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First Amendmend and Restated Regulatory Agreement and Declaration of Restrictive Covenants 2011-0441793REQUEST OF ooctt 2011 -04:41793. CHICAGO TITLE CO. 111111111 IN WHEN RECORDED MAIL TO: The Poway Housing Authority c 1 13325 Civic Center Drive V Poway, CA 92064 A Executive Director NO FEE FOR RECORDING PURSUANT TO GO ERNMENT CODE SECTION 27383 AUG 26, 20111 8:010 AM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr., COUNTY RECORDER FEES: 105.00 WAYS: 2 PAGES: 26 FIRST AMENDED AND RESTATED REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS (Orange Gardens- 12510 Oak Knoll Road) F This First Amended and Restated Regulatory Agreement and Declaration of Restrictive enants (the "Agreement") is made and entered into as of August 1, 2011, by and between the , ay Housing Authority, a public body, corporate and politic (the "Authority ") and Poway By Housing Partners, L.P., a California limited partnership (the "Owner "). RECITALS 1. The Poway Redevelopment Agency ( "Agency ") entered into a First Amended and Restated Agency Loan Agreement with Owner, under which the Agency will loan funds (the "Loan") to Owner which will be used, together with funds obtained from other sources, for the pre development, acquisition and rehabilitation costs of fifty -two (52) residential units (the "Development') located on the real property in the City of Poway, County of San Diego, more par icularly described in Exhibit A attached hereto and incorporated herein (the "Property"). Pin 5uant to the terms of that certain Cooperation Agreement Between the Poway Redevelopment Agi =cy and the Poway Housing Authority for Payment of Costs Associated With Certain Redevelopment Agency Funded Low and Moderate Income Housing Projects, dated as of March 11, 2011, by and between the Agency and the Authority, the Authority agreed to cooperate with and assist the Agency in the implementation of certain multifamily housing projects, including, wit out limitation, the Development and servicing the Loan. All capitalized terms not otherwise defined in this Note shall have the meanings set forth in the Loan Agreement. 2. The Agency and the Owner entered into a Regulatory Agreement and Declaration of Restrictive Covenants, dated December 22, 2009, and recorded in the Official Records of San Diego County on December 22, 2009, as Instrument No. 2009 - 0704721 (the "Original Regulatory Agreement "). This Agreement amends restates and replaces the original Regulatory Agreement in its entirety. 3. The funds loaned to Owner pursuant to the Agency Loan Agreement consist of Agency Redevelopment Low and Moderate Income Housing Funds and Agency Housing Special Reg and Dec exe 8 -1 -11 631.3 . Pro am funds. Pursuant to Health and Safety Code Section 33334.3, the Agency must restrict dev lopments assisted with funds from the Agency's Low and Moderate Income Housing Fund, so at the developments remain affordable to low and moderate income households for the longest feasible time. This Agreement is intended to implement this requirement. 4. The Agency and the City Council have made the necessary findings to spend Agt ncy Redevelopment Low and Moderate Income Housing Funds outside of the Paguay Pro ect Area, as evidenced by Agency Resolution No. R -09 -12 and City Council Resolution No. 09-068 adopted concurrently on December 1, 2009. Expenditure of monies deposited in the Housing Fund to fund the acquisition and related costs will serve the purposes of Health and Safety Code Section 33334.2, as well as the goals and objectives of the Redevelopment Plan for the Project Area, by improving and increasing the community's supply of affordable housing. 5. The Agency has agreed to loan funds to Owner on the condition that the Development be maintained and operated in accordance with Health and Safety Code Sections 33334.2 et seq., 33413(a) and 33413(b)(2)(A)(ii) and in accordance with additional restrictions concerning affordability, operation, and maintenance of the Development, as specified in this 6. Through this Agreement and accompanying documents the Authority is imposing pancy and affordability restrictions on the Development in order to utilize the fifty -two (52) in partial satisfaction of its adequate sites inventory pursuant to Government Code Section 3.1(c). The City received prior approval, on November 24, 2009, from the California Grtment of Housing and Community Development to credit the units toward the adequate requirement pursuant to the Housing Element Law (Article 10.6 of the Government Code). 7. Owner intends to impose occupancy and affordability restrictions on the pment in order to meet low and moderate income housing production requirements ble to the Project Area pursuant to Health and Safety Code Section 33413(b)(2)(A)(ii). 8. In consideration of receipt of the Loan at an interest rate substantially below the rate, Owner has further agreed to observe all the terms and conditions set forth below. 9. In order to ensure that the entire Development will be used and operated in ,e rdance with these conditions and restrictions, the Authority and Owner wish to enter into is Agreement. THEREFORE, the Authority and Owner hereby agree as follows: ARTICLE 1 DEFINITIONS Section 1.1 Definitions. When used in this Agreement, the following terms shall have the espective meanings assigned to them in this Article 1. N Reg and Dec exe 8 -1 -11 (a) "Actual Household Size" shall mean the actual number of persons in the icable household. (b) "Adjusted Income" shall mean the total anticipated annual income of all persons in a household, as calculated in accordance with 25 California Code of Regulations Section 6914 or pursuant to a successor State housing program that utilizes a reasonably similar method of calculation of adjusted income. In the event that no such program exists, the Authority shall provide the Owner with a reasonably similar method of calculation of adjusted income as provided in said Section 6914. (c) "Agency" shall mean the Poway Redevelopment Agency, a public body, ate and politic. (d) "Agency Deed of Trust" shall mean the Amended and Restated Deed of Trust in v r of the Agency on the Property which secures repayment of the Loan and performance of is Agreement. ,(e) "Agency Loan" shall mean all funds loaned to Owner pursuant to the Agency Agreement. (f) "Agency Loan Agreement" shall mean the Amended and Restated Agency Loan tent entered into by and between the Agency and Owner, dated of even date herewith. (g) "Agency Promissory Note" shall mean the Amended and Restated Promissory No from Owner to the Authority evidencing all or any part of the Agency Loan. (h) "Agreement" shall mean this First Amended and Restated Regulatory Agreement Declaration of Restrictive Covenants. (i) "Assumed Household Size" shall have the meaning set forth in Section 2.3(d). definition is utilized to calculate affordable rent and is not intended to be a limit on the ber of persons occupying a unit. 0) "Authority" shall mean the Poway Housing Authority, a public body, corporate politic, which body carries out the Agency's obligations under the Agency Loan Agreement uant to that certain Cooperation Agreement dated March 11, 2011 with the Agency. (k) "City" shall mean the City of Poway, a municipal corporation. (1) "Development" shall mean the Property and the fifty -two (52) units to be tated on the Property, as well as all landscaping, roads and parking spaces existing , as the same may from time to time exist. (m) "Existing Residents" shall mean the fifty -two (52) households that occupy the i s on the date of Owner's acquisition. 