Loading...
HomeMy WebLinkAboutC-6043 - Affordable Housing Agreement Restrictions - Rental (Declaration of Conditions, Covenants and Restrictions for Property) - 305 East Bay Avenuef RECO I fN&REQU KMKPI$Y AND WHEN RECORDED MAIL City Clerk City of 9 rt Bea'Ch ' u` 100 Civic Center Drive Newport Beach, CA 92658-89155 WITH A COPY TO: TO: Recorded in Official Records, Orange County Hugh Nguyen, Clerk -Recorder 111111�Jjfl1111111111111111111111111111111111111111111111111111111111111 NO FEE 2 9 3 3 6 5$* 2015000081802 8:29 am 02/17115 217 416 Al2 25 0.00 0.00 0.00 0.00 72.00 0.00 0.00 0.00 Daniel, Andrew, Dustin & Sasha, LLC c/o Brooks Street 1300 Quail St Newport Beach, Ca. 92660 Attention: Neil Brandom (Exempt from Recordation Fee Cal. Gov. Code §§ 6103 & 27383) (Space Above For Recorder's Use) AFFORDABLE HOUSING AGREEMENT RESTRICTIONS—RENTAL (DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY) This Affordable Housing Agreement and Declaration of Conditions, Covenants and Restrictions for Property (the "Declaration") is made as of F0h 4 , 2015, by and between Daniel, Andrew, Dustin & Sasha,LLC, a Nevada limited liability company (the "Property Owner" or "Covenantor") and the City of Newport Beach, a California municipal corporation and charter city ("City" or "Covenantee"). RECITALS: A. Condition Nos. 8 and 9 of City Council Resolution 2008-053 and Coastal Residential Development Permit No. 2007-001 for "Seashore Village" (collectively the "Affordable Housing Condition of Approval") , require at least six (6) replacement affordable housing units to be provided (on-site or off-site) within three (3) years of the date of issuance of a demolition permit for structure(s) located at 5515 River Avenue in the City of Newport Beach. The replacement units must be maintained as rental units for very low- or low-income households for a minimum of thirty (30) years; any moderate -income units provided as "for -sale" units with a covenant maintaining the affordability for a minimum of thirty (30) years; or any combination thereof. B. Property Owner is the owner of record of that certain real property located at 305 East Bay Avenue 9266 1 ("Property"), in the City of Newport Beach, County of Orange ("County"), 1030910.07/oc 371528-0000212-4-15/rmj/sdb State of California legally described in the attached Exhibit A, which is incorporated herein by reference. C. The Property consists of six (6) dwelling units ("Affordable Units"). NOW, THEREFORE, the parties hereto agree and covenant as follows: 1. Affordability Covenants. Covenantor agrees for itself and its successors and assigns, and every successor to Covenantor's interest in the Property, that the Affordable Units shall be restricted for occupancy as herein provided for the Affordability Period (as defined in Section 1.2 below) as follows: I.I. Qualified Households. Covenantor agrees to make available and restrict the Affordable Units for the duration of the Affordability Period as follows: two (2) units shall be restricted to "Very Low Income Households" (as defined in Health and Safety Code Section 50105- less than fifty percent (50%) of Area Median Income) and four (4) residential units to persons and families of "Low Income Households" (as defined in California Health and Safety Code Section 50079.5 (less than eighty percent (80%) of Area Median Income) (each a "Qualified Household"). "Area Median Income" shall mean the area median income for the County as published annually by the California Department of Housing and Community Development and determined in accordance with the U.S. Department of Housing and Urban Development ("HUD") criteria then in effect and published from time to time. For purposes of this Declaration, the qualifying limits shall be those limits for the County, as set forth in Title 25, California Code of Regulations, section 6932, as that Section may be amended, modified or recodified from time to time. Each Affordable Unit shall be occupied by a Very Low Income Household or Low Income Household, assuming a one (1) person household for two (2) efficiency (studio) units, two (2) person household for the two (2) one -bedroom units, and three (3) person household for the two (2) three-bedroom units. The two (2) efficiency units shall be occupied a Very Low Income Household and the one -bedroom and two-bedroom units shall be occupied by a Low -Income Household. As used in this Declaration, the term "Household" shall mean one (1) or more persons, whether or not related, living together in an Affordable Unit that rent or lease any portion of the Affordable Unit. As used in this Declaration, the term "Covenantor" shall mean the Property Owner, its successors and assigns, and every successor to the Property Owner's interest in the Project, or any part thereof. 1.2. Duration. The term of this Declaration ("Affordability Period") shall apply to each Affordable Unit on a separate, segregated basis commencing on the date on which Covenantor has leased three (3) or more of the Affordable Units to a Qualified Household subject to the terms of this Declaration and ending thirty (30) years thereafter. Notwithstanding the recordation of this Declaration, Covenantor shall be entitled to a period expiring on November 1, 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -2- 2017 within which to come into full compliance with the terms of this Declaration, including leasing all six (6) of the Affordable Units to a Qualified Household. Should compliance not be achieved at said expiration date, the term of the Affordability period shall extend for thirty (30) years from the date full compliance is achieved. Covenantor shall have no obligation to provide any relocation benefits or assistance under state law or City ordinances to any tenant of the Property whose tenancy is terminated by Covenantor in order for Covenantor to ensure compliance with this Declaration. The covenant contained in this Section shall run with the Property and shall automatically terminate and be of no further force or effect upon the expiration of the Affordability Period. 1.3. Income Qualification. Prior to the lease of an Affordable Unit to any Household, Covenantor shall submit to the Covenantee a completed income computation and certification form, in such form as is generally used by City in administering its affordable housing program as may be amended from time to time. Covenantor shall certify that, to the best of its knowledge, each Household is either a Very Low Income Household or Low Income Household that meets the eligibility requirements established for the particular Affordable Unit occupied by such Household. Covenantor shall obtain an income certification from each adult member of the Household and shall certify that, to the best of Covenantor's knowledge, the income of the Household is truthfully set forth in the income certification form. Furthermore the Covenantor shall, on renewal of the lease for the particular Affordable Unit, again obtain income certification from each adult member of the Household and submit to the Covenantee a recertification form that shall certify, to the best of Covenantor's knowledge, each Household is a Very Low Income Household or Low Income Household that meets the eligibility requirements established for the particular Affordable Unit occupied by such Household. Covenantor shall verify the gross income of the Household in conformance with the requirements of California Code of Regulations Section 6914, the current form of which is attached hereto as Exhibit `B", as the same may be amended from time to time, and certify compliance in one or more of the following methods : 1.3.1. Obtain two (2) months of the most recent consecutive paycheck stubs for each adult member of the Household. 1.3.2. Obtain a copy of an income tax return certified to be true and complete or tax return transcript for the most recent tax year in which a return was filed, for each adult member of the Household. 1.3.3. Obtain an income verification certification from the employer of each adult member of the Household. 1.3.4. Obtain an income verification certification from the Social Security Administration and/or other public assistance agency if the Household receives assistance from such agencies. 1.3.5. Obtain an alternate form of income verification reasonably requested by Covenantee, if none of the above forms of verification is available to Covenantor. If, at the time of the lease renewal of an Affordable Unit to a Qualified Household, the Covenantor learns that Household's income has increased above the income level permitted for 1030910.07/0C 371528-00002/24-15/imjlsdb -3- that unit, the Household may continue to be permitted to reside in such Affordable Unit and Covenantor shall be deemed compliant with this Declaration, for no more than one (1) year or the end of the lease term, whichever is sooner. 