HomeMy WebLinkAboutC-8970-1 - Termination of Affordable Housing Agreement10/20/22, 11:52 AM
Batch 14864291 Confirmation
RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
Attention: City Clerk's Office
City of Newport Beach
100 Civic Center Drive
Newport Beach, California 92660
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
III IIIIIIIIIIIIIII �� IIII IIIIIIIIIIIIII II III NO FEE
*$ R 0 0 1 4 0 1 9 6 4 0$
202200034035411:26 am 10120122
90 CR-SC06 T02 44
0.00 0.00 0.00 0.00 129.00 0.00 0.000.000.00 0.00
Space above this line reserved for recorder's use only
EXEMPT FROM RECORDING FEES PURSUANT TO GOWT CODE §§ 6103 & 27383
EXCEPT FOR GOWT CODE § 27361.3
TERMINATION OF AFFORDABLE HOUSING AGREEMENT
WHEREAS, the City of Newport Beach, a California municipal corporation and charter
city ("City"), and Newport Harbor Apartments, a general partnership, ("Developer"), entered into
that certain Affordable Housing Agreement, dated October 22, 1987, and recorded on November
16, 1987, by the Office of the County Recorder in the Official Records of Orange County as
Instrument Number 87-643417 ("Agreement');
WHEREAS, City approved Developer's request for a density bonus to construct a
multifamily residential project of 26 dwelling units, commonly known as the Newport Harbor
Apartments I, located at 1538 Placentia Avenue, in the City of Newport Beach, California (APN
No. 424-161-02), and as legally described in Exhibit A attached hereto and incorporated herein
by this reference ("Property");
WHEREAS, a true and correct copy of the Agreement is attached hereto as Exhibit B and
incorporated herein by this reference;
WHEREAS, in connection with the Agreement, Developer granted a power of termination
of its interest in the Property to the City by way of that certain Grant Deed recorded November 16,
1987, by the Office of the County Recorder in the Official Records of Orange County as Instrument
Number 87-643418 ("Grant Deed"), a true and correct copy of which is attached hereto as Exhibit
C and incorporated herein by this reference;
WHEREAS, pursuant to the Agreement, Developer promised, covenanted, and agreed to
maintain the 26 dwelling units constructed on the Property as affordable to lower income families
for a period of 30 years;
WHEREAS, pursuant to the Agreement, the Agreement was made binding upon and
inured to the benefit of the parties' respective successors and assigns;
WHEREAS, DRC Investments, Inc., a California corporation, and Capilouto
Incorporated, a California corporation, are the successors in interest to Developer and the legal
https:Hgs.secure-recording.com/Batch/Confirmation/14864291 1 /2
RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
Attention: City Clerk's Office
City of Newport Beach
100 Civic Center Drive
Newport Beach, California 92660
Space above this line reserved for recorder's use only
EXEMPT FROM RECORDING FEES PURSUANT TO GOV'T CODE §§ 6103 & 27383
EXCEPT FOR GOV'T CODE § 27361.3
TERMINATION OF AFFORDABLE HOUSING AGREEMENT
WHEREAS, the City of Newport Beach, a California municipal corporation and charter
city ("City"), and Newport Harbor Apartments, a general partnership, ("Developer"), entered into
that certain Affordable Housing Agreement, dated October 22, 1987, and recorded on November
16, 1987, by the Office of the County Recorder in the Official Records of Orange County as
Instrument Number 87-643417 ("Agreement");
WHEREAS, City approved Developer's request for a density bonus to construct a
multifamily residential project of 26 dwelling units, commonly known as the Newport Harbor
Apartments 1, located at 1538 Placentia Avenue, in the City of Newport Beach, California (APN
No. 424-161-02), and as legally described in Exhibit A attached hereto and incorporated herein
by this reference ("Property");
WHEREAS, a true and correct copy of the Agreement is attached hereto as Exhibit B and
incorporated herein by this reference;
WHEREAS, in connection with the Agreement, Developer granted a power of termination
of its interest in the Property to the City by way of that certain Grant Deed recorded November 16,
1987, by the Office of the County Recorder in the Official Records of Orange County as Instrument
Number 87-643418 ("Grant Deed"), a true and correct copy of which is attached hereto as Exhibit
C and incorporated herein by this reference;
WHEREAS, pursuant to the Agreement, Developer promised, covenanted, and agreed to
maintain the 26 dwelling units constructed on the Property as affordable to lower income families
for a period of 30 years;
WHEREAS, pursuant to the Agreement, the Agreement was made binding upon and
inured to the benefit of the parties' respective successors and assigns;
WHEREAS, DRC Investments, Inc., a California corporation, and Capilouto
Incorporated, a California corporation, are the successors in interest to Developer and the legal
owner of all rights, title, and interest in the Property pursuant to the Grant Deed recorded July 27,
1994, by the Office of the County Recorder in the Official Records of Orange County as Instrument
Number 94-0474085, the Quitclaim Deed recorded June 7, 2022, in the Office of the County
Recorder in the Official Records of Orange County as Instrument Number 2022000207337, and
the corrective Grant Deed recorded June 7, 2022, in the Office of the County Recorder in the
Official Records of Orange County as Instrument Number 2022000207336, true and correct copies
of which are attached hereto respectively as Exhibits D, E, and F and incorporated herein by this
reference;
WHEREAS, the obligation under the Agreement to maintain the 26 dwelling units
constructed on the Property as affordable to lower income families for 30 years has expired;
WHEREAS, in connection with the expiration of the obligations under the Agreement, the
City is obligated under Section II.2. of the Grant Deed to release and quitclaim its interest in the
Property; and
NOW, THEREFORE, the parties hereto agree to terminate the Agreement, and thereby
terminate all promises, covenants, agreements, rights, duties, and obligations under the Agreement
to maintain the 26 dwelling units constructed upon the Property as affordable housing units and
remove the affordable housing unit obligation as a matter affecting title to the Property, and the
City hereby remises, releases and quitclaims the Property to DRC Investments, Inc., a California
corporation, and Capilouto Incorporated, a California corporation.