3 Reg and Dec exe 8 -1 -11 �t 6315 (n) "Extremely Low Income Household" shall mean a household with an Adjusted Income that does not exceed the qualifying limits for extremely low income households, adjusted for Actual Household Size, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by the State of California Depaoment of Housing and Community Development. (o) "Extremely Low Income Rent" shall mean the rent permitted to be charged for an ely Low Income Unit pursuant to Section 2.3(a) below: (p) "Extremely Low Income Unit" shall mean the Units, which, pursuant to Section 2.3( below, are required to be occupied by Lower Income Households. (qj "Foundation" shall mean Foundation for Affordable Housing V, Inc, a California Ht public benefit corporation. Foundation shall serve as the Borrower's Managing I Partner. (r) "Income Report" has the meaning set forth in Section 2.1. (s) "Lower Income Household" shall mean a household with an Adjusted Income that does not exceed the qualifying limits for lower income households, adjusted for Actual Household Size, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by the State of California Department of Hou ing and Community Development. and (t) "Lower Income Rent" shall mean the rent permitted to be charged for a Lower Unit pursuant to Section 2.3(c) below. (u) "Lower Income Units" shall mean the Units, which, pursuant to Section 2.2(c) are required to be occupied by Lower Income Households. (v) "Median Income" shall mean the median gross yearly income adjusted for Actual -hold Size (to qualify residents) or Assumed Household Size (to calculate rents), as ;able, in the County of San Diego, California, as published from time to time by the State of )rnia Department of Housing and Community Development. In the event that such income ninations are no longer published, or are not updated for a period of at least eighteen (18) is, the Authority shall provide the Owner with other income determinations which are aably similar with respect to methods of calculation to those previously published by the of California Department of Housing and Community Development. (w) "Owner" shall mean Poway Family Housing Partners, L.P., a California limited ,hiv, and its successors and assigns to the Development. (x) "Property" shall mean the real property described in Exhibit A attached hereto incorporated herein. 4 Reg and Dec exe 8 -1 -11 6316 (dd) "Very Low Income Rent" shall mean the rent permitted to be charged for a Very Income Unit pursuant to Section 2.3(b) below. (ee) "Very Low Income Units" shall mean the Units, which,'pursuant to Section 2.2(b) are required to be occupied by Very Low Income Households. ARTICLE 2 AFFORDABILITY COVENANTS by (y) "Rent" shall mean the total of monthly payments by the residents of a Unit (other the manager's Unit) for the following: use and occupancy of the Unit and land and iated facilities, including parking; any separately charged fees or service charges assessed wner which are required of all residents, other than security deposits; the cost of an late level of service for utilities paid by the resident, including garbage collection, sewer, electricity, gas and other heating, cooking and refrigeration fuel, but not cable or lone service; any other interest, taxes, fees or charges for use of the land or associated ties and assessed by a public or private entity other than Owner, and paid by the Resident. (z) "Resident" shall mean a household occupying a Unit. (aa) "Term" shall mean the term of this Agreement, which shall commence on the date of ts Agreement and shall expire on the fifty -sixth (56th) anniversary of the date of recordation of s Agreement. (bb) "Units" shall mean the fifty -two (52) rental units to be rehabilitated by the Owner on he Property, excluding the Manager's Unit as defined in Section 1.1 of the Agency Loan i (cc) "Very Low Income Household" shall mean a household with an Adjusted Income thal does not exceed the qualifying limits for very low income households, adjusted for Actual Household Size, as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by the State of California Department of Housing and Community Development. the the Section 2.1 Initial Assessment of Resident Incomes and Rents. Promptly following ;per's acquisition of the Property, Owner diligently took reasonable steps to obtain income rent certifications from all Existing Residents of the Development, and Owner verified lent incomes in compliance with the requirements of Section 3.1 below. As of the date of Agreement, the Owner has provided the Authority with a written report of resident incomes rents within sixty (60) days of acquisition of the Development (the "Income Report"). In the it that the Owner is unable to obtain income and rent certification from an Existing Resident, Owner shall include in the Income Report the name and available contact information for i Existing Resident, and the Owner shall document in the Income Report the reasonable steps Owner performed in attempting to obtain the income and rent certification from the Existing ident. The Income Report shall be accompanied by Owner's proposal regarding designation E Reg and Dec exe 8 -1 -11 6 317 of as Extremely Low Income Units, Very Low Income Units or Lower Income Units. In ng Units, Owner shall use the following allocation procedures: (a) To the greatest extent feasible, the Units of Existing Residents who qualify as Extremely Low Income Households shall be designated as Extremely Low Income Units, the Units of Existing Residents who qualify as Very Low Income Households shall be designated as Very Low Income Units and the Units of Existing Residents who _qualify as Lower Income Hou eholds shall be designated as Lower Income Units. (b) If there are more than ten (10) Existing Resident households who qualify as Extremely Low Income Households, the Units occupied by the households with the lowest incomes shall be designated as Extremely Low Income Units, with the remaining Units that are occupied by Extremely Low Income Households designated as Very Low Income Units. (c) With respect to Existing Residents only, except to the extent rent decreases or increases are required by the terms of the Bond Regulatory Agreement, Owner shall not impl ment rent decreases or increases until the Authority has approved the Unit income desil pations proposed by the Owner. The Authority agrees to approve or disapprove of the Unit income designations proposed by the Owner not later than thirty (30) days following submittal by t ie Owner. Prior to Authority approval of Unit income designations, Owner also shall not tenr inate tenancies except for serious and repeated lease violations or for Residents that received reloi ation benefits, and no tenancies shall be terminated for overcrowding or violation of occi pancy restrictions. Overcrowded households shall not be evicted, solely because of Section 2.2 Occupancy Requirements. (a) Extremely Low Income Units. Three (3) Units, including two (2) one - bedroom Uni s and one (1) two- bedroom Unit shall be rented to and occupied by or, if vacant, available forccupancy by Extremely Low Income Households (b) Very Low Income Units. Twenty -Three (23) Units, including nine (9) one- n Units, eleven (11) two- bedroom Units, and three (3) three- bedroom Units shall be to and occupied by or, if vacant, available for occupancy by Very Low Income (c) Lower Income Units. Twenty -five (25) Units, including eleven (11) one - bedroom Uniis and fourteen (14) two- bedroom Units shall be rented to and occupied by or, if vacant, available for occupancy by Lower Income Households. m (d) Manager's