1.4. Determination of Affordable Rent for the Affordable Units. The rent for each Affordable Unit ("Affordable Rent") shall be adjusted annually by the following methodology: 1) The two (2) efficiency units shall be limited to "Very Low Income Household" rents established at 1/12 of thirty percent (30%) of fifty percent (50%) of the Area Median Income, assuming a one (1) person household regardless of actual household size; 2) the two (2) one - bedroom units shall be limited to "Low Income Household" rents established at 1/12 of thirty percent (30%) of eighty percent (80%) of the Area Median Income, assuming a two (2) person household regardless of actual household size; and 3) the two (2) two-bedroom units shall be limited to "Low Income Household" rents established at 1/12 of thirty percent (30%) of eighty percent (80%) of the Area Median Income, assuming a three (3) person household regardless of actual household size. The income limits and Affordable Rents in effect as of the date of this Agreement are attached hereto as Exhibit B and incorporated herein by this reference. COVENANTOR UNDERSTANDS AND KNOWINGLY AGREES THAT THE MAXIMUM RENTAL PAYMENTS TO BE ESTABLISHED BY THIS FORMULA ARE NOT NECESSARILY EQUAL TO THE FAIR MARKET RENT FOR THE AFFORDABLE UNITS, AND MAY BE ESTABLISHED AT A LEVEL SUBSTANTIALLY BELOW THE FAIR MARKET RENT LEVELS. COVENANTOR HEREBY AGREES TO RESTRICT THE AFFORDABLE UNITS ACCORDINGLY. IVY COVENANTOR'S INITIALS In the event state law referenced herein is amended, the terms of this Agreement shall automatically be amended to remain consistent with state law. 1.5. Annual Report. Within sixty (60) days after the end of each calendar year during the Affordability Period, Covenantor shall submit to Covenantee a report verifying Covenantor's compliance with the provisions of this Declaration ("Annual Report"). Covenantor's final Annual Report shall be submitted to Covenantee within sixty (60) days after the end of the Affordability Period. Each Annual Report shall identify the location of the Affordable Units for the applicable reporting period, the identity of each Household member occupying an Affordable Unit during any portion of such period, the income and household size of each such Household, the Affordable Rent for each of the Affordable Units, and the rent actually charged pursuant to the lease or rental agreement. If Covenantee prescribes a particular form to be utilized by Covenantor in preparing the Annual Report, Covenantor shall utilize said form, provided that it complies substantially with the foregoing requirements. 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -4- 1.6. Rental Agreement. The form of the rental agreement between Covenantor and each of the Affordable Household Tenants shall be approved by City prior to the rental or leasing of any of the Restricted Affordable Units, which approval will not be unreasonably withheld. The rental agreement attached hereto as Exhibit "C," and incorporated herein by reference, has been approved by the City Once approved, no changes affecting the Affordable Rent shall be made to the form of the rental agreement without City's prior written approval. The rental agreement shall obligate the Affordable Household Tenants to comply with the provisions set forth in this Agreement and an Affordable Household Tenant who violates such requirements shall be in default under the rental agreement. Not by way of the foregoing, each rental agreement with an Affordable Household Tenant shall include a provision to the effect that the Covenantor has relied on the information provided by the Eligible Affordable Tenant on the Income Computation and Certification Form and all other supporting information supplied by the Affordable Household Tenant in determining qualification for occupancy of the applicable Restricted Affordable Unit, and that any material misstatement in such certification (whether or not intentional) will be cause for immediate termination of such rental agreement. In addition, each rental agreement shall contain a provision that failure to cooperate with the annual recertification process may disqualify the Affordable Household Tenant as such and will be will be cause for immediate termination of such rental agreement. 1.7. Required Property Improvements. Prior to the initial leasing of the Affordable Units, to an Eligible Household, each unit shall be inspected and corrections shall be made by Owner, if required, to ensure life -safety (e.g. egress windows, GFCI protected receptacles, smoke/ carbon dioxide detectors, vents, etc.) and maintenance issues (e.g. replacing kitchen and bath cabinets, fixtures, and appliances, and floor finishes and heating appliances) identified during a November 12, 2014, City inspection have been corrected to the satisfaction of the City 2. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, in the use, occupancy, tenure, or enjoyment of the Affordable Unit, nor shall Covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, subtenants, or vendees in the Affordable Unit. Covenantor and its successors and assigns shall not restrict the leasing of any Affordable Unit on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, of any person. All such leases shall contain or be subject to substantially the following nondiscrimination or non -segregation clause: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators; and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -5- sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." 3. Use Restrictions. During the Affordability Period, Covenantor shall be required to take all reasonable steps necessary to ensure that each Household renting an Affordable Unit has knowledge of all terms and conditions of this Declaration by including in each and every lease and rental agreement a clause which incorporates this Declaration by reference and makes this Declaration a part of an attachment to such lease or rental agreement. In addition, during the Affordability Period, each lease or rental agreement for any of the Affordable Units shall contain provisions that the Affordable Unit shall be occupied, used, and maintained as follows: 3.1. The Affordable Unit shall be used only for private dwelling purposes, with appurtenant facilities, and for no other purposes; provided, however, that home occupation businesses conducted in compliance with the City's Municipal Code and other City, State and Federal laws and regulations shall be considered an appropriate use for private dwelling purposes; 3.2. The Household shall not permit or suffer anything to be done or kept upon the Property which will increase the rate of insurance on any building, or on the contents thereof, and shall not impair the structural integrity thereof obstruct or interfere with the rights of other occupants, or annoy such occupants by unreasonable noises or otherwise, nor shall any Household commit or permit any nuisance on the premises or fail to keep the premises free of rubbish, clippings, and trash or commit or suffer any illegal act to be committed thereon; 3.3. The Household shall not assign or sublease any part of the Affordable Unit; 3.4. The Household shall comply with all of the lawful requirements of all governmental authorities with respect to the premises; 3.5. No person shall be permitted to occupy the Affordable Unit for transient or hotel purposes; and 3.6. The Household shall comply in all respects with this Declaration and any failure by the Household to comply with the terms of this Declaration shall be a default under the Household's lease or rental agreement. 4. Covenants for Benefit of Covenantee. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and such covenants shall run in favor of Covenantee for the entire period during which time such covenants shall be in force and effect. The Covenantee, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any such action at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other 1030910.07/OC 371528-00002/24-15/rmj/sdb -6- beneficiaries of these covenants may be entitled during the Affordability Period, specified for such covenants. 5. Binding on Successors and Assigns. The covenants and agreements established in this Declaration shall, without regard to technical classification and designation, be binding on Covenantor and any successor to Covenantor's right, title, and interest in and to all or any portion of the Property, for the benefit of and in favor of the Covenantee. All the covenants contained in this Declaration shall remain in effect for the Affordability Period, and shall automatically terminate and be of no further force or effect after such time. Upon expiration of the Affordability Period, Covenantee agrees to cooperate with Covenantor, at no cost to Covenantee in removing this Declaration of record from the Property. 