Exhibits: A - Property Legal Description
B - Affordable Housing Agreement, dated October 22, 1987
C - Grant Deed recorded November 16, 1987
D - Grant Deed recorded July 27, 1994
E — Quitclaim Deed recorded June 7, 2022
F — Corrective Grant Deed recorded June 7, 2022
[Remainder of page intentionally left blank; signature page follows.]
IN WITNESS WHEREOF this instrument is duly executed as of the date first above
written.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
By
Nam Aq 4,W C _ �z►
Title:rn� y
ATTEST:
44�
1kyh
C I
CITY OF NEWPORT BEACH
a California municipal corporation
:1
6
DRC INVESTMENTS, INC.,
a California corporation
By: L4a6re
Name: f15 -
Title:
CAPILOUTO INC.,
a California corporation
By:
Name: Oil �vr.'7S: C 5
Title: Pr e 5
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
of that document.
State of California
County of .�
On v — , 2022, before me, ;�� ,- ,_ � - , a Notary Public, personally
appeared pC NfAIS , who proved to me on the basis of satisfactory
evidence to be the person(s) whose ame(s) mare subscribed to the within instrument, and
acknowledged to me that hoi4w/they executed the same in h r/their authorized capacity(ies),
and that by h*ilmT/their signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public
SAM BEIK�
' NotaryPublic - California
z
Orange County >
Commission # 2333095
My Comm. Expires Sep 29, 2024
(seal)
EXHIBIT A
LEGAL DESCRIPTION
THE LAND REFERRED TO IN THIS DOCUMENT IS SITUATED IN THE STATE OF
CALIFORNIA, COUNTY OF ORANGE, CITY OF NEWPORT BEACH, COMMONLY
KNOWN AS 1538 PLACENTIA AVENUE AND DESCRIBED AS THE SOUTH 128.66 FEET
OF THE NORTH 235.66 FEET OF THE WEST 308.55 FEET OF LOT 715, FIRST ADDITION
TO NEWPORT MESA TRACT, AS SHOWN ON A MAP THEREOF, RECORDED IN BOOK
8, PAGE 61, MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY, THE
EAST LINE OF SAID PARCEL BEING PARALLEL WITH THE 338.55 FEET EAST OF
THE CENTER LINE OF PLACENTIA AVENUE.
EXHIBIT B
AFFORDABLE HOUSING AGREEMENT
N
87-64341 T. Recorded at the rquat of
61mir Amin. iiTU His. M
8:00
To BE RECORDED AND A.M. NOV 161987
WHEN RECORDED RETURN TO: Orfi6if Records
Orange County, California
City Clerk I
Citv of Newport Beach
3300 Newport t?oulevard 315.(;0
Newport Beach, CA 92663 C14
AFFORDABLE HOUSING AGftEEMENrr
f 7111S AGREEMFtrr is entered into this 22- nd � day of
T , 198-7—, by and between WE CITY OF NEWPORT BEACH, a
municipal corporation and charter city, (hereinafter "City") and
NEWPORT HARBOR APARIM04TS, a general partnership (hereinafter
"Developer"), and is made with reference to the following facts:
RCCITA.LS
WHEREAS, Developer is the owner of that certain parcel of
land described on Exhibit "A" attached hereto and located in the
City of Newport Beach (hereinafter "The Property"); and
WHEREAS, on July 27, 1987, City approved the Developer's
request for a Density Bonus pursuant to Section 65925 of the
California Government Code so as to construct an apartment complex
with 26 units affordable to lower -income families; and
WILEREAS, the City's Housing Element of the General Plan
has established goals and objectives pertaining to preserving and
increasing rental h,.)using opportunities for lower -income house-
holds; and
W1iEREAS, City and Developer desire to enter into this
Agreement establishing certain criteria related to a thirty (30)
year period of affordability, tenancy, and rents within this
87--64 3417
housing development; and
WIiEREAS, the City has granted Developer the sum of three
hundred fifty thousand dollars ($350,000) of Community Development
Block Grant funds to acquire an interest in the property so as to
guarantee the affordability of the development for the thirty (30)
year period, and City and Developer shall execute a grant deed to
be recorded against the Property in the form attached hereto as
Exhibit "B. "
WHEREAS,. the parties, through this agreement, wish to
establish procedures for the ad.ministrdtion of the affordable
housing requirements.
NOW, r EREFORE, in consideration of the mutual covenants,
promises and conditions stated below, the parties agree as follows:
AGREEME WS
I. Developer, for itself and for its successors-in-in--
terest, agrees to provide, and maintain for a period of thirty (30)
years, a 26-unit rental apartment development consisting of 21
two -bedroom units and 5 three -bedroom units affordable to "lower -
income" individuals or families as that term is herein defined, at
"restricted rents," as that term is herein defined.
2. As used herein, the term "lower -income families"
shall mean an individual or individuals, or families, who possess
an "active" Section 6 Existing Rental Assistunce Certificate or
Voucher, and currently receive rental assistance or are eligible to
receive rental assistance. The parties to this agreement and their
- 2 -
87-643417,
successors or assigns, shall select or develop z substitute income
standard should the Section 8 Existing Rental Assistance Certifi-
cate or Voucher programs be discontinued.
3. As used herein, the term "Restricted Rents" shall
mean the maximum rent which may be charged and which may be
adjusted from time to time by the Developer. The maximum monthly
rant which may be charged for the 26 units is the Section 8 Fair
Market Rent (FRR) as established by unit size and published by the
Department of Housing and Urban Development (IiUD) . The rental
rates may be adjusted periodically to reflect published changes in
the Section 8 FMR as published by HUD. However, rents may not be
increased within 6 months of the initial occupancy of the apart-
ments nor may the rents of individual tenants be increased within 6
months of an occupancy occuring after the initial occupancy.