Unit. One (1) three - bedroom unit shall be available for designation as the anaizer's unit. (e) Existing Residents. Owner may at its option terminate tenancies of Existing its that do not meet the household income requirements of this Agreement; provided ;r, such over income Existing Residents shall receive ninety (90) days written notice of G Reg and Dec exe 8 -1 -11 • termination and shall be eligible for relocation assistance pursuant to the relocation plan approved by the City pursuant to Section 3.4 of the Agency Loan Agreement. Section 2.3 Allowable Rent. (a) Extremely Low Income Rent. Subject to Section 2.4(a) below, the Rent charged to Residents of the Extremely Low Income Units shall not exceed one - twelfth (1 /12th) of thirty percent (30 %) of thirty percent (30 %) of Median Income, adjusted for Assumed Household Size. (b) Very Low Income Rent. Subject to Section 2.4(b) below, the Rent charged to Residents of the Very Low Income Units shall not exceed one - twelfth (1 /12th) of thirty percent (30 %) of fifty percent (50 %) of Median Income, adjusted for Assumed Household Size. (c) Lower Income Rent. Subject to Section 2A(b) below, the Rent charged to Residents of the Lower Income Units shall not exceed one - twelfth (1 /12th) of thirty percent (30 %) of sixty percent (60 %) of Median Income, adjusted for Assumed Household Size. (d) In calculating the allowable Rent for the Units, the following Assumed Household Sizes shall be utilized, provided that the Development receives an allocation of Low Income Housing Tax Credits, otherwise Assumed Household Size shall be determined pursuant to the terms of Health and Safety Code Section 50052.5(h): Number of Bedrooms Assumed Household Size One 2 Two 3 Three 5 (e) No later than November 1 of each calendar year, the Authority shall provide the Owner with a schedule of permissible maximum Extremely Low Income Rents, Very Low Income Rents and Lower Income Rents for the succeeding year. Under no circumstance may Owner raise rents above the permissible maximum rents as allowed under the annual rent schedule provided by the Authority. Section 2.4 Increased Income of Residents. (a) Extremely Low Income Household to Very Low or Lower Income Household. If, upon recertification of a Resident's income, the Owner determines that a former Extremely Low Income Household's Adjusted Income has increased and exceeds the qualifying income for an Extremely Low Income Household set forth in Section 1.1 above, but does not exceed the qualifying limit for a Very Low Income Household or Lower Income Household as set forth in Sections 1.1(bb) or 1.1(r) respectively, then, upon expiration of the Resident's lease: (1) Such Resident's Unit may be considered a Very Low Income Unit or Lower Income Unit, as applicable; 7 Wardens Reg and Dec exe 8 -1 -11 6319 (2) Such Resident's Rent may be increased to a Very Low Income Rent or a Lower Income Rent, as applicable, upon sixty (60) days written notice to the Resident; and (3) The Owner shall rent the next available Unit to an Extremely Low Income Household at an Extremely Low Income Rent. (b) Very Low Income Household to Lower Income Household. If, upon recertification of a Resident's income, the Owner determines that a former Very Low Income Household's Adjusted Income has increased and exceeds the qualifying income for a Very Low Income Household set forth in Section 1.1 above, but does not exceed the qualifying limit for a Lower Income Household as set forth in Section 1.1 above, then, upon expiration of the Resident's lease: (1) Such Resident's Unit may be considered a Lower Income Unit; (2) Such Resident's Rent may be increased to a Lower Income Rent, upon sixty (60) days written notice to the Resident; and (3) The Owner shall rent the next available Unit to a Very Low Income Household at a Very Low Income Rent. (c) Non - Qualifying Household. If, upon recertification of a Resident's income, the Owner determines that a former Extremely Low Income Household, Very Low Income Household or Lower Income Household Adjusted Income has increased and exceeds the qualifying income for Lower Income Households set forth in Section 1.1 (above one hundred twenty percent (120 %) of area median income) then upon expiration of the Resident's Lease: (1) Owner shall send such resident a written notice of termination of tenancy informing Resident that Resident must vacate the unit. Owner shall allow Resident at least one hundred twenty (120) days from the date the Resident's lease terminates and move out. Such period may be extended for family circumstances at Owner's discretion and upon approval by the Authority; and (2) The Owner shall rent the next available Unit to an Extremely Low Income Household, Very Low Income Household or a Lower Income Household, as applicable, at Rent not exceeding the maximum Rent specified in Section 23(a), 23(b) or 23(c), as applicable, to comply with the requirements of Section 2.2 and Section 2.3 above. (d) Termination of Occupancy. Except if the character of a Unit as an Extremely Low Income Unit, Very Low Income Unit or Lower Income Unit has been redetermined pursuant to this Section 2.4 due to the increased income of a Resident, upon termination of occupancy of a Unit by a Resident, such Unit shall be deemed to be continuously occupied by a household of the same income level (e.g., Extremely Low Income Household, Very Low Income Household or Lower Income Household as the initial income level of the vacating Resident, until such Unit is reoccupied, at which time the income character of the Unit (e.g., Extremely Low Income Unit, Very Low Income Unit or Lower Income Unit) shall be redetermined. If the 8 Wardens Reg and Dec exe 8 -1 -11 character of the Unit as an Extremely Low Income Unit, Very Low Income Unit or a Lower Income Unit has been redetermined pursuant to this Section 2.4, upon termination of occupancy of a Unit by a Resident, such Unit shall be deemed to be continuously occupied by a household of the same income level (e.g., Extremely Low Income Household, Very Low Income Household or Lower Income Household) as the income level of the vacating Resident, until such Unit is reoccupied, at which time the income character of the Unit (e.g., Extremely Low Income Unit, Very Low Income Unit or Lower Income Unit) shall be redetermined. Section 2.5 Resident Selection. (a) Before leasing any vacant Units in the Development, the Owner must provide the Authority for its review and approval the Owner's written marketing and resident selection plan. (b) The Owner shall not discriminate against any applicants for tenancy on the basis of source of income or rent payment (for example, without limitation, Temporary Assistance for Needy Families (TANF) or Section 8), and Owner shall consider a prospective Resident's previous rent history of at least one (1) year, or such other time period the Owner deems reasonable, as evidence of the prospective Resident's ability to pay the applicable Rent. The ability to pay shall be demonstrated if the prospective Resident can document that the prospective Resident's gross income is at least two (2) times the prospective rent. The Owner, in the reasonable exercise of its discretion, may waive the requirement that the prospective Resident's gross income equal at least two (2) times the prospective rent, and admit prospective Residents with lower gross incomes. Section 2.6 Lease Provisions. Owner shall include in leases for all Units provisions which authorize Owner to immediately terminate the tenancy of any household one or more of whose members misrepresented any fact material to the household's qualification