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CC 2014-02-11_11.b. Funding Agreement with City of SLO Housing Authority F pRR0 INCORPORATED 92 - V f71 * JULY 10' 1B1 * MEMORANDUM C�'IFORN�P TO: CITY COUNCIL/ HOUSING SUCCESSOR TO THE FORMER REDEVELOPMENT AGENCY FROM: STEVEN ADAMS, CITY MANAGER SUBJECT: CONSIDERATION OF FUNDING AGREEMENT BY AND BETWEEN THE CITY OF ARROYO GRANDE AND THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO DATE: FEBRUARY 11, 2014 RECOMMENDATION: It is recommended the City Council approve a Funding Agreement ("Agreement") by and between the City of Arroyo Grande and the Housing Authority of the City of San Luis Obispo ("HASLO") for the acquisition of property at 224 S. Halcyon Road for transitional or low-income housing. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The proposed amount of the Agreement is $600,000 for acquisition of the property, $500,000 of which is anticipated to be paid for from funding remaining from former Redevelopment Agency Affordable Housing Set Aside bond proceeds, and $100,000 of which is anticipated to be paid for from the sale of an affordable housing promissory note to Meta Housing corporation (as addressed in a separate report to the City Council/Housing Successor). BACKGROUND: The City has been working with HASLO for several years to acquire property at 224 S. Halcyon Road for development of transitional and/or extremely-low and very-low income affordable housing units. The parcel is vacant, the property owner has been willing to sell, and City and HASLO staff believe the property provides an excellent.location to help address those in the community most in need of housing assistance. The City Council first directed staff to proceed with the effort in December 2011. However, acquisition was significantly delayed when the Redevelopment Agency was dissolved by the State. No use of housing funds was allowed until the City recently received its Notice of Completion from the State Department of Finance (DOF). Item 11.b. - Page 1 CITY COUNCIL CONSIDERATION OF FUNDING AGREEMENT BY AND BETWEEN THE CITY OF ARROYO GRANDE AND THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FEBRUARY 11, 2014 PAGE 2 ANALYSIS OF ISSUES: The Agreement is proposed to provide funding to HASLO to enable HASLO to acquire the property, which it intends to later develop. HASLO will enter into a purchase agreement with the property owner. The property owner has been very patient with the delays experienced as a result of the Redevelopment Agency dissolution. Due to the statutory procedures now in place to obtain DOF approval for use of the City's housing bond proceeds, actual close of escrow cannot occur until at least July 2014. The property owner has agreed to the additional delay on condition that a $30,000 non-refundable deposit is paid and released to the owner, which is provided for in the Agreement. Payment of the deposit will serve like purchasing an option on the property, but will be applied towards the purchase price if escrow closes. If additional delays are caused by the DOF review, the property owner has agreed to extend the purchase agreement under the condition of an increase of $5,000 per month to the purchase price. The Agreement provides that if such a delay occurs, the City and HASLO will meet and confer to discuss whether to extend the purchase agreement. The proposed use of the funding must be placed on the next Recognized Obligation Payment Schedule (ROPS) for approval by the Oversight Board in order to obtain DOF approval to utilize the funds in July. Therefore, any delay in consideration of the Agreement will likely result in a 6-month delay in the City's ability to provide the funding. HASLO has indicated that a funding source for development of the project is uncertain at this time. Therefore, timing of the project could take several years. In order to ensure the property is timely used for the purpose intended, the Agreement enables the City to take ownership of the property if HASLO has not received entitlements and funding commitments after five years. The Agreement requires that a Memorandum be recorded against the property at the closing to provide notice of the City's right to acquire the property and the property's use restriction as affordable housing. The City may utilize a portion of the revenues from the sale of a promissory note to Meta Housing, which is also presented to the City Council for consideration on this agenda. Therefore, the Agreement includes terms that allow the City to structure payment of $100,000 of the funding through four annual installments if the loan sale fails to close prior to the date of the property closing. Transitional housing projects are not homeless shelters and are not associated with the same issues involved in facilities serving the "chronic" homeless. Instead, they are normally the next step in the process for those most in need of housing assistance due to circumstances out of their control. They serve those that have sought assistance, but cannot yet afford permanent housing. Nominal rents are