4. Because of the use of Community Development Block
Grant funds, the substitute income standard discussed in No. 2
above shall never exceed the lower -income standard of eighty
percent (8G%) of the median income as calculated for a family of
four in the Anaheim -Santa Ana SM.SA (Orange County, California) , as
determined by the Secretary of the United States Department of
Housing and Urban Development ("HUD") in the "Revised Section 8
Income Limits" published annually. 'lice maximum monthly rent shall
be based on the substitute income and never exceed 30; of that
income divided by 12, nor ever exceed 301 of the l[UD lower -income
(801) standard divided by 12 [(maximum annual income x .30)/12].
The income and rental rates may be adjusted periodically to reflect
3
8* -6434I 7
published changes in the HUD area median income. When no acccp-
t'able Section 8 Existing Rental Assistance Certifi_cdte or Voucher
holders Are available, the 26 units may also be rented to in-
dividuals and families at or be'_,•fw the 80% HUD standard described
above. The rent shall never exceed 30% of that standard as also
described above.
5. At the request of the Developer and no more than
once in any calendar year, City shall reevaluate the income and
rent standards. -In no event shall the income standard exceed
eighty percent (Bo%) of the median income as described in paragraph
No. 4 above.
6. The Developer shall be responsible for ensuring that
the "lower --income" individuals or families as defined herein, who
rent a unit in this development, properly meet the income limits
set forth herein. in order to ensure that the individuals or
families are properly qualified in terms of income level, and to
ensure that: the process by which the occupants or the Affordable
Units are selected is fair and equitable, the Developer shall, at a
minimum for the initial occupancy, do the following:
a. Advise the orange County Housirg Authority, in
writing, of the availability of the affordable units
and/or advertise the availability of the affordable units
on at least two separate occasions in a newspaper of
general circulation within the County of Orange;
b. Allow a reasonable period or time Cur in-
dividuals or families to be assisted by the Orange
-- 4 -
87-643417
County Housing Authority or to apply with the Developer
for rental of an Affordable Unit, and accept applications
for occupancy for a period of not less than 10 days after
the' last date on which the availability of the unit is
advertised;
C. Develop for use a form that requires all
information necessary to make a determination of the
income earned by the person or family applying, and the
Developer shall investigate the facts and representations
contained in all applications submitted and/or take other
appropriate action to attempt, in good faith, to confirm
that those facts and representations are accurate.
d. After an impartial screening of applicants,
the developer shall accept Section 8 Existing ce rtific?ite
holders without prejudice.
7. When no acceptable Section B tenants are available,
vacancies occurring after the initial occupancy may be filled
through a method of randomly selecting qualified tenants from a
list of all rtnown qualified prospective tenants that have expressed
an interest in renting a unit over the previous 12 months. All
prospective tenants must be advised that they must renew their
interest after a period of one year.
B. In the event that an Affordable Unit is rented to an
individual or family who does not qualify under the terms of this
Agreement, the Developer shall, within 90 days from the date on
which it learns of the failure of, the individual or family to
- 5 -
81-6434IT.
qualify, replace the occupant or occupants of that unit with an
individual or a family who do qualify as provided in this Agree-
ment.
9. The Developer shall require that any individual or
family occupying a unit in this development enter into a rental
agreement which shall contain at least the following terms:
a. The occupant or occupants of any unit shall be
required, at least once a year, to provide the Developer
under the penalty of perjury, with information regarding
the income of the occupants to determine if the indi-
vidual or family still qualifies for occupancy as set
forth herein. This information shall also be provided to
the City on an annual basis; and
b. A provision that gives the Developer the right,
in the event of a material misrepresentation made by an
individual or family with respect to income, or in the
event the individual or family no longer qualifies, as
provided in this Agreement, to terminate the tenancy upon
30 days written notice. When requali£ying a tet,ant, an
income increase occurring during the previous year of
tenancy shall not disqualify a previously qualified
tenant if the resulting income is not more than 10%
higher than the maximum allowable income.
10. Developer understands that. the Davis -Bacon
regulations, as set forth in Section 110 of the Housing and
Community Development Act of 1974, may be applicable. If
81-643417
applicable, Developer agrees to fully cc:mply, at its sole cost,
with the Davis -Bacon regulations.
11. The pa:.,ties agree that any breach of this Agreement
by the Developer shall cause irreparable injury to the City of
Newport Beach and that monetary damages, or any other legal remedy,
would be inadequate to remedy such a breach. The parties further
agree that the City, in the event of a breach of the Agreement by
the Developer, is entitled to obtain an Order of the Superior Court
requiring the Developer to specifically perform in accordance with
this Agreement, and that the City would be entitled to interim
injunctive relief pending the issuance of such an order. In the
event the City is required to enforce the terms and conditions of
this Agreement, the City shall be entitled to recover reasorable
attorney's fees and costs incurred in Conjunction with such litiga-
tion. The City and Developer agree that the terms of this
Paragraph No. 11 are in addition to all rights and remedies set
forth in the grant deed attached hereto as Exhibit "B.'r
12. Notices required or permitted hereunder shall be
sufficiently given if made in writing and delivered either
personally or by registered or certi;ied mail, postage prepaid, to
the following addresses, or to such other address as may be
designated for formal notice:
City of Newport Beach
City Manager
P.O. Box 068
Vewport Beach, CA 92658-8915
Newport harbor Apartments
c/o Mesa Development Co., Inc.
2925 College Ave . , A-3
Costa Mesa, CA 92626
- 7 -
87-6434 1 7.
33. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and
assigns, and shall be recorded in the County Recorder"s Office,
Orange County, California.
3.4. No change in or addi".ion to this Agreement or any
part hereof shall be valid unless in writing and signed by or on
behalf of the parties hereto.