6. Transfer of Property & Assignment. Any transferee of Covenantor's interest in the Property shall take subject to this Declaration; provided, however, any such transferee shall execute and deliver to City an assumption agreement in form satisfactory to City and City's legal counsel 7. Counterparts. This Agreement may be executed in a number of counterparts, each of which shall be an original, but all of which shall constitute one (1) and the same document. 8. Notices. All notices which are allowed or required to be given hereunder shall be, in writing and (1) shall be deemed given and received when personally delivered or (2) shall be sent by registered or certified mail or overnight mail service, addressed to the applicable designated person by one party to the other in writing, and shall be deemed received on the second business day after such mailing. If to Covenantee: City of Newport Beach c/o Real Property Administrator 100 Civic Center Drive Newport Beach, CA 92658-8915 If to the Prooertv Owner: c/o Brooks Street 1300 Quail Street Newport Beach, CA 92660 Attention: Neil Brandom 9. Applicable Law. 9.1. If any provision of this Agreement or portion thereof, or the application of any provision to any person or circumstances, shall to any extent be held invalid, inoperative, or unenforceable, the remainder of this Agreement, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby and it shall not be deeded that any such invalid provision affects the consideration for this Agreement; and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 1030910.07/OC 371528-00002/24-15/rmj/sdb -7- 9.2. This Agreement shall be construed in accordance with the laws of the State of California and all applicable City, State, and Federal laws. 10. Maintenance of Property. Covenantor shall maintain or cause to be maintained the Property and all improvements on the Property in good condition, free of life safety issues, and repair (and, as to landscaping, in a healthy condition) and in accordance with all applicable laws, rules, ordinances, orders, and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction. City places prime importance on quality maintenance to ensure that affordable housing projects within the City are not allowed to deteriorate due to substandard maintenance. In addition, Covenantor shall keep the Property free from all graffiti and any accumulation of debris or waste material. Covenantor shall make, at its sole cost, all repairs and replacements necessary to keep the improvements in good condition and repair and shall promptly eliminate all graffiti and replace dead and diseased plants and landscaping with comparable approved materials. 11. Right to Relocate. Notwithstanding anything set forth in this Declaration, Covenantor shall have the right to cause to be acquired (by Covenantor or any other third party) an alternative multi -family property located in the City ("Replacement Property") and to substitute six (6) dwelling units in the Replacement Property as the Affordable Units subject to the restrictions set forth in this Declaration. City shall cause a recordable instrument to be recorded in the Official Records of the County and this Declaration shall no longer encumber the Property provided that; (i) Covenantor or such third party delivers written notice of the designation of the Replacement Property to City and City approves in writing the Replacement Property; (ii) the Replacement Property is in good condition and is not then subject to any citations issued by the City alleging non-compliance with any City, state and/or federal laws; (iv) the Replacement Property shall be located in or within three (3) miles of the City's Coastal Zone (v) Covenantor or such third party delivers to City a fully executed and acknowledged Declaration in a form substantially similar to this Declaration and copies of the rental agreements applicable to the Replacement Property confirming compliance with the requirements of Section 1 hereof. Once any Replacement Property is made subject to the restrictions set forth herein, the Affordability Period shall attach to the Replacement Property and shall continue for the remainder of the Affordability Period. 12. Effect of Declaration. This Declaration, and Covenantor's covenants hereunder are intended to fully satisfy the Affordable Housing Condition of Approval such that the Seashore Village property, which was the subject of the Affordable Housing Condition of Approval shall, upon the recordation of this Declaration, be unconditionally and irrevocably released from, and shall no longer be subject to the Affordable Housing Condition of Approval. [Signatures and Jurats to Follow] 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -�- IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of the date set forth above. COVENANTOR DANIEL, ANDREW, DUSTIN & SASHA, LLC, a Nevada limited liability company, By: Neil Brandorn CITY OF NEWPORT BEACH, a California municipal corporation Dave— "i City Manager Leilani I. Brown City Clerk APPROVE ORM: N ::r r (4 Aaron C. Harp C*4 &Z-1 orl City Attorney INITIATED AND APPROVED: �0 - Kim Brandt Director of Community Development EXHIBITS Exhibit "A" — Legal Description Exhibit "B" — Income limits and Affordable Rents in effect as of the date of this Agreement Exhibit "C" — Rental Agreement Exhibit "D" — California Code of Regulations Section 6914 1030910.07/OC 371528-00002/24-15/nni/sdb -9- 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 M (insert name of notary) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under 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. Signature 1030910.07/OC 371528-00002/2-4-15/niaj/sdb (Seal) 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 On .) �- tet— t , before me, (insert name of notary) Notary Public, personally appeared 11E1�. �,Qtr1't` who proved to me on the basis of satisfactory evidence to be the person(O whose name(g) is/p-,6 subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(iw), and that by his/her/thoir signatures on the instrument the person(sw), or the entity upon behalf of which the person(s) 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. Signatures (Seal) SHANE THOMAS JOHNSON Commission # 1991314 z v; Notary Public - California Z Z hi_._ ,�Iy My Comm. Expires Sep 16, 2016 1030910.07/OC 371528-00002/24-15/rmj/sdb -10- 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 On before me, (insert name of notary) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under 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. Signature (Seal) 1030910.07/OC 371528-00002/24-15/ mj/sdb -12- EXHIBIT A LEGAL DESCRIPTION Lot 6 in Block 3 of Newport Bay Tract, in the City of Newport Beach, County of Orange, State of California, as Per Map Recorded in Book 4, Page 16, Miscellaneous Maps, in the Office of the Country Recorder of said County. APN: 048-092-03 1030910.07/OC EXHIBIT A 371528-0000212-4-15/rmj/sdb -I- EXHIBIT B INCOME LIMITS AND AFFORDABLE RENTS IN EFFECT AS OF THE DATE OF THIS AGREEMENT 1. Current Orange County Area Median Income for 2014.and shall be adjusted annually. 2. This methodology sets maximum rents as follows: 1) the very low income rent at 1/12 of thirty percent (30%) of fifty percent (50%) of the Area Median Income; and 2) the low income rent at 1/12 of thirty percent (30%) of eighty percent (80%) of the Area Median Income. 1030910.07/OC EXHIBIT B 371528-00002/2-4-15/rmj/sdb -1- Median Maximum Maximum Number Total Rent Income (per Annual Rent2 of Emits person in Income household) Very $61,050 $33,750 $763.13 2 $1,526.26 Low Income (I person) (50%) Low $69,750 $61,650 $1,395.00 2 $2,790 Income (80%) (2 person) Low $78,500 $69,350 $1,570 2 $3,140 Income (80%) (3 person) Total 6 $7,456.26 1. Current Orange County Area Median Income for 2014.and shall be adjusted annually. 2. This methodology sets maximum rents as follows: 1) the very low income rent at 1/12 of thirty percent (30%) of fifty percent (50%) of the Area Median Income; and 2) the low income rent at 1/12 of thirty percent (30%) of eighty percent (80%) of the Area Median Income. 