recorder of said County, lying Easterly of the Southerly prolongation of the Westerly line of Sierra Madre Avenue, as said Avenue is shown on the Maps of Eureka Gardens, Tract No. 1829,as per Plat recorded in Book 28, Page 20, of Maps, Records of said County. PARCEL 2: A non-exclusive easement for Ingress and egress over and across that portion of Lot 29, Section 9,Township 1 South, Range 7 West, San Bernardino Meridian, lying within the Southerly extension of Sierra Madre Avenue, as said Avenue is shown on the Map of the Eureka Gardens Tract No. 1829, as per Plat recorded in Book 28, Page 20 of Maps, Records of said County. Excepting therefrom the South 240 feet. I A-2 Resolution No. 07-049 Page 19 of 48 EXHIBIT`B" [legal description of Rancho Verde Village] I Housing Incentive Agreement Resolution No. 07-049 Page 20 of 48 EXHIBIT`B" RANCHO VERDE VILLAGE LEGAL DESCRIPTION LOTS 1,2 AND 3 OF TRACT MAP NO. 12091,IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 177 AT PAGES 175 THROUGH 178 OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Resolution No. 07-049 Page 21 of 48 EXHIBIT "C" [Reciprocal Easement Agreement] I I it i I Housing Incentive Agreement Resolution No. 07-049 Page 22 of 48 Recording Requested By -- and-- And When Recorded Mail To: The Southern California Housing Development Corporation 9065 Haven Avenue, Suite 100 Rancho Cucamonga, CA 91730 Attn: Executive Director SPACE ABOVE THIS LINE FOR RECORDER'S USE DECLARATION OF RECIPROCAL EASEMENTS FOR INGRESS AND EGRESS AND COMMON USE THIS DECLARATION OF RECIPROCAL EASEMENTS FOR INGRESS AND EGRESS AND COMMON USE(the"Declaration")is dated as of 200_and is made on the basis of the following facts,understandings and intentions: RECITALS A. The undersigned ("Declarant") is the owner of two adjacent parcels of real property located in the City of Rancho Cucamonga, San Bernardino County, California. On one of the parcels, Declarant currently owns and operates a 248-unit affordable housing apartment complex commonly known as Rancho Verde Village(sometimes referred to herein as "Parcel 1" or"Rancho Verde Village"), which is described more specifically on Exhibit"A"attached hereto and incorporated herein by reference. Declarant also owns the adjacent parcel located immediately east of and contiguous to Rancho Verde Village(which real property is sometimes referred to herein as"Parcel 2,""East Rancho Verde Village"or the"Site"), described more specifically on Exhibit"B" attached hereto and incorporated herein by reference. Parcel 1 and Parcel 2 are sometimes referred to herein individually as a"Parcel" and collectively as the "Parcels." B. Declarant intends to develop and construct forty(40)3-bedroom apartment units to form East Rancho Verde Village, which will be managed and operated as an apartment community providing affordable housing for families of very low, low and moderate income. Declaration of Reciprocal Easements for Ingress and Egress and Common Use 1 Resolution No. 07-049 Page 23 of 48 C. Under the terms of that certain Affordable Housing Agreement dated June 28, 2005 between the Rancho Cucamonga Redevelopment Agency(the"Agency") and Declarant, as amended (the"Affordable Housing Agreement")relating to acquisition of, financing for, and construction and use of improvements on Parcel 2, Declarant has agreed to maintain and operate Rancho Verde Village and East Rancho Verde Village as two separate and distinct apartment communities. Declarant has also agreed to certain restrictions on use and operation of East Rancho Verde Village which are contained in the Regulatory Agreement and Declaration of Restrictive Covenants between the Agency and Declarant and in the Operation and Maintenance Agreement between the Agency and Declarant,both of which are dated July 6,2005 and which were recorded on July 22,2005 as Document Nos. 2005-0530600 and 2005-0530601, respectively, of the Official Records of San Bernardino County,California. D. Declarant and the City of Rancho Cucamonga(the"City")have entered into that certain Housing Incentive Agreement dated as of 200_. The Housing Incentive Agreement confirms certain incentives to Declarant in the development of East Rancho Verde Village granted by the City under the provisions of Chapter 17.40.010, et seq. (the "Affordable Housing Ordinance") of the Ordinances of the City. This Declaration is executed by Declarant in satisfaction of applicable executory provisions of the Housing Incentive Agreement. E. Although Declarant will provide emergency access to East Rancho Verde Village from Sierra Madre Avenue(at which location fire and other emergency access will be provided to both East Rancho Verde Village and Rancho Verde Village), on a day-to-day basis the residents of East Rancho Verde Village can only gain access to their apartment units by driving across existing drive aisles within Rancho Verde Village. i F. Declarant is constructing certain recreational amenities as a part of East Rancho Verde Village, including a community center, a tot lot and a hardcourt play area,which amenities will also be made available for use to the residents of Rancho Verde Village. Additionally, certain amenities located on the Rancho Verde Village property,that is, swimming pools, a tot lot, guest parking spaces, the leasing office, and thejogging path,will be made available for use to the residents of East Rancho Verde Village. G, hr order to guaranty access by the East Rancho Verde Village residents to their apartment units and to confirm reciprocal easements for the use of driveways and drive aisles on both East Rancho Verde Village and Rancho Verde Village which provide tigress