HomeMy WebLinkAboutMINUTES - 07202004 - HA.1 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Robert McEwan, Executive Director
DATE: July 20, 2004
SUBJECT: APPROVAL OF LEASE EXTENSION BETWEEN THE HOUSING AUTHORITY OF THE
COUNTY OF CONTRA COSTA AND THE COUNTY OF CONTRA COSTA,
DEPARTMENT OF GENERAL SERVICES FOR USE OF 2 CALIFORNIA STREET,
RODEO, CALIFORNIA AS A HEAD START FACILITY
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
1. RECOMMENDED ACTION:
Acting as the Board of Supervisors, APPROVE and AUTHORIZE the General Services Director,
and acting as the Board of Commissioners of the Housing Authority of the County of Contra Costa
AUTHORIZE and APPROVE the Executive Director to execute a two-year Lease Extension in accordance
with section A.7 of the original Lease executed July 1, 1999 for use of the Administration Building at the
Bayo Vista Housing Development at 2 California Street, Rodeo, California, as stated in the attached
Lease Extension.
11. FINANCIAL IMPACT:
The rental rate is $2,000.00 per year over a two-year period, which will go into the Housing
Authority of the County of Contra Costa's Non-Dwelling Rentals account that is a General Fund Account
that is used to provide general maintenance for the Housing Authority.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The County of Contra Costa has been using 2 California Street, Rodeo, CA, as a Head Start
facility operated by the County of Contra Costa. This facility and program is available to Public Housing
residents of the Housing Authority of the County of Contra Costa, as well as the surrounding community.
The Lease has been in effect since July 1, 1999 and the term of this extension shall be for the period
commencing July 1, 2004 and ending June 30, 2006.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect not to authorize the Executive Director of the Housing
Authority and the Community Services Department of Contra Costa County to enter into a two-year Lease
renewal, the on-going program would no longer function and this would be a detriment to the
development, as well as to the community.
C Tff+bT-9-eN ATTACHMENT: YES SIGNATURE
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD
COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON y :;� �� F ' APPROVED AS RECOMMENDED 0-Tt.
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTED
JOIWETEN OR,CLERK OF
THE BOARD OF COMMISSIONERS
AND COUNTY ADMINISTRATOR
BY PUTY
H:\JudyHayes\MSOFFICE\WINWORD\BOARD\LEASES\BAYO VSTA HEADSTART oc
RENEWAL OF LEASE
THIS SUPPLEMENTAL AGREEMENT made and entered into this 1St
day of July , 2(}04 ,by and between the HOUSING AUTHORITY OF THE
COUNTY OF CONTRA COSTA, hereinafter referred to as the "Authority", and
Community Service Department of Contra Costa County , hereinafter to be
referred to as the"County":
WITNESSETH:
WHEREAS, by lease agreement between the parties hereto, dated
July 1 1999 , the Authority leased to County the right and
privilege of occupying space at 2 CALIFORNIA STREET
RODEO, CALIFORNIA of the Authority; and
WHEREAS,the County desires and the Authority is willing that such
lease be renewed for the term of two (2) years.
NOW, THEREFORE, the Authority for and in consideration of the
promises and covenants in the aforesaid lease, and other valuable consideration,
the receipt of which is hereby acknowledged, hereby agrees that said lease shall
be, and it hereby is, renewed beginning JULY L2004 and ending JUNE 30,
2046, with the annual amount being$2000.00.
The County hereby covenants and agrees that during the course of the
renewal period the County shall perform and be bound by all of the covenants and
conditions contained in said lease agreement of July 1, 1999
IN WITNESS WHEREOF, the parties have set their hands the day and
year first herein above set forth.
HOUSING AUTHORITY OF THE COMMUNITY SERVICES DEPT.
COUNTY OF CONTRA COSTA CONTRA COSTA COUNTY
By By
EXECUTIVE DIRECTOR
Date Date
H:\JudyHayes\MSOFFICE\WINWORD\BOARD\LEASES\Lease Renewal Contract-Mayo Vista
Head Start.doc
THE HOUSING AUTHORITY t{1F THE, COUNTY OF CONTRA COSTA,
PROPERTY MAitiIAGL.ilrl Ll`w T SERVICES AGREEMENT
DIS.ANZA GARDENS.APARTMENTS
THIS AGREEMENT, made this Int day of.April 2004 by -,(od between the Housing Authority of the
County of Contra Costa (hereinafter referred to as 'TTACCC''), and EAH, Inc., a California public
benefit corporation, (hereinafter referred to as ").All" or "Contractor" .for the management of the De
Anza Gardens Apartments ("the project").
WHEREAS the HACCC solicited proposals by its REQUEST 1 UR PROP€:tSA.I.. A:ND
QUALIFICATIONS FOR.DlJ ANZA. GARDENS I'.[ZOPER`I"Y MANAGEMENT SERVICES (#fT4P11)
in a maturer prescribed by law; and
WHEREAS, after review of all proposals submitted pursuant to said Request for Proposal,
Contractor's proposal for the services was accepted by the II.ACCC as the Most Qualified Contractor.
NOW THEREFORE, HACCC and Contractor agree as follows:
1. Term: The term of this Agreement shall be for one year commencing on April 1, 2004 and
continuing through and including March 31, 2005 with two (2) one (1) year options to be exerciser)
solely at the discretion of HACCC,not less than thirty- (30) clays nor more than ninety- (90) days prior
to the expiration of the then current term of the Agreement. This agreement is subject 'to and
subordinate to the agreement between the:l-IAC,'CC and the DeAnza Gardens, 11,13 and will terminate
immediately upon notice to contractor, in event cal" fertnination of agreement between the HACCC and
the DeAnza Gardens,LLT',
2, Termination:
A. If either party defaults in the performance of any of its obligations hereunder and such
default continues for thirty(30) clays after written notice to the defaulting party specifying such
default, the party not in default may terminate this Agreement upon ten (l 0) working days
written Notice to the defaulting party. Notwithstanding the above, if a cure has commenced and
the defaulting party is diligently pursuing said cure within said 30-clay period then the non-
defaulting party should not effect the termination,
B. HACCC or Contractor may terminate this Agreement upon sixty-(60)-calendar days
written notice to the other, for any reason. It is understood that the respective rights and
obligations of the parties shall continue to be governed by this Agreement until the effective
date of such termination.
C. This agreement is subject to and subordinate to the Property Management Agreement
between the HACCC and the DeAnza Gardens, LLP and will terminate immediately upon
notice to contractor, in event; of termirn11ion of the Property Management Agreement,
notwithstanding any other provision of:'this Agreement.
3. Pa ntent Limit:
A. IIACCC's total payment to the Contractor under this contract for the txtanagement fee
shall not exceed 3.5% of the effective gross rental income for the period January 1, 2005 and
ending December 31, 2005; and, reirnborsable costs as set forth in the Management Plan and
Housing Authority of the P1t.OPF.'RTY]`vfANAGEIVIENT SERVICES CONTRACT
County of Contra Costa.
Page 2 of 14
Stabilized Operating Budget attached heroto as .Exhibit A and Exhibit B and made a part hereof,
unless authorized by the HA CCCC in writing by a Supplemental Authorization.
B. I-IACCC's total paynients to Contractor under this Contract shall not exceed $50,400 for
the marketing fee during the period of April 'I, 2004 and ending December 31, 2004 and,
reimbursable costs as set forth »i Marketing and Lease-tip Plan attached hereto as Exhibit C and
trade a part hereof, unless authorized by the IIACCC in writing by a supplemental
Authorization.
4. HACCC's Obli atis: 1n considerstion of Contractor's provision of services as described
below, and subject to the payment: limits expressed herein, HACCC shall pay Contractor those
Management and Marketing Fee paymrf,�s described in Paragraph 23 below, upon Contractor's
submission of a properly documented demand for payment which shall be submitted not later
than thirty- (30) clays from the end of the month in which the contract services were rendered
and upon approval of such demand by the Executive Director of the HACCC or his designee.
5. Contractor's Obligations: Contractor shall be responsible for providing the services required
accomplishing the following objectives:
A. The Contractor shall perform all of the work required by the Management Plan attached
hereto as Exhibit A and ioco borated herein and made a part of this Agreernent.
B. The Contractor shall provide coot perforin all the services in accordance with the
Marketing Platz as outlined and attnobed Hereto as Exhibit C and incorporated herein
and made a part of this Agreement.
C. To the extent there are airy inconsistencies or conflicts between the provisions of this
Agreement and any of the Exhibits attached hereto, in whole or in part, the provisions of
this Agreement shall control.
D, Subject to any future modifications to the following, which must be matte in writing
signed by both Contractor and IIACCC, Contractor specifically shall:
(1) Act as exclusive property manager for the management of the property described
as follows: Name: De Anza Gardens Apartments; Location: Bay Point, California;
No. Of Dwelling Units: 180.
(2) Carry out the marketing activities observing all requirements of the De Anza
Gardens Apartments Marketing .Plan as specified in Exhibit C as attached to this
contract and made a part hereof.
(3) Comply with the budgeted advertising costs outlined tinder Exhibit D, the Lease-
Up Budget and ensure the amounts (to not exceed budget.
Housing Authority of the PROPERTY MANAi,IEI`,!IENT SERVICES CONTRACT
County of Contra Costa
Page 3 of 14
(4) Carry out the Management Plan of De Anza Gardens outlined tinder Exhibit A.
(5) Comply with the Stabilized Operating Budget as projected and approved by the
HACCC for January 1, 2005 through December 31, 2005 outlined tinder Exhibit B.
This Operating Budget can by modified as needed by written mutual agreement
(b) Offer for rent and rent the dwelling units, parking spaces, and other rental
facilities and concessions, as applicable, in the De. Anza Gardens Project. Incident
thereto, the following provisions will apply:
(a) Contractor will strictly follow the approved tenant selection policy,
which is attached liereto as Exhibit E.
(b) Contractor will show the premises to prospective tenants.
(c) Contractor will take and process applications for rentals. If an application
is rejected, the applicant will be told the reason for rejection, and the rejected
application with reason for rejection noted thereon will be kept on file for a
minimum of one (t) year. A current waiting list of prospective tenants will also
be maintained.
(d) Contractor will prepare all dwelling leases, parking permits and will.
execute the sante in its name, and in its capacity as property manager. The terms
of all leases will comply with the pertizient provisions of the governing
regulatory agencies specifically IRC Section 142 for Tax Credit Properties.
(e) Contractor will furnish HACCC with rent and income schedules showing
contract rents as appropriate for dwelling units, and other charges for facilities
and services, and income data pertinent to determinations of tenant eligibility
and tenant rents oil a monthly basis. Monthly report will be submitted no later
than the 2..1 business day of the subsequent month in writing or acceptable
electronic format and must reconcile with rents and other charges actually
collected.
(f) Contractor will deterruine all prospective tenants regarding eligibility and
will prepare and verify eligibility certifications and re-certifications in
accordance with the governing regulatory agencies.
(g) Contractor will collect, and deposit security deposits in accordance with
the terms of each tenant's lease. Security deposits will be deposited in the a bank
account designated by HACCC, which is an interest bearing account, if required
by State law, separate fiom all other accounts and funds, whose deposits are
insured by an agency of the United States Government. This account is carried in
the H.ACCC's name and designated of record as "Security Deposit Account Cor
De Anza Gardens." A report summary of all transactions is required with the
complete details of each transaction. (Not limited to the name of tenant, check
information, amount, and month due, etc.)
(7) Shall collect when due all rents, charges and other amounts receivable on the
HACCC's account in connection with the management and operation of the Project.
Housing Authority of the PROPERTY MANAGEMENT SERVICES CONTRACT
County of Contra Costa
Page 4 of 14
Such receipts will be deposited in an account to-be established by HACCC, separate
from all other accounts and funds, with a bank whose deposits are insured by the
Federal Deposit Insurance Corporation as designated by the HACCC. This account will
be carried in the HACCC's name and designated of records as "Operating Account for
Ile Anza Gardens." A report summary of all transactions is required on a monthly basis
no later than the 15`x' day of the month following the month being reported with the
complete details of each transaction including, but not limited to the name of each
tenant involved in a transaction, the amounts collected, and the basis of the change (e.g.
rent, maintenance charge, etc...) check information, amount, month due.
(8) Use its best efforts to secure full compliance by each tenant with the terms of
his/her lease. Mandatary compliance will be emphasized, and the Contractor, utilizing
the services of local social services agencies when available, will counsel tenants and
make referrals to community agencies in cases of financial hardship or under other
circumstances deemed appropriate by the Contractor, to the end that involuntary
termination of tenancies nay be avoided to the maximum extent consistent with sound
management of the Project. Nevertheless, the Contractor may lawfully terminate any
tenancy when, in the Contractor's judgment sufficient cause (including, but not limited
to, non-payment of rent) for such termination occurs under the ten-ns of the tenant's
lease. The Contractor is authorized to consult with legal counsel to be approved by the
HACCC, for such legal. actions as Contractor reasonably believes to be necessary,
including, but not limited to bringing actions in Contractor's oven narrie and in its
capacity as property manager, for eviction and executing notices to vacate and judicial
pleading incident to such actions and defense of any claims brought by tenants of the
Project. Provided, however, that Contractor will keep the HACCC informed of such
actions and will follow such instructions as the HACCC may prescribe for the conduct
of any such action. Subject to the HACCC's approval, attorney's fees and other
necessary costs incurred in connection with such actions will be paid out of this
agreement as a separate line item marked "Attorney & Eviction Dees" and under a
separate revolving fund forming part of the general operating fund.