1030910.07/OC EXHIBIT B 371528-00002/2-4-15/rmj/sdb -1- EXHIBIT C RENTAL AGREEMENT (See attached) 1030910.07/OC EXHIBIT C 371528-00002/2-4-15/rmj/sdb -I- � c. a41. r I is It n l "1 RESIDENTIAL LEASE OR • nsa€�<: i:i t I€av MONTH-TO-MONTH RENTAL AGREEMENT 0 i RE fi F 'i`L3 It `+ ` (a:_;..R. FO[ot LR, Revised T?ti3) -_ DAEIIIFI dNDRE1W. D[rSTINA SASHA. LCC I-Lanclefd'; and 1 ¢. eria , )ague as folltvAs: 1. PRCPERT'f:. A. Laroiaro tents To Terart and Terarr rents frdrm Lardictic, the real t:,'J-_a^!y and irlprvvem:er?a descrloeh as: 305 E. BaV Avenue _ NewDbrE Reach Ca t;'PPEmtsas'l. B. TM, Pre'rises are tot me soi= tase as a pefsor 31 fevoerCe by the tbts7wttng rano perscn,(s) onty: C. » ice raloAzrlg pelsoral ars-ry, n air:. r- �usuara to paragraprs t. is incill: DTQ (tf cnecked;i tare persorai property m me attached a:derovy% D. me PtemisEd may be subisa to a iocx cera Cor dot dor _+.natice 2. TERM: Sire term beg$.,ns on (sate) c commenccinsnr Dare'), (Check A or B): QA. Month -to -►Montle: arc H rwL*s as a mcv : �.. _ ^cy by gra rg vvntten no?lam at least 3L da}s pn_ r tis the Irte; ided iermirallor. Ltiie. Lardlo :: a a'- , . ; , as prvod_d oy law.:: un nonDcs may oe giver cn ary Dace 9, Lease: and st'tat tel--mirate on (date) ai QAMI ❑ PM. 'renatlt sralt 4aCate the ?remises upon ternirallcn of the Agreernent, witcss: tee} _ardit rd aro Terant uve erienzea iris Ayree-rrem In w-rTng or'gred a rew agrrmment: (il) mardated by tck;ai react consral WN- or till) Lardlow accepts Rent from Tenant t'DT,r Thar past due ;tent), it wh'ion Case a monin-io-mortri teranq snalt be Created wv,';o'ri a ?her DaP3y may tcirrmaie as specret in Daragraptr 2.n.. Rem shall oe at a rale agreed to by ? ardidrd and i enarc, or as slowed by iaw. Ah other leans and W101tILns or INS A'greemerst snatt remain tri full ;arta. ar'l es tt. 3. RENT: 'Rerl'sh WI mean all int elary ooitgallors v Tedart to Lanftrs under the terms of ire Ageemer., _rzcept sewity oeptr>t_ A. o naant agrees 10 0ay s per nvM for the feria; Of ir.2Y A ee'rent. B_ Ren: s, ,: aayave it avarce on me set (or ❑ ) day o,, each emerdar mors r, and s oeinquerr, or tri text day. C_ IL on any day ?;zees tnn me day Rent is payable wasr;,arsgraan 3$., an.' Te,iar; llaG paid one mill 'r..=VS RE -1, Ir' aovance of Commencement Dale, Rent for me s -id Calendar rrtcv.h snai be prcazr_d and Tenant shall pay tt`MM of sale monthly relit per clay for each day rernatnir g in prorated spord morh., D. PAYMEtTr: Reri shag be paid by Q,detbaeiar oirem []money order. Qcasra-, } Cti-A. or []outer , tJ t'•ta,re) (p oriel at (address, , ,;or at any the; location s bsecrden5y sp: cifieo oy L a9dord in wriang to Tenanii lard W if 9h���.ked, rent mayL'e '{raid per r?: ;r -vetW=_?r, the 71E'p.N5 or and -on m-raibvngdays a*yaaynert Is reIDMeed Tor non•5UITIVs it turds t -NSF') of t*ciuse ter -am stoQs Laymerl, Men, ane8 to , i LardM .—ray ; _ _ _e^ari to pay R-eWn Cann fix Mr -_-e morths and 13.) all future Renj shVA be paid by ❑ -r oney bV-:;, o'❑ C3sr4i% N�*a. d. SECURITY DEPOSIT: A. Tenant agrees to pay s as a secur.-'ty depasn. Cecunty deposit wit be trans, 2rrzd to and taetd by vie- Owner arOwner of Me Premises, or heid n :?Wirers Brokers trust acmur . B_ All or ary pvrbor ta5 are secur>ty depo'all Tay De Asea, as ressona'diy neccssar�y', to: (1) Cure Teenani s =_fault Ir payreM of Rent ('RstriClr irolud=s Late Charges, NSF fees or o€ner smss due): (h) repar damage, exi;`r.Idsng ordl aq w_v and tear. aausad by Tenant or by a yrst or tloensee v Tenant: (ill) Clean Premise.., :" leesssary, upon 7erm1ratlor,, o', tree lerarcy: and (LV) treptace or retu2i rersviai property or apaune'tar-o2s.. SECURITY DEPOSIT $HALL. NOT BE USED BY TENANT IN LIEU OF PAYMENT OF LAST MONTH'S RENT_ If ad or ary pordotfi v,` Lite securty deposit is used zvrng Me ter. arty, Temm agrees to reinstate the total seCurlly wposfi wthin Me days .Tei' Wruen :no21re is d2lvered to ia_nart. ViMlrz 21 days atter Tsrari .�arvies the Premises, +ar0otd seal; td) famish Terart ar, 1 zed satetrr m Pi 0rg e" amoli,rt V. am seewly deft aeCervel ;add se bass -Or its dlspositJm 3nd sutpaurg si",Mrer.allul as se Died by CalMrrla £ dl 3*-- § t 4 0 t;g t and (2) ream any rvrain=ng pomor of the s linty deposit td Tenant - C. Security deposit will not Era returned until all Tenants have vacated the Premisaa and all Kaye returned. Any security deposit returned by check shall be m3d3 out to all Tenants named on this Agreement, or as suDsequentty modified. D. loo merest Will tae pard or sectiwily deposit Unless r--gwed by local lam. E. It '852 seutilty deposit :s held oy owrer, Terart agrees not to hV C Broker respxanslVe for its tetwn. IT the seouriy cls held In OwNer's urtW% trust atsoi;rrt, and Brokers astthdr;ly is retrrna:ed beft#e ertairatlon i.,!f this Agreeme!It, and sAc alty' deposit's released to someone Wier Trar, Tenant„ then Broter shat rovy Tenant, ?;� wrsrrg, Wvlwe 3nd to'WI`0M SCOWItly deposii MS been ;V -eased. Orce `f erant vas beer, pial"Idea StV_A no iae, 7erani agrees not to hold Bricker respo.isrbie x `:he secur'iy aepmn. S. MOVE -IN COSTS RE€EIVEDIDUE- Move.—in Turd, rraele payabW_ to eti�ll hn-atrt:ht• n --e:.. aminal nxrnram'nr^r r rernfixk�l�rC c3vanR Category Total Due Pa ant Received Balance Due Date Due =,ent fPvm T:, fowel Oscur,y Deposit over C-ner Total 'Tire fl-Wirnam amtun, Lana Ord In ay aS .semx ty ae I;, raWeler ciesgraied, tzrrnot exceed 39L _ _ `,r Jtrtu r shed premisesor three manors' Rett for poi hied premises. Tenants 1r1taY , eel ) La_n oras trGals ( LR REVISED 1211S (PAGE t OF 5) s'ex3e —d Dy Dole ■r+r RESIDENTIAL LEASE OR MONTH-TO-MONTH RENTAL AGREEMENT (LR PACE t OF S) a:�rar..naP+�n.P�.Ktary r�.,..ws. cora sae ctia...x. c•,a ax -x -e. ta-is.ais^vs ,ue an.,t si..w i..�.e.9aw.p� t'e:4uzx�rat^.zrrarrasy�rr4c�. 7•a:rdtte=rmnr aeaarraa� r�... i+r t y ;,ct.�a .w.,.•=:i. •,,,. ., 1030910.07/OC Exhibit C 371528-00002/2-4-15/rmj/sdb -2- Premises: goo❑4 R_T�.x,np„g„ WilAp "A h ra Crate: 9. LATE CHARGE: RETURNED CHECKS: A. Tsnant avknVA edges eIM-:T MIR! pay -rant Di Pen- L4 Issuance of a retuned check may CaLGe Landrtxd to lrtur co= and ape -uses, the exavt airiowls V, 'whicn are sx'3emvy diiTCult. and tinpiacilcal to 0eterr,-'•Ie. These costs may Inikude, lJtt are not imited ti, psocesarg, er-,=-meat and accolntngex s'isea. Sd 135E chars Im} sed an Landlord. If any fnsttltreni or Rent we from Tariari F5 nOF feCetVSII by L3rdlOrd Wlinia 3 for • i calendar days afler the date due, Or ', a ort --Lk �retumed„ Teach shall pay to Landlord, respecCvely, an ad11,ylonai stat :,,, 5 or % of VA- Rent cue as a La;; •Ctarge arcl $25.00 as 3 ,'NSF res for the first 'resumed daea arII $118;1:�3 as a NOF fee fir eann avidtoral reined cneok., eltrief Of'00T11 E+f, Wfi ch shall tom? de`erle9 30M,on3i Ren?. B. Lar -Word and Tenant agree matt these charges represern a -,It and reasc-.Iab'e esknate or -he COsis =_andlord may Inwi by reasrn r? Tenants late or NSF Dayms m Ary Late Charge or ;NuF fee dice snail to p Vl with the tuner Mstaliment Or ReaL Lardloid's acceptance or ary Late Crarge or N£,F tee shat~ rot £Onsstine 3 waiver as Io any detatkt of Tenait' lLandrotls rlgtit to collect a Late Cnar LY isF tee s"ii not be CEamed an extensIv.1 of the d3te Re -at Taa t Is due der paragraph 3 of psevert Lardlwd from exerc'rs'ng any 07asr 35s and rer.ed ss vt ,?r Mrs Agtee'.,re rt aril as 2W*ed oy "`aw. 7. PARKING: (Cheek A or B( ❑ A- paring is Permitted as Totowa: The r}gnt to parking is rs nDf Inddded in the Rena ortarged ;Vrsuant to aaag..,sapn 3. 1f not InVud=d to ?inej Kent, the parktig seria% tee sha4 e s i 3Wnnaf $ par month. P3dung spacets, are to to Lid for oaMig 2 pery Rcsnse.0 and opefatle motor Yeti£ es. except for traters, Coats. comers,''fuses or trucks (Mer alar t ok- it traits). Tenant sial park to ass fired spacers;, only. Parkrig spaces, we to be Mi dear. Venk'es lea ng OF, gas or dtrar ,rotor 'venlole tlifids shall n01 Oe paxed On the Ptemises. %fecnanl�. wDA 0T storage of Moperable vehicles is r:Ot perrntred m pam!N spat, --(V) LST elsewhere On are Premises. OR❑a. pawng Is no, permitted c.*i ltre Plamises. B. STORAGE'_ (Check A or 9) ❑ A. Storage iS uef'r y d as toIi7w£: T-,ke rg c3 separate s1 ge. spate LJS, tj S rot, lrvuded m T:.e Reri €nargea pursuant to paragraph 3.. If nol (rokicivi Ir ,r-- Rer4 storage space tee steal] Oe at at dPJOaaI per morin. Terant shale store omy perycrlal prvpeny Terant oats, and snail rot SIOre pmpe ty :43lrned by aTLvc er or In which a-:to�aer n3s any r.,gint, ilStz or it _res[ Tenam srw not store any wrpropsrly padtagied food or p»rr'srtaoie gOWS," faTfratle mama. ex'JWies, MZaTdous waste Orotherr w1tydargerausma?-clear, orIfeg�s'ubsiar--s. OR ❑ B. �Errcep for Teranrs p?rsor3t property , trKstt :a nsII er'i ely tlr, the RrE res. storage is nit Petr l`eII cr ale Premises- 3- UTILITIES: Tenar't agrees to pay for aa urilSIes and services, and The st,'.fowkig criargss: except . wwch sitar+: be ua`d for by Lardtofd. tf any uli lues are :nos s para? y metered, Te cant shall Day Te-lamrs 'oroo ,lanai' share. as reasor:=y deferrined and dweoted by Lanftrd. It uAltiles are sepazaterr' metered. Tenant, M311 pia0e entries Ir Tenants narre as Ot ze Commencement Dam. Lais^&gd Is only r'espor6b— fix' ns afing a, id m3trial6ng one usable Te:`epttore 133 a. -W Ole teleDnons I'te to the ?remises. TerarS 014 .03Y ary east lor conversar.. hom ex r.'rg wmr-ias sernce proodef. 