and egress to j and from both Parcels, and to confirm the use of amenities on both Parcels by the residents of each, Declarant desires to subject the Parcels to the easements described herein for the benefit of the present and future owners of each of the Parcels and their respective tenants and occupants and their guests and invitees. Declaration of Reciprocal Easements for Ingress and Egress and Common Use 2 Resolution No. 07-049 Page 24 of 48 OPERATIVE PROVISIONS NOW,THEREFORE,in consideration of the foregoing Recitals and the mutual covenants and conditions set forth in this Declaration and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Declarant hereby declares that the Parcels shall be held, conveyed, encumbered,leased,occupied or otherwise used and transferred subject to the reciprocal rights and easements created in this Declaration. 1. Access Ineress and Eeress Easement. Each of Parcel 1 and Parcel 2 owned by Declarant shall have appurtenant to that Parcel a nonexclusive,perpetual easement for pedestrian, pedestrian vehicle and light truck access,ingress, egress and travel over and across that Parcel in favor of the other Parcel, covering those portions of the Parcels depicted on the attached Exhibit"C" (the common driveway area depicted on Exhibit"C"is referred to herein as the"Driveway"or the"Driveway Easement Area"). Additionally,Parcel 2 shall have appurtenant to that Parcel a non-exclusive,perpetual easement over Parcel 1 for the tenants and occupants of Parcel 2 to use guest parking spaces located on Parcel 1 (the"Guest Parking Easement"). The easement rights granted under this Section 1 are to be strictly interpreted and, except as is specifically provided by the Guest Parking Easement, are not intended to, and do not, confer the right of the residents of a Parcel to park on the other Parcel. The easements described herein are appurtenant to each Parcel, and each Parcel is both benefitted and burdened thereby. These easements are for the benefit and enjoyment of the owner of each Parcel and of all occupants thereof and their respective employees, agents, customers and guests, invitees,heirs, successors and assigns. Notwithstanding the generality of the foregoing,however,use of such easements, the Driveway Easement Area on each Parcel and the area on Parcel 1 subject to the Guest Parking Easement shall be subject to reasonable rules, regulations and restrictions as provided herein. The owner of each Parcel may make any subsurface use of that portion of a Driveway Easement Area located on that owner's Parcel which does not unreasonably interfere with the surface use of the Driveway Easement Area. 2. Joint Use of Amenities. (a) A community room will be located within Building No. 3 to be constructed by Declarant as a part of the improvements constituting East Rancho Verde Village, situated generally in the area shown on Exhibit"D"hereto (the"Community Room") and Declarant will also construct a tot lot and hardcourt play area as a part of the East Rancho Verde Village project. Declarant shall make the Community Room,tot lot and hardeourt play area located on East Rancho Verde Village available for use to the residents of both East Rancho Verde Village and Rancho Verde Village, subject to the right of Declarant or Declarant's successor as the owner of Parcel 2 to adopt reasonable rules and regulations regarding scheduling and use thereof, which might include, but not be limited to, future execution of use agreements with indemnification provisions and the provision of insurance. Declaration of Reciprocal Easements for Ingress and Egress and Conmion Use 3 Resolution No. 07-049 Page 25 of 48 i (b) In addition to those portions of Parcel 1 subject to the Guest Parking Easement, Declarant shall make certain amenities located within Rancho Verde Village, namely the swimming pools,a tot lot,the leasing office and the jogging path, available for use to the residents of both East Rancho Verde Village and Rancho Verde Village,subject to the right of Declarant or Declarant's successor as the owner of Parcel 1 to adopt reasonable rules and regulations regarding scheduling and use of the guest parking spaces and those other listed amenities,which might include,but not be limited to, future execution of use agreements with indemnification provisions and the provision of insurance. (c) If any use authorized by the provisions hereof of the amenities on East Rancho Verde Village by the residents of Rancho Verde Village, or the amenities located on Rancho Verde Village by the residents of East Rancho Verde Village results in any increase or surcharge in the insurance premiums payable by the owner of Parcel I or Parcel 2,respectively, the amount of such increase or surcharge assessed to one owner shall be payable by the other owner within ten(10)days following presentation of an invoice or statement therefore, accompanied by a copy of the insurer's billing evidencing such increase or surcharge. 3. Insurance. Declarant, while it is the owner of both Parcels, and its successor(s) as the owner of each of Parcel 1 and Parcel 2, shall obtain and maintain comprehensive public liability insurance insuring the owner of each of the respective Parcels against any liability incident to the use,maintenance or ownership of the Driveway Easement Area and of any shared amenities and naming the other owner as an additional insured thereon and thereunder. I 4. Indemnity. Notwithstanding the provision of insurance in compliance with paragraph 3 above,the owner of each of Parcel 1 and Parcel 2 shall indemnify and hold the owner of the other Parcel free and harmless from and against any and all liabilities, claims, damages, costs, losses,proceedings and causes of action including,but not limited to, attorneys' fees, arising from any act or omission of the owner of a Parcel and its occupants,tenants and their guests while using that portion of the Driveway Easement Area located on the other Parcel or while using the Community Room and other amenities described in Section 2 above, providing that such use shall be in accordance with the provisions hereof and reasonable rules and regulations that may be enacted as provided herein. 