as an Extremely Low Income Household, Very Low Income Household or Lower Income Household, as applicable. Each lease or rental agreement shall also provide that the household is subject to annual certification in accordance with Section 3.1 below, and that, if the household's income increases above the applicable limits for an Extremely Low Income Household, Very Low Income Household or Lower Income Household, as applicable, such household's Rent may be subject to increase, and if the household's income increases above one hundred twenty percent (120 %) of Median Income, the household's tenancy may be terminated. Section 2.7 Condominium Conversion. The Owner shall not convert Development units to condominium or cooperative ownership or sell condominium or cooperative conversion rights to the Property during the Term of this Agreement. ARTICLE 3 INCOME CERTIFICATION AND REPORTING Section 3.1 Income Certification. With respect to new Residents, the Owner will obtain, and complete, as a condition to initial occupancy and with respect to new Residents and Existing Residents, maintain on file annually thereafter, income certifications from each 0 OGardens Reg and Dec exe 8 -1 -11 6,21 Resident renting any of the Units. The Owner shall make a good faith.effort to verify that the income provided by an applicant or occupying household in an income certification is accurate by taking two or more of the following steps as a part of the verification process: (1) obtain a minimum of the three (3) most current pay stubs for all adults age eighteen (18) or older; (2) obtain an income tax return for the most recent tax year; (3) conduct a credit agency or similar search; (4) obtain the three (3) most current savings and checking account bank statements ;(5) obtain an income verification form from the applicant's current employer; (6) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies; or (7) if the applicant is unemployed and has no such tax return, obtain another form of, independent verification. Copies of Resident income certifications shall be available to the Authority upon request. Section 3.2 Annual Report to Authority. Owner shall submit to the Authority: (a) not later than the forty -fifth (45th) day after the close of each calendar year, or such other date as may be requested by the Authority, a statistical report, including income and rent data for all Units, an assessment of compliance with the Resident Services Plan (including an assessment of the Resident Services Plan outcomes), an assessment of compliance with the approved Management Plan, an evaluation of the Management Agent, and (b) within fifteen (15) days after receipt of a written request, any other information or completed forms requested by the Authority. Section 3.3 Additional Information. Owner shall provide any additional information reasonably requested by the Authority. The Authority shall have the right to examine and make copies of all books, records or other documents of Owner which pertain to the Development. Section 3.4 Records. Owner shall keep and maintain on the Property, or elsewhere with the Authority's written consent, complete, accurate and current records pertaining to the Development, and shall permit any duly authorized representative of the Authority to inspect records, including records pertaining to income and household size of Residents, Rent charged Residents and affirmative marketing requirements. All Resident lists, applications and waiting lists relating to the Development shall at all times be kept separate and identifiable from any other business of the Owner and shall be maintained as required by the Authority, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Authority. The Owner shall retain copies of all materials obtained or produced with respect to occupancy of the Units for a period of at least five (5) years. Section 3.5 Annual Operating Budget. The Owner, at least sixty (60) days prior to the end of each of the Owner's fiscal year, shall furnish the Authority an Annual Operating Budget. Upon receipt by the Authority of the proposed Annual Operating Budget, the Authority shall promptly review the same and approve or disapprove it within ten (10) working days. If the Annual Operating Budget is not approved by the Authority, the Authority shall set forth in writing and notify the Owner of the Authority's reasons for withholding such approval. The Owner shall thereafter submit a revised Annual Operating Budget for Authority approval, which 10 Wardens Reg and Dec exe $ -1 -11 �i approval shall be granted or denied within ten (10) working days in accordance with the procedures set forth above. Section 3.6 Approval of Use of Reserve Funds. Owner agrees to create and maintain the reserves required by the Approved Financing (as defined in the Agency Loan Agreement) and the reserves in the amounts approved by the Authority as part of the Financing Plan submitted by the Developer ,,pursuant to Section 3.11 of the Agency Loan Agreement. Prior to the use of funds from the reserves, Owner must submit a written request to withdraw funds from the reserve account. The written request shall specify the amount requested and state how the funds will be used. The Authority shall approve such request within thirty (30) days of receipt of the written request for use of reserves; such request shall not be unreasonably withheld. If the Authority fails to approve a request within the thirty (30) days, such request shall be deemed approved. Section 3.7 Resident Services Plan and Resident Services Budget. (a) The Authority shall approve as part of the Financing Plan submitted by the Developer pursuant to Section 3.11 of the Agency Loan Agreement a resident services budget to enable Owner to hire a resident service coordinator and resident services provider (the "Resident Services Budget "). Not less than sixty (60) days prior to the end of Owner's fiscal year, Owner shall furnish to the Authority a draft Resident Services Plan and Resident Services Budget. Upon receipt by the Authority of the proposed Resident Services Plan and Resident Services Budget, the Authority shall promptly review the same and approve or disapprove it within ten (10) working days. If the Resident Services Plan and/or Resident Services Budget are not approved by the Authority, the Authority shall set forth in writing and notify the Owner of the Authority's reasons for withholding such approval, which may include a request by the Authority for a change in the nature or scope of resident services or a change in service provider. The Owner shall thereafter submit a revised Resident Services Plan and/or Resident Services Budget for Authority approval, which approval shall be granted or denied within ten (10) working days in accordance with procedures set forth above. (b) Prior to the disbursement of the Completion Component as defined in Section 2.1(d) of the Agency Loan Agreement, Owner shall hire and employ an on -site resident service coordinator and contract with a resident services provider capable of implementing the approved Resident Services Plan. Owner shall submit for the Authority's approval the identity of any proposed resident services, coordinator and resident services provider. The Owner shall also submit such additional information about the background and experience of the proposed resident services coordinator and resident services provider as is reasonably necessary for the Authority to determine whether the proposed resident services coordinator and resident services provider meets the standard for a qualified resident services coordinator and resident