10. CONDITION OF PREWSES: Terant las exam+neo Premises and, it any. an tumlaire. ha'nisrirgs, appian.as, lantrwapirg and fixtures, Irvu*'n sni oke diii-c'OVsr.. fetlock all that apply-} ❑ A_ Tenant aekrovfl dgss tabes_ it'c rs are dear ala to Opera fie ixxl t]Itttr.. rhdi 2tse 3_«wOwrtg exp5tans: B. i eructs 3cl r oAdE{kgr t ar t ie OOrd GO i Lf 71ese ems 5 sxrr riEd'n an 3 *sL3ietr rx 4i Ltif Stk7S 'CAR. Form ?1410k. C- (I} Lar71"�-ywill Delo.er to Teram a statement of ^. nallfi+n (CA.R. I'DIn MIMO1 E] Wli1' n 3 days an_a exe£utlon of it's Agreement [j prior to tree Comm =nteT.em Date; ❑wttaln 3 days .3'.'er Ste Com nenoelnent ,Date. {IIP Tenor-, snarl oompWe and return ate MIMO 10 Latdtofd WIr;ka 3 (or ❑ ) days after Deirdery. Tenants satire to Team T- MIVO vdaita trait t'me snal cordmtvely be ce+med Terarrs Ackrcra:p Tort of the wrid0or as sta'.ed in the Mt4A0_ QD, Tenant will p;ovioe Lanciord a U-1 of tfiems Mat are damaged or not In operable oon4ton 'abrin 3 (or ❑ ) day's acct Corr.Te-.verreat Date, for as a xr?nge q tf _blab Agrerrsrrt ot6 rattler as ar aA iuwledgir=r.1 of etre culetlkar, of frac Pwrrses. ❑ E. Other: Ii. MAINTENANCE - A. Tenant shay propely use. operate and safeguard premises. Including if app€l=le, any landssaoirg, Pur, ixe, rurnishrrga a io appliances, and at mecharicaf. el csicat- gas anO pttimVng rx-jres, and snoike aWT-s. and! Ke-Ep men and ine premises d'rar, sanitary and will wendla'.ed. Tenait 031 be responsible for dte^cRing 3-0 malltarr;Ing a4: bon rnonax'IIe delecims. a`td ary ad-Mtonat phtxie lines oeyand ate Ore line and lacl Chat Landlord MaI prOa",de and ?raisin. Tenant snail Irrimsdlale?-:y ratify Lamord. it wrvrq a any prover, m3 iro3lor or damage WM any item on the proper5y- Tenant shah be 4ZW?-d for air repairs Qf repla zmeris caused by r eTIa�=1. pez�., y.lesis Or afy.rsEes Df Tenanr, exsudrig Ordinarj w,Ear and tear- T:e ia'it snal<: be crarged for all damage m 3r T%es as a twit of rsrire to fepart a problem ri a Mely marner- Tenant snail be anarged for repalr of drain blockages or wwpages, urless caused by defectlYe piury6ng parts Dt tree roots rittaM ig sewer fires. B. ❑ Lardlmd ❑ T eaar5 shN Water ire galrden, lanescapirg, trees and sftmm, =except: C- ❑Lardlctrd ❑ Terant snarl marnIa-h a garde=n, landsupirg, trees and stouts, except: D. Land) rd Tenalt stall ma italrr E. Tenants falluxe to matnrara ary nett -or wh,ra Terant k fesPorsfole spall Says L anvor'1 L'9e rghr to n;e sorreore ro perform sL-A °lair. _nance ar::d o�iarge Terant to m.-er the cosi or such mahtenatrice. F. se fo#olerg Iters of perioral prv3eny are i,-Muded In Me Pre rises wtinoW warrarly and Landlord Will not maiMaN. repair or repace Mern: Tetlarts 1r; -tats ) { , L3aIIores 1r:tais t ,{ ) ee-.rr,c-s cr cars �.r.� LR REVISED 12113 (PAGE 2 OF 6( RESIDENTIAL LEASE OR MONTH-TO-MONTH RENTAL AGREEMENT (LR PAGE 2 OF 6) pit lx:r� m'ti JirrtltnC4 r'r �.;"ire YtiJ,t1:', Gi'fiNtr K6. �d W sI Ytb+bt, ui';tY B:i,'L' tlrnnF Vm1 1030910.07/OC Exhibit C 371528-00002/2-4-15/rmj/sdb -3- Premsees: 905 F Ra,V dawn to Naw.lany+_ A921h CA _ Date: 12. NEIGHBORHOOD CONDITIONS: Terant is 2T.rSed I0 SaVSy rm'n Or terse, as To negrrbomood or area unorions, Imual,Ig schools, rsaxtmtry and aaegizey of law trio Pena, n?e stattsecs, prcxtr� of registered Te'6rs or offenders, fre plrtetton, ether governmeratal ser,°`des, 3'raflao[ y, adequacy a" cost of ary ^Atte', w?7stess hit?rr,ei conr. ct"ors or other tetecommunloasNnas or biter tethroicgy Stf-,IS and Irst3fatiors, prox+mit, to commeh a1, t1dustrai or agrlaullixai act Ot''es,. existing and proposed tfanspi.,maeon, omstrooti 9 all development Mat may and, rotse, view, or ralfto, Vport rolse. 'rase or odor r r, any soJxce. wild and ttanestic ankr-als, =. er nuisances, hazards, or orcbwmslsnces, cemeleres, taches and cond,11S'i of com-Tor, areas, condltfOrs and lrI'Vertes Of Signifita'ICE tri Oertain ou tures a &or rellgiors, and petsonarneids. recldremanIs and preTeTerces 4f i e-riart. 13_ PETS: Unless olherar�se ?rcWded in Capitata Civil Cade 5 54.2, no anvral or suej snaft be kept on os abort the Ptemtses wnr.OuT L andt3rrf'S peer `AYIt1en corsent, except: IS. [] fit created) NO SMOKING: NO smOkfng or any substa o -A is allowed or. the Premises or common areas. r smoking Lars ottur an ole Prem%ss Or common areas. R') Tenant Is responsWs for are' damage caused by the smoking hc1uM-,g, *.tart POT. limited 10 stalls, burls, odt.sas and removal of debris: (11) Ter'am is in breach Of rhos Agteetrerr.?: (it) Terari, guests, 3Rd all vzhers may be regVred to leave bre ?remises: and (ra) Terar.5 acknOWedges Plat ti order to remove Mor cadged by smok'`ng, Lantlard may need to replace carpet and draOes and PSlt Me erlke premises regardless or When -_nese Ce'rs vete last cfeanea., replacsd, Or, repainlea. Such aclfons 3,'o o ref necessary sleds Vii& hr.pact me aetum Or ary sedum)+ cepi:s.'t.. Tae Premises or con lion areas may 'J^"_' supI-_ctto a.Yoccaj ror_srrOkirng ormnance. 15. RULESIREGULA.TIONS: A. Tenant agrees 10 Comply 'Aith all 'LaMIM IVes and T -V mrs that 3r at any Me posted on the Fre %s es or ':eliveTela t0 Tenant. Te:lant shall `rot, arvj sUf ensure that guess and r^r_-2s or Terarl shall rot, dkealrb, annoy, endargst Or Trac -Stere WL'Ta v'3er tenants a the tnillNlg or relg4cors, or use lr'* Premises 11`61' any urlawNl ptdrposes. irtoXiMng. bill not Ilr'lted lo. ustng. marutatturng, selling, sterng of transporng IiJG't -_`rugs or tf_flier CAnu3bana, or violate any law or oralraroe, or cVr"rrt a wasae or n;"sanik o:4 or 31jout the Prewilses. B. fit applicable, Check ona) j� i anLjortl sfi a p ovt TePan art a copy or tare noes and reg iia t res ar4irir IIays or OR ❑ 2 e-nar ras peen oro ded NZ, and ackmtledges recelpn of, a copy oTere n$ss and reVI3-iaas. t5. 0 1 Cr ked) CONDOMINIUM' PLANNED UNIT DEVELOPMENT: A._ trr4 Premises 3ie a unil to 3 cOrdrrrtnluR, planed urn, d_a:toprer.. ':,',;^mor Ir.eaest subdivisit"I or Omer aew_lopmert governed o} 3 nr eaaners' assooatil R 6 HOA' j. The rare of lame HOA Is Tenant asTees So COmp'y WlM al HOA wienanlS, M101bns and resirM:dOrs. 3yaws, ruffes and xe' rllatlons and decisions (-'Rox RR.jles'?. Landlord &rat arov)de TenafI Cozies Of ?J0A. Ruffs, it any. Tenzrl shaail rVn"•bu;se Lati*Ord ;v ary ilres Or onargss mIlosed by t!OA or Other aullrOTIrles, due 10 any Y'olrmn by Tenant, or ttie guests or lcersees of Tenant. B. heck one) 1. Lan acrd shall plonde Tenant with a copy tI die HOA Rules VAV,11 days or Oat Q 2. Tenant has Caen and ackrowlsdges rectlpl o5, a copy of the HOA R.Jtes. 17. ALTERATIONS: REPAIRS: Umess othemise spec7ed by law or paragraph 29C, 'A'ttiout Larditatd's pncr Written c• -Insert. (1) Te^tart snail nDt Drake ary repairs, atterat'Ors or Improvements IT, or a30ua It* Prn°ases mdumng: p3inling, walloaperIng, aWng or chargirsg roots, Irstiirg anterl3 of satellite drsalfesl. placing suns, displays or ernIV'ts, or using screws. ;3stcnlrg devices, Inge rears or ad esr%,e mat flaps. (la) Landlord smil not be rE£p6rcstmle Edr lilt ws15 of a Cera It % Or repairs malle by 7erarl; (ill) Tenant shall not dello Tom Rent ire costs of any repairs, allera€ ons Or .rpfo.emer?b: and [fel) ary dedvewn made by Ter ant sitar, Le oorshe, -d urp3fd Rena. 18. KEYS; LOCKS: A. MOT to the Commeroement Date, Arp _ key's) to Ptcmtses, remote tontrrx devfceys} for garage dol:Wgale se-Sr{st, k y £y TO mailbox, E y syaD MT,fnOf. area;S;t B. :*MWletlseslhat fucks o etre P-Temisrs❑hsve. have rot, been re -k yed, C. „ _oar; re -keys existing looks or o erkng ae::.ces. Tenant shall inrmedarts?y IIeiiver Caples Of a:. l:e)s :0 Lan -_lord. Terarrt shall Pay all costs and charges related CO loss or any key's or opening aer`Ces. Tenart may rot remok'e Locks, even T ;nslalled oy Tenant. 19. ENTRY: A. Tenant shad', make premi`.ses aa'allatie 'so L3nd1oTd Or Larmra's rersserla0ve for hie woos:e or erIef'ng to make retesswy or agreed repairs, (Im--sO reg, but riot limited to, MStaltRg, mating, testing. and malntalMig smoke defectfry and carb3r, monakle, devices, and oraCng, Iimhodrg or strapplrg Water heaters), deccTatiors, atterarons, ar improve x=_Ms, or to sup" necessary tr agreed services, or to show ieremfses to prospective m actual ptrrc_thase s, tenants, morgag=es, renders. apora sa_rs. or c omre N, S. B. Lardlord ar d Terana agree haat 24 -tour written rotes shalt tr reasonab'e and suMcleri rotoe, except as fbllsws: (1) 4E -hour wntter nonce is rquked to com Pict an f'Ispectlon of thePremises prier to 'ate Tenant "roAng Mi,. unless orae Tenaarn wanes frA_ VgVt to such notice. +12) ir Lan=rd Peas In wrnung Ir'Oamed Tenant [Slat [fie Piemise£ are for sale and Ihat 1Cnant'NO be mlifed5 Ora+Y'y 10 shots the pre'r4es 4C-A.R. Form ISE), Tien, for the next IM days fofft,' g the *ellvery of the. N3E. -'tend may be given may to show ire Premises to actual orprmerAtre puI nassms txl Ito vnsn notice is segUTed tf Landlord and Tenant Oralry a r -e to are -relay Tru zgre 0 serO_ cc repair. ref T.