charged, but are normally less than rents charged for very low income units. Participants typically are allowed to stay Item 11.b. - Page 2 CITY COUNCIL CONSIDERATION OF FUNDING AGREEMENT BY AND BETWEEN THE CITY OF ARROYO GRANDE AND THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FEBRUARY 11, 2014 PAGE 3 in the facility for one to two years while case workers help them to address financial issues and place them in permanent affordable housing units. In many ways, these facilities are critically important for those that are the most in need. To our knowledge, this would be the first project dedicated for transitional housing in San Luis Obispo County, but is typical of facilities found throughout the state and country. Recent State and Federal requirements for affordable housing project funding prohibit time limits on residency for these types of projects. In addition, HASLO is uncertain what the demand will be from individuals meeting both the criteria and eligibility for the project. Therefore, HASLO has indicated the need for flexibility in determining eligibility requirements for the housing and may propose some of the units be available for extremely-low or very-low income individuals. The Agreement includes terms that provide this flexibility, but maintains control by the City over approval of the final affordability mix in the project. It has been agreed that the units will be targeted towards individuals with children given the accessibility to Harloe Elementary School. The project site is also ideal given proximity to a number of commercial, transit, medical and social services. Staff believes the site would be very compatible for this proposed use. It would be allowed under the current zoning. There are other two-story rental housing projects in the immediate vicinity. The project would be designed to be an improvement to the area aesthetically. The mixture of office and housing in this neighborhood would lend itself to integrate this type of project relatively easily. The City previously provided funding assistance to Family Care Network for a facility located within a couple of blocks of the property that provides affordable housing for individuals transitioning out of foster care, which met with no public opposition and has experienced few issues since its opening in 2005. The Agreement was reviewed by the City's redevelopment special counsel. The final Agreement includes modifications requested by the City. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Approve staffs recommendations; 2. Direct staff to renegotiate the terms of the Agreement; 3. Do not approve the Agreement; or 4. Provide staff direction. ADVANTAGES: The recommendation will enable HASLO to acquire available property for future development of housing for those in the community most in need of assistance. Staff and HASLO believe it is important to acquire the property at this time since property values have begun increasing over the past year. Item 11.b. - Page 3 CITY COUNCIL CONSIDERATION OF FUNDING AGREEMENT BY AND BETWEEN THE CITY OF ARROYO GRANDE AND THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FEBRUARY 11, 2014 PAGE 4 DISADVANTAGES: The only disadvantage identified is that there is no certainty of-the project development until additional funding sources are identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, February 6, 2014 and on the City's website on Friday, February 7, 2014. Attachments: 1. Funding Agreement i Item 11.b. - Page 4 ATTACHMENT 1 FUNDING AGREEMENT THIS FUNDING AGREEMENT ("Agreement") is entered into as of (the "Effective Date")by and between the CITY OF ARROYO GRANDE, a California municipal corporation (the "City") and the HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public agency, corporate and politic ("HASLO"). City and HASLO are collectively referred to as the"parties". RECITALS A. WHEREAS, HASLO provides programs and services to assist low-and moderate income citizens in securing and maintaining housing in San Luis Obispo County. B. WHEREAS, City desires to enhance the availability of housing within the City of Arroyo Grande for low and moderate income citizens. C. WHREAS, HASLO has identified certain unimproved real property consisting of approximately 28,997 square feet and located at 224 South Halcyon, Arroyo Grande, California (the"Property"), which may be suitable for an affordable housing development. D. WHEREAS, HASLO desires to purchase the Property for the purpose of pursuing an affordable housing development thereon. E. WHEREAS, City desires to provide funding to HASLO for the purchase of the Property, with the expectation that HASLO will subsequently pursue additional funding for the development of the Property. NOW THEREFORE, for and in consideration of the foregoing Recitals, which are incorporated herein by this reference, and the mutual covenants contained in this Agreement, the receipt and sufficiency of which are acknowledged, the parties to this Agreement agree as follows: 1. HASLO shall enter into an agreement to purchase the Property from the owner thereof (the "Property Owner") for a purchase price of $600,000.00 (the "Purchase Price"). Upon opening of an escrow for the sale of the Property to HASLO (the "Escrow") City shall deliver Thirty Thousand Dollars ($30,000) (the "Deposit") to the escrow officer (the "Escrow Officer") handling the Escrow for immediate release to the Property Owner. 