services provider. If the proposed resident services coordinator and resident services provider, as applicable, meets the standard for a qualified resident services coordinator and resident services provider, the Authority shall approve the proposed resident services coordinator and resident services provider by notifying ' the Owner in writing. If the proposed resident services 1l Wardens Reg and Dec exe 8 -1 -11 6 323 coordinator or resident services provider, as applicable, is disapproved by the Authority, the Authority shall state with reasonable specificity the basis for disapproval. (c) If, as a result of a periodic review, the Authority determines, in its reasonable judgment, that the Residents of the Development are not receiving material services and/or there is a failure to achieve outcomes identified in the approved Resident Services Plan, the Authority shall deliver notice to Owner of its intention to, in addition to any other remedies available to the, Authority hereunder, require the Owner to: (1) replace the resident service coordinator or resident services provider; or (2) eliminate the resident services line item as an Annual Operating Expense under Section 2.13(f)(1) of the Agency Loan Agreement; or (3) meet in good faith to consider methods for improving the resident services being offered to Residents of the Development; (4) deliver notice to Owner requiring Owner to cause the replacement of the resident services coordinator or resident services provider with a resident services coordinator or resident services provider selected by the Authority. (d) If, after the above procedure, the Authority requires in writing the replacement of the resident services coordinator or the resident services provider, Owner shall promptly dismiss the then resident services coordinator or resident services provider, as applicable, and shall appoint as the resident services coordinator or resident services provider, as applicable, a person or entity capable of meeting the standards for a resident services coordinator or resident services provider, as applicable, under the Resident Services Plan and approved by the Authority at the Authority's reasonable discretion. (e) Any contract for the resident services coordinator or resident services provider, as applicable, for the Development entered into by Owner shall provide that the contract can be terminated as set forth above. Failure to remove the resident services coordinator or the resident services provider, as applicable, in accordance with the provisions of this Section 3.7 shall constitute default under this Agreement, and the Authority may enforce this provision through legal proceedings as specified in Section 6.4 below. Section 3.8 On -site Inspection. The Authority shall have the right to perform an on- site inspection of the Development at least one (1) time per year upon forty- eight hours (48) prior notice. The Owner agrees to cooperate in such inspection. ARTICLE 4 OPERATION OF THE DEVELOPMENT Section 4.1 Residential Use. The Development shall be operated only for residential use as permanent multifamily rental housing. Section 4.2 Taxes and Assessments. Owner shall pay all real and personal property taxes, assessments, if any, and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any line or charge from attaching to the Property; provided, however, that Owner shall have the right to contest in good faith, any such 12 Wardens Reg and Dec exe 8 -1 -11 taxes, assessments, or charges. In the event Owner exercises its right to contest any tax, assessment, or charge against it, Owner, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest. Section 4.3 Municipal Services Fee. No later than April 1 st of each calendar year, commencing,. -with April 1, 2012, Borrower shall pay to the City an annual payment of Seven Hundred Thirty-Three Dollars for each Unit in the Development, to pay for costs of municipal services that will be provided to Residents of the Development. Section 4.4 Nondiscrimination. (a) All of the Units shall be available for occupancy on a continuous basis to members of the general public who are income eligible. Developer shall not give preference to any particular class or group of persons in renting the Units, except to the extent that the Units are required to be leased to Extremely Low Income Households, Very Low Income Households, or Lower Income Households, or pursuant to Section 4.6 below. (b) There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, 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. (c) Notwithstanding the preceding paragraph, with respect to familial status, the preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the preceding paragraph. (d) The provisions of this Section 4.4 shall run with the land and survive termination of this Agreement. Section 4.5 Section 8 Certificate Holders. The Owner will accept, as residents, on the same basis as all other prospective residents, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act, or its successor. The Owner shall not apply selection criteria to Section 8 certificate or voucher holders that are more burdensome than criteria applied to all other prospective residents, nor shall the Owner apply or permit the application of management 13 Wardens Reg and Dec exe 8 -1 -11 6 325 policies or lease provisions with respect to the Development which have the effect of precluding occupancy of units by such prospective Residents. Section 4.6 Preference to City, Agency and Authority Displacees. Owner shall give a preference in the rental of any Units to eligible households displaced by activity of the Agency, Authority or the City, as provided in Health and Safety Code Section 33411.3. The preferences. stated.in this Section 4.6 apply to the rentals of Units throughout the Term. r ARTICLE 5 PROPERTY MANAGEMENT AND MAINTENANCE Section 5.1 Management Responsibilities. The Owner is responsible for all management functions with respect to the Development, including without limitation the selection of residents, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The Authority shall have no responsibility over management of the Development. The Owner shall retain a professional property management company, approved by the Authority in its reasonable discretion, to perform its management duties hereunder. A resident manager shall also be required. Prior to the commencement of rehabilitation of the Development Owner shall submit a proposed management plan to the Authority for approval by the Authority. The Authority shall approve or disapprove (with written explanation for disapproval) of the proposed management plan by notifying the Owner in writing within sixty (60) days of the date of submission to the Authority. Section 5.2 Management Agent; Periodic Reports. The Development shall at all times be managed by an experienced management agent reasonably acceptable to the Authority, with 4emoris1rated ability to operate residential facilities like the Development in a manner that will provide decent, safe, and sanitary housing (as approved, the "Management Agent "). As of the date of this Agreement, Solari Enterprises is approved as the Management Agent. The Owner shall submit for the Authority's approval the identity of any proposed Management Agent and on -site resident manager. The Owner shall also submit such additional information about the background, experience and financial condition of any proposed Management Agent and on -site resident manager as is reasonably necessary for the Authority to determine whether the proposed Management Agent or on -site resident manager meets the standard