^e date and entre of entry are a.arn orewest of lite oral agreement 1.) No ntol7. ra required: (1) to enter rt case of an emteTgency; (IQ f 11"l2 Tenant tz pgesent and consents at Ste Vnze of entry'; or (ie)111he Ter,ant has abandoned o; sElrendered ST=_ Premises.. C. rel lir ctteckem Tenant authorizes tide use of a ksysafe'Joavox t0 allow entry Iria the Premises ara agrees to sign a ke}S3'ea'ockb: X addendum C.A.R. Form I(tA). 29. SIGNS: Tenant autnM es Land'ord To p,°ace FOR SALFi LEACE s grs on il-- Premises. 21. ASSIGNMENT; SUBLETTING: Tenant Snail rot surlel all or any lar: of Premises, or assgr or TaWE,; Iris Ago_-eT*-,I l of any C—Test In It,'AtMout ! ardlard5 ;anon A'�:'_-; :. . r-� 11RIeG5 sticit consent � ooTalred, any assfgrt rent, transfer Or suoletilrg 01' Premises Or tr<s Agreamerl of tenancy, by voluntary act V' 7e,-. p -f,- x -a VT law' Or otNMISC shall, 31 lire Option of Landlord, ta", TIME trafs Agreement Any proposed assir.9es, Iransteree Or subesfAe sisi ss0mli to Landfotd an application and Ue*dlr fnforrnatror "?' Laandf)ffs app*VZ. 3Rd, =1 ap 1fWed. sgn a septxam 'wr_en 3grement Wflh ! ardSOrd and Terar7. ! ardloTd 5 CYlnrnt tO 3.1y One assJgnme ...:.'.s'ti Or SJbi_as2. sr531 '.tot Oe tOnstrued as oArsanf t0 any subsequent aWgnn en, transfer Cr SL-Ae35e and Cl e5 not felearse T_-1211 ;' -e a . _ . _ at, z '[def!Us Agreement.. Aevtce.�•3 C.y ` cu � LR RE 41SE.D 12113 (PAGE 3 OF 6) u RESIDENTIAL LEASE OR MONTH-TO-MONTH RENTAL AGREEMENT (LR PAGE 3 OF 6) �• y §^.cnzev'tdl�biFu�riL 6Y.ra✓ I&a,*-ZFi:*M U6e^!.. tQ ..-.%tt,:.,,.d:Kt—G: /dunks _ Exhibit C 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -4- Ptelf?SsS: 14)r F RaV Aa ngp NWpal ROalh r= 22. JOINT AND INDIVIDUAL 08LIGATIONS, If Mire % nore Man one 7,enanL each One sllat* be 91111"w'du3fly and cornplem-y , respcq '1111t under MIS Agreement, jcmity, WIM every other Tenant, and ticltilauvy' sibie lor t-rp-- pefforraroe- of all ooligirlors Of 7- wr.eMsr or ncr, Ir -possession- 23.[:] LEAD-BASED PAINT (it CtIOCK64)-, ?Pi -r -s -es were corstr=ed prior to 1978, In a=44Uno- WtA federal law, LanVord gPses 3rd 2.4.[] MILITARY ORDNANCE DISCLOSURE: (I' -optcabie and known to LaMtlord) Premises are located ore mile of an al -ea once used for nillu,4), u-.*nlrV_ anumay ocxllaln Dolernally explosive mtn]Uors. 25.[] PERIODIC PEST CONTROL- LarAlOW has Enterec ir)D a conmaci for pvto0c pis! zzntwi --atment or the ?reTjses and Shall give Tet -ant a copy ol the notor orginally given to Lardlord by the pest corliol company. 2S.El METHAMPHETAMINE CONTAMINATION: Prot to Signirg MIS Agreemcrt, Landlord has g - iait a n0t,c Mal a I*= mcial has Issued ar, CID=, prot'.-blurg ompancy e me orDpeny Oeow-tse of rniarnphz'.S" -,or:3mirator. A C-cipy of it, -- notice and order ase arl;XIIE11 27. MEGAN'S LXJV DATABASE DISCLOSURE, Notice: zigs-jant to Sect"on 290.4Z, Of the Peral Code, WiorratforaoOut specTio registered Sex ol7A-nZA-rs Is Made available to the pUpft Iota an Injerrej Wi'o Site MaC.11alred by Itle DeWWrtni of Justlee at www.megargaw.ca.guit. Deperolrxj on an olifercers, cAminal Ngofy, MIS IrTcffma!Ic>q will Mclude eltneT me address at wf%*Oh the v-lenosf resl34s or Me toTmainny of residence aid zl:) code it,, wNIch he or site rcs?les. ,Neither La-,Ciorl% Per E401cers. If any. are reglgr d lb Or Ek WeDsIte- tfTenanjwanjs`,wmer iiforrra-zon.Teran-shottdobialn Webslts,) 28. POSSESSION: A. Te11311t Is r.01 tin DossesSlor or the PTemlses. 111 Landiold Is unable to clz:her possessim 'A zr�-' --is tm CotrfrinDen'er-1 Dr4e, swoh Date aftall ie exlen�--cl to V* dr.,E sn %jilch poss--sVor is mate available 1-.� -enz-.- , -arill-mul 6 unable to d0ucr possession WMIn S (or [] _ ) calendar clays after agreed Cvmmericeneq-. -ray teivrinate INS Agreemert by qtvIjq wn,-,in notice 1v Lanzlom and stall oe returded j,( Rent and s-mrily cip:4--. p.ij- is Deemed termlratecl B. ❑ Tenant. rs already In pjssessbr o" itis Pren"rlses. ZD. TENANT'S OBLIGATIONS UPON VACATING PREMISES: A. UpOr IEM-Irator of MIS AqTes-rerL Terw- SNII: p) g,.* Landpord all coolss rt all Heys E4 opening Devices to Pre-,4es, IncluVV any corninlyt areas; (n) vacate and sciaentler FTernlsez to Landlord, enp-C) Of all PENSORS: PIQ Vacate aPy-3-11 P.-aMng 3njc4 storage spsDe; (iv) clean and Cellve" R*MISeS, W sp-drec M P317agai)h C below, *to LanMortf IR Me- sarne cordlilon as references in paragraph ID: (y) tenOve 311 oet4ls,- (vi) rje wrjfer nOtici to Landlord of Teranrs forNaroing address: and (vil) a. All alleratom,'Improve'rents Made by or caused to be mads by -Terant, wIM or AMOLt Landloflfs consertt become the properly V Lanbilorl uloon *,zTmlrs3','On- L2,1101,3rd May Charge Tenarl for restoratol- ce, Me Premises to IrLs conzitlan It was Ir prior to ary C. Right to Pre -Move -Out Inspection and Rgpalm* (1) tier giving or rs--Allwing r0fte Of tenni'l2tiOn Or 3 tenart:Y f!CA-R- Form NTT), or Verore ttle end Of a lease. Terant has Me- rgra, to recuest, -mat an ljspottor. C,- Me Premises false olace prior tD is"mraton uMe lease OF tenial (CA.R. Form uRl). 1, Tenant I-qiiesis w.A an Irspecilor. T,-Iar,-1 sna',l be 01.1in 'an opporturtry to remedy tEnrfed defideflVeS, Pro. to ter'vr.-im corststent 'Nth tbe- terms CA this Agreemsqt 01) Any Tepalts of altuators =de to it* Premises as a result ct-, Mls inspecilDq jooll-divery. -ReloalW) Shall be made a-, Tenarrs ex.aerse. Acoaus may be performed cy T-Inarl or luough others, who hada adequate msurarr,a and Roises and are appcoved by Lardlmd. The work Shan comply %AAh appljosNe jzu, inducing goi*rrfrenia permit, Insp4-oc?on anti apprvial *qiArcmerns. Repairs Shall 0--- pe-Mormet! fn a gcrid, sitlitV warner *Itrt mal-flals of quality and appearance =,"aaaVe, to eXs!Irg male"S. It IS, LlrdErslood m3-, Exact ;-rrora!Yjn of appearance Or tie Ts ,6sOwjrq at Repa4 may not be DossiVe. tHI) Terant shal: (a) totalt, receipts for Re0alr5 perforrea by Omits. (0) prepare a -wrr-1 stane--,rem InaloaIrg tne Repairs ps-TI by- Tenant and me date of such Repairs; ani (c) prVeroe cooler of rezei,is and statements to Landlord pear DD termirallor, Paragraph 2SC ODS. nal appywr,sr -,he tenarcy is termiratel pursuant 16 California Cpde c,-, Civil Pic)OeDure § 1 1'6If2',, (311 or f4). 34D. BREACH OF CONTRACT; EARLY TERMINATION: it,, ajollor to any obIlgatIcns estaVislted by paragraph 29. Fin the iverl pr terminri3n by Tenarl pror To cornoletion Of the or'gjral -,ann � the Agr-sernent, Teniarl shall also to resporstole for lost REIL rental corrmISSWS, advclt.Vilq eXp-hSAz and paintng costs necessary to ready Premises for fe4sr-IRF. LaIdIord may withrald ary sum 3M.OlrqtS TrCM Tenants s.-f-urity &D.0 Sit 31. TEMPORARY RELOCATION: DI-01-ect to [Dcar law, TCPart agrees, upon oET-ana of Landiarti, 10 tempora ly vaca!e Prim4es for 3 rcascnat* ot-ODO, to ailow for A?fTigsion nor other methods) 10 cor",01 wood destroying P-Sis or olgar9-.-,rs. or oireT r--paZrs to Premlm-er, Tenant agrees to comply all IrstnicVons and req&erreftls IlEciSSary to PT-E-PITe PITsTnIse-S to aocummOdme best mitiol. liniqan3n or other work, filcitlding bagghg or Storage of roc?d and newctne- and removalz of perlstlaves and valuabfes� Tendril SII dray mm2 ertf�1efl td a tFeot or Rert equal #b the rte; diem Rert to; ane peyotl OS Cmc T'Er3rt1 IS fer�Jlred tO i°scale Premises. 32. DAMAGE TO PREMISES: II. Ray no fad, of Tenant. Remises are WWy or Zalnl3lly damaged or destroyed by ire, es;otcyjake, accident or ,,Djer casualty that render Premises totally w parta3y un)nMzWIaVe, elME7 lardletd Or Tenant may terrnnaa MlS Agree-nner! by 91,M9 the dater Iscitien ro'Lcs. Rer! spall be 3=-d as rt the date PTern1sr,. :o:,, ; or partl3q, UNnnablla-ble. Tt* abated amount shall be Me ardlord sins primo -y repay ale carnage, and Pent wail L- redtreRe oared Or Mie exienr to "w#xd'i tl'ie da,2y #r#=. cies 'A ;h Feria < _: -vie use of Premises. 11 dam, age occurs as a result cr an act CYT,Tenar1 of TenanrS gUCSIS, Only L3nC''ora shail have Me right of ietarin3t^4r --odoVLm In Rem Shalt be made. 33. INSURANCE: TelanTS or guest's pz-Twral pmpz.-,y and velhiclers ase 7a: insured by Landlord. -ranaget or, If apV-Icaple. 40A, against Icss or damage aur to fire, theft, %rards. osm, rain, 'Nater, w1minal or negligent acts of others- or ary 01-reer cause- Tenant Is 30YW0 to Carry Tenant's own insurance (renter's insurancs) to protect Tenant from any such loss or damage. Tenaill shall cumoly -&,th dirty r--q4,fr4Frrem im-nosed on T,, -an! Dy Lanalota's nsurer to arvold: (,,) an mcreaEe In LandlDrVs, hsom-ice- premium i� Terant shat day for ole trorease n prejt#um9 Or 1A) foss of tnsuranCc. 34, WA7ERSEDS: Terant shaff not use Of Pave wateibeeas on Me Premises unless. Q) Terant, oblins a vaild wal.