2. Upon HASLO's completion of its due diligence on the Property, HASLO shall decide whether to complete the purchase of the Property. Should HASLO decide to complete the purchase of the Property, HASLO shall provide written notice to City of said determination. Provided HASLO has provided to City said notification, and subject to the provisions of Section 2 and Section 3 below, then not less than five (5) business days prior to the close of the Escrow (the "Close of Escrow), which is estimated to occur on or around July 15, 2014, City will deliver funds in the amount of Five Hundred Seventy Thousand Dollars ($570,000.00) (which, collectively with the Deposit, shall constitute the "City Funding") to the Escrow Officer. City's Page 1 of 8 Item 11.b. - Page 5 delivery of the City Funding shall be pursuant to written escrow instructions (the "Escrow Instructions") that instruct the Escrow Officer to (i) upon the Close of Escrow, record a Memorandum of Affordable Housing Restrictions and City Right to Acquire Property substantially in the form attached hereto and incorporated' herein as Exhibit "A" (the "Memorandum"), and (ii) carry out the activities of the Escrow Officer described in Section 3 below. 3. Notwithstanding anything to the contrary in this Agreement, with the exception of the Deposit, City's obligation to deliver all or any portion of the City Funding to the Escrow Officer shall not be effective or enforceable against City until such time as City's proposed use of the City Funding has been included in an approved, valid, and then-effective "recognized obligation payment schedule" ("ROPS") (as that term is defined in Health and Safety Code section 34171(h)). With respect to the foregoing, City agrees that it shall notify the Successor Agency to the Dissolved Redevelopment Agency of the City of Arroyo Grande of its intent to use the City Funding for the purposes set forth in this Agreement not less than twenty (20) days prior to the deadline for submittal of ROPS 14-15A, which covers the period July 1, 2014- December 31, 2014, to the Oversight Board to the Successor Agency to the Dissolved Redevelopment Agency of the City of Arroyo Grande for approval. In the event the City Funding has not been approved on a then-effective ROPS by July 15, 2015, City and HASLO shall meet and confer to determine whether to extend the Escrow. In the event the event City and HALSO determine, each in their sole and absolute discretion, to extend the Escrow, City acknowledges that City shall be obligated to pay and provide an additional Five Thousand Dollars ($5,000) (each, an "Extension Deposit") for each additional month by which the Escrow is extended beyond July 15, 2014. The Escrow Instructions shall instruct the Escrow Officer to apply the Deposit towards the Purchase Price. The Extension Deposits, if any, shall be consideration above and beyond, and shall not be applied towards, the Purchase Price. 4. Notwithstanding anything to the contrary in this Agreement, in the event that prior to the Close of Escrow City has not concluded the sale of that certain Promissory Note executed by Courtland Arroyo Grande, L.P., a California limited partnership, pursuant to that certain Note Purchase and Sale Agreement entered into between City and Meta Housing Corporation, a California corporation, then City shall provide the City Funding as follows: a. $500,000.00 shall be provided to HASLO prior to the Close of Escrow. b. $100,000.00 shall be provided to HASLO in four (4) installments of $25,000.00 each, to be delivered to HASLO on or before the following dates: i. First Installment: One year after the Close of Escrow. ii. Second Installment: Two years after the Close of Escrow. iii. Third Installment: Three years after the Close of Escrow iv. Fourth Installment: Four years after the Close of Escrow 5. HASLO will use the City Funding only for the purchase of the Property. 6. After purchasing the Property, HASLO intends, either independently or through an affiliate non-profit organization (a "HASLO Entity"), to pursue the development of a housing Page 2 of 8 Item 11.b. - Page 6 project on the Property (the "Housing Development"), which is currently anticipated to be a 15- unit apartment building whereby 50% of the apartments are used for transitional housing (a"Transitional Housing Development"). Both parties agree that the definition of"transitional housing" as used herein shall not conflict with the funding requirements of the Low Income Housing Tax Credit Program. The parties acknowledge that the exact scope and nature of the Housing Development may change in the future. The parties also acknowledge that due to extreme cutbacks in state and federal affordable housing resources, HASLO