for a qualified Management Agent or on -site resident manager set forth above. If the proposed Management Agent or on -site resident manager meets the standard for a qualified Management Agent or on -site resident manager set forth above, the Authority shall approve the proposed Management Agent or on -site resident manager by notifying the Owner in writing. Unless the proposed Management Agent or on -site resident manager is disapproved by the Authority within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved. Section 5.3 Performance Review. In addition to the reporting requirements under Section 3.2 above, the Authority reserves the right to conduct an annual (or more frequently, if deemed reasonably necessary by the Authority) review of the management practices and 14 Wardens Reg and Dec exe 8 -1 -11 6326 financial status of the Development. The purpose of each periodic review will be to enable the Authority to determine if the Development is being operated and managed in accordance with the requirements and standards of this Agreement. The Owner shall cooperate with the Authority in such reviews. Section 5.4 Replacement of Management Agent or On -Site Resident Manager. (a) If, as a result of a periodic review, the Authority determines, in its reasonable judgment, that the Development is not being operated and managed in accordance with any of the material requirements and standards of this Agreement, the Authority shall deliver notice to Owner of its intention to cause replacement of the Management Agent or on -site resident manager, including the reasons therefor. Within fifteen (15) days of receipt by Owner of such written notice, Authority staff and the Developer shall meet in good faith to consider methods for improving the financial and operating status of the Development. If, after a reasonable period as determined by the Authority (not to exceed sixty (60) days after the meeting between the Authority and the Developer), the Authority determines that the Owner is not operating and managing the Development in accordance with the material requirements and standards of this Agreement, the Authority may require replacement of the Management Agent or on -site resident manager. (b) If, after the above procedure, the Authority requires in writing the replacement of the Management Agent or on -site resident manager, Owner shall promptly dismiss the then Management Agent or on -site resident manager within thirty (30) days notice, and shall appoint as the Management Agent or on -site resident manager a person or entity meeting the standards for a Management Agent or on -site resident manager set forth in Section 5.2 above and approved by the Authority pursuant to Section 5.2 above. (c) Any contract for the operation or management of the Development entered into by Owner shall provide that the contract can be terminated as set forth above. Failure to remove the Management Agent or on -site resident manager in accordance with the provisions of this Section shall constitute default under this Agreement, and the Authority may enforce this provision through legal proceedings as specified in Section 6.4 below. Section 5.5 Approval of Management Policies. The Owner shall submit its written management policies with respect to the Development to the Authority for its review, and shall amend such policies in any way necessary to ensure that such policies comply with the provisions of this Agreement. Section 5.6 Property Maintenance. (a) The Owner agrees, for the entire Term of this Agreement, to maintain all interior and exterior improvements, including landscaping, on the Property in good condition 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 and all their respective W , Wardens Reg and Dec exe 8 -1 -11 6327 departments, bureaus, and officials; and in accordance with the following maintenance conditions: (1) Landscaping. The Owner agrees to have landscape maintenance performed at least every other week, including replacement of dead or diseased plants with comparable plants. Owner agrees to adequately water the landscaping on the Property in compliance with City and Water District policies. No improperly maintained landscaping on the Property shall be visible from public streets and/or rights of way. (2) Yard Area. No yard areas on the Property shall be left unmaintained, including: (i) broken or discarded furniture, appliances and other, household equipment stored in yard areas for a period exceeding one (1) week; (ii) packing boxes, lumber trash, dirt and other debris in areas visible from public property or neighboring properties; and (iii) vehicles parked or stored in other than approved parking areas. (3) Building. No buildings located on the Property may be left in an unmaintained condition so that any of the following exist: (i) violations of state law, uniform codes, or City ordinances; (ii) conditions that constitute an unsightly appearance that detracts from the aesthetics or value of the Property or constitutes a private or public nuisance; (iii) broken windows; (iv) graffiti (must be removed within seventy- two (72) hours); and (v) conditions constituting hazards and/or inviting trespassers, or malicious mischief. (4) Sidewalks. The Owner shall maintain, repair, and replace as necessary all private sidewalks adjacent to the Development. (5) Private Driveway. The Owner shall maintain, repair, and replace as necessary all areas of the private driveway adjacent to the Development in accordance with the reciprocal easement agreement entered into with the adjacent property owners by the Owner. (b) The Authority places prime importance on quality maintenance to protect its investment and to ensure that all Authority and City - assisted affordable housing projects within the City are not allowed to deteriorate due to below- average maintenance. Normal wear and tear of the Development will be acceptable to the Authority assuming the Owner agrees to provide all 16 Wardens Reg and Dec exe 8 -1 -11 6328 necessary improvements to assure the Development is maintained in good condition. The Owner shall make all repairs and replacements necessary to keep the improvements in good condition and repair. (c) In the event that the Owner breaches any of the covenants contained in this Section 5.6 and such default continues for a period of seven (7) days after written notice from the Authority with respect to graffiti, debris, waste material;,and general maintenance or thirty (30) days after written notice from the Authority with respect to landscaping and building improvements, then the Authority, in addition to whatever other remedy it may have at law or in equity, shall have the right to enter upon the Property and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the Authority shall be permitted (but is not required) to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Property, and to attach a lien on the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by the Authority and/or costs of such cure, including a ten percent (10 %) administrative charge, which amount shall be promptly paid by the Owner to the Authority upon demand. Section 5.7 Safety Conditions. (a) The Owner acknowledges that the Authority places a prime importance on the security of Authority assisted projects and the safety of the residents and surrounding community. The Owner agrees to implement and maintain throughout the Term the following security measures in the Development: (1) to the extent feasible employ defensible space design principles and crime prevention measures in the operation of the Development including but not limited to maintaining