(9) Cause the Project to be maintained and repaired in accordance with local codes
and in a condition at all times acceptable to the HACCC including but not limited to
cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other
maintenance and repair work as may be necessary, subject to any limitations imposed by
the HACCC in addition to those already contained herein. Incident thereto, the
following provisions will apply:
(a) Special attention will be given to preventive maintenance and, to the
greatest extent feasible, the services of a regular maintenance employee
employed by the Contractor will be utilized.
(b) Contractor will contract only with qualified independent contractors for
the maintenance and repair of HVAC, elevators and for extraordinary repairs
Housing Authority of the PROPER"�t'Y MANAGEMENT SERVICES CONTRACT
County of Contra Costa.
Page 5 of 14
beyond the capability of contractor's regular maintenance employees.
Contractor shall not initiate any repairs or other mai.jrtenance that worild void
any warranties for improvements at.the Project_
(c) Contractor will systematically and promptly receive and investigate all
service requests from tenants, take such action'thereon as maybe justified and
appropriate, and will keel) records of the same. Emergency requests will be
responded to as soon as passible and in no event more than twenty-four (24)
hours,
(d) The Contractor is authorized to purchase all materials, equipment, tools,
appliances, supplies and services necessary to proper maintenance and repair,
which purchases are ultimately the responsibility ofHACCC.
(e) Notwithstandhig any of Ibe foregoing provision, the prior approval of the
HACCC will be required for any expenditure which exceeds $1,500 in any one
instance for labor, materials or otherwise in connection with the maintenance
and repair of the De Anza Gaidens Apartment, except for recurring expenses
within the limits of the operating budget or emergency repairs involving
manifest danger to persons or property, or required to avoid suspension of any
necessary service to the Ile A.nza Gardetrs Apartments. I.n the latter event, the
Contractor will inform HACCC of the facts in writing as promptly as possible.
(10) In accordance with the operating budget, the Contractor will make
arrangements for water, electricity, gas, sewage, trash disposal, vermin extermination,
decorating, laundry facilities, and telephone service. Subject to the BACCC's prior
approval, the Contractor will male sttch contracts as may be necessary to secure such
utilities and services.
6. Contractor's Eni to ees: Contractor shall determine, with the IIA.CCC the number,
qualifications and ditties of the personnel to be regularly employed in. the rnaiiageruent of the
De Arrza Gardens Apartments, including a Resident Manager, maintenance, bookkeeping,
clerical and other inanagerial employees. All such ort-site personnel are employees of the
contractor and will be hired, paid, supervised and discharged through the Contractor according
to the Contractor's personnel policies and pror.edures and subject to the following conditions:
A. The Resident Manager will have duties of the type usually associated with his/her
position.
B. The compensation (including fringe benefits of the Resident Manager, Leasing Agent,
and the maintenance employees) will be determined by froth HACCC and the
Contractor. Compensation of bookkeeping, clerical and other managerial personnel will
be within the Contractor's sole discretion, provided that minimum wage standards are
met in accordance with state and .federal regulations.
Housing Authority of the PROPERTY MANAGEMENT SERVICES CONTRACT
County of Contra Costa
Page 6 of 14
C. The HACCC will reimburse the Contractor for compensation(including fringe benefits)
payable to the onsite management and maintenance employees, including all local state
and federal taxes and assessments (including but not limited to Social Security Taxes,
unemployment insurance and workman's compensation insurance) incident to the
employment of such personnel subject only to the budgeted amounts under litie item
"Payroll" of Exhibit D of the Contractor's Proposal.
7, H'udggLS: Annually prepare operating budgets for the De Anza Gardens Apartments that
will be as approved. by the HACCC under Exhibit D to the Contractor's Proposal. Annual
disbursements for each type of operating expenses itemized in the budget will not exceed the
amount authorized by the approved budget, except as agreed upon by HACCC in writing. The
Contractor will prepare a recommended operating budget for each fiscal year begimling during
the term of this Agreement, and will submit the same to the HACCC at least ninety (90) clays
before the beginning of the fiscal year. The fiscal year for HACCC begins on January 1 and
ends on December 31 of every year. Contractor must keep the HACCC informed and•aj)prisecl
of any anticipated deviation from the receipts or disbursements stated in the approved budget.
8. records and Reports: In addition to any other regrzirements or provisions of this Agreement,
the Contractor and HACCC will leave the following responsibilities with respect to records and
reports:
A. The HACCC is responsible for establishing aril maintaining a comprehensive system of
records, books, and accounts in accordance with general accepted accounting and
auditing standards and principles for property management services.
B. Current active tenant files must be maintained at the Project by the Contractor and
available for inspection during normal business hours.
C. With respect to each fiscal year ending during the teen of this agreement, HACCC; is
responsible for having an annual financial report prepared by a Certified Public
Accountant or other person acceptable to the HACCC based upon the preparer's
examination of the books and records of the Contractor. Compensation for the
preparer's services will be paid out of the Operating Account as an expense to the
Project.
D. The Contractor will prepare a monthly report comparing actual and budgeted figures for
receipts and disbursements and will submit: these reports to the HACCC within fifteen
(1 S) days atter the enol of the month covered.
E. To the extent the information is in [lie custody and control of Contractor, the Contractor
will furnish such information(including occupancy reports) on a monthly basis and as
may be requested by the HACCC from time to time with respect to the financial
physical or operational condition of the Ike Anna Gardens Apartments.
Housing Authority of the PROPEWFY MANAGEMENT SERVICES CON'I'RAt_'T
County of Contra Costa
Page 7 o,f 14
F. Upon.termination or change in project inanagernent:
(I) The records of this Project, even if maintained and housed at the office of the
Contractor, shall be considered to be the official records of tliis Project. All tenant
records and other records maintained by Contractor must be turned over to I-IAC(T
promptly within severs (7) days upon ally terinination of management agreement or
whenever a change over of management occurs.
(2) A cut off date must be established and agreed upon between Ille outgoing
managing Contractor and the IIACVC'{.`' or its authorized agent.
9. Fidelity .Bond: Contractor shalt provide a Blanket .fidelity Bond covering all officers and
employees, for loss of Loan proceeds caused by dishonesty, in an amount not less than
$1,000,000 naming the HACCC as Loss Payee. This is conditioned to protect the HACCC
against misappropriation of funds by the Contractor and its employees.
1.0. Insurance Coverage: Coverage shall be at least as Broad as:
(a) Commercial General Liability Coverage
(b) Automobile Liability
(c) Workers' Compensation insurance as required by the State of California
and Employer's Liability inrairarwe.
(d) Property&Casualty Tnsm-ance Waiver of Deductible Claims
(e) . Comprehensive Liability Insurance
(f) Medical Liability
A. .Insurance Reg uiretnents and Limits: Contractor shall maintain limits no less than:
(a) Worker's compensation insurance for compensation to any person
engaged in the performance of any work uridertaken, including employer's
liability coverage with limits of not less than $1,000,000.00 each employee and
each disease.
(b) Commercial General Liability Insurance and excess liability insurance
policy with combined flinits of lint less than $5,000,000.00 per occurrence and
in the aggregate
(c) Crime InsurancePolicy for employee dishonesty, forgery and alteration,
Housing Authority of the PROPERTY MNNAGI MST SERVICES CONTRACT
County of Contra Costa
Page 8 of 14
theft, disappearance and destruction and robbery and safe burglary. Limits of
liability shall be not less than $100,000.00 with a maximuni deductible of
$1,000.00 per claim.
(c1) Professional Liability Insurance covering the activities of the contractor
shall be written on a "claims made" basis, with limits of at least $1,000,000.00
in the aggregate and with a rnaxitnum deductible of$10,000.f)tl.
(e) Comprehensive Automobile Liability Insurance with limits not less than
$1,000,000 each occurrence combined single limit and $5,000,000 in the
aggregate, annually for Bodily injury and Property Damage, including coverage
for owned, non-owed and lured vehicles, as applicable, provided, however, that
if the Contractor sloes not own or lease vehicles for purposes of this Agreement,
then no automobile insurance shall be'required.
(:) Any loss within tlue deductibles shall be borne by the contractor, All
policies of insurance shall be maintained in during the Period of this Agreement.
Each policy shall be from an insurance company rated"A"or higher by the A.M.
Best Insurance Guide, with a financial size category of twelve (12) or Higher.
Each policy shall be endorsed to include the provision giving HACCC at least
thirty-(30)-days prior written notice of cancellation, non-renewal or material
change of the policy. The Commercial Geneial Liability insurance policy shall
be endorsed to include as additional insured tlue HACCC. Contractor shall
furnish HACCC with copies of all such endorsements, and with Certificates of
Insurance evidencing such policies and the renewals thereof.
B. HACCC Insurance: Contractor shall assist HACCC in obtaining the following:
(1) Leased Premises lusuramce. "All risk" insurance covering all risks of physical
loss or damage to any of the improvements with liability limits of not loss than 100'/" of
the frill replacement value thereof. Such policies shall be broad from and shall include,
but shall not be limited to, coverage for fire, extended coverage, vandalism, malicious
mischief and storm. Perils customarily excluded from all risk insurance, (e.g,
earthquakes and flood may be excluded), The term full replacement value shall exclude
the cost of excavation, foundations and footings. The amount of such insurance is
adjusted by reappraisal of the De Anna Gardens Apartments by the insurer or its
designee at least ounce every five years shoring the term if requested by tlue IIA.CCC.
(2) Property insurance covering the Ile Anza Gardens Apartments, in forms
appropriate for the nature of such property, covering all risks of lass, excluding
earthquake, for one hundred percent (1.00%) of the replacement value, with deductible,
if any, acceptable to the HACCC, naming the De An&a Gardens, LLP as a Loss l'iFyee,
as its interests may appear. Flood insurance shall be obtained if required by applicable
federal regulations.
Housing Authority of the PROPERTY MANAGEMENT SERVICES CONTRACT
County of Contra Costa.
Page 9 of lit
C. Insurance Deductibles and Self insured: Any deductibles or self-insured retention moist
be declared to and approved by the HACCC. At the option of the HACCC, either: the
insurer shall reduce or eliminate such deductibles or self-insured retention as respects
the HACCC, its officers, employees and volutrteers; or, the Contractor shall procure a
bond guaranteeing payment of losses and related investigations, claim administration
and defense expense.
D. Other Insurance Provisions: The general liability and a.utotrrobilc liability are to
contain, or be endorsed to contain, the following provisions:
(1) The HACCC, its officers, officials, employees, agents and volunteers are to be
covered as all hisured as respects: liability arising out of activities performed by or on
behalf of the Contractor, products and completed operations of the Contractor, premise
owned, occupied or used by tfic Contractor, or automobile owned, leased hired or
borrowed by the Contractor. The coverage shall contain no special lirnitations,on the
scope of'protection afforded to the HACCC, its officers, officials, employees, agents or
volunteers and De Anza Gardens,LLP.
(2) For arty claims related to this project, the Contractor's insurance coverage shall
be primary insurance as respects the VeAnza Gardens, LLP. And HACCC, its officers,
officials, employees, agents or volunteers. Any insurance or self-insurance maintained
by the HACCC, its officers, officials, eruployees, agents or volunteers shall be in excess
of the Contractor's insurance and shall not contribute with it.
(3) Any failure to 6omply with reporting or other provisions of tine policies
including breaches of warranties shall not affect coverage provided to the HACCC, its
officers, officials, employees, agents or volunteers and DeAaaza Gardens, L.I.P.
(4) The Contractor's insurance shall apply separately to each insured against whom
claim is made or suit is brought, except with respect to tine limits of the insurer's
liability.
(5) Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in coverage
or in limits except after thirty (30) clays prior written notice by certified mail, return
receipt requested, has been given to the IIAC:`C,C.
(G) Coverage wider the comprehensive general liability and automobile liability
policies shall be broad form and shall include, but shall not be limited to, operations,
contractual, elevators, owner's and contractor's protective, products and completed
operations, and the use of all owned, non-owned and hired vehicles, Stich liability limit
shall be adjusted every five years in accordance with increases in the consumer price
index - all urban consumers applicable for tlFe area which includes Contra Costa
HousingAuthority of the PROPERTY MANAGEMENT SERVICES CONTRACT
County of Contra Costa
Page 10 of 14
County, California as published by the United States Bureau of Labor Statistics, or such
successor Consumer Price Index as most closely corresponds to the foregoing index,
and to the extent such readjusted amount of insurance is connuerci ally and reasonably
available.
(7) Acceptability of Insurers: Insurance is to be placed with insurers with a 01.11-rent
A. M. Best rating of no less than A: VII. Companies that issue bonds and insurance
security shall be licensed to do business in the State of California. and shall be a
company acceptable to the HACCC.
11. Contractor agrees to obtain contract materials, supplies
and services at the lowest reasonable, responsible cost possible on terms most advantageous to
the Project and to secure and credit to the Project all discounts, rebates or commissions
obtainable with respect to purchases, service contracts and other transaction on behalf of the De
Anza Gardens Apartments. Contractor agrees that all goods and services purchased will not be
purchased from companies, which the Contractor have any special financial interest iii,part or
whole. Contractor shall solicit written cost estimates (i.e. bids, quotations) from at least three
competitors or suppliers for any work item that the IIACC.0 estimates will cost$2,500 or more
mid for any contract or ongoing supply or service arrangement, which is estimated to exceed
$5,000 per year. The Contractor agrees to accept the bid that represents the lowest price taking
into consideration best value in terms of quality, integrity, reliability and workmanship and
finely performance. Contractor further agrees to male a written re cord of any vernal estimate
obtained. Copies of all required bids, quotes and documentation of all other written or vernal
cost comparisons and analysis performed by the Contractor shall be made part of the De Anza
Gardens Apartments records and shall be retained for three (3) years from the date the work
was completed,
12. On-Site Management: Contractor will maintain a management office within the De Anza
Gardens Apartments. HACCC will assign a specific area for the Contractor's office. Ali
employee of Contractor will also reside in one of the dwelling units at De Anja Gardens
Apartments,which emit will be designated by the HACCC.