may not be able to secure sufficient funding to build the desired Housing Development on the Property, and/or there may be other obstacles to completing the desired Housing Development. Notwithstanding the foregoing, HASLO agrees that if the Housing Development contemplated for development on the Property is anything other than a Transitional Housing Development, HASLO shall be required to obtain the prior written consent of City, which consent shall not be unreasonably withheld provided the Housing Development will be restricted to rental to and occupancy by low, very low, or extremely low income households pursuant to the "Regulatory Agreement" (as that term is defined in Section 7 below). Notwithstanding anything to the contrary in this Agreement, the Housing,Development shall comply with the income and rental requirements of Health and Safety Code section 34176.1(a)(3)(A). 7. Prior to development of the Housing Development, HASLO shall record or provide for the recordation of a regulatory agreement against the Property that restricts the use of the Property, for a period of not less than fifty-five (55) years, to use as a Transitional Housing Development or other use approved by City pursuant to Section 6 above (the "Regulatory Agreement"). Prior to execution and recordation of the Regulatory Agreement, City shall have the option of being a party to the Regulatory Agreement or being expressly designated as a third party beneficiary with the right, but not the obligation, to enforce the terms thereof. Notwithstanding City's election with respect to the foregoing options, City shall have the right to review and approve (which approval shall not be unreasonably withheld) the form of the Regulatory Agreement to ensure that it complies with the requirements of this Agreement. 8. In the event that by the date that is five (5) years after the Close of Escrow (the "Transfer Date"), HASLO or the HASLO Entity has not obtained (i) all entitlements and other approvals required to develop the Housing Development on the Property (collectively, the "Development Approvals"), and (ii) funding commitments in amounts sufficient to develop the Housing Development in accordance with the Development Approvals (collectively, the "Funding Approvals"), then, subject to the terms of this paragraph, HASLO agrees to transfer or to cause the transfer of fee title ownership of the Property to the City within four(4)months after the Transfer Date. Within the six (6) month period prior to the Transfer Date, HASLO or the HASLO Entity may request additional time to .obtain the Development Approvals and/or Funding Approvals. City shall reasonably consider any such request provided HASLO or the HASLO Entity is diligently pursuing the obtainment of the Development Approvals and Funding Approvals. If HASLO or the HASLO Entity does not request such additional time, and/or if HASLO or the HASLO Entity does request such additional time but City disapproves such request, then on or before the Transfer Date HASLO shall notify City, in writing, of its intent to transfer the Property to City ("HASLO's Notice of Intent to Transfer"). Upon City's receipt of HASLO's Notice of Intent to Transfer, City shall have the right to elect not to acquire the Property, provided such election is made, in writing, within thirty (30) days after City receives Page 3 of 8 Item 11.b. - Page 7 HASLO's written notice of its intent to transfer the Property to City. Commencing on the date City receives HASLO's Notice of Intent to Transfer, City shall have a period of ninety (90) days (the "Investigation Period") to investigate the environmental condition of the Property and the condition of title to the Property. At any time during the Investigation Period, City may elect,to refuse the transfer of the Property to City by providing written notice thereof to HASLO ("City's Refusal Notice"). If City does not provide to HASLO City's Refusal Notice prior to or on the expiration of the Investigation Period, then within thirty (30) days after the expiration of the Investigation Period the parties shall record a deed transferring fee title to the Property to City. As a condition to said transfer City may obtain, at City's sole cost, an ALTA owner's policy of title insurance on the Property. 9. If fee title ownership of the Property is transferred to City pursuant to Section 8 above, the Property shall be transferred in its then AS IS condition, with no representations or warranties of any kind, express or implied, except that any representations and/or warranties provided to HASLO by the Property Owner shall be transferred and assigned to City to the extent such representations and/or warranties are assignable and still enforceable. Notwithstanding any of the foregoing, in the event of any such transfer to City, HASLO agrees that the Property shall be free of any monetary liens or encumbrances other than the lien of taxes and assessments not yet due and payable, and free of any leases, use agreements, license agreements,or any other agreement granting a third party any rights with respect to the Property. 