adequate lighting in parking areas and pathways; (2) use its best efforts to work with the Poway Sherriff's Department to implement and operate an effective neighborhood watch program and participate in the Crime Free Multi - Housing Program; and (3) provide added security including dead -bolt locks for every entry door, and where entry doors are damaged, replace them with solid -core doors. (b) The Authority shall have the right to enter on the Property and/or contact the Poway Sherriff s Department if it becomes aware of or is notified of any conditions that pose a danger to the peace, health, welfare or safety of the Residents and/or the surrounding community, and to perform or cause to be performed such acts as are necessary to correct the condition. [THE REMAINDER OF THIS PAGE IS BLANK] 17 Wardens Reg and Dec exe 8 -1 -11 ARTICLE 6 MISCELLANEOUS 6329 Section 6.1 Term. The provisions of this Agreement shall apply to the Property for the entire Term even if the entire Loan is paid in full prior to the end of the Term; provided, however, that the provisions of Sections 4.4 and 5.6 of this Agreement shall run with the Property and shall remain in effect in perpetuity.. r This Agreement shall bind any successor, heir or assign of Owner, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the Authority. The Authority makes the Loan on the condition, and in consideration of, this provision, and would not do so otherwise. Section 6.2 Compliance with Loan Agreement and Program Requirements. The Owner's actions with respect to the Property shall at all times be in full conformity with: (i) all requirements of the Agency Loan Agreement; (ii) all requirements imposed on projects assisted with Redevelopment Low and Moderate Income Housing Fund monies under California Health and Safety Code Section 33334.2 et seq. Section 6.3 Covenants to Run With the Land. The Authority and Owner hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the Authority expressly releases such conveyed portion of the Property from the requirements of this Agreement. Section 6.4 Enforcement by the Authority. If Owner fails to perform any obligation under this Agreement, and fails to cure the default within thirty (30) days after the Authority has notified the Owner in writing of the default or, if the default cannot be cured within thirty (30) days, failed to commence to cure within thirty (30) days and thereafter diligently pursue such cure, the Authority shall have the right to enforce this Agreement by any or all of the following actions, or any other remedy provided by law: (a) Calling the Loan. The Authority may declare a default under the Note, accelerate the indebtedness evidenced by the Note, and proceed with foreclosure under the Deed of Trust. (b) Action to Compel Performance or for Damages. The Authority may bring an action at law or in equity to compel Owner's performance of its obligations under this Agreement, and/or for damages. (c) Remedies Provided Under Loan Agreement. The Authority may exercise any other remedy provided under the Loan Agreement. 18 Wardens Reg and Dec exe 8 -1 -11 6330 Section 6.5 Rights of Third Parties to Enforce Covenants. Notwithstanding any other provisions of law, all covenants and restrictions contained herein which implement Health and Safety Code Sections 33334.3 and/or 33413(b)(4), or successor provisions, shall run with the land and shall be enforceable by the Authority, the City of Poway, and any of the parties listed in Health and Safety Code Section 33334.3(f)(7), so long as such provision or successor provision remains in effect. Section 6.6 Listing of Property in Database. Owner hereby acknowledges and agrees that Health and Safety Code Section 33418(c) requires that the Property be listed in a database that shall be made available to the public on the internet and which will include the street address, assessor's parcel number, and other information about the Property. The Owner must disclose this requirement to all Residents and prospective Residents. Section 6.7 Attorneys Fees and Costs. In any action brought to enforce this Agreement, the prevailing party shall be entitled to all costs and expenses of suit, including attorneys' fees. This Section 6.7 shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute. Section 6.8 Recording and Filing. The Authority and Owner shall cause this Agreement, and all amendments and supplements to it, to be recorded against the Property in the Official Records of the County of San Diego. Section 6.9 Governing Law. This Agreement shall be governed by the laws of the State of California. Section 6.10 Amendments. This Agreement may be amended only. by a written instrument executed by all the parties hereto or their successors in title, and duly recorded in the real property records of the County of San Diego, California. Section 6.11 Notice. All notices given or certificates delivered under this Agreement shall be in writing and be deemed received on the delivery or refusal date shown on the delivery receipt, if. (i) personally delivered by a commercial service which furnishes signed receipts of delivery or (ii) mailed by certified mail, return receipt requested, postage prepaid, addressed as shown below. Any of the parties may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or communications shall be sent. If to the Owner: Poway Family Housing Partners, L.P. c/o Foundation for Affordable Housing V, Inc. 30950 Rancho Viejo Road, Suite 100 San Juan Capistrano, CA 92675 Attention: Managing General Partner 19 OGardens Reg and Dec exe 8 -1 -11 With a Copy to Affirmed: Affirmed Housing Group, Inc. 633,E 13250 Evening Creek Drive North, Suite 160 San Diego, CA 92128 Attention: President If to the Authority: The Poway Housing Authority 13 Civic Center Drive Poway, CA 92064 Attn: Executive Director Section 6.12 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be affected or impaired thereby Section 6.13 Termination of Original Regulatory Agreement. This Agreement amends, restates, and replaces the Original Regulatory Agreement in its entirety. Upon execution and recordation of this Agreement the Original Regulatory Agreement shall be terminated and removed as a lien against the Property. Section 6.14 Counterparts. This Agreement may be executed by each party on a separate signature page, and when the executed signature pages are combined, shall constitute one single instrument. IN WITNESS WHEREOF, the Authority and Owner have executed this Agreement by duly authorized representatives, all on the date first written above. AUTHORITY:. THE POWAY HOUSING AUTHORITY, a public body APPROVED AS TO FORM: KANE B LLMER & BERKMAN L Gw- Plenn F. Wasserman Authority Special Counsel 20 Wardens Reg and Dec exe 8 -1 -11 Wardens Reg and Dec exe 8 -1 -11 OWNER: 6332 POWAY FAMILY HOUSING PARTNERS, L.P., a California limited partnership By: Foundation for Affordable Housing V, Inc., - ; a California nonprofit public benefit corporation Its: Managing General Partner By: / Deborrah Willard, President By: Affirmed Housing Group, Inc., a Delaware Corporation Its: Administrative General Partner By: N, J es Silverwoo , Pr sident 21 STATE OF CALIFORNIA COUNTY OF SAN DIEGO 6333 On August 11, 2011 before me, Carol S. Legg, Notary Public, personally appeared Penny Riley, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person 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. got CMft S. LE G c Pa on r oven so 01W Sdf 15 Carol S. Legg, Notary Publi OPTIONAL Title or type of document: First Amended and Restated Regulatory Agreement and Declaration of Restrictive Covenants (Orange Gardens -12510 Oak