13. CQMPHNSA'I"ON TO CONTRACTOR: Contractor shall be compensated for its services
under this Agreement as follows:
A. Management Fee in the amount of iliree and a half percent (3Y2 %) of monthly effective
gross income generatetl by the .Project, billed inotttltly based upon the effective gross
income for the previous calendar month.
B. Lease-Up Fee in the amount of Two Hundred Eighty Dollars ($280.00) per unit until
stabilized occupancy is reached (equal to rdnety=five percent (95%) occupancy) or until
December 31, 2004, whichever is earlier. Once stabilized occupancy is reached,
Contractor is not entitled to any further Lease-Up Fee under the terms of this
Agreement. The Lease Up Pee is payable in (hree equal monthly installments as
Housing Authority of the PROPE1U.1 S''MANAGEMENT SERVICT'iS CON"1 RI C`'T
County of Contra Costa
Page t'1 of 14
follows:
(1) $16,800 clue and payable in advance on the first clay on which units at the Project
are available for occupancy;
(2) $16,800 clue and parable within three months, after the first lease rip payment
(within three months of the first clay on which units at the Project are available
for occupancy);
(3) $16,800 clue and payable when stabilized occupancy is achieved (equal to
ninety-five percent (95%) occupancy) or December 31, 2004, whichever is
earlier.
(4) In addition, the 1.1.ACCC will reimburse all marketing and lease up costs,
including salaries of Contractor's staff, as outlined in Exhibit C, Marketing and
Lease-up Budget.
(5) Asset Management and Cornpliance fee in the amount of Eight Dollars ($8.00)
per unit per month beginning on January 1, 2005, or the first of the month
following the date when stabilized occupancy is achieved and continuing
throughout the Tern) of this Agreernent and every Option Term, if any.
14. Compliance with Law: Contractor and IIACCC shalt be subject to and comply with all
Federal, State and local laws and regulations applicable with respect to its performance under
this Contract, including but not limited to, licensing, employment, and purchasing practices,
wages, hours and conditions of employment, including nondiscrimination, Contractor shall
notify I-1ACCC immediately within twenty-four(24)fours from time of notification if there are
any non-compliance issues with state, federal or tax credit issues.
15. Nondiscriminatory Services. Contractor agrees that all goods and services under this Contract
shall be available to all qualified persons regardless of rage, sex, race, religion, calor, national
origin, or ethnic background, or handicap, and that tione shall be used, in whole or in part, for
religions worship or instruction.
M. Independent Contractor Status: This Contract is by acrd between two independent contractors
and is not intended to and shall not be construed to create the relationship between the parties
of agent, servant, employee,partnership,,joint venture,or association.
17. pispute ICesolrrtion: 1f a dispute arises out of or relates to this Agreement and if said dispute
cannot be settled through direct discussions, the parties agree to endeavor to settle the dispute ill
an arnicable manner by mediation.
18. Access to Boobs ar�cl 1Lecords of orrtractoz,_ ttt�cc+z}tractor: Pursuant to Section 1861(v)(1) of
the Social Security ,Act, and any regulations promulgated. hereunder, Contractor, shall, upon
Housing Authority of the 11ROPERT Y MANAGEMENT SERVICES CONTRACT
County of Contra Costa
Mage 12 of 14
written request and until the expiration of four years after the furnishing of service pursuant to
this Contract, snake available to the Secretary of Health and Heiman Services, the Comptroller
General, the HACCC, or any of their duly authorized representatives, this Contract and banks,
documents, and records of Contractor that are necessary to certify the nature and extent of all
costs and charges hereunder, to the extent such records or other information are in the sale
possession, custody or control of Contractor. Further, if Contractor carries out any of the duties
of this Contract through a subcontract, with a value or cost of$10,000 or more over a twelve-
month period, such subcontract shall contain a clause to t:he effect that upon written request and
until the expiration of four years after the furnishing of services pursuant to such subcontract,
the subcontractor shall rnake available, to the Secretary, the Comptroller General, the HACCC,
or any of their duly authorized representatives, the subcontract and books, documents, and
records of the subcontractor that are necessary to verify the nature and extent of all costs and
charges hereunder, This special condition is in addition to any and all other terries regarding the
maintenance or retention of records tinder this Contract mid is binding on the heirs, successors,
assigns and representatives of Contractor.
19. Reporting ReA uirenrerits: Pursuant to Government Code Section 7550, Contractor shall include
in all documents or written reports completed and submitted to the HACCC" in accordance with
this Contract, a separate section listing the numbers and dollar amounts of all contracts and
subcontracts relating to the preparation of each such document or written report. This section
shall apply only if the payment limit under this contract exceeds $5,000.00.
20. Indemnification: The Contractor shall defend, i€€de€ inity, save, arid holed harmless I=IACCC and
its officers and employees fi°o€n any and all claims, costs arid liability for any damages,
sickness, death, or injury to persons(s) or property, including without limitation all
consequential damages, from any cause whatsoever arising directly or indirectly from or
connected with the operations or services of the Contractor or its agents, servants, employees or
sub-contractors hereunder, save and except claims or litigation arising through the sole
negligence or willful misconduct of the HACCC or its officers or employees. HACCC shall
defend, indernnify, save and hold harmless Contractors and its officers and employees fro€n any
arid all clairns, casts and liability for any clary€ages, sickness, death, or injury to persons(s) or
property, including without limitation all consequential damages, from any cause whatsoever
arising directly or indirectly from or connected with HACCC s negligence and/or willful
misconduct, save and except claims or litigation arising through the sole negligence or willful
misconduct of the Contractor or its officers or employees. Contractor orad HACCC will
reimburse the other for any expenditure, including reasonable attorney's fees, the other incurs
by reason of the matters that are the subject of this indemnification, This section shall survive
the termination of this agreement.
2d, Severability: If any provision of this Agreement or application to any party or circun-istances
shalt be determined by any court of competent jurisdiction to be invalid acid unenforceable to
any extent, the remainder of this Agreement or the application of such provision to any person
or circumstance, other than those as to which it is so determined invalid or unenforceable, shall
Housing Authority of the PI OPEICF"Y MANAGEMENT SERVICES CONTRACT
County of Contra Costa
Page 13 of 14
not be affected thereby and each provision hereof shall be valid and shall be enforced to the
.fullest extent permitted by law.
22. Ikon-Waiver; No delay or failure by either Darty to exercise any right under this Agreetilent, acid
no partial or single exercise of that right, shall constitute a waiver of that or any other right, witless
.Otherwise expressly provided in this Agreement.
23. Iieadinas. .All headings in this Agrceinent are for convenience Only and shall not be used to
interpret or construe its provisions.
24. Pament Provisions
A. Contractor shall invoice to Authority oil a month-by-month basis.
B. Invoices shall be directed by Contractor to Authority, addressed as follows:
Robert McEwan,Executive Director
Housing Authority of the County of Contra Costa
P.0, Box 2759
Martinez, CA 94553
C. invoices shall itemize and describe services rendered and the date gel-vices were
performed.
25. Ep ite Avreew—ent. This Agreement, including the exhibits attached hereto, contains the entice
agreement between the parties hereto and shall not be iriodihed in any trianner except by aii
instrument in writing executed by the parties hereto.
26. Ido Ass�=ejxt. No Rights hereunder tray be transferred or assigned without the prior
written consent of HACCC, which rriay be withheld in HACCC's sale discretion.
27. Construction. This Agreement shall not be constmecl,as if it had been prepared by one of
the parties, but rattier as if both parties have prepared it. The parties to this Agreement and their
counsel have read this Agreement and agree drat any rale of crriisttucticaii to the effect that
ambiguities are to be resolved against the drafting patty shall not apply to the interpretation of this
Agreement.
28. QQver� gkig Law and Venue. This Agreement shall be governed by and construed in accordance
with California lacy.'I'he venue of any litigation shall be Contra Costa County.
Housing Authority of the PRO-VERTY MANAGEMENT SERVICES CONTRACT
County of Contra Costa
Page 14 of 14
2 Signatures: 'These signatures attest the parties' agreement hereto:
Contractor Signature"A"
HOUSING AUTHORITY
OF THE EAH,INC.
COUNTY OF CONTRA COSTA
Robert McEwan leggy Franklin
Executive Director Senior'VP, Operations and Acquisitions
Contractor Signature"H"
READ AND CONSENTED TO Ignature:�e�`i�I o` i ler
DEANZA GARDENS, LLP Vice President of Property Management '
By; Title
It's General Partner
(Lorna approved by County Counsel)
Dote to Contraetor; For corporations (profit or nonprofit), the contract must be signed by two
officers. Signature "A"must be that of the President or Vice-President, and Signature"I3" must be that
of the Secretary or Assistant Secretary(Civil Code Section 1190.1 anti Corporation Code Section 31.3).
Exhibi
t A
Management Plan 6/23/2004
De A za Gardens
Mcanagement Plan .
De Anza U" ardens
Management Plan 6/23/2004
De Anza Gardens
MANAGEMENT PL.,ATI4t De A.:t.,ra Gardelas
De Anza Gardens development will consist of 180 units housed in 1 three-story building with one, two,
three and four bedroom apartments. The project also will provide a community room, a coxrrputer
learning center, laundry facilities, and private balconies and patios.
L MANAGEMENT
A. ROLE AND RESPONSIBILITY OF THE OWNER,THE HOUSING AUrHO1t :TY OF
CONTRA COSTA COUNTY ANI?/OR DELEGATION OF AUTHORITY TO THE
PROPERTY MANAGER.
1. EAH, Inc. (EAH) is a non-profit corporation contracted to assist the Housing Authority of
Centra Costa County in the day-to clay management of De Anza Gardens Apartments. The
Owner of the property is De Anza Gardens, L.P., a. California limited partnership. The housing
Authority of Contra Costa County is the managing entity.
2. The role of De Anza Garden's.Board of Directors will be to establish policies, and the role of the
HACCC is to implement those policies thru EAH. Therefore, it shall be necessary that any
individual Board member not issue instructions directly to any HAFT.. and any on-site personnel,
Any such instn.nctions shall be passed to the HACCC who will then instruct EAII.
3. It is clearly understood that De Anza Gardens, L.P. is concerned with general policy and fixe
HACCC thru EAH. with property and asset Ill'rill agenrent. Sonne of the policies to be established
by the HACCC are as follows:
" Resident Selection
• Eviction
• Project Staff and Salaries
• House Rules and Lease
" Security
Social Services
4. It is EAH's policy that even though contracted by HACCC as Property Managers to perform a
broad. range of duties; EAH will stay ill close contact with the HACCC ill performing those
duties. EAI1 and the HACCC will ineet regularly to review financial reports, management
procedures, and resident relations.
5. Once tine owner has established the;policies, the Owner shall delegate authority to HACCC who
will then instruct the Property Manager to implement the policies. The Property Manager will, by
means of periodic budgets, financial statements, and status reports, advice HACCC on the
operation of the Project. In addition, the following procedures shall be followed to ensure
effective day-to-clay operations and cooperation between HACCC, the managing entity, and
EAH, the Property Manager:
,l
Management Plan 6/23/2004
De Anza Gardens
a, Day-to-day operation of the project will be under the direct supervision of the Resident
Manager who will report to the Property Supervisor of EAR, the Property Manager.
b. The Property Supervisor shall be EAH's representative in reporting to the (lousing
Authority of Contra Costa County and the Owner as requested:
C. The HACCC shall appoirit a key contact persona or liaison to represent [Ile Owner in
regular communications with EAH
d. There will be regular meeting times between the HACCC and EAH for the purpose of
reviewing policies, management procedures, resident relations, and budget control. The
HACCC and EAH will work jointly to establish any change in the policies and.
procedures, Should it become necessary to alter these policies, EAH will not do so
without approval of the HACCC.
As described in the Managennennt Agreement, the Annual Operating Budget for the
Project will be prepared by EAH and subtrritted to the HACCC for approval. In the event
that an extraordinary expense occurs that was not budgeted and would bring the project
over budget, EAH will promptly inform the HACCC, who will review and approve such
additional purchases.
hi the event That EAH must arrange for emergency repairs involving manifest danger to
persons or property, or make payments required to avoid suspension of any necessary
service to the Project, EAH will infon'rn HACCC of the facts as promptly as possible.
6. The HACCC and EAH shall assume the duties and detailed responsibilities as prescribed in this
Management Agreement. These responsibilities shall be clearly assigned and described, and
shall not overlap.
7. In the event that either HACCC or EAH shall furminate the Management Agreement Rfi2l to
occupancy,the following shall occur:
a. EAH will transfer all files and records related to the project to HACCC. These
files shall include marketing and rent-up materials, prospective tenant applications
and documents relating to the management of the;project.
b. The Owner will compensate EAH for services related to the development of the
materials noted in Section I (A) (3) (a) above and for Marketing, rent-up and other
pre-occupancy services at the rate of$280.00 per unit.