10. If fee title ownership of the Property is transferred to City pursuant to Section 8 above, and City wishes to also obtain any entitlements, reports, architectural drawings, plans, specifications or other materials or intangibles relating to the use or development of the Property (collectively, the "Development Rights"), then City shall pay HASLO its actual out-of-pocket costs incurred in connection with the Development Rights, which shall be paid concurrently with the transfer of title to the Property to the City. 11. If City declines to acquire the Property pursuant to Section 8 above, then upon request by HASLO or the HASLO Entity, City shall, within thirty (30) days of the request being made, execute, acknowledge, and deliver a quitclaim deed to HASLO or the HASLO Entity, as applicable, and to execute, acknowledge, and deliver any other documents reasonably required by any title company to remove the cloud of the Memorandum of Acquisition Right and/or this Agreement from the Property. 12. The covenants established in this Agreement with respect to the use of the Property shall, without regard to technical classification and designation, be binding on the part of HASLO and any successors and assigns to the Property or any part thereof, and the tenants, lessees, sublessees and occupants of the Property, for the benefit of and in favor of City and its successors and assigns and any successor in interest thereto and may be enforced by City and its successors and assigns. 13. Any notice or other communication required or permitted to be delivered to any party under this Agreement shall be in writing and shall be deemed properly delivered, given and received when delivered (by hand, by registered mail, by reputable courier or overnight delivery service that provides a receipt with the time and date of delivery) to the address or set forth Page 4 of 8 Item 11.b. - Page 8 beneath the name of such party below (or to such other address as such party shall have specified in a written notice given to the other parties hereto): HASLO: Housing Authority of the City of San Luis Obispo Attn: Scott Smith, Executive Director 487 Leff Street San Luis Obispo, CA 93406-1289 CITY: City of Arroyo Grande Attn: Steve Adams, City Manager 300 East Branch Street Arroyo Grande, CA 93420 14. This Agreement is not intended to and does not create a partnership,joint venture, employment or agency relationship between the parties. 15. This Agreement may not be assigned or transferred by either party, without the prior written consent of the other, which may be given in the sole and absolute discretion of the party from whom consent is required. Any assignment or transfer made or attempted to be made in the absence of such prior written consent shall be null and void and shall confer no rights on the party to which such assignment or transfer was attempted to be made. 16. The parties agree that they will execute such other instruments and documents as are or may become necessary or convenient to carry out the intent and purposes of this Agreement. 17. Pursuit of any one remedy shall not preclude pursuit of any other remedies provided for herein or by law. No waiver of one violation of this Agreement shall be deemed or construed to constitute a waiver of any similar violations subsequently occurring, or any other violation whatsoever. 18. The Parties reserve to themselves the right to initiate and to pursue any legal action necessary to enforce the terms of this Agreement. In the event of legal action, the prevailing party shall be entitled to recover from the non-prevailing party its reasonable attorneys' fees and costs actually incurred, including expert witness fees. 19. No officer, official, member, employee, agent, or representative of City shall be personally liable to HASLO, or any successor in interest to HASLO, in the event of any default or breach by City or for any amount which may become due to HASLO or successor or on any obligations under the terms of this Agreement. 20. No officer, official, member, employee, agent, or representative of HASLO shall be personally liable to City, or any successor in interest to City, in the event of any default or breach by HASLO or for any amount which may become due to City or successor or on any obligations under the terms of this Agreement. Page 5 of 8 Item 11.b. - Page 9 21. This Agreement will be construed in accordance with, and governed by, the laws of the State of California. 22. This instrument contains all of the understandings and agreements of whatsoever kind and nature existing between the parties hereto with respect to this Agreement, and the rights, interests, understandings, agreements and obligations of the respective parties and their prior oral agreements. 23. Except as herein and otherwise expressly stipulated to the contrary, this Agreement shall be binding upon and inure to the benefit of the parties signatory hereto, and their respective heirs and successors. 24. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same Agreement. Facsimile and electronic copies of signatures shall be.deemed to be originals. 