-Med Irsuranae pvllcy, (11) Tenant Increases Tie security deposlt fn x -i atnwrl equal, to ore -hair of ore month's Rent: and psi) the bed Witoms to the fIoor joatf capavry of Pre--r'rSes' 35. WAIVER: Tri ,Nalver )-, any Orea" sngf jot be cDj,,r.rj&O as a cc-jUnLWng walver v! Me Same, or ary suDsequer' breach. Tenarrslrmwsi LanotOrTsINTaIS( _)( _) 1 .!1 tyodic - LR REVISED 1XIS (PAGE 4 OF 6) RESIDENTIAL LEASE OR MONTH-TO-MONTH RENTAL AGREEMENT (LR PAGE 4 OF 6) pw.1,et-V —111-1-- 0—k 7mear Exhibit C 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -5- Prems?s: 3o5 Fsale A anue Nm=v Beach Ca Oate: NOTICE: Notices may be sireel at the rbrrowlrg at -dress, or a! ary :?iter vacaton sutG.egtr-r*jy desgratwj: L 3rdlo,td: Term'. 37. TENANT ESTOPPEL CERTIFICATE: Tenant shall sxe,=e and return a Tenant esti-Effinica-E dekEfea to Te?wit by Lardhrd or Laraitid`s agent Wirm 3 !lays 3f^?f Its rel*'9t Failure to comply ',`til Mls, requirement shatbe Z?emed Ts ars acinVxeignert that the tenari wopge' oel-1 oare s True and 4JtreCt, and n -ay pe relied upvi by a lender or puacnaser- 33. REPRESENTATION: A. TENANT REPRESENTATION: OBLIGATIONS REGARDING OCCUPANTS. CREDIT: Tenant warrants ural, all statements it Tenants remw' aop3cador aie axurate. Lanallow r_gwres all =uparis to yew's Of age Or vd-r and 33i emarovated ' '.nt£s fO c0mpfeiE a Kase rertal apploator. TEnanr acknix,eilges iris requirefnert and agrees to ntti",y Landlord wr,n any r=1;;Mt of the Pfe'rises re3ones `.rk. age Or 18 cd tecomes an emancipated mirror. Ter i. awenollZes Lanc,Ora and aroker(sj to obtain Ter,aris orsclf repos perov ally axlig "_r tsranOy Ir cornection Will the m0ctriarOr or anforcemerl, Of this Atgreenert. La[idtora may cancel this Agreernem: ji) wore omuparcy bEgtrs; (l[) Upon disapproval Of the crellt ieperlts); or (lh) al any Time, t.'yYon diswverng Tat tnrora'"aton, In TenanCs appWoaOOn %'false. A negative credit repeat rettei<Irg On Tenarvs record may be SWYK-Ilsd to a credit t?PbtL't?gamt-. cy If Tenant rails la W4 Tfs terms of DaymEnt. and Diller i$tl,a+�oi°s a'?tder this A� 2"r$fii... B. LANDLORD REPRESENTATION$: Lardlotd walTarts, that uniesa oth=_-wtse spec'led In. wrring, u ar.diord Is unaware of 0) ary recorded NO-Ice.s Of Detauit atCeceng the Premise;. tis) any aelinquem amtxar a (We. alyder sly loan secured by die Piemisss; and (lli) any balkiu* cy proceeding affEctirg the plemlses. 39. MEDIATION: A. Cansrsteri with par-agraohs B and ray I:ellys, Landlord and Terear agree . ;'^s ary dispute or claim arsirg ber,een mem old of tlfs Agr-e*reni, or any resullIng transwIlEn, O --tare resonirg to coc %Scllaibn tees, r, any, shall be ",des equal anorg it+e --antes InvVV90. It, for any dispute to '..1' 3,111 10 "Which this parag ap' a : ary 33ao7f OOnme:' c9S an aaOn h?LhOU rasa atteTgring to resotve f— frarei through mediailon. or realises to mediae a*er a -1 est Inas been mane, then that patty shall rot be a tZsd to recoriear atton+ey Sees. emien a'tisey'Aroara DIAEraxise be avalWl - O Inal. 3 -+ any such 3 SIt7€1. B. The t0'4owirg m3uErs are excluded Tarr, mediailcm: p) an unlay.jl detainer acro:- ,i:) ine alrng or enforcenert Of a mechanics rev; and (III) any InVs; wnhir. Me turlsVicion of a YOOate. sma`t clavas or barUj PTPMS�:S: 105 F Bait AwImp Madpa, RRA,h ra Date: 46.E] IRTERPRETERiTRANSLATOR: The lens Of MIS Agreement have beeP. InT.-foreled 1or 7eparr. hb the M11VAIng language-. LanVor-A and Teetarl apkiowIid�-,_ rec-Ipj or Ine: auacneil agreerne-ni IC.A-R. FvnT iTA), 47. FOREIGN LANGUAGE NEGOTIATION: IT ;his Agreement nas teen regollate,:l by LarWord and Tenant lorrnarily Ir, Spanisn, CNne-se. Tagalog, Korean or Vlelrarrese, pirstont 10 !;-je cat",-4rila CA Cope, Terialt SrIall tat PI'Vioided a Lar,V3tJ0P Of INS Agreement�.-I Tie laanquage useC for Inenegotatlen. 48- OWNER COMPFNSA.TtON TO BROKER: Upon exectAlon v', MIS Agievrerl, awr--r agrees to pay corn;-nsalion to Broker as specireo In a se-p3mze wrl.eT-. agreement cerween Owner and Broker fic.A.R. Form LCA). 49. RECEIPT: 11'rpecilleti"'I pwagao 5, Lardlotal OTB;OW, am3roMedge-Secelpt e, rameAntUrdE, Lardlord and Tenarl a3nuMea* and agree Biolets: (a) Co rot, guarantee the vonCN,0.1 of me Prerrirs-_s: (0) cantrot verIfy fepresemaIpns vacs q oiners: (C) Z3nnVT PTWite legal Of LU RdVfte; (0) wIf rot sifter aT.Ice -,,; tifonna!on that exo-ess the llnvmeage. edw-von or s)(pe"ercia ri-qVred to W13M a sea, es!Xe 11cer--Zz. Funrwrnore, it 5rokers ile rot also acapq 36 Lardlord M !V,,S Agreem-e-it, Brokers: (a) do not de -Ode what renlzil rats a Tenant should pay or 1.110lorll Shouto acoelot., and (II) do To! deol0i Upon the W1.9th of Dme" lerl's of tenancy. Larzord and Te -:ant agree 111.,x TAy *1 Seek *Sal, tax. lnvx-.ro-- and Mer cesir-O assistarnc truer, app Iopriale plofessiviais. Tenant agrees to rent the Premises on the above terms and conditions. Tenant Date — Address city Slate — Zip Telephone Fax — E -mat Tenant Date Address City Stale —Zip 7elaephorei Fax E -mal Ij GUARANTEE-- M consl5srafon If the ex-ouror v-, tnts, Agreement oy and bs:w-:-r,, Landlord and Tenant and for vailUtiole WISIO-rativi, receipt Or wroon Is nereoy aalnu4ireaged. Iner trlaswqrso :De- rFe:q, (q guarantee Urr.cn0I1cna!Y 10 L3,70101`5 and Lan0lord's arerls, sucoessom ansa assign, ire :, oIh__J sums that bec;me dot pursuant to tars AqrsemsriL WuL-Mg ary and all cout omrs and a «; e. ,.: r r, -ar-,-aN In: AqTe­_,rert: (R) onsem to any, oranges, md1carlons or 11--eralloris 0, any term [IT M Agree'rer, agreed -D Dy Lardlora and Tenant: and (IQ waVire any rgrr, to requIre La"aardior LandlVrO% agents to prooeoed aq3IrSI Ty-Iar'. %, a -IV dettiull, =L"rg Under tt,,i:s AgrecrnsniocTore, seeking m erfTDro_- mis Guarantee. Guarantor ti Print Name) Guarantor _3:e Address City Zip Tei phons Fax E-mas' Landlord agrees to rent the Premises on the above terms and conditions. Lanc�ord Address Telephone Fax Date — Landlord Date REAL ESTATE BROKERS. A. Real Wale- brokers *-no are ro! also Lardloltl Lndel MIS Ag;evrerl age nor Val-JeS IV III-- Agfeen-e--- tetNel Landlord a^rdTerrrs It. C. COOPERATING BROKER COMPENSA71014: Llstrng Broker agrees to pay CoopefatIng EmW (LeasIng F3rn) and Cooperat:W Brow afiees 10 woepr (1) tale amour; speffev ,l me MLS. PFOANsid Cooperatirg Broker % 3 0XrCi0&1t of If%- AILS In WIN0 the Property I. otlersed Im sant cc a retprocai ML-,; or (n) E]ar criectiec) Ir amovil speed m a separate wriner agresr'Erlosnwezit USt"g Broker and Cmper&rg Broker. Real Estate Broker (Listing Firm) I Pa and BRE Lic. By 'Agent) Warren Berzack BRE Lie. # 01329015 Dare Address 15250 Ventura 191vid City Sherman Oaks - State Ca Zip 91403 Telephone — Fax —E-Tna4 wbef7acke&J*,_-­re com Real Estate Broker (Leasing Firm) Surseme Pmaerries — BRE Lie- *'017782,20 By (Agent) Josh Cunningham BRE Lie. # 0802660 Date Address 621 S F1 Camino Real_ City San ciemenz)p Slate Ca Zip 92672 Telephone Fax fflMMA4_';637 — E-maJ JCunnjuShamdbSi nrprreCl com UMW Sssa, "=Y%Wkkl­fTil! 17 U�' Cald: fcibtsw Riv ­&,xt.wt 1Wtiutm., •twfte I, 1i•?,, FOrVA 14-' SE FN APPR WE -b aY 1[--r: e.U1FLPVA A-,-X)aA rC#4 OF R.A10R?3 jt� ;L R a W RE W-iIEN1 XfM i$ VWE k, TO I -it LECA, VAIJLX TY CQ ;CCQLkge Y VF A,,j e F�Z'" LN IN AN !IF+. L,Fic V;AN*;4C,,* A FFA. -Ea TATE aRx'I(P. R tSVrE FER9QA,4 C.-,AAUF iE0 TO A,"NIFE lo4 fE Ai. E ETATE -NAu?,Au7)0 M' P% yw DFinw u,� , uR PAX ;uy,-. uE, T'. I- . --fe.1A, It, ;vd wast V.14"_10. N", i"014.d W _d.�PY REAIJORStv..I,--tf, 2L b B_ 7 CER4ICE2, INC. n I Fir -'*w -d t Y_ Cate LR REVISED 1211[3 (PAGE S OF G.) RESIDENTIAL LEASE OR MONTH-TO-MONTH RENTAL AGREEMENT (LR PAGE 6 OF 6) --h -1 bi Iiiiflk, tM-, V k Rd F 1-,AA0inw1, 43Lji — w, - - b -A, iireta 1030910.07/OC Exhibit C 371528-00002/2-4-15/rmj/sdb -7- EXHIBIT D 25 CCR s 6914 Cal. Admin. Code Title 25, Section 6914 CALIFORNIA CODE OF REGULATIONS TITLE 25. HOUSING AND COMMUNITY DEVELOPMENT DIVISION 1. HOUSING AND COMMUNITY DEVELOPMENT CHAPTER 6.5. PROGRAM OPERATIONS SUBCHAPTER 2. PROGRAM ELIGIBILITY AND AFFORDABILITY FOR LOWER INCOME HOUSEHOLDS Section 6914 - Gross Income. "Gross income" shall mean the anticipated income of a person or family for the bfvelve-month period following the date of determination of income. If the circumstances are such that it is not reasonably feasible to anticipate a level of income over a twelve-month period, a shorter period may be used subject to a re -determination at the end of such a period. Income" shall consist of the following: (a) Except as provided in subdivision (b), all payments from all sources received by the family head (even if temporarily absent) and each additional member of the family household who is not a minor shall be included in the annual income of a family Income shall include, but net be limited to: (1) The gross amount; before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses; (2) The