15. If any portion of this Agreement is held by a court
or arbitrator of competent jurisdiction to be invalid, void and
unenforceable, the rerrainder of the provisions hereof shall remain
in full force and effect and shall in no way be affected, impaired
or invalidated.
16. This Agreement constitutes the entire understanding
between the parties with respect to the subiecst matter hereof,
superseding all negotiations, prior discussions and preliminary
agreements or understandings, written or oral.
17. 11iis Agreement shall be governed by, and construed
and enforced in arc:ordance with, the laws of the State of
California, and the Developer shall, in the performance of its
duties under this Agreement, comply with all applicable Federal,
State and local Fair Housing Laws.
18. libe parties shall each execute and deliver or cause
to be executed and delivered such further instruments and documents
and shall take such other action as may be reasonably required to
more effectively carry out the intent and purpose of this
Agreement..
- 8 -
8T-643417
IN WITNESS WHEREOF, the parties have executed th.
Agreemen4 on the day and year first above written.
CIT
By
ATTEST:
G � 1�
City Clerk
APPROVED AS TO FORM:
City Attorney
NEWPORT HARDOR APARTMENTS
a General Partners
l
B
0-7
ames G. Whit Jr.
By
Lawrence Campeau
By ��
Layne aser
C:\CTB\NP1UU1BOR.AA
_ 9
STALE OF MtFOIttttk *�
aX"M OF Orange s: U{� T-64J417,
Orr this (rldday of,cL.
i n the year / before me, the undersigned a
Notary Pub is in and for said State, oer•sonally appeared ( , known
to me to be the Mayor of the City of Newport Beach and 9F Alw fr known to
Pic to be the City Clerk of the City o` tJewpur•t Beach and known to me Wbe the persons
who executed the within instrument on behalf of said governmental agency, and
acknowledged to me that such governmental agency executed the same.
W!TNESS my hand and official seal.
Iintar► Ic rrt aW for said Stile
...,. W41AL SEAL
DOROTHY L. PALEN
NOTARY nlel.Ic • CALWO "
PRIIIMAL WFIM Me
ORANGE cou" Y
Yl Ca mWan EW APr, Sr IM
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and Wayne Fraser
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B7-6434d'
Tlie: icuui reierr^dto in this document is situated in the State of
California, County of Orange, City of Newport Beach, commonly known
as 1538 Placentia Avenue and described as the South 128.66 feet of
the North 235.66 feet of the West 308.55 feet of Lot 715, First
Additicn to Newport Mesa Tract, as shown on a map thereof, recorded
in book 8, page 61, Miscellaneous Maps, records of said orange
County, the East line of said parcel being parallel with and 338.55
feet East of the center line of Placentia Avenue.
Exhibit "A" to the Affordable Agreement -- 10
EXHIBIT C
GRANT DEED RECORDED NOVEMBER 16, 1987
87-643418
WHEN RECOP.DED MAIL TO:
City of Newport Beach EnElrl'�
3303 Newport Boulevard �C14
Newport Beach, CA 92663
Attention: James D. Hewicker, Planning Director
MAT :. TAX S'1'A'1't: ENI S TO ADDRESS ABOVE
)4S'f,4 [ - 6
(Space above line for Recorder's use)
Recorded at the request of
nWST TIMER. TITLE INS. CO.
810
A.M.
A .M NOV 161987
Official Recolds
AA()rannge County, CaiifOmia
DOCUMENTARY 'TRANSFER TAX $ Exemot
( ) Comouted on the consideration or
value of property conveyed; or
( ) Computed on the consideration or
value less liens and encumbrances
remaining at time of sale.
( ) Unincorporated area:
(X) City of Newport Beach
G R A N T D E E D
For valuable consideration in the form of the payment to Grantor
of three hundred fifty thousand dollars ($350,000) of Community Development
Block Grant Funds from the U. S. Department of Housing and Urban Develop-
ment, the receipt (and sufficiency) of which is hereby acknowledged,
NEWPORT HARBOR APARIM124TS, a General Partnership (hereinafter the "Gran-
tor";, grants to the CITY OF NEWPORT BEACH, a California Municipal corpora-
tion (hereinafter the "Grantee"), a power to terminate the interest. cf
Grantor in that certain parcel of real property described on EXHIBIT "A"
attached hereto, exercisable upon and subject to the following terms and
conditions:
Exhibit "B" to the Affordable Agreement - 1
87-643418
I. The power of termination can only be exercised upon the
occurrence o!- the following condition subsequent:
In the event that, following completion and construction of twen-
ty-one (21) taro -bedroom rental units and five (5) three -bedroom rental
units on the subject property and issuance of Certificates of Occupan-
cy therefore, and thereafter for a period of thirty (30) years from
the date on which the first fotirteen (14) of the rental units are oc-
cupied, Grantor fails to make said twenty-six (26) rental units
available for rent to "lower -income families" as that term is herein
defined and at "restricted rents," as that term is herein defined. As
used herein, the term "lower -income families" shall mean an individual
or individuals, or families, who possess an "active" Section 8
Existing Rental Assistance certificate or Voucher, and currently
receive rental assistance or are eligible to receive rental assis-
tance. The parties to this agreement and their successors or assigns.
