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HomeMy WebLinkAboutMINUTES - 06251996 - C100 • /0-0 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Richard J. Martinez, Executive Director DATE: June 25, 1996 SUBJECT: COLUMBIA PARK MANOR: AUTHORIZATION TO EXECUTE 1)A FIRST AMENDMENT TO A PURCHASE AGREEMENT TO SELL HOUSING AUTHORITY OWNED LAND TO COLUMBIA PARK MANOR,INC; 2)A FIRST AMENDMENT TO FUNDING AND REGULATORY AGREEMENT WITH COLUMBIA PARK MANOR, INC. FOR THE DEVELOPMENT OF LOW INCOME SENIOR HOUSING; AND 3) TO EXECUTE AND RECORD A GRANT DEED IN ACCORDANCE WITH THE PURCHASE AGREEMENT. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION L RECOMMENDED ACTION: AUTHORIZE the Executive Director to execute 1)a First Amendment to Purchase Agreement with Columiba Park Manor, Inc. to sell a portion (Parcel "A") of Housing Authority owned property located at the end of Chester Drive in Pittsburg, CA to Columbia Park Manor, Inc. (CPM), a non-profit corporation, for the development of low income senior housing; and 2)a First Amendment to Funding and Regulatory Agreement with Columbia Park Manor for the project; and 3)to execute and provide for the recordation of a Grant Deed for the parcel in accordance with the Purchase Agreement. This authorization is subject to the review and approval as to form of all documents by the County Counsel. II. FINANCIAL IMPACT: No County General Funds will be used. The project will be funded using HUD Section 202 and Housing Authority funds. III. REASONS FOR RECOMMENDATION/BACKGROUND Pursuant to a Board Order approved on April 19, 1994,the Housing Authority entered into a Purchase Agreement and a Funding and Regulatory Agreement with Columbia Park Manor,Inc., a non-profit corporation formed by Pittsburg Preschool Coordinating Council,Inc. (PPCC)and Satellite Senior Homes, Inc., to provide for the development of Columbia Park Manor, a low income senior housing development. The development will be funded primarily by a$5.9 million grant from the HUD 202 program. In December 1995, CPM received word from the HUD 202 program that both the Purchase Agreement and the Funding and Regulatory Agreements would have to be amended to address various HUD concerns as a condition of the project receiving the HUD funding. Negotiations regarding the impact of those concerns are now completed and the resultant Amendments and the Grant Deed need to be executed prior to the HUD closing set for the first week of July 1996. CONTINUED ON ATTACHMENT: X_YES SIGNATURE ` W 0 or RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONER I HEREBY CERTIFY THAT THIS IS A 7� 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. r. �' ATTESTED , �i (p HIL BATCHELOR,CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMIINIIS'TRATOR BY V 'DEPUTY The following amendments and clarifications were made to address HUD's concerns: 1. The Funding and Regulatory Agreement is subject and subordinate to the HUD Section 202 Agreements for the project so long as such HUD documents are in effect. The Housing Authority shall request and receive written consent of HUD prior to amending or assigning the Agreement or declaring a default under the Agreement. 2. The rights of the Authority to insurance proceeds pursuant to any claim shall be subordinate to the rights of HUD so long as HUD is the holder of the Deed or the HUD Capital Advance Program Agreements are in effect. 3. The Housing Authority has the right to exercise its power of termination for default under the agreements but will not exercise that right so long as specific HUD documents encumber the property. 4. Any utility or access easements necessary for the development of the project shall be executed at the escrow closing and shall be consistent with the development plans approved by HUD and the City of Pittsburg. The Grant Deed will contain certain of the provisions stated in the Purchase Agreement, as amended, and title to the property will be conveyed to Columbia Park Manor, Inc. at the close of escrow. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not to authorize the execution of the Amendments and the execution and recordation of the Grant Deed, HUD will not fund the 79 units of low and moderate income senior housing. FIRST AMENDMENT TO FUNDING AND REGULATORY AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA AND COLUMBIA PARK MANOR FOR THE DEVELOPMENT OF SENIOR HOUSING THIS FIRST AMENDMENT TO FUNDING AND REGULATORY AGREEMENT (the "First Amendment") is made and entered into as of this __ day of , 1996, by and between the HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA, a public body corporate and politic (the "Authority") and COLUMBIA PARK MANOR, a California nonprofit public benefit corporation (the "Developer"). RECITALS WHEREAS, Authority and Developer entered into that certain Funding and Regulatory Agreement dated April 19, 1994 (the "Funding and Regulatory Agreement") in conjunction with the execution of that certain Purchase Agreement effective April 15, 1994 for the sale and purchase, respectively, of certain real property located in the County of Contra Costa, California as more particularly described in said Purchase Agreement (the "Land"), and for the purpose of providing financial assistance to Developer for the purpose of the development of a 79-unit senior housing facility for people of low or moderate income, as defined by Health and Safety Code section 50093 (the "Project") and of imposing certain covenants against the Developer and the Project that shall run with the Land (the "Covenants"); and WHEREAS, the Project is to be financed primarily by the Secretary of Housing and Urban Development (the "Secretary") pursuant to a grant (the "Capital Advance") under Section 202 of the Housing Act of 1959, as amended; and WHEREAS, the Secretary has objected to the Funding and Regulatory Agreement with respect to the Covenants, and the Secretary has advised Developer that the Funding and Regulatory Agreement should be amended as a condition to the funding of the Capital Advance;and WHEREAS, Developer has advised Authority of the Secretary's requirement that the Funding and Regulatory Agreement be amended and Authority and Developer have agreed that it is in their respective best interests to comply with the Secretary's requirement to the fullest extent possible so that the development of- the Project is not jeopardized. 