5. Maintenance. The owner of each Parcel shall maintain, at that owner's cost and expense, that portion of the Driveway Easement Area which is located on such owner's Parcel in good and clean condition and repair. The owner of Parcel 1 shall maintain, at that owner's cost and expense, those portions of Parcel 1 on which guest parking spaces which are subject to the Guest Parking Easement are located in good and clean condition and repair. Maintenance shall include, without being limited to,maintaining, sealing and resniping, as necessary, the concrete and/or asphaltic concrete surface thereof in a smooth and evenly covered condition with a type of surfacing material originally installed or with such substitute as shall in all respects be at least equal in quality, use and durability to the original surfacing material. The owner of East Rancho Verde Village shall maintain the Community Room, the tot lot and the hardcourt play area Declaration of Reciprocal Easements for Ingress and Egress and Common Use 4 Resolution No. 07-049 Page 26 of 48 located within the East Rancho Verde Village property in a good and clean condition and repair, and the owner of Rancho Verde Village shall maintain the swimming pools, tot lot, leasing office and jogging path located within the Rancho Verde Village property in a good and clean condition and repair. Notwithstanding the generality of the maintenance obligations contained herein, if, by reason of a default, an owner of a Parcel causes the maintenance on the other Parcel to be performed, the owner of the Parcel performing the work shall be entitled to recover maintenance costs incurred in connection with maintaining the Driveway or the amenities on the other Parcel, as well as any costs associated with or arising from an act or occurrence in violation of any rules and regulations which has resulted in damage. 6. Failure to Maintain: Curing Default. Except in the case of an emergency threatening life or property(in which case written notice shall not be required for an owner to take action necessary to abate the dangerous condition),in the event of any breach or threatened breach of any of the provisions of this Declaration by any owner or an occupant,tenant or guest of either Rancho Verde Village or East Rancho Verde Village,if an owner fails to perform that owner's obligations following thirty(30) days written notice specifying the nature of the default from the other Parcel owner,the other owner shall have the right,but not the obligation, to do or perform such act as may be necessary to cure the breach of the defaulting owner, including,but not limited to, maintaining the Driveway Easement Area on the defaulting owner's Parcel. The defaulting owner shall reimburse the perfonning owner for all reasonable costs and expenses incurred by the performing owner in performance of the defaulting owner's maintenance obligations. Reimbursement shall be made within thirty(30) days after presentation to the defaulting owner of paid invoices demonstrating the work performed. To the extent necessary, a non-defaulting owner shall have a license to enter upon the defaulting owner's Parcel to perform any required work. 7. Use. Each owner of a Parcel may make any use of that portion of a Driveway Easement Area located on such owner's Parcel which does not unreasonably interfere with the use and enjoyment of the Driveway Easement Area by the occupants, tenants, guests and invitees of the other Parcel. Each owner shall be entitled to keep and maintain signs controlling speeding, directional signs, and other traffic calming devices on such owner's Parcel as maybe approved by the City or a may be reasonably necessary to enforce reasonable traffic rules and regulations on each Parcel. However, other than traffic signage, control and calming devices, no owner shall construct or maintain any improvement on such owner's Parcel which prohibits or unreasonably inhibits the use of the Driveway Easement Area by the occupants, tenants, guests and invitees of the other Parcel; except that during construction of Improvements in East Rancho Verde Village, Declarant may take reasonable precautions to prohibit the use of the Driveway Easement Areas located on East Rancho Verde Village until completion of such Improvements to protect members of the public from construction or excavation activities and to prohibit use of such areas on East Rancho Verde Village which would delay, obstruct or make construction of Improvements thereon more expensive. Except as herein provided,no building, fence,wall, hedge,barricade or obstruction of any kind shall be erected or maintained on or within the Driveway Easement Area. I Declaration of Reciprocal Easements for Ingress and Egress and Connnon Use 5 Resolution No. 07-049 Page 27 of 48 8. Exclusivity. The Easements granted and retained hereunder are non-exclusive and shall be used in common by the occupants, guests, invitees, and permittees of the owners of each Parcel and their successors and assigns. 