25. If any one or more of the provisions contained in this Agreement are held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect any other provision hereof, and the intent manifested thereby shall be recognized. 26. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, other than the parties hereto and their respective heirs and successors, any legal or equitable rights, remedy or claim under or in respect to this Agreement, or any provisions herein contained. 27. This Agreement may not be amended, altered or modified except by a written instrument, signed by all of the parties. 28. Time is agreed to be of the essence with respect to this Agreement. 29. The execution, delivery and performance of this Agreement by the undersigned have been duly and validly authorized by all necessary actions and proceedings, and no further action or authorization is necessary on the part of any party in order to consummate the transactions contemplated herein. [Signatures appear on the following page] Page 6 of 8 Item 11.b. - Page 10 IN WITNESS WHEREOF, the parties have duly executed this Agreement. CITY: CITY OF ARROYO GRANDE By: Date: Print Name: Title: HASLO: HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public agency, corporate and politic By: Date: Print Name: Title: l Page 7 of 8 Item 11.b. - Page 11 EXHIBIT"A" MEMORANDUM OF CITY RIGHT TO ACQUIRE PROPERTY Page 8 of 8 Item 11.b. - Page 12 RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: City of Arroyo Grande 300 East Branch Street Arroyo Grande, CA 93420 Attn: City Clerk (SPACE ABOVE THIS LINE FOR RECORDER'S USE) This Memorandum of City Right to Acquire Property is recorded at the request and for the benefit of the City of Arroyo Grande and is exempt from the payment of a recording fee pursuant to Government Code Section 27383. MEMORANDUM OF AFFORDABLE HOUSING RESTRICTIONS AND CITY RIGHT TO ACQUIRE PROPERTY This MEMORANDUM OF AFFORDABLE HOUSING RESTRICTIONS AND CITY RIGHT TO ACQUIRE PROPERTY ("Memorandum") is entered into this _ day of , by and between the CITY OF ARROYO GRANDE, a California municipal corporation("City"), and the HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public body, corporate and politic ("HASLO"). This Memorandum is made with reference to the following: 1. HASLO is the owner of that certain real property located in the City of Arroyo Grande, County of San Luis Obispo, State of California, more particularly described in the legal description attached hereto as Exhibit"A" and incorporated herein by this reference ("Site"). 2. On or about , HASLO and City entered into that certain Funding Agreement ("Agreement"), pursuant to which City agreed to provide financial assistance to HASLO to enable HASLO to acquire the Site for purposes of developing thereon an affordable housing project. 3. The Agreement provides (i) for HASLO or an affiliate non-profit organization (a "HASLO Affiliate") to develop affordable housing on the Property in compliance with the terms of the Agreement and record an affordable housing regulatory agreement against the Property, or (ii) HASLO or, (ii) if a HASLO Affiliate owns the Property, for the HASLO Affiliate to transfer fee ownership of the Property to City if certain approvals have not been obtained within the timeframes set forth therein. 4. The Agreement further provides for HASLO and City to enter into this Memorandum and to record the same in the Official Records of San Luis Obispo County, California, to provide notice to all persons of the existence of said Agreement, which Agreement is binding on HASLO and HASLO's successors-in-interest as to the Site. 882/0214840005 6602301.2 a00/00/00 Item 11.b. - Page 13 4. This Memorandum is not intended as a full description of the terms and conditions of the Agreement. This Memorandum shall not replace, alter, or modify any term or condition set forth in the Agreement, nor shall it be used to interpret the terms and conditions of the Agreement. 5. This Memorandum may be executed in several counterparts, and all so executed shall constitute one agreement binding on both parties hereto, notwithstanding that both parties are not signatories to the original or the same counterpart. IN WITNESS WHEREOF, City and HASLO have entered into this Memorandum as of the date first set forth above. "CITY" CITY OF ARROYO GRANDE, a California municipal corporation By: Print Name: Its: "AUTHORITY" HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO, a public body, corporate and politic By: Print Name: Its: 882/0214840005 6602301.2 a00/00/00 —2— Item 11.b. - Page 14 State of California ) County of ) On , before me, , (insert name and title of the officer) _Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) State of California ) County of ) On , before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/0214840005 6602301.2 a00/00/00 —3— Item 11.b. - Page 15 EXHIBIT "A" LEGAL DESCRIPTION OF SITE ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: 882/021484-0005. /00 EXHIBIT"A" Item 11.b. - Page 16