1st Amendment-Funding/Regulatory Agr. 1 AGREEMENT NOW THEREFORE, for and in consideration of the premises as stated herein and for other valuable considerations, the receipt and sufficiency of which are hereby acknowledged, Authority and Developer hereby agree as follows: FIRST. A new Paragraph 15, entitled "HUD REQUIREMENTS", is added to the Funding and Regulatory Agreement, which reads as follows: This Funding and Regulatory Agreement is subject and subordinate to a Capital Advance Use Agreement, Deed of Trust and Regulatory Agreement recorded or to be recorded in the Official Records of Contra Costa County in the making of a capital advance for Supportive Housing for the Elderly as they may be amended or superseded from time to time or title to the Property is held by HUD. So long as such documents are in effect, Authority agrees: a. This Agreement may not be amended or assigned without prior written consent of HUD. b. The Property will be constructed and operated in conformance with the provisions of Section 202 of the Housing Act of 1959, as amended, and all regulations and administrative requirements relating to that statute. In the event of any conflict between this Agreement and the provisions of any HUD regulations, related administrative requirements or capital advance documents (including but not limited to the Capital Advance Use Agreement, Mortgage Note, Deed of Trust and Project Rental Assistance Contract), the HUD regulations, related administrative requirements or capital advance documents shall control. C. Authority shall not declare a default under this Agreement without the prior written consent of HUD. d. Enforcement of the provisions of this Agreement shall not result in any claim against the Property, the capital advance proceeds, any reserve of deposit required by HUD in connection with the capital advance, or the rents or other income from the Property other than residual receipts authorized for release by HUD. SECOND. Paragraph 7, COVENANTS RUNNING WITH THE LAND, of the Funding and Regulatory Agreement, which reads as follows: The Developer specifically understands and agrees that subsection (i) of Health and Safety Code section 34312.3 shall apply to this Agreement. That portion of the statute provides: "Notwithstanding Section 1461 of the Civil Code, the provisions of this section shall run with the land and may be enforced either in laws or in equity by any resident, 1st Amendment-Funding/Regulatory Agr. 2 local agency, entity, or by any other person adversely affected by an owner's failure to comply with the provisions of this section." is hereby deleted in its entirety. THIRD. Paragraph 11, INDEMNITY AND HOLD HARMLESS, of the Funding and Regulatory Agreement, which reads as follows: Developer agrees to indemnify, protect, defend, save and hold harmless Authority from and against any and all losses, liabilities, judgments, claims, costs and expenses (including attorneys fees and disbursements), actions or proceedings to attack, set aside, void, abrogate or annul this. Agreement, the Grant or any act or approval of Authority related thereto. Developer further agrees to indemnify, protect, defend, save and hold harmless Authority from and against any and all losses, liabilities, suits, obligations, damages, judgments, claims, costs and expenses (including attorneys fees and disbursements), actions or proceedings caused by or arising from or in connection with this Agreement, the Grant, or any act of the Authority or the Developer related thereto, save and except claims or litigation arising through the sole willful misconduct of Authority its officers or employees. The obligations of the GRANTEE to indemnify, protect and defend the AUTHORITY under this paragraph shall be limited solely to the assets of the GRANTEE, its heirs, successors and assigns and shall not be a personal liability of any officer;- director, member, trustee or employee of GRANTEE nor shall it be binding upon any corporation affiliated with GRANTEE. However the obligations of the GRANTEE to hold the AUTHORITY harmless from all of the demands, liabilities, losses, damages, claims, costs, expenses, litigation, actions and/or proceedings described by this section shall extend not only to GRANTEE but also to its officers, directors, members, trustees, employees and affiliated corporations and GRANTEE makes the promises to hold harmless set forth in this section on behalf of itself and on behalf of the aforementioned officers, directors, members, trustees employees and affiliated corporations. is amended in its entirety to read as follows: Developer agrees to indemnify, protect, defend, save and hold harmless Authority from and against any and all losses, liabilities, judgments, claims, costs and expenses (including attorneys fees and disbursements), actions or proceedings to attack, set aside, void, abrogate or annul this Agreement, the Grant or any act or approval of Authority related thereto. Developer further agrees to indemnify, protect, defend, save and hold harmless Authority from and against any and all losses, liabilities, suits, obligations, damages, judgments, claims, costs and expenses (including attorneys fees and disbursements), actions or proceedings caused by or arising from or in connection with this Agreement, the Grant, or any act of the Authority or the Developer related thereto, save and except claims or litigation arising through the sole willful misconduct of Authority its officers or employees. 