shall select or develop a substitute income standard should the
Section 8 Existing Rental Assistance Certificate or Voucher programs
be discontinued. As used herein, the term "Restricted Rents" shall
mean the maximum rent which may be charged and which may be adjusted
from time to time by the Grantor. The maximum monthly rent which may
be charged for the 26 units is the Section 8 Fair Market Rent (FMR) as
established by unit size and published by the Department of Housing
and Urban Development (HUD). The rental rates may be adjusted
periodically to reflect published changes in the Section 8 FM as
published by HUD. However, rents may not be increased within 6 months
of the initial occupancy of the apartments nor may the rents of
Exhibit "B" to the Affordable Agreement - 2
8T-643418
individual tenants be increased within 6 months of an occupancy
occurring after the initial occupancy. Because of the use of Com-
m pity Development Block Grant funds, the substitute income standard
discussed above shall never exceed the lower income standard of eighty
percent (80%) of the median income as calculated for a family of four
in the Anaheim -Santa Ana SMSA (Orange County, California), as deter-
mined by the Secretary of the United States Department of Housing and
Urban Development ("HUD") in the "Revised Section 8 Income Limits"
published annually. The maximum monthly rent shall be based on the
substitute income and never exceed 30% of that income divided by 12,
nor ever exceed 30% of the HUD lower -income (80%) standard divided by
12 ((maximum annual income x .30)/12). The income and rental rates
may be adjusted periodically to reflect published changes in the HUD
area median income• when no acceptable Section 8 Existing Rental
Assistance Certificate or voucher holders are available, the 26 units
may also be rented to individuals and families at or below the 80% HUD
standard described above. The rent shall never exceed 30b of that
standard as also described above.
II. This power of termination shall be SUBJECT' TO the following
terms and conditions:
1. Nothing herein shall be interpreted to prohibit
occupancy of any two -bedroom unit constructed on the Subject Property by
fewer than a four-perran household or of any three -bedroom unit con-
structed on the Subject Property by fewer than a six -person household.
Exhibit "B" to the Affordable Agreement - 3
87-643418
2. Grantee agrees that upon written request of Grantor
following satisfaction of the condition opecified in I. above, Grantee
shall record a quitclaim deed in a form which is customary at such time and
is acceptable at such time to the Orange County Recorder, in which Grantee
shall release and forever quitclaim any interest it holds in the Subject
Property.
3. The Condition specified in I. above shall also be
considered a covenant of Grantor. Grantee, its successors or assigns may,
in addition to the power to terminate the estate of Grantor as provided
herein, seek any remedy available at law or in equity for Grantor's breach
thereof including, without limitation, the right to seek specific perfor-
mance or enjoin the continuance of the breach of any such covenants or
restrictions on use. It is specifically understood that any of the
foregoing remedies may be employed at the option of Grantee, its successors
and assigns, and the. failure of Grantee to employ any such remedies shall
not be a waiver of the right to employ such remedies upon the continuance
of any such occurrences or any subsequent occurrence.
4. It the event Grantee determines that Grantor, its
successors or assigns has violated any restriction or covenant contained
herein, Grantee shall promptly send written notice of such violation to
Grantor, its successors or assigns. Grantor, its successors or assigns
shall have sixty (60) days from receipt of such notice to commence curing
any noticed violation, or to seek a judicial determination by way of an
action for declaratory relief that Grantor is not in violation hereof,
before Grantee may commence any action to enforce any restrictions or
covenant contained herein, including any action to terminate Grantor's
Exhibit "B" to the Affordable Agreement - 4
B7-643418
estate in the Subject Property. In the event and only in the event that
Grantor, its successors and assigns do not cowence correction and,
thereafter diligently pursue correction, of any noticed violation within
sixty (60) nays after the later to occur or (i) receipt or such notice or
(i.i) entry of a final declaratory judgment that Grantor is in violation
hereof, Grantee may commence an action at law or in equity to compel
compliance. with such restrictions or covenants and/or exercise its power of
I
termination. in the event Grantor cures or corrects the violation, the
term of affordability shall be extended by the time Grantor was in viola-
tion of the covenants and restrictions. Grantee hereby covenants on behalf
of itself and any successors in interest herein and in the Subject Property
that, in the event Grantee exercises its power of termination hereunder,
Grantee and its successors and assigns thereafter shall reconvey title to
the Subject Property to Grantor by quitclaim deed, subject only to the same
conditions, restrictions, exceptions to title as may have existed at the
time of exercise of the power of termination, upon (i) the expiration of
j the thirty (30) year period specified in Condition I. above, for twenty-six
(26) rental units to be available for occupancy by "lower -income families"
plus the time from the Notice of Violation to the exercise of the Power of
i
Termination, and (ii) the tender to Grantee, or its successors or assigns,
of an amount equal to all costs, plus interest thereon at the rate of 10%
per annum, incurred by Grantee, or its successors or assigns related to the
exercise of the Power of Termination and ownership, operation and rrain-
tenance of the Subject .Property, which costs are in excess of revenues
received by Grantee, or its successors or assigns, from the Subject
Property.
Exhibit "B" to the Affordable Agreement - 5
g1-643418
5. Grantor and Grantee acknowledge that any funds paid by
Grantee to Grantor for the purpose of this power of termination shall have
been received by Grantee from HUD and that such trio funding is conditioned
upon compliance by Grantor and Grantee with all applicable Federal, state
and local statutes and regulations restricting the uses of such funds. In
the event that prior to satisfaction of Condition I. above, HUD requires
repayment of funds utilized by Grantee to acquire this power of termina-
tion, Grantor will refund to Grantee any funds it has received frock. Grantee
that are so required by HUD to be refunded and Grantee shall execute a
quitclaim deed in a form which is customary at such time and is acceptable
at such time to the Orange County Recorder, in which Grantee shall release
and f:)rever quitclaim any interest it holds in the Subject Property to
Grantor. In the event that HUD requires the repayment of funds utilized by
Grantee to acquire this power of termination, the 9 units for which the
Density Bonus was granted pursuant to Section 65915 of the California
Government Code shall be rented at restricted rents as provided for in
Section 65915 of the California Government Code for the balance of the
thirty (30) year period of affordability.
6. Grantor and Grantee recognize the reasonableness of the
foregoing covenants, conditions and restrictions on use, which recognition
and covenants, conditions and restrictions shall be binding on Grantor's
and Grantee's respective successors and assigns.