9. Exemption from Liability. No owner may except itself from liability for its share of any expenses incurred under this Declaration which are to be charged to that owner, nor release that owner's Parcel from the lien and charges established in this Declaration,by waiver of the use or enjoyment of the Driveway Easement Area located on such owner's Parcel or by the abandonment of that owner's Parcel. 10. Covenants to Run With the Land. Each and every one of the provisions of this Declaration to be performed on the part of Declarant or Declarant's successors and assigns as the owners of Parcel 1 or Parcel 2, including the benefits and the burdens hereof, shall run with title to each of the said Parcels and shall binding upon and inure to the benefit of the heirs,assigns, successors and owners of each of the Parcels. Each of the Parcels shall be held,transferred, encumbered,used,sold, conveyed and occupied subject to the provisions of this Declaration I which shall run with title to each of the Parcels in perpetuity. j 11. Method ofAmendment. The provisions of this Declaration may be modified or amended,in whole or in part, only by an instrument in writing, executed and acknowledged by the owners of Parcel I and Parcel 2,which writing has been consented to by the City and duly recorded in the Official Records of San Bernardino County, California. Notwithstanding the generality of the foregoing,however, the consent of any mortgagee or holder of a security interest in Parcel 1 or Parcel 2 shall be required in order to cause the interest of such mortgagee or holder of a security interest in existence at the time of such proposed amendment to be subordinate to such amendment. It is expressly understood and agreed that no modification or amendment, in whole or in part, of this Declaration shall require consent or approval on the part of any tenant or occupant of the Parcels. 12. No Third Parry Beneficiary. Except for the provisions of this Declaration which are expressly stated to be for the benefit of the City,the provisions of this Declaration are for the benefit of the owners, occupants, guests, tenants and invitees of Parcel 1 and Parcel l and not for the benefit of any third party,nor shall this Declaration be deemed to have conferred any rights, express or implied,upon any third person or upon the public generally. Nothing herein contained shall be deemed to be a gift to the general public or the creation upon any portion of Parcel 1 or Parcel 2 or any of the easements created hereunder of any interest for any public purpose whatsoever, it being the intent of Declarant that this Declaration shall be strictly limited to and for the purposes herein expressed. 13. Effect ofForeclosure. If any Parcel subject to a lien created by any provision under this Declaration is subject to the lien of a bonafide mortgage or encumbrance, (i)the foreclosure of any lien created by anything set forth in this Declaration shall not operate to affect or impair the lien of such mortgage or deed of trust, and (ii) the foreclosure of the lien of such i Declaration of Reciprocal Easements for Ingress and Egress and Common Use 6 Resolution No. 07-049 Page 28 of 48 mortgage or deed of hest, the acceptance of a deed in lieu of foreclosure of such mortgage or deed of trust or a sale under the power of sale contained in any such mortgage or deed of trust (these events shall be referred to collectively as "Events of Foreclosure") shall not operate to affect or impair the lien of this Declaration, except that any person or persons who obtained an interest through any of the Events of Foreclosure and their successors in interest shall take title free of the obligation to pay monetary amounts imposed by this Declaration prior to the time of any of the Events of Foreclosure,but shall be subject to the lien of this Declaration for all charges which occur after the Events of Foreclosure. i 14. No Easement by Implication• Prevention ofPrescrintive Ri hts. Neither the execution of this Declaration nor the granting of the easements described herein shall be deemed to grant any other easement or to establish any other easement by implication or prescription, and the parties to this Declaration and their successors understand and agree that the only easements and/or licenses made and granted herein and hereby are the easements and/or licenses which are expressly made and granted by the specific terms of this Declaration. The Declarant hereby acknowledges that, except as specifically provided by the terms of this Declaration, nothing contained herein shall be deemed to grant to any person or entity the right to enter generally upon or generally cross over any portion of Parcel 1 or Parcel 2,other than the areas encumbered by the specific easements granted by and described in the terms of this Declaration. 15. Protection of Mort a ees. A breach of the restrictions,conditions, covenants and reservations contained in this Declaration shall not defeat or render invalid the lien of any mortgagee or beneficiary under any duly recorded mortgage or deed of trust encumbering all or any interest of any owner in either Parcel 1 or Parcel 2,made in good faith and for value. The restrictions, covenants and reservations contained in this Declaration shall be binding upon and effective against any owner or owners of any such Parcel or any portion or portions of such Parcel, whose title was acquired by foreclosure, trustee's sale or otherwise. 