1st Amendment-Funding/Regulatory Agr. 3 0. /00 The obligations of the Developer to indemnify, protect, defend and hold harmless the Authority under this paragraph shall be. limited solely to the assets of the Developer, its heirs, successors and assigns and shall not be a personal liability of any officer, director, member, trustee or employee of Developer or upon any corporation affiliated with Developer. Provided, however, that. the Developer warrants and represents to the Authority, on behalf of itself, its heirs, successors, assigns, officer, directors, members, trustees, employees and affiliate corporations, with the understanding that such representation and warranty is material and is being relied upon by the Authority, that the Developer's officers, directors, members, trustees, employees and affiliate corporations. are not and shall not be considered parties to nor beneficiaries of this Agreement nor shall such persons or entities ever claim, have or assert any right or action against the Authority for any loss or damage or other matter arising or resulting from this Agreement or any act or omission of the Authority or the Developer hereunder. The obligations contained in this section shall survive the assignment, expiration or termination of this Agreement. FOURTH. The property description in Recital A. ,which reads as follows: "Approximately 2.99 acres of vacant land, the westerly portion of assessors parcel 073-140-015 at Chester Drive, Pittsburg, California, shown as Parcel "B" on Exhibit "A," and described in Exhibit "B" attached hereto and made a part hereof." is amended in its entirety to read as follows: Approximately 2.99 acres of vacant land, the westerly portion of assessors parcel.073-140-015 at Chester Drive, Pittsburg, California, shown as Parcel "A" on Exhibit 'A" and described in Exhibit "B" attached hereto and made a part hereof. FIFTH. Exhibits "A" and "B" of the Funding and Regulatory Agreement are rescinded and replaced with the Exhibits"A" and"B" attached hereto and made a part of this amendment. Except as amended by this First Amendment, the terms of the Funding and Regulatory Agreement shall and do remain in full force and effect. This First Amendment shall be placed in Escrow and shall be recorded in the Official Records of Contra Costa County by the title company and indexed to the name of the Developer. 1st Amendment-Funding/Regulatory Agr. 4 IN WITNESS WHEREOF, Authority and Developer have caused this First Amendment to be executed by their duly authorized officers and made effective on the day and year first above written. AUTHORITY DEVELOPER HOUSING AUTHORITY OF COLUMBIA PARK MANOR, THE COUNTY OF CONTRA COSTA, a California nonprofit a public body, corporate and politic public benefit corporation By:------------ By:------------ Richard J. Martinez, Executive Director Chairperson, Board of Directors By:-------------------------- (Secretary) APPROVED AS TO FORM: Victor J. Westman, County Counsel By:-------------------------- Deputy County Counsel 1st Amendment-Funding/Regulatory Agr. 5 boa NT 1, Q (�(`� Q EXHIBIT L1 J I ¢� $ p SCS 4rp W ON K'r Ell I-, C� m 2� oz2a�o>iw� -c• Wm a � �,Z,. z'? a- U�v 4 WO ^gid, b4 O O wW K"Z 24 YSO �- F`. ��" �p h pp��,•`.' -44"'K i,., <'"0. q 4 Qa ice_ U ' m [.(lryoHln% omsnoN o .Ul Nnoo VISOD VYI N00J d 6 UZ 100073,130 ON/Sn0H 07830 73 ----------- ----- ------------------------� (3aw,ot) Of ri t9 83d (Of N t9 N3d 00'OLZ 3,SY.91N) 135 3dfd WYI SY 031d300Y (LY N CU N3d,00'0 M,10,8i11S) ,9t OLZ 3.fS,lL(IN N3o0 3d/d AVIW-Z/I J ON/lOj ' (6l/Yd(!N3d M,OLSi.9lS) 3,8I,Ot([N m �-------r------r-----71------ _ tt Z9 60'SS 'ly t '86 ,YtOfl "3.L0,Bt.LNd ,bS Of -_----- 1 1 (Of IY t9 - 1 (Of Ht9 N3d 0086) (Or A t9 (Of/Y Y9- �'- I N3d,0019)o�83d,00'95)$j N3d,00'99) �� - ?; .00'8 M.(5,OQ98N ago i loco X91 66£'Zlliml �� • p�� i da r ��t. w of ctoN 3I 21 31 ,vb p0�`,1l C b O o r p [\I ..^ I N Q-69 4 o o-------vSq o nlgN�l v ml � �1 � � � Q4„L7 i -na \ �n .Of k1 � 69 N3d 6Z'981 3,St.91NL --_ 'L•q� {`{+''1•� y 1 N oq b 3,fS,(kL(N •� -r o^ 5 ]BS,fi1fN Xt15 N/SSONJ CN/A3 •01.0 }yy1 *0�}°j � ;� 2 38S,H.CI,Y n (Or ri 49 N3d.8t'L!Z 256,9lN) l U p-79Y(Z d.c9,(t.l IN 30m,04) .J!4/Q ?131 (Of lY i9 93d,ZO'M J,.9 ~ LL, app } 1 or ..N 1 N n LQ _______________14 m . Q4�a q 1l c, x u�o I 1 � � !n• SLI r} � ` 'i''- CA- 4 1 I ti 3 nb M n 1 z 4 N 0 of - NOitil W4 wit Nrtv:3ad.C,,wt) F r�ml �iJ ea f\I617 VO! 2 O Il II it 11 ;I r .______-- I .?90 9 ^h hl 3 Lot ZLLp ,19'661 3.s"S,SZ.L Lv' ",� '1 ! ti m � 1 "W Lo bl� 4 N �I LO I '-W------ice o I��� ' .1.1 ------------ as 1 o lf) n o Ob Kr� 2 n n n I CY]1, wa ----------4 x��Q u n -------------- 1 1y3a __-_ ',. }~o I �' - y� !,• Ir 3,l V m i (LY)Y fSL 83d,Ot Slr 3.fS,tt.LIN) ,96'iLC 3.fS lt'IN ,L1 YZI 3.8S./Y.LlN 1 2 x " O st'o ;6 tLr 46 107 s' I i 1 Zi N Ue N3d 3nd,S1SI)G r3ifs.n.If L----------� .•I < I a I i _JI 4 a i 2 ! i LL T---------------SON/NY38 A SISY8 "--- LL'SY. 3,—SItIN--- -------- fSTi.C------� -tN-j— ---- 88 _l—N_�_ NN5'N3d �7 VM 7f� O-S0S , -- ---------------- �.. -- - W oC -- ^C/,I,E: EXHIBIT" "B" JOB NO. 30094-50 APRIL 7 , 1995 LEGAL. 