7. If any term, provision, condition or covenant of this
Deed or the application thereof to any party or circumstances shall, to any
extent, be held invalid or unenforceable, the remainder of this Deed or the
application of such term, provision, condition or covenant to persons or
Exhibit "511 to the Affordable Agreement - 6
8T-64341 8
unenforceable shall not be affected thereby, and each term and provision of
this Deed shall be valid and enforceable to the fullest extent permitted by
law.
CITY OF NEWPORT BEACH
A
By
ATTEST:
ty Clerk
APPROVED AS TO FORM: r1G�paM`r
�.Q
City Attorney
NE'WPORT HARBOR APARTMENTS
A. General Partners 'p
ames G. WtMtd Orr_
By
once a
r By
Wayn Fraser
C:\CTB\GRANTDED.NHA
Exhibit "B" to the Affordable Agreement -- 7
1
STATE OF CALIFOROK ► oT--6434 8
j �n OF Orange _ T+
j! On this day of 1i `r�
I y ��{N{ in the year �� 7 f re me the ndersigned a
Notary Public in and for said State, personally appeared ►. (" known
to me to be the Mayor of the City of Newport Belch and Te c 4,) , known to
me to be the City Clerk of the City of Newport Beach and known to me t e the persons
who executed the within instrument on behalf of said governmental agency, and
acknowledged to me that such governmental agency executed the same.
l WITNESS my hand and official seal.
_• ..,mow
OFFICIAL SEA.
/DOROTHY L. PALEN
G LCV �r NOTARV %JOUC • CALOORWA
rRINCMA4 OFFICE no
Mabry 1 In and for file State. Yi coamm W. Is"
STATE OF CALIFORNIA
cowiry C!F orange
Or. Octnber 14, 1987 1—f—. 1r . a Not.vy f'Uhh; . 1 ,w(l ha
saki State pcsonally ,Ippe,ued Jams G. %11-iite f Jr., Lawrence C. Canpeait,
and Wayne Fraser
:5.1
p••r5on,11Iy known to ' 1e Of prpv ed to file Un thr• bapn, of Sa 1,>
factory #•rdencel IC he the p,•Itoo that e—culed the wlth:n
.nmtumenl as partnerim.
on behalf at Lwsaport Harbor Aplartmmts
thl• U,lrtnet5h �(1
thereof named and aceY OK;ed.jvrj to me th,lt the panrlel5hq)
e XeCUt1•d ,1
WITNESS my hanJ and 01-11 5ew1
= OFFICIAL SEAL
NORI FA CIROU
�� y s_•„ NOTAltr f•;IIIL.L 1 A111ONNIA
I.MItICo'.1 .,"-,:L Ifs
OHANGE COUNTY
My Commisslp-1 Il;ves A;.rll l2, 19118
l h., lot otf 141 nW.11 ,11 •,eat,
87-64 30 8
The land referred to in this document is situated in the State of Califor-
nia, County of Orange, City of Newport Beach, commonly known as 1538
Placentia Avenue and described as the South 128.66 feet of the North 235.66
feet of the West 308.55 feet of Lot 715, First Addition to Newport Mesa
Tract, as shown on a map thereof, recorded in book. 8, page 61, Miscel-
laneous Maps, records of said Orange County, the East line of said parcel
being parallel with and 338.55 feet East of the center line of Placentia
Avenue.
Exhibit "A" to the Grant Deed - 1
81.-643418
This is to certify that the interest in real property convPvr-d by the
affordable housing agreement and grant deed dated October 22, 1987, from
i
Newport Harbor Apartments, a General Partnership, to thr, City of Newport
Beach, a Municipal Corporation and Charter City, is hereby accepted by
I
order of the City Council on July 27, 1987, and by the undersigned officer
on behalf of the City Council pursuant to authority conferred by Resolution
6773 of the City Council adopted on May 13, 1968, and the grantee consents
to recordation thereof by its duly authorized officer.
Dated October1987,
By Lr' (it —i 1 L Z _
Robert L. Wynn
City Manager
6r
i 8T-643418
! STATE OF CALIFORNIA )
1 ss.
COUNTY OF ORANGE )
On this 22nd day of October, 1987, before me, the
undersigned, a Notary Public in and for said State, personally
appeared Robert L. Wynn, personally known to me (or proved to me
on the basis of satisfactory evidence) to be the City Manager of
the City of Newport Beach and known to me to be the person who
executed the within instrument on behalf of said governmental
agency, and acknowledged to me that such governmental agency
executed the same.
WITK�SS�r� -haod aid % A�
OFFICIAL SEAL
MAUREEN l HUFFMAN
NOTAOY VWUC - CALIFORNIA
ORANGE COUNTY
T� -yr c^mm. :.:wr, tiJY 3 »s;. Notary Public
M ol-: _Y 07
GRANT DEED RECORDED JULY 27, 1994
`--Sdar Na U33201-3
b0ow No. 10016 s/m
Lean Me.
DOC 0 94-0474085
27-JUL-1994 03237 PM
CWi 1 auto Inc.
itl3 lbrits Aeiva
Smatimatem Esm&, Ca 92749
bm6d ie offkiel 01CV61
of from Cwdh. CGliftnis
LW A. Iriach. Contr beerder
h"lof 7 r",I A."
Text t IMA
MAIL TAX 87ATEAAEM TO; WWAY Trvv"- FWR x i...».....---- ...........
Mon as abme .1.. OMW Md en Me aN4uMlen a vebw of PRO" MA Old OR
!� Oen*AM en Me eaiwuMMn V %OA Mee eau V eemrearMe
APN WIM CW TMI C4 Llmm�un,m �airiZo �t
GRANT DEED
FOR A VAU AM CONSIDERATION, receipt of wtaoh is hweby seWaMedged. D
Newport Harbor Aparbnrnt, 11, a California Oeneral Partnership
herahy ORAWIM 10 5
MC I1-M tliiUa. Ism.. a California Corporation as to as undivided 302 interest and
Copilouto Ina.. a California Corporation as to an undivided 302 Interest
OW MW a coody ha GN Newport Beach State of CalHor► * ds m lbed at
�e
The South 128.66 feet of the North 235.66 feet of the Meat 308.55 of Lot 715 of First
Addition to Newport Mesa Tract, in the City of Newport Beach, County of Orange, State of
California, as per Map recorded in Book 8 page 6l of Miscellaneous Maps, records of said
County, the But line of said Parcel beirq parallel with and 338.55 feet East of the center
line of Placentia Avenue.