16. Severability. If any term,provision or condition contained in this Declaration shall,to any extent,be invalid or unenforceable,the remainder of this Declaration, or the application of such term, provision or condition to persons or circumstances.other than those with respect to which it is invalid or unenforceable, shall not be effected thereby and each term, provision and condition of this Declaration shall be valid and enforceable to the fullest extent permitted by law. 17. Binding Effect. This Declaration shall, except as otherwise provided herein,be binding upon and enure to the benefit of the parties hereto, their heirs, executors, administrators, successors and assigns. I 18. Rights of Ci v. This Declaration may not be amended or terminated without the prior written consent of the City. The City shall be considered a third party beneficiary to this Declaration, which interest shall give the City the right,but not the obligation,by action at law or in equity, to enforce all provisions of this Declaration. The City shall have a perpetual easement created by the provisions of this Declaration for ingress and egress upon and over any Parcel for I Declaration of Reciprocal Easements for Ingress and Egress and Common Use 7 Resolution No. 07-049 Page 29 of 48 the purpose of enforcing any maintenance required by the provisions of this Declaration or of City ordinances,for trash collection and to enforce the provisions of City ordinance relating to traffic control. Any cost, expense and expert and attorneys'fees incurred by the City relating to the curing of any default in the observance or enforcement of this Declaration, including all costs in maintaining,repairing,replacing or otherwise performing work on or providing materials to the Parcels,whether the work or materials were furnished by the City or by private contractors designated by the City, shall promptly be reimbursed from the owner of the affected Parcel to the City. No failure by the City to enforce any default hereunder shall be deemed to be a waiver of the right or power of the City to enforce that same default, or a different default, at any later time. In the event that the City is the prevailing party in an enforcement action under this Declaration, the City shall have the right to collect its reasonable attorneys' fees, costs and expenses associated with any such action or proceeding. 19. Attorneys'Fees. If any action or proceeding is brought for the enforcement of this Declaration, or because of an alleged dispute,breach, default or misrepresentation in connection with any of the provisions of this Declaration or to interpret this Declaration or any of the provisions hereof, the successful or prevailing party shall be entitled to recover reasonable attorneys'fees and other costs incurred n that action or proceeding, whether or not said action or proceeding goes to final judgement, in addition to any other relief to which it or they may be entitled,which shall include any post-judgment attorneys' fees, any attorneys' fees incurred by the prevailing part on appeal,by the prevailing party for any post-judgment motion proceedings or hearings, and any and all attorneys' fees incurred in any and all efforts by the prevailing party to collect its judgment. 20. Authori . Execution of this Declaration shall be presumed to be made by an individual authorized by his or her respective corporation by resolution of its board of directors and such execution shall constitute a waiver by that party of any lack of such a resolution. 21. Governing Law. This Declaration shall be construed and governed in accordance with the laws of the State of California. 22. Miscellaneous. When used herein, the masculine and neuter genders, the singular number and the present tense shall be deemed to include the feminine gender, the plural number and past and future tenses,respectively,where the context so requires. IN WITNESS WHEREOF, the undersigned has executed this Declaration as of the day and year first above written. i "DECLARANT" The Southern California Housing Development Corporation, a California nonprofit public benefit corporation By. Richard J. Whittingham, CFO Declaration of Reciprocal Easements for Ingress and Egress and Common Use 8 Resolution No. 07-049 Page 30 of 48 Exhibit "A" [Legal Description of Rancho Verde Village] Declaration of Reciprocal Easements for Ingress and Egress and Common Use Resolution No. 07-049 Page 31 of 48 RANCHO VERDE VILLAGE LEGAL DESCRIPTION LOTS 1,2 AND 3 OF TRACT MAP NO. 12091,IN THE CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 177 AT PAGES 175 THROUGH 178 OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. i i i I Resolution No. 07-049 Page 32 of 48 Exhibit "B" [Legal Description of East Rancho Verde Village] I I i i I I 1 Declaration of Reciprocal Easements for Ingress and Egress and Common Use Resolution No. 07-049 Page 33 of 48 LEGAL DESCRIPTION Parcel 1: 8819 Siena Madre Avenue That portion of Lot 29 in Section 9,Township 1 South, Range 7 West, San Bernardino Meridian, according to Map of Cucamonga Lands, as per Map recorded in Book 4, Page 9 ,of Maps, in the Office of the County Recorder of said County,described as follows: Beginning 895.96 feet East of the Northwest corner of said Lot,thence South 474.09 feet to the North line at and Sante Fe Railroad right of way; thence Easterly along said right of way to the East line of Lot 29,thence North to the Northeast corner; thence West to the point of beginning. Excepting therefrom that portion lying West of the Southerly extension of the.West line of Sierra Madre Avenue and excepting the North 97.01 feet and excepting the South 240 feet thereof. I I I i I A-1 I Resolution No. 07-049 Page 34 of 48 i Parcel 2: 8839 Sierra Madre Avenue II PARCEL 1: i The South 240 feet of that portion of Lot 29, Section 9,Township 1 South, Range 7 West, San Bernardino Meridian, according to the Map of Cucamonga Lands, in