Upon termination of the Management Agreement after occupancy occurs,
HACCC and EAH shall agree to the procedure outlined for this event in the
Management Agreement.
Management Plan 6/23/2004
De Anza Gardens
B. PERSONNEL POLICY AND STAp'FING AR ANGEMENTS
1. Cance the personnel and staffing requirements have been established by HACCC and
EAR,EAH shall hire, train, hay and supervise all personnel and shall be reimbursed by
HACCC.
2. EAH has developed a comprehensive job description for all on-site personnel. 'These job
descriptions are revised, as needed, to reflect changes in the industry, specific
management processes or organizational changes.
a. EAH plans to have eaclj employee meet witli leis/leer supervisor annually to
evaluate past performance, and establish goals and priorities for the upcoming
year, Written feedback will be presented to each employee at least annually with
more frequent written feedback given intermittently as needed to provide both
encouragement and identify areas that may require improvement.
b. On-site staffing is anticipated to be as follows:
Position L�o. of Staff
Resident Manager 1.
Asst. Manager 1
Office Assistant(past-time) I(hart tine)
Maintenance,technician 2
Groundskeeper(hart-tine) l (Tart tine)
C. The cin-site manager will report: to a Property Supervisor who, in titria, reports to
EAH Vice President of Property Management.
d. Support staffs in the EAH office, also involved in property management, include
asset management and compliance personnel whose responsibilities are to assist
ill strategic pursuit of owners' long and short-terin social, physical and financial
goals.
3. Hiring Policies
a. According to EA`1"I personnel policy, all hiring of employees of EAId. shall
conform to equal opportunity requirements without regard to race, age, religion,
color, national origin or sex.
b. EAH sponsors regular training program Igor their on-site staff. Staff is also
erirouraged to participate in local training and informational programs as well as
training provided by management orgaiiiza.tions si:ich as IREM, A 4MA and HUD.
C, Special efforts will be made to provide information regarding job openings to
minority candidates and contractors through outreach to community
Management Plan 6/23/2004
De Anza Gardens
organizations, bulletin boards, newspapers and outer communication media. All
hiring materials will indicate that BAl1.is an "Eq ialOpportunity Employer."
4. As indicated in the Managetnent Agreenient, all ort-site personnel shall be employees of
EAH. However, HACCC will reimburse EAH for compensation payable to on-site staff
and service providers, and. for all taxes and assessments incident to the employment of
such personnel. These reimbursements will be treated as Project expenses and paid out of
the De Anza Gardens General Operating Account. If on-site residency is required as a
condition of employment, a discount for all or a portion of the employee's rent may be
included in the compensation package.
5. Employment grievances, termination of employment, and promotions shall be conducted
according to the EAR's personnel policies and procedures, which conform to equal.
opportunity and affirmative action goals and requirements.
C. PLAIN FOR MAIWAINING ADEQUA Ia ACCOUNTING RECORDS AND
HANDLING NECES SARY FCDRAIS AND VOUCHERS.
1. Financial accounting, reports and records :hall conform to standard accrual basis
accounting procedures, and shall be responsive to the guidelines provided by the
regulatory agencies connected with.the PfoJect.
2. Accounting for payables and income will be accomplished at the IIACCC::' central office
utilizing the integrated property management software program, YAR.IDI, Tax Credit and
Financial modules. The finance department of the HACCC is headed by a Certified
Public Accountant supported by accounting technicians and accounting clerics utilizing
generally accepted accounting principles.
3. Prudent accounting procedures will be developed for Tie Anza Gardens to insure timely
record keeping and ftdiiciary responsibility and accountability by on-site managers.
4. Accordingly, the HACCC will prepare the following monthly reports for the Owner's
review.
a. Cash status report and financial summary.
b. Monthly and year-to-date budget comparisons.
C. List of disbursements.
d. List of accounts payable.
e. Vacancy report.
5. Within 120 days of the fiscal year-end, HACCC will provide Owner with an audited
financial statement, which is prepared by an independent consultant. The year-end audit
will include a cash flow analysis and surplus cash distribution, if applicable.
ft. Bills will be paid and accounl:s will be funded pursuant to the requirements of the
Project's Regulatory Agreement. Specifically:
A
a. A pin-chase order systein will. be utilized to document all project expenses with the
exception of items and services provided on a regular contractual basis (utilities, trash
removal, service contracts, etc.)
b. Purchases tip to $175 shall be pre-approved by the on.-site manager. Purchases over
$175 shall be pre-approved by the EAH's Property Supervisor. Approval from
HACCC will be obtained for purchases in excess of $1,5130. In the event of an
emergency, which requires a purchase greaten than $1,500, PAH will notify HACCC; as
quickly as feasible.
C, Invoices will be matched. with outstanding purchase orders by the on-site manager,
reviewed for accuracy by the Property Supervisor, and then voucher for payment by the
IIACCC's central office. Checks will be processed semi-monthly for payment of any
payables on hared.
d. All,expenses=:.Will;fie pa d',,ftoin,tlze Gen.erdl Operathig Account. As required, HACCC
will prepare AisbutsIeinent requests and receive the appropriate approvals to transfer
funds froth the:IZeplaceritent It.eserve Account/ oto the General Operating Account to
reimburse ;any capital ,expenses paid from the General Operating Account, All
disbursement requests will include copies of paid invoices, EAR will assist to ensure
that expenditures,mliich require lire-approval, will be processed in accordance with the
Project's"Regulatory Agreement..
C. The following separate accounts shall be established:
1) QelLelg e 4.611; AGCOUrrt irrt.o which rental and other miscellaneous
income will be deposited iTnd from which the Project's operating expenses will
be paid;
2) Clperatin Reserve Accouirl to be funded initially by the Owner in an amount
equal to at least one percent of total costs of developing and constructing the
Project from the amount reserved therefore in the Final Developme-lit Budget.
Subsequent monthly deposits to this account shall be made from the operating
account in amounts as specified in the initial year operating budget and
subsequent approved annual operating budgets. Funds may be transferred front,
this account only to cover actual operating expenses in. excess of the approved
budget- amount, or to compensate for vacancy and hard debt losses in the
approved budget amoun(.
3) Replacement Reserve Account to be funded through regular contributions
from the operating budget, based on a capital improvements schedule of
anticipated useful life and. replacement needs for rnaior items and/or as required
by regulatory agreements.
4) Security Deposit �nt to be funded by the residents' security deposits.
Policies and procedures for administering this account are noted in Section 1, C.,
5. below.
Managernez t Plan 6123/2004
Ile Anja Gardens
7. The HACCC maintains a computerized General Ledger program,which shall be continually
updated to meet the accounting and reporting needs of the Pject and to produce a quality
audit trail.
a. Monthly monitoring shall allow for cost control,prompt identification ofpotential
problems and sufficient lead-time to develop plans to meet project needs.
b. Major budget variances of 10% or more shall be reviewed by EAH with HACCC
and appropriate actions shall be taken to ensure that monthly cash flow is sufficient
to meet the Project's operating expenses and deposits to the reserve accounts toted
above.
G. Procurement of contract services
1) At least three competitive bids will be sought for contract services over
$2,500 amtually, such as landscape maintenance and services related to
periodic capital improvements (exterior painting, roofing, etc.).
Competitive bids may be obtained for lesser amounts if management
deems necessary.
2) EAH shall prepare such bid specifications and super-vise the bid
proposals and acceptance procedures.
d. hi the event that items need to be purchased that either were not budgeted, or that
would bring the Project over budget,EAH will promptly inform HACCC, who will
review and approve such additional purchases.
C. SAH shall maintain the tenant's files and records and 14ACCC shall maintain
accounting in accordance with the requirements of any other agencies
administering the tax credits or other funds contributing to the development of the
Project.
Vacancies and rent losses will be noted and recorded on the balance sheet sumillariaing
monthly financial activities for the Project. Such lasses can also be inferred from the
monthly variance reports indicating budgeted versus actual rental income (see Section. I
(C) (1) above).
9. Security Deposits.
a. Residents shall be required to make a refundable security deposit in accordance
with applicable state and local laws. The security shall be equal to current market
trends but not to exceed two months of rent. The security deposits shall be.held in
a separate trust account with a depository insured by an agency of the federal
government or a comparable federal deposit insurance program. The balance of
this account shall at all times equal or exceed the aggregate of all outstanding
deposits,plus accrued interest.
b. When a.unit has been vacated, the manager will perform a move-out inspection to
determine any damages to be corrected .or cleaving necessary over and above
normal wear and tear, which shall be charged against the security deposit. A
Management Plaza 6/23/2001
Do Anza Gardens
resident may, but will not be required to, participate in this inspection. The move-
out inspection form will be compared to the move-in inspection forth to determine
the extent of resident-caused damages.
c. Within 21 days from the date of move out, a security deposit refund form will be
completed, indicating;
1) Security deposit on hand.
2) Amount of rent or unpaid charges owing as of the date of the move-
out.
3) Amount of damage or cleaning charges to be assessed. An itemized
list of work and actual costs will be attached to the forms for repair,
cleaning, or replacement of items above normal wear and tear.
The balance of the security deposit after deductions for outstanding rent, charges,
cleaning and damages will be refunded to the resident with this form and.
itemization o C costs.
d. As part o C the n,,sident orientation interviews,residents shall receive an e(planation
of the use of security deposits and shall sign a security deposit agreement.
10. Compliance Reporting: IJA.CCC sliall provide reports required by any other regulatory
agencies and funding sources as outlined in the regulatory agreements with those entities
including,but not limited to:
a. Annually, as requueii;the HACCC will:sdbtbit to the Tax. Credit Allocation
Committee a signed.and executed Project Ow iership Profile and Annual Owner
Certification.
b. EAH will prepare,and�subinit :Project Status Reports and any other requested
reports to the Tax'Credit Allocation Cormnittee as requested.
11. Other Deport qg; Ike Azzza Gardens will utilize a property management software program
that allows management and executive staff to monitor all property management activities
through a concise, real time, reporting system. "l"his management infonnation system will
monitor the progress of all leasing, administration, maintenance azul accounting activities.
With real time reporting through the management information system provided by
YARDI, the management team is free to focus on streamlining work processes, leasing to
occupancy levels within stated goals, aii<l, proactive activities to ensure resident
satisfaction. The YARDI reports will be szsed by HACCC and EAH to zrzake critical
decisions related to marketi rig, leasing, and long term strategic planning.
D. 1'litOVISIC. N FOR PERIODIC UPDATE OF MANAGEMENT PLAN
After initial occupancy, EAH and HA.CCC shall review this plan on an annual basis. Should it
become necessary to update the plan, the EAH and 1TACCC; shall submit the proposed changes to
the Owner from which approval is required.
7
Management Flan 6/23/2004
De Anna Gardens
E. INSURANCE
1.. EAH shall assist HACCC to arrange the project to be insured against lass by fire
and such hazards, casualties, liabilities and contingencies, and in such arnounts and
for such periods as required by the regulatory Agreement.
2. Competitive bids will be sought to ensure the most crest effective coverage
available, and bath the coverage and the carrier(s)will be reviewed regularly.
3. EAH will also investigate,report and pursue the resolution of all accidents or
claims in connection with the operation of the Project,
Ih OCCUPANCY
A. OBJECTIVES AND RESPONSIBILITIES
1. Elm realizes that the success of any affordable housing property is dependent
upon knowledgeable staff in tax credit affordable housing rules and regulations,
semitivity to residents' needs and maintaining the property physically 'and
cosmetic ally to the highest standards under an active management program. b-i this
Rapacity, EAH will;
a. Relieve HACCC of the da*/--to--day operation and management of the
property.
b. Operate the property to achieve the highest income at the lowest expense
consistent with the goals of the Owner thru HACCC.
C, Maintain the physical condition. of the property at the highest level to
ensure resident satisfaction and public appeal,
B. POLICIES AND :PROCEDURES
EAH maintains a standard set of policies and procedures diat govern the operation of all
the properties it manages. EAH has standard operating manuals reflective of the current
federal regulations, the collective staff knowledge, and property management experience
of a seasoned., time-tested.,professional staff. EA.H's Manuals are continually updated and
revised to reflect the latest changes in local, state, and federal rules, regulations and
policies. The operating 'manual for Ile Anza Gardens Apartments will be developed to
reflect the owner's goals and provide a comprehensive understanding of rules arld
regulations that will ensure compliance with the State of California Tax Credit Allocation
Committee Guidelines and the U.S. Tax Code,
De Anza Garden's operating manuals will include.
1. EAH Operations Manual -- User manual for fiscal mud physical operations of the
property.
2. DeAnza. Admissions and Continued Occupancy Manual — User manual for fair
housing, marketing & leasing, waiting lists, move-ins, lease-ups, and general
occupancy management.
3. Tax Credit Module User Manual -- User manual for the YARDI software program
designed for Tax Credit regulated affordable rental apartment tenancy.
Management Plan 6/23/2004
De Anza Gardens
4. Maintenance and Work Order User Manual — User guide for. YAR.DI software
program designed for property management maintenance and work orders.
5. Requisition and Purchasing Manual — User guide for Y RDI software program
designed for requisitioning or mircliasing materials and supplies.
6. De Anza Gardens Finder -- .1..)aily operating and desktop procedures containing
"house rules", office procedures, schedules, use of daily logs for daily, weekly, or-
monthly
rmonthly work arid,inspection activities, staff code of conduct, etc...
7. EAH Safety Manual 0.EIA requirements and general safety and health
guidelines for property rnana:gernertt wid rnaiutertance activities.