STMVTE OF CAUPOIINIA �es.
COUNTY OF Oraw�. ll
On .1e li- peel betme me,
frlaa raft ,
� penansy eppesN tarty CaTresan
ana+efp brew+ b +ne lo► pregd w wie er, we bard .M.Molory
eomm mowkeftpeeeeri}er+oeenmumbfteeubealbedbeeworn
r+Mnrewr end aebr+ewUdped a nu �+e�belrneAliey eweotAed Me aiwe
M MIAMI 4 WINOWI ed
bwtq an to
Me pweaNq
w,TNtas
ebrwe
OW by MM.INW*0 .ion..
on* adoi ^. - Pat ~
Newport garbor Apartsent, 11, a California
ra - - - - %a
MWa"b< m0WW 600
VM=s Or cAr iFORNsn )
coum or _ Grande
on June 16, 1994~� before no, arias poxcroft
Personally appeared L nmence K. commanu
e
personally known to " (or proved to me on the basis of satisfactory evidence
to be the person(*) whose nas (s) is/are subscr.lbed to the within instrument
and acknowledged to me that he/sho/they smauted the same in bis/her/their
authorised capacity(ies), and that by his/her/their signatnre(s) on the instru-
slant the peraon(s) o%r� entity upon behalf of which the person(*) acted,
executed the instrnisdt %-1
wz�s
Signature,
e�
6AY►W FMCROFT
oo�� �eae�t
d<;,. � NaMyPubneco�romia C
; [ t ORANGE COUNiv
��• �+tYCOmr►+b�bnf.c�ryy �
4A00--M 11 loot
GOVERNMENT CODE 27361.7
1 CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO
,WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS:
NAME OF HE NOTARY.
DATE COMMISSION EXPIRES:
COUNTY WHERE BOND IS FILED:
COMMISSION NO,:
MANUFACTURERIVENDOR NO.:
PLACE OF EXECUTION. -
SIGNATURE:
ORANGE
xw►r.ww..a».. .. —
TITLE COMPANY
DATE:
r-wm Na OMM
or CAUPOMA
sum
COUNTr or Ore
oa July 1. 1994 -- - before spa
)
)
Drina ToRcroft •
personally appeared Jaoes C. Vbite Jr.
a
personally
laoowa to " (or proved to as
on the basis of satistactory evidence
to be the persos(s) whose name(s) is/are subscribed to the within instrum"t
and acknowledged to " that he/she/they executed the sane in his/hsv/their
aatborised capacity(ies), sad that bT his/her/their signatures) on the instru-
sent the person(*) or th�s+ titr upon behalf of which the person(s) actede
executed the
wimms
signature
BMAN FOXCROs t
COWA *oeoe7 t
Naft CX A M CCOVNTV
Moio 1� 1V9?
GOVERNMENT CODE M61.7
I RflFY LINDER PENALTY OF PERJURY THAT
AS ���sSEAL ON THE DOCUMENT TO
ICH THIS STATEMENT IS ATTACHED READ 0
E OF THE NCrrA . 7 _
DATE COMMISSION EXPIRES: —
COUNTY WHERE BOND IS FILED:
COMMISSION NO.: - --p
MANUFACTURER/VENDOR NO.:
PLACE OF EXECUTION:....
SIGNATURE:
ORANGE COAST
55 /
DATE:
Form Na OCT-!W
-AWE OF c.L.ir+oWlA
CWJWZV 01
on Jully Ina. 1294. before so,
persoaallr appeared irate A. Framer
persoaall known to me p , r (or roomed to we on the basis of satisfactory evidence
to be the persons) whose name(s) is/are subscribed to the within instru"at
mad acknowledged to as that he/she/tbey executed the same is his/ber/their
■uthorised capacity(ism), and that by him/her/their signature(a) an the instru-
•eat the person(s) or
executed the
11I' =82 may
Signature
GOVERNMENT CODE M1.7
ty upon behalf of which the person(s) acted,
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO
ICH THIS STATEMENT 18 ATTACHED READS AS F LOWS;
AME OF THE NOTARY:
COMMISSION EXPIRES;;
COUNTY WHERE BOND IS FILED:
COMMISSION NO.:
MANUFACTURER/VENDOR NO.:
PLACE OF EXECUTION;
SIGNATURE: DATE:
ORANGE COAST TITLE COMPA AY -
Form No. OC't-n
t
EXHIBIT E
QUITCLAIM DEED RECORDED JUNE 7, 2022
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
II I I II III III! II III I II I I II II 114.00
*$ R 0 0 1 3 7 7 8 6 2 4$
2022000207337 3:32 pm 06/07122
340 NC-5 Q01 4
Recording Requested By: 0.00 0.00 0.00 20.00 9.00 0.00 0.000.0075.00 3.00
Daniel S. Wiesel, Esq.
When Recorded Return To:
Wolf, Rifkin, Shapiro,
Schulman & Rabkin, LLP
11400 Olympic Blvd., 91h Floor
Los Angeles, CA 90064
Quitclaim Deed
DOCUMENTARY TRANSFER TAX$ wwr — --
COMPUTED ON FULL VALUE OF PROPERTY CONVEYED.
OR COMPUTED ON FULL VALUE LESS LIENS
A ENCUyI ANC S REMAINING AT TIME OF SALE.
�i) I PR61 Il'C�9Z_s,it'd SUc�'i
Signature of Declarant or Agent determining tax. Firm Name
"This is a bonafide gift and the grantor received nothing in return, R & T 11911."