the City of Rancho Cucamonga, County of San Bernardino, State of California, as per Map recorded in Book 4, Page 9 of Maps, in the Office of the County Recorder of said County, lying Easterly of the Southerly prolongation of the Westerly line of Sierra Madre Avenue, as said Avenue is shown on the Maps of Eureka Gardens, Tract No. 1829,as per Plat recorded In Book 28, Page 20, of Maps, Records of said County. PARCEL 2: A non-exclusive easement for ingress and egress over and across that portion of Lot 29, Section 9,Township 1 South, Range 7 West, San Bernardino Meridian, lying within the Southerly extension of Sierra Madre Avenue, as said Avenue is shown on the Map of the Eureka Gardens Tract No. 1829,as per Plat recorded in Book 28,Page 20 of Maps, Records of said County. .Excepting therefrom the South 240 feet. i i A2 i Resolution No. 07-049 Page 35 of 48 Exhibit "C" [Common Driveway/Ingress and Egress] i I i If Declaration of Reciprocal Easements for Ingress and Egress and Comtnon Use Lj 4A� owl .10 Driv way Easement Area MASTER SITE PLAN 0 -00 Rancho Verde Village & East Rancho Verde Village EXLUBIT C p m2Wz CD 0 W , 0) C) 0 i, C) 00 (D Resolution No. 07-049 Page 37 of 48 Exhibit "D" [Community Room] I it I i i i I Declaration of Reciprocal Easements for Ingress and Egress and Common Use M DATA 7 axadvVadaVM,4 Im>$ vruaw.a �m ala .s..LLmm mY9.� YIYJLLUYY ✓=�a _ _ ��� �<a LLLL I1Jm • � I � __ , i � nor®wrs i 1-1 11ij CONCEPTUAL SITE PLAN - Conununity Room tot lot hardeourt (part of ground floor/see D-2) play area n_7`1K] ®,"�_„” East Rancho Verde Village g °�'° "" Rancho Cucamonga, California PRASSIARCHITECTS -00 Z o EXDI6IT D-1 000 0 0 � a A A 00 <D 0C (D O wE A z - oD o C) me V — O co i O O D i a i i i i i i -�SIc3 i 65�. ��• - . —a SI(� Sfrffi Tr � I i EAST RANCHO VERDE VILLAGE-COMMUNITY CENTER EXWBIT D-2 Resolution No. 07-049 Page 40 of 48 ALL-PURPOSE ACKNOWLEDGMENT State of California ) ss. County of San Bernardino ) On , 200 ,before me, Date Name and Title of Officer(e.g.,'7ane Doe,Notary Public") personally appeared Name(s)of Signcv(s) ❑ personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s) acted,executed the instrument, WITNESS my hand and official seal. Place Notary Seal Above Sigoatum of Notary Public i OPTIONAL Though the information below is not required by law.it may prove valuable to persons relving on the document and could preventfrvuduleni removal and reattachment of thisform to another domnnent, I I Description of Attached Document Title or Type of Document:Declaration of Reciprocal Easements for ingress &Egress and Common Use Document Dated 200 Number of Pages: 8 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer SigneI's Name: Right Thumbprint of Signer ❑ Individual ❑ Corporate Officer-Title(s):_ ❑ Partner- ❑ Limited e General ❑ Attorney in Fact ❑ Trustees ❑ Guardian or Conservator Other: Signer is Representing: Declaration of Reciprocal Easements for Ingress and Egress and Common Use Resolution No. 07-049 Page 41 of 48 EXHIBIT"D" [Schedule of Completion and Occupancy of East Rancho Verde Village] I I Housing Incentive Agreement Resolution No. 07-049 Page 42 of 48 EXHIBIT "D" EAST RANCHO VERDE VILLAGE EXPANSION AFFORDABLE HOUSING PROJECT SCHEDULE OF PERFORMANCE Ifem Key Components Approx.Date Acquisition Phase 1 Hard Deposit Release to Fidelity of$10,000-SFH(8819 Sierra Madre) 2/3/2005 2 Hard Deposit Release to Fidelity of$10,000-Vacant Lot(8839 Sierra Madre) 2/312002 3 Open Escrow-SFH(8819 Sierra Madre) 2/4!2005 4 Open Escrow-Vacant Lot(8839 Sierra Madre) 2/1112005 5 Hard Deposit Release to Fidelity of$40,000 to Extend Escrow-SFH(8819 Sierra Madre) 6/3/2005 6 Owner closes Escrow-$450,000 Vacant Lot(8839 Slema Madre) 6/27/2005 7 Owner closes Escrow-$405,000 SFH (8819 Sierra Madre) 7/1/2005 Financing Phase 8 Agency makes Financial Commitment 7/6/2005 9 Agency&Owner execute Affordable Housing Agreement(AHA) 7/13/2005 10 Agency reimburses Owner of 8819 and 8839 acquisitions 7/28/2005 11 Agency reimburses and releases funds for predevelopment expenses 8/12/2005 12 Owner flies San Bernardino County(SBC)HOME Application 911/2005 13 SBC&Owner execute HOME Loan Agreement 10/14/2005 14 SBC releases funds for construction 5/15/2007 15 Owner releases funds for construction 5/15/2007 16 Bank executes construction loan&makes funds available for construction 5/15/2007 Pre-Construction Phase 17 Owner,architect and civil engineer meet to coordinate design review process 7/24/2005 23 Owner submits schematics to City for Design Review 12/6/2005 24 City completes Design Review-Planning Commission Approval 12/13/2006 25 Owner submits Housing Incentive Agreement to City 10/16/2006 26 City Council approves Housing Incentive Agreement 11/1/2006 27 Owner submits construction documents("final drawings")to Agency 11/15/2006 28 Agency approves construction documents 11/30/2006 29 Owner submits construction documents to City for Plan Check 1 2/1 412 00 6 30 Owner submits revised proposed Project Budget to Agency 1/152007 31 Agency reviews and approves Final Project Budget 1/30/2007 32 City completes Plan Check-Building&Engineering Department Approvals 5/12007 Construction Phase 33 Owner pulls grading permit&begins grading 5/15/2007 34 Owner completes grading&pulls bldg permits 6!112007 35 Owner starts construction 6/1/2007 36 Owner completes construction 6/1/2008 i Lease-Up Phase 37 Owner/Manager starts lease-up 6/1/2008 38 Owner/Manager completes lease-up,property 100% occupied 9/1/2008 i I I Resolution No. 07-049 Page 43 of 48 ALL-PURPOSE ACKNOWLEDGMENT State of California ) ) SS. County of San Bernardino ) On . 