Knoll Road). Penny Riley signed as Executive Director, Poway Housing Authority. Document Date: August 1, 2011. Number of Pages: 21, plus Exhibit A: 3 pages There is an additional signature page that is unaccompanied by the full 21 -page document. Signers Other Than Named Above: Glenn F. Wasserman, Agency Special Counsel Deborah Willard, President of Foundation for Affordable Housing V. Inc. (not yet signed at time of this notarization) James Silverwood, president of Affirmed Housing Group, Inc. (not signed yet at time of this notarization) STATE OF CALIFORNIA ) 63 34 COUNTY OF �, ) On 41A 06f 1 20il before me, . fl Notary bli >� Vic./ p 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 ft" Fdit . Cditn p omp erift WGUM (Seal) 14 STATE OF CALIFORNIA COUNTY OF 33A On 20 I1 before me, Notary P blic, 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. WITNE S my h official seal. Signature (Seal) OGardens Reg and Dec exe 8 -1 -11 EXHIBIT A 633.5 PROPERTY DESCRIPTION Legal Description All that certain real property located in the City of Poway, County of San Diego, State of California described as follows: PARCEL 1: THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS 30.00 FEET DISTANT NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF THE 40 FOOT COUNTY ROAD TO POWAY, SAID POINT OF BEGINNING BEARING NORTH 70 0 02'46" EAST 1005.15 FEET FROM THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID SECTION 14 WITH THE CENTER LINE OF MISSION ROAD 1 -A AT STATION 378 + 70.9 THEREON, AS SHOWN ON MAP THEREOF ON FILE IN THE OFFICE OF COUNTY SURVEYOR OF SAID SAN DIEGO COUNTY, AND BEING ALSO THE SOUTHWEST CORNER OF LAND DESCRIBED IN THE DEED FROM R. T. CREMER, ET UX, TO EVERETT DANIELSON, ET UX, DATED OCTOBER 4, 1940, RECORDED OCTOBER 16, 1940 IN BOOK 1085, PAGE 127 OF OFFICIAL RECORDS; RUNNING THENCE PARALLEL WITH AND 30.00 FEET NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF SAID POWAY ROAD SOUTH 83 0 20'00" WEST, 133.69 FEET; THENCE PARALLEL WITH THE WEST LINE OF SAID DANIELSON'S LAND, NORTH 00 0 43'00" EAST TO THE SOUTH LINE OF THE NORTH 162.65 FEET (MEASURED ALONG THE EAST AND WEST LINES) OF THE LAND DESCRIBED IN THE DEED TO KENNETH C. SNYDER, ET UX, RECORDED JUNE 10, 1968 AS DOCUMENT NO. 96618; THENCE EAST ALONG SAID SOUTH LINE TO THE WEST LINE OF THE HEREINABOVE REFERRED TO DANIELSON'S LAND; THENCE ALONG SAID WEST LINE SOUTH 00 0 43'00" WEST, 321.97 FEET TO THE POINT OF BEGINNING. PARCEL 2: THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 14, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: EXHIBIT A - Legal Description - Page 1 of 3 OGardens Reg and Dec exe 8 -1 -11 . COMMENCING AT A POINT WHICH IS 30.00 FEET DISTANT NORTHERLY AT RIGW ANGLES FROM THE CENTER LINE OF THE 40 FOOT COUNTY ROAD TO POWAY, SAID POINT OF BEGINNING BEARING NORTH 70 0 02'46" EAST 1005.15 FEET FROM THE POINT OF INTERSECTION OF THE SOUTH LINE OF SAID SECTION 14 WITH THE CENTER LINE OF MISSION ROAD l -A AT STATION 378 + 70.9 THEREON, AS SHOWN ON MAP THEREOF ON FILE IN THE OFFICE OF COUNTY SURVEYOR OF SAID SAN DIEGO COUNTY, AND BEING ALSO THE SOUTHWEST CORNER OF LAND DESCRIBED IN THE DEED FROM R. T. CREMER, ET UX, TO EVERETT DANIELSON, ET UX, DATED OCTOBER 4, 1940, RECORDED OCTOBER 16, 1940 IN BOOK 1085, PAGE 127 OF OFFICIAL RECORDS; RUNNING THENCE PARALLEL WITH AND 30.00 FEET NORTHERLY AT RIGHT ANGLES FROM THE CENTER LINE OF SAID POWAY ROAD SOUTH 83 0 20'00" WEST, 133.69 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID PARALLEL LINE SOUTH 83 °20'00" WEST, 133.68 FEET TO THE EAST LINE OF LAND AS DESCRIBED IN PARCEL 2 OF THE DEED TO J. FRANK ZITTELL AND CHARLOTTE G. ZITTELL, RECORDED MARCH 26, 1947, IN BOOK 2374, PAGE 80 OF OFFICIAL RECORDS; THENCE ALONG THE EAST LINE OF LAND AS DESCRIBED IN SAID PARCEL 2, NORTH 00 0 43'00" EAST TO THE SOUTHWEST CORNER OF THE NORTH 162.65 FEET (MEASURED ALONG THE EAST AND WEST LINES) OF THE LAND DESCRIBED IN DEED TO KENNETH C. SNYDER, ET US, RECORDED JUNE 10, 1968 AS DOCUMENT NO. 96618; THENCE EAST ALONG THE SOUTH LINE OF SAID NORTH 162.65 FEET TO A LINE WHICH BEARS NORTH 00 °43'00" EAST, PARALLEL WITH THE WEST LINE OF SAID DANIELSON'S LANDS, FROM THE TRUE POINT OF BEGINNING; THENCE SOUTH 00 °43'00" WEST TO THE TRUE POINT OF BEGINNING. PARCEL 3: A NON - EXCLUSIVE EASEMENT FOR THE INGRESS AND EGRESS OF MOTOR VEHICLES AND PEDESTRIANS TO PERMIT THE FREE FLOW OF VEHICULAR AND PEDESTRIAN INGRESS AND EGRESS PURSUANT TO RECIPROCAL EASEMENT AGREEMENT RECORDED MAY 25, 2011, AS DOCUMENT NO. 2011- 0268977 OF OFFICIAL RECORDS, TO, FROM, OVER, AND ACROSS THOSE PORTIONS OF THE PROPERTIES DESCRIBED IN DEEDS TO CISSY FISHER RECORDED MAY 13, 1994, AS DOCUMENT NO. 1994. 0317060 AND TO POWAY FAMILY HOUSING PARTNERS RECORDED DECEMBER 22, 2009 AS DOCUMENT NO. 2009- 704717, BOTH IN THE OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA TOGETHER WITH A PORTION OF PARCEL 1 ACCORDING TO PARCEL MAP THEREOF NO. 3710, FILED IN THE COUNTY OF SAN DIEGO RECORDER'S OFFICE, APRIL 19, 1975, BEING MORE PARTICULARLY DESCRIBED IN PARCELS A AND B AS FOLLOWS: EXHIBIT A - Legal Description - Page 2 of 3 Wardens Reg and Dec exe 8 -1 -11 t PARCEL A: 6 337 A 34.00 FOOT WIDE STRIP OF LAND LYING 14.00 FEET EASTERLY OF, MEASURED AT RIGHT ANGLES, AND PARALLEL WITH THE FOLLOWING DESCRIBED LINE AND 20 FOOT WESTERLY OF, MEASURED AT RIGHT ANGLES, AND PARALLEL WITH THE FOLLOWING DESCRIBED LINE: BEGINNING AT THE SOUTHEAST CORNER OF THE PROPERTY DESCRIBED IN SAID FISHER DEED; THENCE ALONG THE EASTERLY LINE OF SAID PROPERTY NORTH 01 EAST 503.39 FEET TO A POINT ON THE WESTERLY LINE OF SAID PARCEL 1 OF PARCEL MAP 3710; THENCE ALONG THE NORTHERLY PROLONGATION OF SAID EASTERLY LINE OF SAID FISHER PROPERTY NORTH 01 0 52'33 EAST 36.92 FEET TO THE BEGINNING OF A TANGENT 21.00 FOOT RADIUS CURVE, CONCAVE WESTERLY, THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 28 0 19'49" AN ARC DISTANCE OF 10.38 FEET; THENCE NORTH 26 °27'16" WEST 4.42 FEET, MORE OR LESS, TO A POINT ON A NON - TANGENT 1250.00 FOOT RADIUS CURVE; A RADIAL LINE TO SAID POINT BEARS SOUTH 19 EAST; SAID POINT ALSO BEING ON THE SOUTHERLY RIGHT -OF -WAY LINE OF POWAY ROAD (100 FEET WIDE) AND THE POINT OF TERMINATION AND HEREAFTER DESCRIBED AS POINT "A ". PARCEL B: COMMENCING AT THE HEREINABOVE DESCRIBED POINT "A ", THENCE SOUTHWESTERLY ALONG SAID SOUTHERLY RIGHT -OF -WAY LINE OF SAID POWAY ROAD THROUGH A CENTRAL ANGLE OF 00 0 55'29" AN ARC DISTANCE OF 20.17 FEET TO A POINT ON THE WESTERLY LINE OF THE HEREINABOVE DESCRIBED PARCEL A AND THE TRUE POINT OF BEGINNING; THENCE ALONG SAID WESTERLY LINE SOUTH 26 EAST 7.07 FEET TO THE BEGINNING OF A TANGENT 1.00 FOOT RADIUS CURVE, CONCAVE WESTERLY; THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 28 0 19'49" AN ARC DISTANCE OF 0.49 FEET ; THENCE SOUTH 01 0 52'33" WEST 54.53 FEET; THENCE LEAVING SAID WESTERLY LINE NORTH 02 0 08'36" WEST 28.54 FEET; THENCE NORTH 01 0 52'33" EAST 18.92 FEET TO THE BEGINNING OF A TANGENT 7.50 FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 80 0 2823" AN ARC DISTANCE OF 10.53 FEET TO A POINT OF REVERSE CURVATURE WITH A 7.50 FOOT RADIUS CURVE, CONCAVE NORTHEASTERLY; A RADIAL LINE TO SAID POINT BEARS NORTH 11 *24'10" EAST; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 43 0 59'50" AN ARC DISTANCE OF 5.76 FEET TO A POINT ON A NON - TANGENT 1250.00 FOOT RADIUS CURVE, A RADIAL LINE TO SAID POINT BEARS SOUTH 17 °59'47" EAST, ALSO BEING A POINT ON THE SOUTHERLY RIGHT -OF -WAY LINE OF SAID POWAY ROAD; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 00 0 28'02" AN ARC DISTANCE OF 10.20 FEET TO THE TRUE POINT OF BEGINNING. EXHIBIT A - Legal Description Page 3 of 3 Wardens Reg and Dec exe 8 -1 -11