8. Earthqualce/Disaster Prepare:clttess hooldets (also available to residents)
Nate: The aforenrentioned manuals tivdl be under ewistant revision and expansion. They erre
also the basis for- the EMI's c minting tr•aiiiiag progranr.for De Anza Gardens nranagerrrent
team.
C. PERFORMANCE STANDARDS
HACCC will develop an ob'je;ctive „et of`standards ofperformwice that are trieasurable and
attainable by the property nianagett-tent te;arn fur De Anza Gardens. The pr 3perty and `.cam
will be evaluated using these criteria.. HrCCC believes that the most important sta;dards
of performance include:
1. Occupancy Rate
2. Unit'l'umaround
3. Work Order Compledwi
4. Preventative Maintenance Activities
5. Curb Appeal activities
6. Health and.Safety _ujitigztiou
7. Resident Service perforrwince rating based upon resident surveys
D. PLANS ANIS PROCEDURES FOR PUBLICIZING AND ACHIEVING EARLY
AND CONTINUED OCCUPANCY.
"t PAI`lCY.
1. Units shall be marketed in accordance with any required Affirmative Fair Housing
marketing guidelines, and the Marketing and Tenants Selection Plan that will be
developed by the matzagement cornpauy and approved by IIACCC.
a. Prospective renters shall be recruited through an affirmative marketing strategy
designed to ensure equal access to 11.1 appropriate-sized housing units at De Anza
Gardens for all person=s in any category protected by federal, state or local laws
governing discrimination.
b. Public agencies, social service ap;,acies, and local community groups will be
contacted. In addition, special outre:tr;lr efforts will be made to utfonn persons
outside the local area who would trot, normally be likely to apply because of
existing neighborhood racial or ettwic patterns, rents and/or other factors. if
adequate Numbers orminority or nort-minority applicants are not generated, the
marketing period and areas-may be axtended as is necessary to generate an
adequate number of potential renters frons the various targeted groups, and to
9
Management Plan 6l23/2004
De Arrza Gardens
ensure that the resident selection procedure is fair,meets the Owner's ,goals and tax
credit requirements.
c. Newspaper advertisements in the appropriate languages will be placed in the local
.English, Spanish, Filipino, Chitzese and ether South East Asian language
newspapers with the highest circulation, and the Agent will make arrangements
with community.agencies offering bilingual services to assist non-English speakers
to complete their applications.
d. The marketing plan will include specific outreach strategies for physically disabled
households. In order to reach the mxNirnum number of potential applicants in this
category, a comprehensive effort will be made to distribute marketing materials to
organizations that are likely to have contact with persons with handicaps. These
organizations include independent living centers and other organizations, which
provide meal programs, health services, community resource referrals, educational
programs, or recreational activities.
e. All adYmitising for De Anza Gardens shall include prominent.use of 1�.qual Folisirig
Opportunity logo, slogans and/or. statements of intent to a Fi'matively roar tet the
units. Material to be used. in ;tae affirmative marketing plant include a fair housing
paster to be displayed in the rental office, or wherever prospective renter interviews
take place; and, an Equal housing Opportunity loge, to be displayed on the
marketing brochure, flyers, and other marketing materials.
f Signage will play ate import:artt role in.attracting our potential residents. Property
signage wilYconiply vaith local and federal ordinances. Signage will be installed
that is.easy to read,.cl arly-visihle and well lit. Signage required for safety
including illuminated EXIT signs;will be routinely checked to ensure proper
.operation.
2. The initial rent-uli shall be corrduc:ted by EAH-supervised personnel,well trained ill
TCAG eligibility requirements, :fa.na.ily composition criteria,unit size selection
processes, and HACCC-approved selection criteria,.
a. Applications will be stamped,dated and numbered as they are received, and then
started for family size, incottae level and eligibility status. (Even ineligible
applicants shall receive a rmulber in case they should become eligible in the
future).
b. Depending on the size of'the eligible applicant pool, applicants will be processed
and selected in the order in wbiclr completed applications are received (if the pool
is small) or will be chasers in a lottery (if the pool is large).
c. Separate lists will tae established for each unit size and income designation. In
order to ensure adequate nurxzber•of applicants for each income category and unit
size, twice the number of applicant households will be processed for each unit.
Applicants will be pl;ic:ed in the order of their lottery(or"dated")number. Tire
remaining eligible households will be put on waiting lists, (by unit size and income
designation) and shall receive a letter informing them of their status with an
Management flan 6/231200,4
De Anza Gardens
estimate of when the next inti t of the size and income designation they seely, based
on previous turnover histories for similar housing projects, may be available.
d. Ineligible applicants will be advised of the reason for their ineligibility and their
right to appeal this deterniinatio i i.
3. As indicated above in Section I I(A) (1) (b),both public and private community
agencies will be used as referral sources for notifying a representative number of the
area's general population of the availability of the assisted housing at De Anza
Gardens. In addition, local newspapers, radio stations and other media will be sent
press releases and marketing.material, and be used to place classified advertising as
necessary.
4. Procedures will be followed to Fissure that waiting lists are current and have adequate
numbers of applicants £or each category. Such procedures shall include the fallowing:
a. Separate lists shall be Dept for each income and bedroom category.
b. Applicants 1 gill be 'nstructed to notify manager of their continued interest at ]east
twice a year.
c. A postcard will gra out to all applicants oil tiie waiting list annually, as deemed
necessary, asking applicants to advise manager of their continued interest and
current contact information.
5. Resident orientation shall include:
a. Written orientation ma erial including general infori ation about De Anza Gardens,
a list of emergency numbers for hospitals, ambulances, fire and police departments,
and other information regarding emergency procedures, as well as neighborhood
services and amenities,
b. Personal interviews Nvith every resident in order to acquaint them with the physical
layout of De Anza G-.widens and [lie location of fire alarms, fire extinguishers and
fire exits, as well as a review of fire precaution and evacuation procedures.
c. A thorough review of the Douse pules and Regulations with each and every
resident:. In addition., at the titne the rental agreement is signed, all provisions of the
rental agreement will be thoroughly explained and each resident will be provided
with a copy of the rigrreemeiit.
d. Inspection of each dwelling unit by the manager and new resident(s). At this time
both parties will sign a checklist of the units condition.. Written instructions will be
provided to all residents explaining the use and care of all appliances maintenance,
and services request procedures.
E. PROCEDURES FOR I✓tETEXV111']ING TENANT ELIGIBILITY AND FOR.
CERTIFYING AND ANNUALLY RE CERTIFYING HOUSEHOLD OLD INCOME AND
SIZE.
'1�
Management plan 612312004
De Axza Gardens
1. EAFT shall apply all rnecessavy t.'alif6rnnii.a Tax Credit Allocation Committee
requirements in determining tenant eligibility at initial rent-up and during subsequent
recertification of tenant income. When fnllij.j,g a vacancy,initial eligibility of
prospective residents shall be deterni.nned by the following procedures.
a.. Applicant's household income cannot exceed maximum income limit adjusted for
household size or established by atuival published reports by the California. Tax
Allocation Committee.Applicant's household rent to income cannot exceed 50%.
b. Tenant Income Corti CicationK, JRS requires owners to use procedures as specified
in HUD handbook 43511.3 to verify the income of every low income household.
Certification procedures nnmst include written recertification of all income/assets to
be received by the household within the next 12 months. Verification must be
obtained from the source o+ iticotue. See EAH's CTCAC handbook.
c. Applicant's past 3-year rental history will be verified with written verii3cation, if
possible. Owner way waive 3-year rental history, if applicable. However, landlord
history that is received i nest be reflek.Jed in a positive manner.
d. All applicants (beads of household) will he required to pay for a credit history
report.
c. No application will be processed if tenant was evicted from a prior residency
within 3 years from application elate without a written explana-tion from applicant
that is approved by managennell t.
f: Each applicant will be regnun-ed to attend a personal interview for processing of his
or her applications.
g. Applicants that have been dt.ternn.tirned to be ineligible will be notified so that they
will have an opportunity to provide further information if they feel an error was
made in assessing their eligibility.
h. When an applicant's name,nears the top of the waiting list, pertinent information
will be confinned as cm n.-eat third pan.ty verification letters are sent. Written
verifications that are older thatn nnitirsty days from the date originally obtained to
eligibility deternnihiatiou cannot be utilized.
i.
Written notices will be sent to the applicants during the processing determination
and their final eligibility status. If applicant fails to respond to written notices in the
appropriate tune allowed, the application process will cease for that application.
j. All negative credit and eviction items will need to be explained in writing by the
applicant to management. Negative credit items may not automatically disqualify
applicant. Management will consider alt the above criteria and written explanations
in determining eligibility of applicant.
k. The manager agent may refuse to place a household on the waiting list or may
remove a household fi-onn the waiting list if agent determines that the household has
provided false infortnatiunt in its application.
Management Plan 6/23/2004
Ile Anza Gardens
2. The annual tenant recertification procedure will be as fellows:
a. 1'�rinety(90) days pricer to their anniversary month,residents will receive a letter
advising theta of their impending recertification date and asking therm to sign the
release portion of the third party verification forms. These will be forwarded to the
appropriate third parties.
b. Sixty(60) days prior to the anniversary month, residents will receive a letter
advising thein of their impending recertification date and asking there to sign the
fication forms, These will be forwarded to the
release portion of the third party veri
appropriate third parties.
c. Thirty(30) days prior to the anniversary month the manager will interview the
residents due to be certified in the fallowing month. At this interview the resident
will be advised of any changes in their eligibility and income status and/or rental
obligation.
d. Prior-to the.an.iiversaiy diite,:iisuallyrone to severe days,Agent will meet with ,
resident to�review the'Tenant Income Certification form or TIC. All household
niernbe;rs,,over1lie age�of IS,will be required to,review and then;sign the TIC. The
resident=will initial any1corrections madetc the form. Resident will be provided a
copyofthe.TlC and the original will remain in the resident's filo.
3. If the income of a household upon recertification exceeds the limits published by the
County Assessors Office for real estate welfare exemptioii , the household's tenancy
shall be terminated effective ninety- (90)-days from the date of income recertification.
Written notice of the termination and the reason therefore shall be delivered to the
household within fifteen (15) days o f the income recertification resulting in such
termination,
Where a household occupying a unit designated for occupancy by Very Latin-hicome
Households no longer qualifies as a Very Low-Income Household at the time of
recertification, but qualifies as a Lower Income Flousehold, the following shall apply:
a. The household shall not be required to vacate the unit.
b. The household's rent shall be increased to an amount that does not exceed the
current rent allowed for comparable:Lower Incorixe units pursuant to the
Regulatory Agreement. If there are no Lower Income units, the household's rent
shall not exceed maxitriutn rent that.would be allowed pursuant to the Regulations
for a comparable Lower Income unit if it existed.
c. The next available comparable Assisted Unit shall be designated a Very Low-
Income unit until the number of Veit' Low-income units returns to the original
level determined for the Project.
d. If the household's size changes acid is no lodger appropriate for the unit it is
occupying, the Household shall be required to move to the next available
comparable unit.
i�
Management Plan 6/23/2004
She Anza Gardens
3. Tenant occupancy standard shall be established and implemented in accordance with EA11
Tax Credit and ether policies established by the HACCC. These standards are outlined in
the Project House Rule's.
F. i\Ell A COLLECTION Crll.IO 1 PL1A✓,114 IES AND :{Ri9'4...L'D VA`ES
The resident orientation information (hath written and oral) for De.Anna Gardens shall address
rent collection policies and procedures. Such Policies and procedures shall be strict,consistent,
easily understood, and firmly enforced. This information will be provided to all the residents at
move-in as well as to all management staff'and the Owner.
I The on-site manager shall collect and record all rents,resident fees and charges and shall
promptly deposit daily receipts to the appropriate project account(s).
2. All rents will be due and payable oil the first day of the month.but in no event later that]
five (5) days after due date. Methods, time and place will be made clear to the resident and
�,vill specify that payment is to be made on-site either by check or money order. When rent
is paid, the Agent will provide the resident with a receipt.
Rents xot received by the fifth (5th)o. the month are considered late and will be dealt %with
through personal contact by the Resident Manager, and a written notice of delinquency will
be sent. If the rent is not received by the tenth(10th), the Resident Manger will inform the
Property Supervisor who will authorize the retention of a professional collection service
and/or attorney to pursue unlawful detainer actions.
4. Partial payments will only be accepted under unusual circumstances and must be approved
in advance by the property Supervisor.
5. Rent increases shall be anticipated and implemented as the needs of the Project dictate, in
conjunction with the preparation of the Annual Operating Budget. The Project's Property
Supervisor, in consultation with the Resident Manager, shall prepare the Annual Operating
Budget for the approval of the HA.CCC at least ninety(90) days prior to the beginning of
the Project's fiscal year.
a. Rent increases shall be implemented in conformance with State and Federal low-
income housing programs relating to tax credits.
b. Rent increases for units occupied by holders of Section g certificates shall be
coordinated with the HACCC.
E. Should a resident cause damage to the premises in the course of his/her tenancy, the
resident will be billed for the repair of such damages when they occur, in order to avoid
using the resident's rent ledger card and will show as a balance dui; until paid in full.
However, should these charges still be owed when the resident vacates the unit, such
charges will be deducted.from the security deposit refund. Remaining charges for damages
in excess of the security deposit will be recovered by referring the case to an attorney or
professional collection service.