1 LEGAL DESCRIPTION ALL THAT REAL PROPERTY SITUATE IN THE CITY OF PITTSBURG, COUNTY OF CONTRA, STATE OF CALIFORNIA, DESCRIBED. AS FOLLOWS: ALL OF PARCEL "A" AS SAID PARCEL IS SHOWN AND SO DESIGNATED ON PARCEL MAP M. S . 676-95 FILED FOR RECORD IN THE OFFICE OF THE COUNTY RECORDER IN BOOK OF PARCEL MAPS AT PAGE C loo FIRST AMENDMENT TO PURCHASE AGREEMENT THIS FIRST AMENDMENT TO PURCHASE AGREEMENT (the "First Amendment") is made and entered into as of this _ day of , 1996, by and between the HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA, a public body corporate and politic (the "Authority") and COLUMBIA PARK MANOR, a California nonprofit public benefit corporation (the "Grantee"). RECITALS WHEREAS, Authority and Grantee entered into that certain Purchase Agreement effective April 15, 1994 (the "Purchase Agreement") for the sale and purchase, respectively, of certain real property situated in the County of Contra Costa, State of California (the "Property") and described as follows: Approximately 2.99 acres of vacant land, the westerly portion of assessor's parcel 073-140-015 at Chester Drive, Pittsburg, California, shown as Parcel "B" on Exhibit "A", and described in Exhibit _ "B" attached hereto and made a part hereof. and WHEREAS, the Purchase Agreement contains, among other provisions, certain conditions with respect to a) the Pittsburg Preschool Coordinating Council, Inc. (the "Preschool'), b) insurance and c) deed restrictions that shall affect the Property; and WHEREAS, Authority and Grantee have agreed that the Property shall be developed and operated as a senior housing facility for people of low or moderate incomes (the "Project") pursuant to a grant (the "Capital Advance") provided by the Secretary of Housing-and Urban Development (the "Secretary") under Section 202 of the Housing Act of 1959, as amended; and WHEREAS, the Secretary has objected to the Purchase Agreement with respect to the Preschool, insurance and deed restrictions that shall affect the Property, and the Secretary has advised Grantee that the Purchase Agreement should be amended as a condition to the funding of the Capital Advance; and WHEREAS, Grantee has advised Authority of the Secretary's requirement that the Purchase Agreement be amended and Authority and Grantee have agreed that it is in their respective best interests to comply with the Secretary's requirement to the fullest extent possible so that the development of the Project is not jeopardized. 1st Amend./Purchase Agreement 1 C. /00 AGREEMENT NOW THEREFORE, for and in consideration of the premises as stated herein and for other valuable, considerations, the receipt and sufficiency of which are hereby acknowledged, Authority and Grantee hereby agree as follows: FIRST. Paragraph 7,USE OF PROPERTY PRIOR TO CONVEYANCE OF TITLE, of the Purchase Agreement, which reads as follows: GRANTEE acknowledges that there is a current lease on the property covered by this Agreement to the PITTSBURG PRESCHOOL COORDINATING COUNCIL, INC. (hereinafter "PRESCHOOL"), which expires on April 30, 2034, or upon conveyance of title to GRANTEE, whichever shall first occur. GRANTEE understands and agrees that PRESCHOOL shall retain the use of the property covered by this Agreement until such time as the property is conveyed to GRANTEE. It shall be the sole responsibility of GRANTEE, at GRANTEE's sole cost and expense to take any legal or other action necessary to remove PRESCHOOL. from the property following conveyance of title to GRANTEE or, if necessary, to clear the title to the property. is hereby amended in its entirety to read as follows: GRANTEE acknowledges that there is a current lease on the property covered by this Agreement to the PITTSBURG PRESCHOOL COORDINATING COUNCIL, INC. (hereinafter "PRESCHOOL"), which expires on April 30, 2034, or upon conveyance of title to GRANTEE, whichever shall first occur. GRANTEE understands and agrees that PRESCHOOL shall retain the use of the property covered by this Agreement until such time as the property is conveyed to GRANTEE. It shall be the sole responsibility of GRANTEE, at GRANTEE's sole cost and expense to take any legal or other action necessary to remove PRESCHOOL from the property following conveyance of title to GRANTEE, and prior to the Section 202 capital advance closing with the Secretary of Housing and Urban Development. SECOND. Paragraph 9, INSURANCE, of the Purchase Agreement, which reads as follows: Prior to entering upon the property for any purpose, GRANTEE shall provide AUTHORITY with a Certificate of Insurance certifying that it has Comprehensive General Liability or Commercial General Liability insurance covering bodily injury (including death), personal injury and property damage with limits in an amount of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate, if applicable. Such insurance shall name the Housing Authority of the County of Contra Costa, its officers, agents and employees, individually and collectively, as additional insureds and shall contain a special provision for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the AUTHORITY. Such insurance shall apply as primary insurance, and any other insurance maintained by AUTHORITY shall be excess only and not contributing with the insurance required under this section. Said 1st Amend./Purchase Agreement 2 �. Dov insurance shall be maintained in full force and effect throughout the term of this Agreement. is hereby amended in its entirety to read as follows: Prior to entering upon the property for any purpose, GRANTEE shall provide AUTHORITY with a Certificate of Insurance certifying that it has Comprehensive General Liability or Commercial General Liability insurance covering bodily injury (including death), personal injury and property damage with limits in an amount of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate, if applicable. Such insurance shall name the Housing Authority of the County of Contra Costa, its officers, agents and employees, individually and collectively, as additional insureds and shall contain a special provision, for thirty (30) days prior written notice of any cancellation or reduction in coverage to be sent to the AUTHORITY. Such insurance shall apply as primary insurance, and any other insurance maintained by AUTHORITY shall be excess only and not contributing with the insurance required under this section. Said insurance shall be maintained in full force and effect throughout the term of this Agreement. Notwithstanding the foregoing, the rights of Authority to insurance proceeds pursuant to a claim shall be subordinate to the rights of the Secretary of Housing and Urban Development (hereafter referred to as "HUD"). In the event of an insurance claim made under any insurance policy described in this.section, and so long as HUD is the holder of a deed of trust against the property, or a Capital Advance Program Regulatory Agreement or Capital Advance Program Use Agreement still affects the property, then the Authority agrees that HUD shall have complete and sole control over all insurance claim proceeds and the Authority agrees to assign to HUD all of the Authority's rights to receive and/or use such proceeds during such period. The assignment to HUD of all of the Authority's rights under any of the insurance policies described in this paragraph 9 shall no longer be applicable upon termination and/or release of HUD's deed of trust, Capital Advance Program Regulatory Agreement or Capital Advance Program Use Agreement. THIRD. Paragraph 11, DEED OF RESTRICTIONS, of the Purchase Agreement, which reads as follows: This conveyance is made subject to the following conditions which shall be included in the deed: a. The property is conveyed on the express condition that it shall be developed and forever used solely for the construction and operation of a senior housing facility for elderly. individuals with low or low and moderate income, as defined by Health and Safety Code section 50093, and for no other purpose. Should the property ever not be used for such purpose, then the Authority, its heirs, successors or assigns shall reserve the right to re-enter and forfeit GRANTEE's title and the property shall revert to AUTHORITY. The power of termination described in this subparagraph shall be stayed and shall not be exercised for-so long as the property is encumbered by both the Deed of Trust dated 1st Amend./Purchase Agreement 3 C�. /oo 199_, in favor of the United States of America acting by and through the Secretary of Housing and Urban Development ("HUD"), recorded as Instrument No. on , 199_, in the official records of Contra Costa County ("HUD Deed of Trust"), and the Regulatory Agreement dated 199__, executed by and between GRANTEE and HUD, recorded as ..Instrument No. on 199__, in said official records ("HUD Regulatory Agreement") or during such period as title to the property is held by HUD. The parties expressly agree that should a breach of this restriction occur during such time as the property is encumbered by the HUD Deed of Trust and the HUD Regulatory Agreement or title to the property is held by HUD, any obligation the AUTHORITY might otherwise have to exercise of the power of termination within five - years after the breach, or such other time period as may be provided by Civil Code section 885.050 or any successor legislation, is waived. This deed is deemed by the parties to be the recorded waiver or extension required by Civil Code section 885.050. b. This property is conveyed on the express condition that GRANTEE shall obtain a certificate of occupancy for a senior housing-facility within five years of the date the deed to GRANTEE is recorded. Should GRANTEE fail to obtain said certificate of occupancy within five years following recordation of the deed, then the AUTHORITY, its heirs, successors or assigns shall reserve the right to re-enter and forfeit GRANTEE's title and the property shall revert to AUTHORITY. The power of termination described in this subparagraph shall be stayed and shall not be exercised for so long as the property is encumbered by both the HUD Deed of Trust and the HUD Regulatory Agreement or during such period as title to the property is held by HUD. The parties expressly agree that should a breach of this restriction occur during such time as the property is encumbered by the HUD Deed of Trust and the HUD Regulatory Agreement or title to the property is held by HUD, any obligation the AUTHORITY might otherwise have to exercise of the power of termination within five years after the breach, or such other time period as may be provided by Civil Code section 885.050 or any successor legislation, is waived. This deed is deemed by the parties to be the recorded waiver or extension required by Civil Code section 885.050. C. Pursuant to Government Code section 50570, should the ownership of the land no longer be composed of a majority of the nonprofit - sponsor, then AUTHORITY, its heirs, successors or assigns shall reserve the right to re-enter and forfeit GRANTEE'S title and the property shall revert to AUTHORITY. d. The deed to GRANTEE shall contain a recital that the AUTHORITY has made the finding required by Government Code section 50570 and such recital shall be conclusive in favor of purchasers or encumbrancers for value. The deed shall also contain the findings and determinations required by Health and Safety