net income from operation of a business or profession or from rental or real or personal property (for this purpose, expenditures for business expansion or amortization of capital indebtedness shall not be deducted to determine the net income from a business); (3) interest and dividends (4) The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts; (5) Payments in lieu of earnings: such as unemployment and disability compensation, worker's compensation and severance pay (but see subdivision (b)(3)). (6) Public Assistance. if the public assistance payment includes an amount specifically designated for shelter and utilities which is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities, the amount of public assistance income to be included as income shall consist of, (A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter and utilities, plus (B) The maximum amount which the public assistance agency could in fact allow for the family for shelter and utilities, (7) Periodic and determinable allowances such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dweling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family or spouse (but see subdivision (b)(5)). Where a family has net family assets in excess of $5,000, income shall include the actual amount of income, if any, denved from all of the net family assets or 10 percent of the value of all such assets, whichever is greater For purposes of this section, net family assets means value of equity in real property other than the household's full-time residence, savings, stocks, bonds, and other forms of capital investment. The value of necessary items such as furniture and automobiles shall be excluded. 1030910.07/OC EXHIBIT D 371528-00002/2-4-15/rmysdb -I- (b) The following items shall not be considered as Income: (1) Casual, sporadic or irregular gifts; (2) Amounts which are specifically for or in reimbursement of the cost of medical expenses (3) Lump -sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation): capital gains and settlement for personal or property losses; (4) Amounts of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes of which are available for subsistence are to be included in income; (5) The special pay to a serviceman head of a family away from home and exposed to hostile fire; (6) Relocation payments made pursuant to federal, state, or local relocation law; (7) Foster child care payments; (8) The value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1964 which is in excess of the amount actually charged the eligible household; (9) Payments received pursuant to participation in the following volunteer programs under the ACTION Agency: (A) National Volunteer Antipoverty Programs which include VISTA, Service Learning Programs and Special Volunteer Programs. (B) National Older American Volunteer programs for persons aged 60 and over which include Retired Senior Volunteer Programs, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience, Service Corps of Retired Executive (SCORE) and Active Corps of Executives (ACE). Exhibit D 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -2- SUPPORTING DOCUMENTATION REQUIREMENTS The Income Determination is a 12 -month projection of a household's gross income. The first step in the process is to ask applicants to declare their household's gross income (and the source of each type of income) on the client intake form. Based on the type and source of income declared, source or third party documentation must be collected for the file to substantiate each type of income listed on the program application or client intake form. Such documentation may not be dated more than six (6) months prior to the date of the income determination. The following list includes many of the common types of source or third party documentation that should be obtained to substantiate the income declared by an applicant. t Type of Income Source / Third Party Documentation Copy of the most recent filed and signed Federal Income Tax Return with all schedules, The full amount, before any payroll deductions, of wages and . attachments, %AJ -2s, etc. 1 salaries, overtime pay; commissions, fees, tips and bonuses, and other compensation for personal services. IRS transcript, three (3) months consecutive paystubs, and completed employment verification form_ The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shalt not be used as deductions in determining net iRS transcript, copies of the last two (2) most ii income_ An allowance for depreciation of assets used in a business or recent filed and signed Federal Income Tax � I profession may be deducted, based on straight-line depreciation, as Returns with all schedules, attachments, I/+1 -2s, i 2 provided in 'internal Revenue Service regulations. Any withdrawal of etc. cash or assets from we operation of a business or profession will be included in income, except to the extent the vvithdrawal is Three (3) months consecutive paystubs. 4 reimbursement of cash or assets invested in the operation by the I family. Interest- dividends- and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shalf not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an Three (3) most recent months of consecutive 3, investment will be included in income, except to the extent the statements for all asset accounts. withdravml is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based I on a 10% capitalization rate. The full amount of periodic amounts received from Social Security, A copy of the annual letter received from annuities, insurance policies, retirement funds, pensions, disability or Social Security listing the gross monthly death benefits, and other similar types of periodic receipts. including a payment. A copy of the most recent three (3) 4 lump -sum amount or prospective monthly amounts for the delayed months consecutive payment checks or start of a periodic amount (except for ceilain exclusions, listed in See statements indicating the gross amount of the attached 25 CCR Section 6914. payment. Exhibit D 1030910.07/OC 371528-00002/2-4-15/rmjAilb -3- Payments in lieu of earnings, such as unemployment and disability A copy of the most recent three (3) months 5. compensation, woiker's compensation, and severance pay ;except consecutive payment checks or statements for certain exclusions, as listed in 25 CCR Section 6914. indicating the gross amount of the payment_ Welfare Assistance. Welfare assistance payments made under the 6. Temporary Assistance for Needy Families (TANF) program are included in annual income: • Qualify as assistance under the TANF program definition at 45 CFR 264.31 and • Are otherwise excluded from the calculation of annual income per 24 CFR 5.6O9(c). If the welfare assistance payment includes an amount specifically A letter from the household's case worker designated for shelter and utilities that is subject to adjustment by the indicating the amount of assistance provided welfare assistance agency in accordance with the actual cost of and the nature of the assistance, including shelter and utilities, the amount of welfare assistance income to be specific amounts designated for shelter or included as income shall consist of: utilities. • the amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus • the maximum amount that the welfare assistance agency could in fact allow the famiiy for shelter and utilities. If the family's welfare assistance is reduced from the standard of need by applying a percentage, the arnount calculated shall be the amount resulting from one application of the percentage. Periodic and determinable allowances, such as alimony and child 7. support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling. A copy of the divorce decree 1 judgment listing the amount, period, and duration of alimony payments. A copy of the court order for child support payments, including the amount, period and duration of child support payments. A letter from the individual or organization outside of the household that provides a periodic payment. The setter should include the reason, amount, period and duration that the payments are expected to continue. All regular pay, special pay, and allowances of a member of the a. Armed Forces (except as provided in Section 6914 - Income ( Three (3) months consecutive paystubs. s Exclusions). It is recommended that owners request the following documents with the program application or client intake form: Copy & the most recent filed and signed Federal Income Tax Rett rn with all schedules, attachments, W -2s, etc. Three (3) months consecutive paystubs for all wage earners. Three (3) months consecutive statements for all asset accounts (checking, savings, CDs, Annuities, trusts, stocks, bonds, etc.) Exhibit D 1030910.07/OC 371528-00002/2-4-15/rmj/sdb -4-