2006, before me, Date Name and Title of Officer(e.g,,"Jane Doe,Notary Public") personally appeared Names)of Signers) ❑ personally known tome ❑ proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law,It may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Housing Incentive Agreement Document Dated Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: Right Thumbprint of Signer ❑ Individual ❑ Corporate Officer-Title(s):_ ❑ Partner- ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustees ❑ Guardian or Conservator Other: Signer is Representing: Housing Incentive Agreement Resolution No. 07-049 Page 44 of 48 City of Rancho Cucamonga MITIGATION MONITORING PROGRAM Project File No.: Development Review DRC2005-01060 and Housing Incentive Agreement DRC2006-00916 This Mitigation Monitoring Program(MMP)has been prepared for use in implementing the mitigation measures identified in the Mitigated Negative Declaration for the above-listed project. This program has been prepared in compliance with State law to ensure that adopted mitigation measures are implemented (Section 21081.6 of the Public Resources Code). Program Components - This MMP contains the following elements: 1. Conditions of approval that act as impact mitigation measures are recorded with the action and the procedure necessary to ensure compliance.The mitigation measure conditions of approval are contained in the adopted Resolution of Approval for the project. 2. A procedure of compliance and verification has been outlined for each action necessary. This procedure designates who will take action, what action will be taken and when, and to whom and when compliance will be reported. 3. The MMP has been designed to provide focused, yet flexible guidelines. As monitoring progresses, changes to compliance procedures may be necessary based upon recommendations by those responsible for the program. Program Management- The MMP will be in-place through all phases of the project. The project planner, assigned by the Planning Director, shall coordinate enforcement of the MMP.The project planner oversees the MMP and reviews the Reporting Forms to ensure they are filled out correctly and proper action is taken on each mitigation. Each City department shall ensure compliance of the conditions (mitigation) that relate to that department. Procedures -The following steps will be followed by the City of Rancho Cucamonga. 1. A fee covering all costs and expenses, including any consultants' fees, incurred by the City in performing monitoring or reporting programs shall be charged to the applicant. 2. A MMP Reporting Form will be prepared for each potentially significant impact and its corresponding mitigation measure identified in the Mitigation Monitoring Checklist, attached hereto. This procedure designates who will take action,what action will be taken and when,and to whom and when compliance will be reported. All monitoring and reporting documentation will be kept in the project file with the department having the original authority for processing the project. Reports will be available from the City upon request at the following address: City of Rancho Cucamonga - Lead Agency (Planning Department) 10500 Civic Center Drive Rancho Cucamonga, CA 91730 MITIGATION MONITORING CHECKLIST (INITIAL STUDY PART III) Project File No.: DRC2005-01060 and DRC2006-00916 Applicant: Rancho Southern California Housing Development Corp. Initial Study Prepared by: Michael Diaz Date: November 29, 2006 Mitigation Measures No. Responsible Monitoring Timing of Method of Verif led Sanctions for Implementing Action for Monitoring Frequency Verification Verification Date/initials Non-Compliance Air Quality All construction equipment shall be maintained in good PD C Review of plans A/C 2/4 operating condition so as to reduce operational emissions. The contractor shall ensure that all construction equipment is being properly serviced and maintained as per manufacturers' specifications. Maintenance records shall be available at the construction site for City verification. Prior to the issuance of any Grading Permits, the PD/BO C Review of plans C 2 developer shall submit Construction Plans to the City denoting the proposed schedule and projected equipment use. Construction contractors shall provide evidence that low-emission mobile construction equipment will be utilized, or that their use was investigated and found to be infeasible for the project. Contractors shall also conform to any construction measures imposed by the South Coast Air Quality Management District (SCAQMD) as well as City Planning Staff. All paints and coatings shall meet or exceed PD C Review of plans A/C 2/4 performance standards noted in SCAQMD Rule 1113. Paints and coatings shall be applied either by hand or high-volume, low-pressure spray. All asphalt shall meet or exceed performance standards BO B Review of plans A/C 2 noted in SCAQMD Rule 1108. m 0 0 All construction equipment shall comply with SCAQMD BO C Review of plans A/C 2/4 Rules 402 and 403. Additionally, contractors shall p 0 include the following provisions: I cc CD Z Reestablish ground cover on the construction site BO C Review of plans A/C 2/4 N , through seeding and watering. J 0 1018 aA 00 (O Mitigation Measures No. Responsible Monitoring Timing of Method of Verified Sanctions for Implementing Action for Monitoring Frequency Verification Verification Date finitials Non-Compliance -0x ro All residential and commercial structures shall be BO C/D Review of plans C 2/4 m o required to incorporate high-efficiency/low-polluting .p c heating,air conditioning,appliances,and water heaters. o o All residential and commercial structures shall be BO C/D Review of plans C 2/4 