Code section 34315.7. is hereby amended in its entirety to read as follows: a. The property is conveyed on the express condition that it shall be developed and forever used solely for the construction and operation of a 1st Amend./Purchase Agreement 4 senior housing facility for elderly persons and families with low or moderate income, as defined by Health and Safety Code section 50093, and for no other purpose. Should the property ever not be used for such purpose, or, pursuant to Government Code section 50570, should the ownership of the land no longer be comprised of a majority of the nonprofit sponsor, then the AUTHORITY or its successors or assigns shall reserve the right to re-enter and forfeit GRANTEE's title and the property shall revert to AUTHORITY. The power of termination described in this paragraph shall be stayed and shall not be exercised for so long as the property is encumbered any of the following: (1) Capital Advance Program Use Agreement between GRANTEE and HUD; (2) Deed of Trust With Assignment of Rents in favor of HUD ; (3) Capital Advance Program Regulatory Agreement between GRANTEE and HUD ; (4) any subsequent or modified HUD Use Agreement, Deed of Trust or Regulatory Agreement; or (5) title to the property is held by HUD. b. The parties expressly agree that should a breach of this restriction occur during such time as the property is encumbered by any of the documents described above, or title to the property is held by HUD, any obligation or right the Authority might have to exercise of the power of termination within five years after the breach, or such other time period as may be provided by Civil Code section 885.050 or any successor legislation, is waived and such right shall not be exercised. This deed is deemed by the parties to be the recorded waiver or extension required by Civil Code section 885.050. C. The deed executed and delivered by the AUTHORITY to GRANTEE shall comply with Health & Safety code section 34315.7 and Government Code section 50570. The deed shall also contain the covenants, conditions and restrictions set forth in subparagraph a. and b. hereof. The recitals contained in the deed shall be conclusive in favor of GRANTEE and GRANTEE'S encumbrancers. FOURTH. Paragraph 13, INDEMNITY AND HOLD HARMLESS, of the Purchase Agreement, which reads as follows: GRANTEE shall indemnify, defend, save, protect and hold harmless, AUTHORITY, its officers and employees (hereinafter collectively referred to as "AUTHORITY"), from and against any and all loss, damage, liability, expense, claims or demands, of whatever character, to persons or property, direct or consequential, directly or indirectly contributed or caused by GRANTEE's operations or acts or omissions pursuant to this Agreement, save and except claims or litigation arising through the sole willful misconduct of AUTHORITY, its officers or employees. GRANTEE further agrees to defend, indemnify, save, protect and hold harmless, AUTHORITY from any and all claims, costs, actions or proceedings to attack, set aside, void, abrogate or annul this agreement or any act or approval of AUTHORITY related thereto. GRANTEE shall also indemnify, protect, defend, save and hold harmless AUTHORITY from and against any and Indemnified Costs arising directly or indirectly out of or resulting from any Hazardous Substance being present or released in, on or around any part of the Property, or in 1st Amend./Purchase Agreement 5 the soil, groundwater or soil vapor on or under the Property at any time, either before or after this Purchase Agreement is executed, whether such Indemnified Costs are discovered before or after the conveyance of the Property to GRANTEE. As used herein, "Hazardous Substance" means,any substance, material or waste (including petroleum and petroleum products) which is or becomes designated, classified or regulated as being "toxic" or "hazardous" or a "pollutant," or which is or becomes similarly designated, classified or regulated, under any federal, state or local law, regulation or ordinance. As used herein "Indemnified Costs" means all actual or threatened liabilities, claims, actions, causes of action, judgments, orders, damages (including foreseeable and unforeseeable consequential damages, costs, expenses, fines, penalties and losses (including sums paid in settlement of claims and all consultant, expert and legal fees and expenses of any counsel retained by AUTHORITY) including those incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work (whether of the subject property of any other property), or any resulting damages, harm or injuries to the person or property of any third parties or to any natural resources, and also including any and all liability under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") 42 U.S.C. §9601 et seq., the Resource Conservation and Recovery Act ("RCRA") 42 U.S.C. §6901 et seq., and the California Hazardous Waste Control Law ("HWCL") Health and Safety Code §25100 et seq., or any successor legislation to the foregoing. The obligations contained in this section shall include, but shall not be limited to, the burden of defending all claims, suits, or administrative proceedings with counsel approved by AUTHORITY, even if such claims, suits or proceedings are groundless, false or fraudulent, and the burden of conducting all negotiations of any description, and paying and discharging, when the same become due, any and all judgments, penalties, costs or other sums due against AUTHORITY. AUTHORITY, at its sole expense, may employ additional counsel of its choice to associate with counsel representing GRANTEE. The obligations of the GRANTEE to indemnify, protect and