1d
Management Plan 6/23/2001
De Anza Gardens
a. Residents will be charged for resident-caused or resident-:requested replacements and
repairs. Charges for these items will-be billed at a rate that does not exceed the actual
cost paid by the Owner for labor and inaterials.
7. Residents having financial problems that affect payment of their rent may be referred to an
appropriate social agency for assistance with remedying their problems.
8. A late fee for$15,00 will be charged in connection with any rent payment not received by
the fifth(5) day of the month. This late fee will be collected without exception.
9. A service fee of$25.00 will be charged for returned checks. Following time occasion of two
(2) checks being returned by the bank,rent payment by cashier's check or mrtnoney order will
be required.
10.Legal costs incurred:in pursuing collection of rents and/or eviction procedures shall be
borne by the Project and shall be paid for out of the General Operating Account.
11.A .- master"rent-.roll" shall be maintained and regularly updated, indicating number, name o
occupant(s), rental amount, any subsidy payment(s), and current payment status for each of
the units in the Project,
G. PROCEDURES FOR APPEAL AIND { RIE'VAINC
1. HA1I shall. enforr.,the terms of€ltc: lZesidential Lease as the,' apply to time eviction policies
and procedures.
a. Cases involving notmpaynmemtt o.€'#etit shall be handled as follows:
1) As stated above in Section lI(F)(7), residents having financial problems
that affect the payment of their rent may be referred to an appropriate
social agency for assistance with remedying their problems. A list of
social service agencies shall be maintained in the manager's office and
will be remade available to all persons seeking assistance. Documents
resu.lti.og from the above will be in writing and signed by the resident
household. Such documentation will become part of the household's
perinatment file.
2) Notwithstanding the above,residents who do not pay their rents by the
sixth(6th) day of the month shall receive a three (3) day notice to pay or
quit. Such notice shall be i.tt accordance with the California Code of Civil
Procedures. If the notice is not complied with and management is unable
to work out a suitable rent paynment program with the resident, an unlawful
detainer action will be filed and the matter will be referred to a
professional eviction service or attorney specializing in this area of the
law.
3) Once legal action lzas been initiated, the resident manager will have no
authority to accept rent for the resident. At this paint, the tenancy may be
reinstated only under the followimmg conditions:
15
Management Plan 0123/2004
De Anna Gardens
cs Approval by the Property Supervisor.
d Payment by the resident of all past due resit, late charges, and all legal
Fees and court costs incurred Haus far is made, and
• Only if legal proceedings have not been previously filed against the
resident.
4) Cases involving a violation of the Residential Lease or House Rules shall
be handled as follows:
(a) Management will keep residents advised, through newsletters.
reminders or written warning notices, of policies in place at De
Anza Gardens. Management will work with residents and enlist the
support of service agencies as required to prevent recurrent
violations. Evictions will take plaice as a last resort.
(b) R�sideuts shall receive written notice of minor infractions of the
Lease anchor House Rules.The initial notice shall advise residents
that such infractions and violations of the Lease and/or(louse rules
and that upon issuance of the third warri.ing notice for the same
violation.,management will issue a 60-day notice of Intent to
Terminate Tenancy.
(c) Any notice of termination or eviction shall contain a statement of
the facts constituting the cause for the termination or eviction and a
statement of the resident's rights tinder their grievance and appeal
procedure. This procedure allows for bath informal and fon-nal
hearings,while not waiving the rights of either the resident or
management to any judicial resolution of the matter.
(d) Residents in violation of the lease or house rules will be subject to
the procedures as described above.
H. PLAINS FOR ENHANCING RE SIDENT-MA NA.+GEMENT REI.A.fIONS
Resident-management relations shall be based on a policy of cooperation and commu-
nication. Residents shall be encouraged to understand that their involvement with lie
Anza Gardens, and therefore their ideas, priorities, suggestions and concerns, are both
sought and valued. EAH shall encourage the establislunent of a Residents' Associatiozi
and shall enlist the support and participation of the residents in the following areas:
1. Committees
Resident's involvement with other residents through volunteer activities.
Examples include: an orientation committee to welcome newcomers to the
community, a service connnittee to visit the sick and run errands for those in
16
Management Plan 6/23!2004
De Anza Gardens
heed, and/or an activities committee to plan and carry out
social/culturaYeducational events.
2. Ongoing Communications
Residents shall be encouraged to offer suggestions to the manager and senior
management staff in a variety of areas of concern, such as security,maintenance,
and rent increases,both individually and through the Residents" Association. An
elected group of resident representatives provides a most important function in
communicating resident sentiments, opinions, priorities, and advice in regard to
established operations or changing policies. Resident involvement in planning can
result in more relevant, sensitive and effective management policies and also
recognizes the principle that"participation brings commitment,"i.e. that, given an
opportunity to participate,residents will act to improve the quality of life in their
comr1 unity.
a. Residents will be provided. copies of the house rules aid other material
pertaining to policies governing their occupancy at De Anza Gardetis.
b. Management staff will also provide the residents with a list of emergency}
numbers fur hospitals, ambulance, fire department and police department, as
well as the phone number of the ou--site office and lack-up information in the
event of emergencies when the office is closed..Residents will also receive
information about energy conservation and what each resident can do to
reduce energy waste.
c. A copy of the'Emergency Response Plan will be developed for)fie Anza
Gairdens. 'flus plan is designed to maximize the health and safety of the
residents in the event of an emergency such as fire, earthquake,mudslide, or
power outage. The plan will be distributed to all,residents at the time of initial
occupancy and periodic drills will be scheduled to give residents the
opportunity to practice their response to an emergency situation.
III. AUXILIARY PROGRAMS
Computer learning center
IV. MAINTENANCE/SECURITY
PLANS FOR CARRYING OUT AN EFFECTIVE MAIN TENANCE AND REPAIR
PROGRAM
A. Post-construction Fallow U . Once the HACCC has determined that construction is
completed and that the project is ready for occupancy.
1. The HACCC shall be responsible for the final punch list of each unit and the
common areas. FAH may participate in the completion of the final punch list. The
17
Management Plan 612312004
De Anza Gardens
final review or punch list of each building shall include but is not limited to the
following:
a
All appliances shall be tested to assure they are functioning properly.
b. Incomplete work,missing and non-functioning items will be duly noted.
2. The General Contractor shall be advised of items to be completed or corrected.,
which shall, in turn, be referred to:
a. The vendor or sub-contractor if under warranty.
b. An outside contractor or firm recommended by the general contractor.
c. In-house staff or general contractor,if appropriate.
B. The Ong-oiniz Maintenance.Dro am shall include the following:
1. Scheduled preventive .maintenance and repair of installed equipment In
accotrdance with manufacb rers' recommendations and he requirement. of
equipment operating manuals. Skilled maintenance contractors will perform this
work.
2. Routine repairs to kitchen appliances, electrical, plumbing, and heating equip-
ment. Can-site or independent contractors will perform this work.
3. Emergency maintenance service will be provided 24-7. Immediate action will be
taken for any emergency sittiation that threatens the health or safety of the
resident household.
4. Preventive annual apartment inspections to regularly and consistently ascertain
the condition of each unit.Maintenance problems discovered dinging these
inspections shall be handled according to work order procedures as described in
Section '111 B.8 below.
S. Preventive regular inspections and inspections of common areas and equipment,
as well as regular schedules (daily,weekly, monthly, quarterly, annually) for
maintaining same.
a. Maintenance of exterior areas shall include keeping grounds free of litter,
trash and paper. parking areas will be maintained in goad repair and free
from dirt and litter.
b. Common areas such as hallways and laundry rooms will be swept and
cleaned daily and kept free from trash and other debris.
G. Garbage removal will be effected through arrangements with a contractor services
company. The trash areas will be swept daily and scrubbed with disinfectant
18
Management Plan 6/23/200
De Anza Gardens
when.necessary. Extermination services will be contracted for, so as to provide a
high level of sanitation and cleanliness.
T The maintenance of the grounds shall be on a contract basis with a landscape
firm. landscaping and ctrl) appeal will always be a high priority since it
enhances the appearance of the property and has proven to be a.significant
contributing factor to high occupancy rates and low resilient turnover. The on-site
property management team will have a working knowledge of landscape
maintenance olid conduct weekly routine inspections.
g. Work Order Procedure: The Work Order shall be used for all maintenance repairs
at the project, whether initiated by management or residents. Every Work Order
must state the:name of the person requesting the work.. In so far as possible,
except for emergency type repairs,resident initiated Work.Orders must ;e
handled in the order in which they were received and during work fours.
a. A resident should not have. to wait an excessive time co have repairs made.
If the work cannot be completed in the same day the NVork Order '.s
received,then it should be completed early the next day. if there is RIM,e
reason why it carmot be completed within that time, such as the need for
Darts or aiaterials to be ordered, the resident should be Notified
immediately either personally or by leaving a written memo with an
explanation as to the delay and an approximate date set for completion of
the repair. A.notation as to the date the resident was notified shall be
entered on the Work Order. The resident shall be kept informed of any
problems that might tend to delay an estimated completion date.
b. Each work item scheduled for a property is to be covered by a Work Order
initiated from the project office. Work Orders trust be filled out for each
apartment that is being worked on. Separate Work Orders are to be
prepared for l)janitorial,2) painting, and 3)maintenance repairs. N4w)-
hours expended must be entered on each form.
C. Resident Security Systems: The developer recognizes that resident security is an essential
pati of maintaining a safe and stable community. Adequate site lighting will constantly
be monitored throughout the site. In addition, HACCC will consult regularly with the
EAH to discuss the-teed for any special security provisions, which may arise.
D. Preventative Iylainteuatxee Schedule; The Property Manager will establish a detailed and
comprehensive Preventive Klaittt nance Schedule designed to preserve and protect the
owner's investment.
19
Exhibit B
De A nza Apartments
Bay Tolnt,CA
Stabilized Operating Budget
Summary
Current Kent Schedule Units Square Total Crass Utility Proposed Monthly PreJeeteii
Unit Type Feet 89.Ft. Beat Allowente Dent income Annual Ine.
I BR•30% 2 465 75 390 780 9,360
1Bit-40% 1 621 75 546 546 6,552
1DR.50% 8 776 75 701 5,608 67,296
IBR-60% 5 825 75 750 3,750 45,000
2.$R-301/4 7 $58 102 456 3,192 38,304
29R-403$ 8 745 102 643 5,I44 61,728
2BR-50% 36 892 102 790 28,440 341,280
2138-608A 21 1,002 102 900 18,900 226,800
39R-30% 8 645 122 523 4,184 50,208
3BR-401/1 7 861 122, 739 5,173 62,076
3HR,-50% 38 1,076 122 954 36,252 435,024
3BR-601% 22 1,172 122 1,050 23,100 277,200
4BR-300A4 1 770 138 632 632 7,584
4BR•40% 2 960 138 822 1,644 19,728
4BR-50% 8 1,200 138 1,062 8,496 101,952
4RR-601/4 5 1,338 138 1,200 6,000 72,000
3BR Mn wait 1 0 0 0 0 0
Total&Avera es I80 0 0 869 109 760 151,841 1,822,092
PUrM fUPA Monthly lir I Budgeted
Yr I stud et$d income Income
QtassPotential 5,624 67,485 151,841 1,822,092
Vacancy Loss 5% (281) (3.374) (7,592) 191,1051
Collections Loss 0 0 0 0 0
Concessions 0 0 0 0 0
Net Rental income 5,343 64,111 144,249 1,730,987
Other income _ 8 96 1440 60.540
Effective Gross tncoute 51351 64,207 14.5689 1,791,527
1"UPM PUPA Monthly Anneal
Exlnensts Expense Expense
Utilities
Gas/Bitcttic 43 515 7,725 92,700
water 25 295 4,424 53,088
Sewer 0 0 0 0
Repairs&Maintenance 48 582 8,725 104,700
Payroll 88 1,054 15,806 199,677
Msrketing/Advcrtisiog 11 133 21000 24,000
Administration&Of11ce 35 421 6,322 75,860
Management Feef31%of BUT 29 348 5,225 62,703
Insurance 26 314 4,715 56,578
`taxes&Licenaea 6 69 1,033 12,400
'Bash Rtmoval/ xtetwinadoo 19 228 3,427 41,124
Monthly Annual
E use Ex ansa
Total Expenses Before R&R 330 3,960 $4,403 712,831
lacement Reserves 42 500 700 90,000
Total Expenses After R&R 372 4,464 66.943 SOI&I
Net O cxatln Inneome after A&M, 3,052 26,618 62j"1 988 597
Budget Approval,
Deputy Executive Director,HACCC Date
Lrate _.a
Asset Mansger Date
Exhibit C
De Anza Gardens Marketing Ply 6!23!2004
J-.Pe A-Intza U" Ax-% rdve-, ns
Marketing Plan
1
De Anza Gardens Marketing Plan 6/23/2004
I. Product Definition
De Awa Gardens is a 180 unit multi-family apartment community financed under
the LIHTC Program. The project will be offering unit rent set asides at 30%, 40%,
50% and 60%of area median income. It is currently under construction on a 13.5
acre site at Alves Lane and 1Vledanos Avenue in Bay Point, California, an
unincorporated Contra Costa County community. There will be 21 two and three
story apartment buildings and a building with a rental and management office.
11. Objective
Leasing at De Anza Gardens will begin April 1, 2004, with the first apartments
coning on line approximately May 14, 2004. Final C.O.'s (Certificate of
Occupancy) on all apartments should be achieved by the end of November 2004.