L
RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP
11400 Olympic Blvd, 9'h Floor
Los Angeles, California 90064
Attention: Daniel S. Wiesel, Esq.
Space above this line reserved for recorder's use only
QUITCLAIM DEED
"This is a bona fide gift and grantor received nothing in return, Rev. and Tax. Code § 1191 L"
FOR NO CONSIDERATION,
Newport Harbor Apartments, a California general partnership, and Newport Harbor
Apartments I, a California general partnership,
hereby remise, release and forever quitclaim to
DRC Investments, Inc., a California corporation, as to an undivided 50% interest and
Capilouto Inc., a California corporation, as to an undivided 50% interest,
the following described real property in the City of Newport Beach, County of Orange, State of
California:
THE SOUTH 128.66 FEET OF THE NORTH 235.66 FEET OF THE WEST
308.55 OF LOT 715 OF FIRST ADDITION TO NEWPORT MESA TRACT, IN
THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 8, PAGE 61 OF
MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY, THE EAST LINE
OF SAID PARCEL BEING PARALLEL WITH AND 338.55 FEET EAST OF
THE CENTER LINE OF PLACENTIA AVENUE.
APN: 424-161-02
Dated: ' 2-0 - 1. G ;LZ Newport Harbor Apartments,
a California general partnership
By -
Name:
Title: f l tSk A ewr, 0 c Z�UeK +4,Q-VrA s.yp
Newport Harbor Apartments I,
a California general partnership
By:
Name: v O
Title: 2Les ije G.0 T pverTw4ewTS. Lwc
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of D7 "�K
On o 1 -'L,* , 2022, before me, Sct w, �. ; �- , a Notary Public, personally
appeared De,nin, c CA Pi 16 k-tTo , who proved to me on the basis of satisfactory
evidence to be the person(* whose name(K) ishW subscribed to the within instrument, and
acknowledged to me that he/s*Mroy executed the same in his/lreir authorized capacity(i-*),
and that by his/lr signature(o) on the instrument the person.(), or the entity upon behalf of
which the person(s�,acted, executed the instrument.
1 certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
` rti SAM BER
t a Notary Public • California
Orange County
" Commission # 2333095
My Comm. Expires Sep 29, 2024
Notary Public —_� (seal)
EXHIBIT F
CORRECTIVE GRANT DEED RECivRDEi) ,i NE 7, 2022
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
131.00
*$ R 0 0 1 3 7 7 8 6 2 3$
2022000207336 3:32 pm 06107122
340 NC-5 D10 4
Recording Requested By: 0.00 0.00 20.00 20.00 9.00 0.00 0.000.0075.00 0.00
Daniel S. Wiesel, Esq.
When Recorded Return To:
Wolf, Rifkin, Shapiro,
Schulman & Rabkin, LLP
11400 Olympic Blvd., 911 Floor
Los Angeles, CA 90064
Grant Deed
DOCUMENTARY TRANSFER TAX $ MIJ
COMPUTED ON FULL VALUE OF PROPERTY CONVEYED.
O COMPUTED ON FULL VALUELESS LIENS
rENCU a� ANCES REMAINING AT TIME OF SALE.
�I ,Lean o6r ifmz 5wwrr Livo
Signature of Declarant or Agent determining tax. Firm Name
"The grantors and the grantees in this
conveyance are comprised of the same parties
who continue to hold the same proportionate
interest in the property, R & T 11925(d)."
RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP
11400 Olympic Blvd, 91h Floor
Los Angeles, California 90064
Attention: Daniel S. Wiesel, Esq.
Space above this line reserved for recorder's use only
GRANT DEED
This is a correction deed only. This document is being recorded to correct the grantor of the
premises reflected in that certain Grant Deed recorded on July 27, 1994, as document number 94-
0474085 in the official records of Los Angeles County.
"The grantor and the grantee in this conveyance are comprised of the same parties who continue to hold the same proportionate
interest in the property, Rev. and Tax. Code § 11925(d)."
Newport Harbor Apartments, a California general partnership, erroneously identified as
Newport Harbor Apartments II, a California general partnership, on that certain Grant Deed
recorded on July 27, 1994, as document number 94-0474085 in the official records of Los
Angeles County,
hereby GRANTS TO
DRC Investments, Inc., a California corporation, as to an undivided 50% interest and
Capilouto Inc., a California corporation, as to an undivided 50% interest,
the following described real property in the City of Newport Beach, County of Orange, State of
California:
THE SOUTH 128.66 FEET OF THE NORTH 235.66 FEET OF THE WEST
308.55 OF LOT 715 OF FIRST ADDITION TO NEWPORT MESA TRACT, IN
THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 8, PAGE 61 OF
MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY, THE EAST LINE
OF SAID PARCEL BEING PARALLEL WITH AND 338.55 FEET EAST OF
THE CENTER LINE OF PLACENTIA AVENUE.
APN: 424-161-02
Dated: (- 0 - �, 0 Newport Harbor Apartments,
a California general partnership
By:
Name: @ v a
Title: R es I d e w i d fl, C i 4, ve s-' w4p,.vT 5, .T7vc
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California ,
County of �►n
On o 1 — LO , 2022, before me, � M �-- , a Notary Public, personally
appearede-,nh•j-c Ca p; I o Ara — , who proved to me on the basis of satisfactory
evidence to be the person() whose name( is/M subscribed to the within instrument, and
acknowledged to me that he/ T executed the same in his/1Q4**ni-r authorized capacity(*,
and that by his/lam signature(A) on the instrument the person(y), or the entity upon behalf of
which the person(w) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
6
Notary Public
SAM BEIK
T Notary Public • California
i Orange County
Commission p 2333095
1-4 PIVMWWWMW—
My Comm. Expires Sep 29, 2024
(seal)