defend the AUTHORITY under this paragraph shall be limited solely to the assets of the GRANTEE, its heirs, successors and assigns and shall not be a personal liability of any--officer, director, member, trustee or employee of GRANTEE nor shall it be binding upon any corporation affiliated with GRANTEE. However the obligations of the GRANTEE to hold the AUTHORITY harmless from all of the demands, liabilities, losses, damages, claims, costs (including but not limited to Indemnified Costs), expenses, litigation, actions and/or proceedings described by this section shall extend not only to GRANTEE but also to its officers, directors, members, trustees, employees and affiliated corporations and GRANTEE makes the promises to hold harmless set forth in this section on. behalf of itself and on behalf of the aforementioned officers, directors, members, trustees, employees and affiliated corporations. 1st Amend./Purchase Agreement 6 The obligations contained in this section shall survive the assignment, expiration or termination of this Agreement. is hereby amended in its entirety to read as follows: GRANTEE shall indemnify, defend, save, protect and hold harmless, AUTHORITY, its officers and employees (hereinafter collectively referred to as "AUTHORITY"), from and against any and all loss, damage, liability, expense, claims or demands, of whatever character, to persons or property, direct or consequential, directly or indirectly contributed or caused by GRANTEE's operations or acts or omissions pursuant to this Agreement, save and except claims or litigation arising through the sole willful misconduct of AUTHORITY, its officers or employees. GRANTEE further agrees to defend, indemnify, save, protect and hold harmless, AUTHORITY from any and all claims, costs, actions or proceedings to attack, set aside, void, abrogate or annul this agreement or any act or approval of AUTHORITY related thereto. GRANTEE shall also indemnify, protect, defend, save and hold harmless AUTHORITY from and against any and Indemnified Costs arising directly or indirectly out of or resulting from any Hazardous Substance being present or released in, on or around any part of the Property, or in the soil, groundwater or soil vapor on or under the Property at any time, either before or after this Purchase Agreement is executed, whether such Indemnified Costs are discovered before or after the conveyance of the Property to GRANTEE. As used herein, "Hazardous Substance" means any substance, material or waste (including petroleum and petroleum products) which is or becomes designated, classified or regulated as being "toxic" or "hazardous" or a "pollutant," or which is or becomes similarly designated, classified or regulated, under any federal, state or local law, regulation or ordinance. As used herein "Indemnified Costs" means all actual or threatened liabilities, claims, actions, causes of action, judgments, orders, damages (including foreseeable and unforeseeable consequential damages, costs, expenses, fines, penalties and losses (including sums paid in settlement of claims and all consultant, expert and legal fees and expenses of any counsel retained by AUTHORITY) including those incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work (whether of the subject property of any other property), or any resulting damages, harm or injuries to the person or property of any third parties or to any natural resources, and also including any and all liability under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") 42 U.S.C. §9601 et seq., the Resource Conservation and Recovery Act ("RCRA") 42 U.S.C. §6901 et seq., and the California Hazardous Waste Control Law ("HWCL") Health and Safety Code §25100 et seq., or any successor legislation to the foregoing. 1st Amend./Purchase Agreement 7 The obligations contained in this section shall include, but shall not be limited to, the burden of defending all claims, suits, or administrative proceedings with counsel approved by AUTHORITY, even if such claims, suits or proceedings are groundless, false or fraudulent, and the burden of conducting all negotiations of any description, and paying and discharging, when the same become due, any and all judgments, penalties, costs or other sums due against AUTHORITY. AUTHORITY, at its sole expense, may employ additional counsel of its choice to associate with counsel representing GRANTEE. The obligations of the GRANTEE to indemnify, protect, defend and hold harmless the AUTHORITY under this paragraph shall be limited solely to the assets of the GRANTEE, its heirs, successors and assigns and shall not be a personal liability of any officer, director, member, trustee or employee of GRANTEE or of any corporation affiliated with Grantee. Provided, however, that GRANTEE warrants and represents to AUTHORITY, on behalf of itself, its heirs, successors, assigns, officers, directors, members, trustees, employees and affiliate corporations, with the understanding that such representation and warranty is material and is being relied upon by AUTHORITY, that GRANTEE's officers, directors, members, trustees, employees and affiliate corporations are not and shall not be considered parties to nor beneficiaries of this Agreement nor shall such persons or entities ever claim, have or assert any right or action against AUTHORITY for any loss or damage or other matter arising or resulting from this Agreement or any act or omission of the AUTHORITY or the GRANTEE hereunder. The obligations contained in this section shall survive the assignment, expiration or termination of this Agreement. FI FTH. Paragraph 14, STORM DRAIN EASEMENT, of the Purchase Agreement, which reads as