Our goal is to have all units initially occupied and achieve 95%occupancy
(within the established rental structure and in a soft market) with less than 8%
availability by December 31, 2005. The available lease-up budget is $426,789.
A. Leasing objectives
Number of occupied/leased apartments desired 180= 100%
Number of apartments currently occupied -0
Pre-leased (vacant and on-notice) -0
Subtotal additional apartments needed :180
Estimate skips in an eight month period 4
Current notices 0
Estimated canceled pre-leased apartments + 90
Lease expirations + 0
Subtotal number of new leases needed =272
Estimated rejected leases +90
Net Total Number of New Leases Needed =364
Traffic Needed to Achieve Leasing Objectives/Rentals per Leasing Professional
Leases needed divided by closing ratio =traffic needed to reach new lease goal
364 divided by 35% = 1,040 pieces of qualified traffic*
(Average closing ratio including cancels and rejected)
Rentals per leasing staff
Number of new leases needed per month (8 mos.) 46
Number of leasing staff` 2
Number of new leases needed per month per leasing staff =23
*Additional staff will be available for support tluu HACCC
2
De Anza Gardens Marketing flan 6/23/2004
Leases needed per week (5 per leasing staff) =6
Leasing staff cast per weep(minimum @ $20 hr) $800
Telephone-to-traffic ratio
Goal=more than 70%of all appointments kept.
Goal =33 to 45%closing ratio
B. Certificate of Occupancy Estimated Schedule
July 13 11 units
July 19 9 units
July 21 8 units
July 29 9 Units
July 30 9 Units
35 Units
.Aug. 05 8 Units
.Aug. 06 4 Units
Aug. 24 12 Units
Aug. 27 8 Units
Aug. 30 3 Units
Aug. 31 6 Units
41 Units
Sept. 3 3 Units
Sept. 14 12Units
Sept. 21 8 Units
23 Units
Oct. 7 8 Units
Oct. 19 21 Units
29 Units
Nov. 9 8 Units
Nov. 24 9 Units
17 Units
Dec. 13 12 Units
Dec. 16 12 Units
24 Units
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De Atnza Gardens Marketing Plan 6/2312004
III. Positioning Statement
This would be a statement that would distinctly define and summarize the benefit
of De Anza.Gardens in its market and against its competition over time.
A. Sample of positioning statements:
a. Aimco - From the very first day... you're at home.
b. A.J. Dwoskin &Associates- Experience Creat living
c. Sequoia Properties–This Is the Way Howie
d. Charles E. Smith–Inspired Living
B. List of suggested positioning statement for Ike Anza Gardens:
De Aima Gardens
a. Good people—good living...
b. A place where you can -row...
c. Why wait for better living; have the future now.
d. Bringing families together to create community....
e. Making a difference in your Life...
f. Where your visions become realities...
g. Come home where you belong..,
IV. Profile of the Target Market
A. The typical resident of De Anza Gardens is likely to be
a. employed within a 45 minute driving radius
1n. employed in the following professions:
i. ClericaUAdmilnistrative/Customer service
ii. t'onst.ruction/Dldg. and grounds maintenance
iii. Retail sales/food service
iv, Childcare/starting school teachers
v. Lower level technicians
vi. Local government employees
c. Households with income at oi- below 60% of median income.
d. A household who cares about safety and security.
e. A household who is looking for a community when can help there
achieve stability and improve their lives.
E A single parent who cares about day-care.
g. Desires a high quality affordable housing.
h. Comprise of 2 adult working families.
B. Target Market Major Employers hu
a. Baypoint
4
De Anza Gardens Marketing Placa 6123/2004
i. Hen le&Locktite—Approx. 200 employees
ii. Criterion Catalyst—Approx. 50 employees
iii. General Chemical—Approx. 100.employees
b. Pittsburg
i. Pittsburg Unified school district--- 1400
ii. USS-POSCO--Y 1000
iii. Los Medians Community College—640
iv. City of Pittsburg—400
v. Dow Chemical Company--380
vi. Bombardier Transportation--300
vii. Wal-Mart—220
viii. Performance Mechanics Ziac. — 180
ix. Target - 170
x. Safeway— 15 7
xi. Arnerican Color Graphics— 140
,iii. Best Buy— 100
xiii. Merit USA-95
xiv. Signode Corporation 85
xv. Albertson's 75
C-Bay Point Total population: 23,000
a. # of families: 6,000
b. Average family size-- 3.67
c. Race/Ethnicity White—32%
African American— 13/0
Dative American— I%
Asian and Pacific Islander— 13%
Cather Race--- 1%
Hispanic_.39%
* 2000 Census
V. "linage Materials" and Marketing Collateral
A. Brochure
The De Anza Gardens Apartments brochures will feature a.design that is in
keeping with the community's theme, while conveying the community's "high
end duality"image. The brochure design would provide a customized package of
information that includes quality design features, floor plan and community
features and amenities. The brochure cover will feature De Anza Gardens Logo
and positioning statement. The remaining pages will convey elated residents of all
existing affordable housing community.
Estimated cost=$3,500
5
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De Anza.Gardens Marketing.Plan 6/23/2444
B. Business Cards
Key members of De Anza Gardens staff will receive specially designed business
cards that are intended to be used freely as both networking and marketing tools.
Estimated cost- $200
VI. Achieving the Objective
Our goal is to have all units initially occupied and achieve 95% occupancy wit!.
less than 8% availability by December 31, 2405. The available marketing budget
is $24,842.
A. Ousite Efforts
a. Features and Amenities
Ile Anza Gardens will feature 180 unit high quality apartment homes that
have been distinctly designed to offer a truly unique rental experience and
opportunity to Bay Point and surrounding neighborhood residents. Cour
community will be the newest rental opportunity in the area to offer a
variety of"town home" style floor plans. Each apartnnent home offers
individual entry and balcony or storage. Inside the unit you will find "gas"
kitchen range, "gas fired"water heater and gas fired forced air heating.
There will be air-conditioning, frost free refrigerator, axtd dishwasher and
garbage disposer. Three and four bedroom units offer washer and dryer
hook-up. ESL and Computer classes will be offered on-site.
b. Resident Services
The following features represent some of the most unique selling
propositions of Ile Anza Gardens, and should be spotlighted in our
presentations to future residents.
i. Community room (Clean-up security deposit required)
ii. Bicycle or ball pumps
iii. Use of copy machine (first 10 copies free)
iv. Use of fax machine(first 5 pages free)
v. Bus and Bart transit schedules (.Required)
vi. Furniture rental referrals
vii. Large propane barbequ.e grill to be purchased for use at
resident functions. Residents can rent the grill for minimal
amount when it is not scheduled for use by the community.
viii. Assigned parking(1 per unit)
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De Anza Gardens Marketing Flan 6/23/2004
c. Rent-Ready Apartments
S.O.S. tent cards will be used in all vacant apartments to call attention to
the units' unique features. All rent-ready apartments will be personalty
inspected on a regular basis to ensure that they're immaculate and ready to
be shown.
d. Furnished Model/ Mini Models
A fu nisbed model will be employed on an as needed Basis and will likely
be a two or three bedroom,floor plan because of the number of 60% unit
set-aside(21-2BR; 22-3B .) in the inventory. We will leave one of the
smaller bedrooms unfurnished, so future residents can imagine their own
furniture in the room.
e. 'fhe Leasing Center/Community Room
A 2br apartment is available to lease across De Anza Gardens until the
leasing center is completed. This would provide a mean of a one private
office, one leasing room and waiting area/info. To the extent that space in
the temporary leasing office permits, we should display an illustrative site
plana and unit floor plans. A binde'r'ofbrochures of appliances used and
sample of the carpetingemployed at De Anza Gardens will be used to aid
future residents imagine their new home. On-site Leasing will begin in
May
L Needed for the Leasing Office/Community Room
i. Vacuum cleaners - $200
ii. Computers (20) - $20,000
iii. Laser Printers - $400
iv. Color printer/pax Maclaine - $100
v. Printer stands - 50
vi. Telephones - $200
vii.'Voice mail system - $700
viii. Trash cans - $50
ix. Pile cabinets--one fireproof; one regular -$2,000
x. Stereo _ $100
xii. Clipboards _ $50
xiii. Copy machine(lease) - 150
xiv. Office supplies - $1500
xv. Balloons _$100
xvi.fins/nametags for shirts -$200
Estimated cost=$25,800
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De Anza Gardens Marketing Plait 6/23/2004
g. Pricing/Objections
All leasing staff will be trained on how to effectively handle future
residents' objections and request for concession or special. One of the
competitions currently offers concession but with a higher rent: They also
offer a reduced security deposit of$99. If we find the need to provide an
incentive, we may Consider providing one that Would asci with the high
cast of moving.
h. Welcondtxg Thew.Residents
When future residents ii {3ve-ir.i, we will send the head of household a note
thanking theta for selecting our community along with a reminder to refer
their friends. We rec;ottiinend sending a note with a$5-$10 gift box.
Estimated Cost=,$1,800
B. Advertising
a. Print Media.Campaign paign and Strategy
L Our first advertising campaign will be to the theme of a
nurturing colutrainity. Our first wave of print advertising will
foots on illust:t•ating "Brand blew"high quality affordable
housing. This would be distributed to all Bay Point residents as
qui insert in the day Point Newsletter. Approximate Cost is
$1.,500.
ii: The second advertising campaign would be press releases in
the local and surrounding community newspaper including
minority publications. Articles will be written with the aim of
haviiig.them puiblisiied in local business publications.
will be listed as the bAbrination contact for all news press
releases. Press inquiries should be courteously and
professionally directed to for personal handling.
iii. Handprint Media Event---Estimated cast= $500
iv. The third advertising campaign would be direct marketing to
major local employers by visiting their.Human Resource
office.
V. Tie fourth cainpaigci would be promoting De Anza Gardens in
the coming Contra Costa County's "Affordable Housing
Week" as well as o ier community meetings/events/fair/trade
shows.
Estimated Cost=$2000
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De Anza Gardens.Marketing Plan 6/23/2004
b. Other advertising.sources to be coni sidered.
is Signage and Billboards, directional, bootleg,bandit, etc
ii. Estimated Cost= 1,000
iii. Apartments Directories, guides,publications, magazines, or
other specialty publications - Estimated cast
$1,300/nionth/10,400(8 mos.)
iv. Television—CCTV-1,500
v. Locator services—As needed
vi. Realtors—As needed
vii.Resident Referrals=$2,000
viii. Yellwv pages =$200
ix. The internet=$500
x. Craigslist.org=(free)
c. Print Advertising cheeldist:
A focus group study produced by a major apartment publication said that a
renter wants to see the following items in an ad.
i. Photos, floor plans, square footage
ii. Actual prices,not ranges; accurate specials
iii. property name,:and address easily found
iv. whether property'is new or rehab
v. an easy follow map or directions
vi. location;near shopping, schools, transportation, other services
vii,security, benefits, lease terms, and office hours
viii. Amenities, especially high interest items.
ix. washer dryer hook-ups
x. Calor schernes and planned activities.
All print acts will contain:
i. Community logo
ii. Phone.nurnbers/Pax number/TDD number with area code
iii. Equal Housing Opportunity/handicap accessibility logo
iv. Directions ftom major interstate or, if display ad, a directional
map with streets is preferable.
vi. Office hours
vii."Brand New as unique selling proposition banner within eight
month after construction completion.
C. Traffic Generation
a. Signage
Signage will be employed as follows: .
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De Anza.Gardens Marketing Plai) 6123/2004
i. Entrance signs (Well lighted)
ii. Flags (California 11ags oxily)
iii. Directional
iv. Bootlegs(will be very important to the success of this lease-up.
We must check daily that our signs are in place, in the proper
locations.
D. Resident Referral Program
Referral fee (Not to exceed$2,000 during lease-up)
Residents will be encouraged to invite their friend to all community activities
Birthday wishes will be faxed to residents at their place of employment
Referral door hangers will be placed on all doors in the community every month
until stabilization. Every three months thereafter.
When residents renew their leases, we will send their renewal gift to their place of
employment.
E. Marketing Effectiveness
Leasing professionals will be shopped on a regular basis. We will invite
competitors to shop the community. By issuing an open invitation and offering to
pay them for shopping us, we are able to specify the times and days that are most
suitable to us, according to our lowest traffic tunes. We will contact the major
management companies to negotiate the arrangements. We may be able to
exchange this ,service with thein at no cost to us. Shopping reports will be sent to
so that he inay review and offer,ssistance or training, or modify the
leasing tour.
VII Leasing Policies
A. Responsibilities of Leasing Staff
a. Follow-up Techniques--Thank you cards; faxes and telephone calls
will be employed to maintain contact with future residents until they
visit the cotrimunity.
b. Daily/Weekly Leasing Meetings—Holding daily and weekly meetings
will be important to the lease-up success of the community. Each site
staff should be advised as to where he or she stands on meeting his or
her goal for the week Every Monday, a recap meeting will be held to
discuss last week's accomplishments and to establish this week's goals.
A goal chart will be kept in the file room and updated.daily. A new goal
chart will be created each month until the community reaches a.
stabilized. 95% occupancy and all units have been initially occupied.
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Ile At a Gardens Marketing Plaaa 6/23/2004
c. Weekly closing ratios Closing ratios will be.monitored on a weekly
basis, If the ratio falls below 35%;training will be provided. Should the
closing ratio not improve,replacement will be considered.
d. Use of the Guest Carel - A,guest card will be completed for every future
resident who enters out leasing office.
e, Leasing Journal—'.lhe site will beep a community journal,which will
be somewhat like a diary to outline the"up's and down's"of lease-up at
Ike Anza Gardens ApartttzeAt:s. The journal will provide a place to keep
track of floor plays that are difficult to lease, objections that arise during
the leasing process,comments on what works and what doesn't, things
that need to be changed, geaa.eral marketing ideas and comments.