a Z required to incorporate thermal pane windows and co 0 weather-stripping. o v Cultural Resources a If any prehistoric archaeological resources are encountered before or during grading,the developer will retain a qualified archaeologist to monitor construction activities, to take appropriate measures to protect or preserve them for study. With the assistance of the archaeologist, the City of Rancho Cucamonga will: Enact interim measures to protect undesignated PD/BO C Review of report A/D 3/4 sites from demolition or significant modification without an opportunity for the City to establish its archaeological value. Consider establishing provisions to require PD/BO C Review of report A/D 3/4 incorporation of archaeological sites within new developments, using their special qualities as a theme or focal point. Pursue educating the public about the PD/BO C Review of report A/D 3/4 archaeological heritage of the area. Propose mitigation measures and recommend PD/BO C Review of report A/D 3/4 conditions of approval to eliminate adverse project effects on significant, important, and unique prehistoric resources, following appropriate CEOA guidelines. Prepare a technical resources management report, PD C Review of report A/D 3/4 documenting the inventory, evaluation, and proposed mitigation of resources within the project area. Submit one copy of the completed report,with original illustrations, to the San Bernardino County Archaeological Information Center for permanent archiving. 3 of 8 Mitigation Measures No.I Responsible Monitoring Timing of Method of Verif led Sanctions for Implementing Action for Monitoring Frequency Verification Verification Date Frontage public streets shall be swept according to a BO C During A 4 schedule established by the City to reduce PM,v construction emissions associated with vehicle tracking of soil off- site. Timing may vary depending upon the time of year of construction. Grading operations shall be suspended when wind BO C During A 4 speeds exceed 25 mph to minimize PM,a emissions construction from the site during such episodes. Chemical soil-stabilizers (approved by SCAOMD and BO C During A 4 RWOCB) shall be applied to all inactive construction construction areas that remain inactive for 96 hours or more to reduce PM,,emissions. Hydrology and Water Quality Prior to issuance of grading permits,the permit applicant BO B/C/D Review of plans A/C 2/4 shall submit to Building Official for approval, Storm Water Pollution Prevention Plan (SWPPP) specifically identifying Best Management Practices (BMPs) that shall be used on-site to reduce pollutants during construction activities entering the storm drain system to the maximum extent practical. An Erosion Control Plan shall be prepared, included in BO B/C/D Review of plans A/C 2/4 the Grading Plan, and implemented for the proposed project that identifies specific measures to control on- site and off-site erosion from the time of ground disturbing activities are initiated through completion of grading. This Erosion Control Plan shall include the following measures at a minimum: a)Specify the liming of grading and construction to minimize soil exposure to rainy periods experienced in southern California,and b) An inspection and maintenance program shall be included to ensure that any erosion which does occur N either on-site or off-site as a result of this project will be O corrected through a remediation or restoration program within a specified time frame. I d Z m o A ' V O O 5of8 AA 00 m Mitigation Measures No. Responsible Monitoring Timing of Method of Verified Sanctions for Implementing Action for Monitoring Frequency Verification Verification Date/Initials Non-Compliance Q) (D Prior to issuance of Grading or Paving Permits, BO B/C/D Review of plans A/C 2/4 m o applicant shall obtain a Notice of Intent(NOI)to comply A ;_ with obtaining coverage under the National Pollutant OO 0 Discharge Elimination System (NPDES) General o Construction Storm Water Permit from the State Water a Z Resources Control Board. Evidence that this has been OD o obtained (i.e., a copy of the Waste Discharger's Vo Identification Number) shall be submitted to the City o Building Official for coverage under the NPDES General Construction Permit. Noise Prior to issuance of building permits, the applicant shall PD/BO B Plan Check and C 3/4 submit to the Planning Director and Building Official for during review and approval, building plans that demonstrate construction compliance with the noise attenuation recommendations of the acoustical engineer as contained in the Acoustical Analysis prepared by Davy & Associates, Inc.(April 2006), and on file with the Planning Department. Construction or grading shall not take place between the BO C During A 4 hours of 8:00 p.m. and 6:30 a.m. on weekdays, construction including Saturday, or at any time on Sunday or a national holiday. Construction or grading noise levels shall not exceed the BO C During A 4 standards specified in Development Code Section construction 17.02.120-D, as measured at the property line. The developer shall hire a consultant to perform weekly noise level monitoring as specified in Development Code Section 17.02.120. Monitoring at other times may _ be required by the Building Official. Said consultant shall report their findings to the Building Official within 24 hours; however, if noise levels exceed the above standards, then the consultant shall immediately notify the Planning Department. If noise levels exceed the above standards, then construction activities shall be reduced in intensity to a level of compliance with above noise standards or halted. 7 of 8