follows: GRANTEE shall execute and deposit into escrow an easement to AUTHORITY, in a form and at a location to be determined and approved by AUTHORITY in its sole discretion, for storm water drainage from Parcel "A." is hereby amended in its entirety to read as follows: GRANTEE shall execute and deposit into escrow an easement to AUTHORITY for storm water drainage from Parcel B in a form and at a location to be determined and approved by GRANTEE and AUTHORITY. The form and location of such easement shall not be inconsistent with GRANTEE'S development plan as approved by the Secretary of Housing and Urban Development and the City of Pittsburg. SIXTH. Subparagraph a.. Access to Parcel A, of Paragraph 15,ACCESS EASEMENTS, of Purchase Agreement,which reads as follows: a. Access to Parcel A: GRANTEE shall execute and deposit into escrow a nonexclusive appurtenant easement to AUTHORITY, in a form and at a location to be determined and approved by AUTHORITY in its sole discretion,for access to Parcel"A." 1st Amend./Purchase Agreement 8 0 /00 is hereby amended in its entirety to read as follows: a. Access to Parcel B: GRANTEE shall execute and deposit into escrow a nonexclusive appurtenant easement to AUTHORITY, in a form and at a location to be determined and approved by AUTHORITY in its sole discretion, for access to Parcel"B." SEVENTH. Subparagraph b. Access to Parcel B, of Paragraph 15, ACCESS EASEMENTS, of Purchase Agreement,which reads as follows: b. Access to Parcel B: AUTHORITY shall execute and deposit into escrow a nonexclusive appurtenant easement to GRANTEE for access for Parcel "B" in a form and at a location to be determined and approved by AUTHORITY in its sole discretion. The easement shall not be conveyed to GRANTEE unless and until the GRANTEE also obtains a license from PRESCHOOL permitting the GRANTEE to use the property for access. The grant of easement shall provide that the easement will terminate in the event Parcel"B" reverts to AUTHORITY. is hereby amended in its entirety to read as follows: b. Access to Parcel A: AUTHORITY shall execute and deposit into escrow a nonexclusive appurtenant easement to GRANTEE for access to Parcel "A" in a form and at a location to be determined and approved by AUTHORITY in its sole discretion. The grant of the easement shall provide that the easement will terminate in the event Parcel"A" reverts to AUTHORITY. " EIGHTH. The property description in Paragraph 1 Parties and Premises, , which reads as follows: "Approximately 2.99 acres of vacant land, the westerly portion of assessors parcel 073-140-015 at Chester Drive, Pittsburg, California, shown as Parcel "B" on Exhibit'A" and described in Exhibit "B" attached hereto and made a part hereof." is amended in its entirety to read as follows: Approximately 2.99 acres of vacant land, the westerly portion of assessors parcel 073-140-015 at Chester Drive, Pittsburg, California, shown as Parcel "A" on Exhibit 'A" and described in Exhibit "B" attached hereto and made a part hereof. NINTH. Exhibits "A" and "B" of the Purchase Agreement are rescinded and replaced with the Exhibits"A" and"B" attached hereto and made a part of this amendment. Except as.amended by this First Amendment, the terms of the Purchase Agreement shall and do remain in full force and effect. 1st Amend./Purchase Agreement 9 IN WITNESS WHEREOF, Authority and Grantee have caused this First Amendment to be executed by their duly authorized officers and made effective on the day and year first. above written. AUTHORITY GRANTEE HOUSING AUTHORITY OF COLUMBIA PARK MANOR, THE COUNTY OF CONTRA COSTA, a California nonprofit a public body,, corporate and politic public benefit corporation By:-------------------------- By:-------------------------- Richard J. Martinez, Executive Director Chairperson, Board of Directors By:-------------------------- (Secretary) RECOMMENDED FOR APPROVAL By:-------------------------- County Lease Manager APPROVED AS TO FORM: Victor J. Westman, County Counsel By:-------------------------- Deputy County Counsel 1st Amend./Purchase Agreement 10 e. EXHIBIT "A" Q) __J �Q �z r �n V � u m�,, — i�, ,H_K WW oxo k CE's 0 [�UIYORIOV DNISnOH ­(:'P->,)�5- 9, *- Z 4z 2k Q> (INnOO VISOO V81NO01 1 6 IN3PYdO731130 ONISOOH 07931d 73 ----------- -------------------------------------------------------------- IA18 J T *D 'dOGM 00 or m Y9 Yid 1111d, '3 T 'D 'd ft m Y4 xG.'00 re,3,gt.9 1 M) 13S 3djj Wi /,Sy a3td370y (Zi N M'd3d,00 0 A•ZO.9011S) M?dO l7did W67 Z,11 i n -Z, 0 adm.outg1s) .7.9tO*.Zi oGzNo3 .......__T__ 7__ �� .le?9 60!� -,,6 "o-oft 3,�ZUP.ZIN Y.ZO.y#.Zlm .6.q6f 'y tg ; o""!, '926; m*9. N .0079 M.Wgg)2183d,00-gq) 2, [Of n 91 66follollyl N, v- .or (CT' )0.9 Y3d 6Z 91N) Co L.Lj 3.94;,O.ZIS -ws 11,SS980 ONf)O.Y --f________V 4 Z112!�l 911) � J*J, 3 99"1 kz ly .6� 3.f5'.1P.ZlN (30"H.09) .3A ISG &31 S331tVVq CQ -----------------I A, LLJ Of Lr) k7,,- ............... k ------------ k -------------- reg6 19561 3.9SSLZllv I 3ro Lo V) Lr) 0, Q) ---------- ct --------------- o P. L-_-___-_-- M'V3d Ok'gZf I AW1 3.6?9,tk.11A( 1 -2 i I I -------------- Sv4' o '96r I C'N to 11 -1 Zr N rS!Z 40d 2nd,9 INXI P6 107 t 0rs,IilrNg n fg.7) ge Sr P 6.9 NOSMIGOS ------------ ----------- Z; z =- ----------- --- -------------- rL -------------------- ------------- _3A hVG -,A-VM 7 VD_ ----------- 0,/00 EXHIBIT "B" JOB NO. 30094-50 APRIL 7 , 1995 LEGAL. 1 LEGAL DESCRIPTION ALL THAT REAL PROPERTY SITUATE IN THE CITY OF PITTSBURG, COUNTY OF CONTRA, STATE OF CALIFORNIA, DESCRIBED. AS FOLLOWS : ALL OF PARCEL "A" AS SAID PARCEL IS SHOWN AND SO DESIGNATED ON PARCEL MAP M. S . 676-95 FILED FOR RECORD IN THE OFFICE OF THE COUNTY RECORDER IN BOOK OF PARCEL MAPS AT PAGE