B. Leasing Guidelines
a. Rental Application Qu. i.lificatio.n
Properly pre-qualifying prospeds is a vital first step to good cin-site
compliance. Proper pre-qualifying will also decrease the time spent with,
unqualified prospects and applicants, The initial meeting With any given
prospect should last 30-60 minutes, and will include pre-qualifying,
touring the property,taking the application, and discussing moving details.
Prospects will be provided wit to Qualification Sheet that details rent,
income limits and tenant selection criteria.
c. Application Fees: $35 per adult(All household member 18 years and
over). Hold Fee: X1.00 tion-relitndable if canceling after three days.
Security Deposit shall not exceed 2 months rent. This fees and deposit
structures are subiect to market changes.
d. Number of Occupant,- fuer floor play:
Max. 2+1 per bedroom
Min. 1 per bedrown
e. Pet policy/deposit: Service animals only
f, LeaseTerm: I Year
C. Community Policy
1.1
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De Anza Gardens Marketing Plan 6/23/2004
a. Community office hours—duruig lease-up, leasing office will be open
from 9:00 a.m. to 6:00 p.m. Monday thru Friday.-Weekend hours will be
subject to market condition.
b. Service hours—Maintenance will be available daily from 7:00 a.m. thru
4:00 p.in., Monday thru Friday. This may change depending on needs
during lease-up.
VIII. Resident Retention
A. 'I'lie 2-244-3
bur resident retention efforts will be founded upon an easy to follow "2-2-4-3"
Resident Retention Program. 2_2-4-3w stands for two weeks, two months, three
mouths. And three months—the first four scheduled contacts of the program.
Within the first two weeps after inove-in, an on-site staff will visit the resident; in
person, to obtain feedback and immediately resolve any issues or concerns the
resident may have. At two months after move-in, anon-site staff will once again
visit or speak with the resident to make certain that everything is time. Four
months later (G month mark), the on-site staff will,call or visit again (unit
inspection). The resident will be called or visited again three months later(at the
ninth-month mark recertification).
B. Neighborhood Wateli
C. Resident Association
12
Exhibit D
EXI'l -b
_ter E
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De .Anna.Apartments
tiaf Point,CA
Stabilized Operating Budget
StrMrnary
Current Rtnt 5cireduie Units Square Total Gress Utility Proposed Monthly projected
Unit'( a Peet Sq.Ft. Rent Allowance Rent Income Annual Inc.
ii3R-30"A 2 465 75 390 780 9,360
113R»400/0 1 621 75 546 546 6,552
113R-50% 8 776 75 701 5,608 67,296
1DR-60% 5 825 75 750 3,750 45,000
2811-30% 7 558 102 456 3,192 38,304
28R-400A 8 745 102 643 5,144 (,1,728
2M50% 36 842 102 790 28,440 341,280
2BPI60010 21 1,002 102 900 18,900 226,800
3BR-30010 8 6+45 122 523 4,184 50,208
3HR-400/0 7 861 122 739 5,173 62,076
3n1(-500/0 38 1,076 . 122 954 36,252 435,024
3811-600/0 22 1,172 122 1,050 23,100 277,200
4111130°1e 1 770 138 632 632 7,584
4BR-400/0 2 960 138 822 1,644 19,728
4131150"A 8 1,200 138 1,062 8,496 101,952
4811-60% 5 1,338 138 1,200 61000 72,000
3€R Mnjr unit 1 0 0 0 0 U.
TotalAvera es I80 0 0 869 1119 760 151,841 1,822,092
PUPM PUPA Monthly Yr 1 fludgeted
Yr t 11nd ettil Income Income
Gross Potential 5,634 67,483 t51,841 1,822,092
Vacancy Loss 6% (281) (3.374) (7,.592) (91,105)
Collections Luse 0 0 0 0 0
Concessions 0 0 0 0 0
Not Rental Income 5,343 64,111 144,249 1,730,987
Other Income 8 96 £440 60 40
Effiect£ve Gross Income 5.351 64,207 145.689 1,791,527
PtjrAT PUPA Monthly Annual
:Expenses Expense gxpenrre
£Ifllities
(4n/Electric 43 515 7,725 92,700
Water 25 295 4,424 53,088
Sewer 0 0 0 0
Repairs&Maintenance 48 582 8,725 104,700
Payroll 88 1,054 15,806 189,677
Matketing/Advertlsing it 133 2,000 24,000
Administration&Office 35 421 6,322 75,860
Management Fee/3,501a of EUl 29 348 5,225 62,703
Insurance 26 314 4,715 56,578
Taxes&LAetnses 6 69 11033 12,400
Trash RemovattExtennination 19 228 3,427 41,124
Monthly Annual
E ease 11x nee
Total Expenses$efbra R&R 330 3,960 59,4031 712,831
Eepla tment Reserves 42 500 -72500 90.000
Tend uses Atter R&R 372 4,460 66,903 $02,831
Net Clperattnit Income atter R&R 3 052 36,018 82,391 998,697
flndget Approval:
Deputy Executive Director,I£ACCC trate
Date
Asset Manager «^ Veto
Eli
DeAnza Gardens
TE NANT St LECTION PLAN
DeAnza Gardens, a 180 unit affordable housing community in Bay Point, provides housing for
low income individuals and families, without regard to race, color, sex, creed, religion, national
origin, physical or mental disability status,familial status, age, ancestry; marital status, source
of income, satual orientation or any other arbitr wy personal characteristics. DeAnza Gardens
Apartments will make "reasonable dccoinniodatioits 3' to individuals whose disability so require.
Reasonable.Acccrmmodativn Requestforms are available upon request from management.
DeAnza Gardens Apartments is an Equal Opportunity H"ousing Facility, admitting people in
accordance with local, state acid federal pair Mousing laws, and in accordance with.the State of
California's Tax Credit Allocation Committee program regulations.
INCOME LIMITS
To qualify for a unit, the household's gross income may not exceed the maximum income_limit
per household size and may not be lower than the income minimum* per Household size. The
income maximums and minimums are attached and will be posted in the DeAnza Gardens
Office.
*If annual household income does not meet or exceed the ininimum level shown for appropriate
household and apartment size, but is not snore than 10 percent ('1 f7Yq less than the minimum, the
apartment may be rented if proof is obtained indicating satisfactory and timely rental payment
history for the past twelve (12) months in the amount equal to or greater than the rent charged
for that unit size.
APPLICATION P&OCEDU S
Applications will only be distributed when the Waiting List is open. Applications will not be
distributed when.the Waiting List is closed.
Applications will be available in the office during normal business hours, or by.requesting an
application by telephone.
Each applicant must complete an application and be willing to submit to a credit history, rental
history, and criminal background inquiry, as wellas income and asset verifications. All
application entries are to be made in ink or typed. Corrections or changes are to be made by
lining throughh the original entry, and entering the correct data. Such changes must be dated and.
initialed by the person making the change.
Signed and dated applications will be processed on a first-come, first-served basis. The
application must be.completed and sighed by the head of Household, and all household members
l
18 years of age and older, before an applicant can be placed on the waiting list. If an application
is not completely answered, the date of it being'fully completed will be the date that the
application is considered acceptable for rental purposes.
J!REFERMCES
Every applicant must meet the Property's Tenant Selections flan standards for acceptance as a
resident.
For unnits designed as accessible for persons with mobility, visual or hearing impairments,
households containing at least one person with such impairment will have fast priority for those
units:
UNIT']:WS ER POLICY
A Unit Transfer List is maintained for those residents who have been approved for transfer.
Residents on the Unit Transfer List will have priority over the applicants on the Waiting List.
OCCUPA_N Y.STANDA"
Occupancy standards are the criteria established for matching a household with the most
appropriate size and type of apartment. "Two plus one" occupancy guidelines will be followed
to avoid under or over utilization of the units as follows:
Bedroom Household household
minimum Maximum
1 1 3
34 d n _._.7
To. determine the proper bedroom size for which a household may qualify, the following
household members are to be included:
1. All full-time members of the household, and
2. Live-in attendants.
3. Foster children
4. Unborn children
GROUNDS IF OR REJECTION
1. Total family income exceeds the applicable income limits published by HUD, or does not
meet the minimum income limit.
2. Household cannot pay the fftffl security deposit at move-in.
2
3. Household.refuses to accept the second offer of an apartment.
4. Household fails to respond to interview letters.
5. ALL adult household members fail to attend eligibility interview.
6. Applicant has failed to provide adequate verification of income, or we are unable to
adequately verify income and/or income sources.
7. Unit assignment will NOT be the family's sole place of residency.
8. Fatnily members, age 6+ failed to provide proof of a social security number or refused to
certify that they have never been assigned a number.
9. Negative landlord references that indicate ,lease violation, disturbing the peace,
harassment, poor .housekeeping, improper conduct or other negative references against
the household.
10. Evictions reported in the last 5 years.
11. History of late payment of rent that demonstrates more than 2 late payments of rent in a
six-month period for the past two years. More than l NSF in a one-yeas period. if late
payments or non-payment or eviction.is due to extenuating circumstances such as illness
or loss of a job, documentation will be required and the cased reviewed on an individual
basis.
12. Any evidence of illegal activity including drags, gang, etc;.
13. Providing or submitting false or untrue information on your application or failure to
cooperate in any way with the verification process.
14. Inappropriate household size for the unit available (see Occupancy Standards).
CREDIT
15. Less than 75% of credit lines positive (i.e., if four (4) lines of credit, only one can be
negative). hoes not include medical bills.
16. piling of a ban1kruptcy in the last 5 years.
17. Any amount showing owed to a landlord or property management company.
RENTAL.&CREDIT
18. if no rental history or credit history exists, but household income is met, the apartment
can be rented if security deposit paid is equal to one month's rent plus$300.00.
3
19. If rental and/or credit History is marginal (i'e., 26-50% of credit lines are negative or if
there were two late rental payments in the last six months), the apartments can be rented
if security deposit paid is equal to two (2)months rent:
CREM11NAL
20. Conviction of any drug, violent or other criminal activity that would threaten the
household safety or right to peaceful enjoyment of the premises.
21. Histbry of violence or drug or alcohol abuse or other potentially disruptive behavior as
evidenced by a record of conviction or by documented statements concerning current
illegal use or sale of a controlled substance. A history that reflects an incident more than
five (5) years old will be reviewed on an individual basis before selection/rejection
decision is made.
22. There is a reasonable cause to believe that a household member's behavior of abuse or
pattern of abuse of alcohol may interfere with the health, safety and right to peaceful
enjoyment by other residents.
GRIEVANCE/APPEAL PROCESS
Should the applicants fail to meet the screening criteria, they will receive a notice in writing
indicating that they have the right to appeal the decision. This notice must indicate that the
applicant has 14 days to dispute the decision.
An appeal meeting with the Property Supervisor or the Compliance staff will be held. within ,10
business clays of receipt of the applicant's request.
Within five days of the appeal meeting;, the property will advise the applicant in writing of the
final decision regarding eligibility. Apartments will not be held for those applicants in the appeal
process.
ADMINISTRATION OF-HAITING LIST
The property is required to maintain a Waiting List of all eligible applicants. Applicants must be
placed on the Waiting List and selected from the.Waiting List even in situations where there are
vacancies and the application is processed upon receipt. This procedure is necessary to assure
the complete and accurate processing of all documentation for all applicants.
Each property has one Waiting List Fier bedroom size) that is established and maintained in
chronological order based on the date and time of receipt of the Pre-Application. The:Waiting
List contains the following information for each applicant:
4
1. Address and/or Contact Information
2. Phone Number(sl
3. Unit Type/Size
4. Household Composition
5. Preference/Accessibility
6. Disability Status
Applicants must report changes to any of the information i runediately.
Applicants will have the opportunity to decline the first apartment offered and retain.their place
on the waiting list. Should the applicant decline the offer of the next available unit,.they will be
removed from the waiting list.
PURGING THE WAITING LIST
The "gaiting List will be purged periodically. Each applicant will receive a letter from the
property, which will request updated infbi-mation and ask about their continued interest. This
letter must be returned within the specili.ed t.tne or their application will be removed from the
Waiting List.
OPENING/CLOSING OF NVixr�IlaG LIST
The methods of advertising use4l to announce opening and closing of the Waiting List is
contained in our Marketing Plan.
A.VAILABI.LIT_Y OF TENANT N.AI`+T SELECTION PLAN
The Tenant Selection Platz shall be posted in a conspicuous and public area. at the site. Changes
to the Plan will be sent via U.S. wail to all persons on the active Waiting List. When the Waiting
List opens, the Tenant Selection Plan will be distributed with applications and are available by
request from matiagentent.
ANNUAL RECER'TIFICATICII'l R—Et Q 3IR .+IV1E(NT
All residents must recertify annually. Proposed changes of household composition and student
status must be reported to Mau.a.getnent inunecli ately.
5
PETS
No pets of any description are allowed on the prnperty. The only exceptions are service animals
required for persons with disabilities unless other specific agreements have been executed.
El Al
A NONPROFIT HOUSING CORPORATION
Cresting community by developing, managing and promoting housing since 1968.
DeAnza Gardens is an equal opportunity housing provider
E !i
QP'�0�l�U�I'ir
6