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HomeMy WebLinkAboutSDP 98-09; Poinsettia Housing Associates LLC; 1999-0374789; Affordable Housing-Regulatory Agreement & Dec. of Restrictive Covenants-. > . Recorded at the reql-t Of '. 9 Chicago Title / RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk's Office City of Carlsbad Attn: City Clerk f% 1200 Carlsbad Village Drive Carlsbad, CA 92008 \kJQ OFFICIAL KCDRIIS W DIEGO MUNTY RECORKR'S OFFICE GREW J. SMITH, COUNTY RECORDER FEES: MY: 0.00 2 No fee for recording pursuant to (Space above for Recorder's Use) REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS This Regulatory Agreement and Declaration of Restrictive Covenants (the "Agreement") is made and entered into as of this lst day of June, 1999, by and between the City of Carlsbad, a municipal corporation (the "City"), Carlsbad Redevelopment Agency, Carlsbad, California, a public body corporate and politic (the "Agency"), Poinsettia Housing Associates, a California Limited Partnership ("Owner"), and BRIDGE Housing Corporation-Southern California, a California nonprofit public benefit corporation (the "Ground Lessor"). RECITALS 1. The City has entered into the Loan Agreement with Owner under which the City will loan funds (the "Loan") to Owner which will be used, together with funds obtained from other sources, for the development and construction of ninety-two (92) residential units known as 4 &-ego, more particularly described in Exhibit A attached hereto and (the "Development"), located on the real property in the City of incorporated herein (the "Property"). 2. The funds loaned to Owner pursuant to the Loan Agreement are City Housing Trust Fund monies. Such funds are required to be utilized to assist housing affordable to lower income households. This Agreement is intended to implement this requirement. 3. The City and the Agency intend to utilize the Development to obtain affordable housing production credits for the Agency pursuant to Health and Safety Code Section 33413(b)(2)(A)(ii) as newly constructed housing units located outside of the Carlsbad Village Redevelopment Project Area and available at affordable housing cost to low and moderate income households. Such units are required to remain affordable to such households for not less than the period of the land use controls established in the Redevelopment Plan for the Carlsbad Village Redevelopment Project Area. This Agreement is also intended to implement this requirement. 1010\05\114762.5 05/24/99 1 , 4. The City has agreed to loan funds to Owner on the condition that the Development be maintained and operated in accordance with Health and Safety Section 33413(b) and in accordance with additional restrictions concerning affordability, operation, and maintenance of the Development, as specified in this Agreement. 5. In consideration of receipt of the Loan at an interest rate substantially below the market rate, Owner has further agreed to observe all the terms and conditions set forth below. 6. Owner holds a leasehold interest in the Development land, and a fee interest in all improvements to be constructed by Owner on such land. Ground Lessor holds a fee interest in the Development land. 7. In order to ensure that the entire Development will be used and operated in accordance with these conditions and restrictions, the City, the Agency, the Owner, and the Ground Lessor wish to enter into this Agreement. THEREFORE, the City, the Agency, the Owner, and the Ground Lessor hereby agree as follows: ARTICLE 1 DEFINITIONS 1.1 Definitions When used in this Agreement, the following terms shall have the respective meanings assigned to them in this Article 1. (4 "Adjusted Income" shall mean the total anticipated annual income of all persons in a household, as calculated in accordance with 25 California Code of Regulations Section 6914 or pursuant to a successor State housing program that utilizes a reasonably similar method of calculation of adjusted income. In the event that no such program exists, the City shall provide the Owner with a reasonably similar method of calculation of adjusted income as provided in said Section 6914. (b) "Agency" shall mean the Carlsbad Redevelopment Agency, (c) "Agreement" shall mean this Regulatory Agreement and (4 "City" shall mean the City of Carlsbad, a municipal corporation. (e) "Deed of Trust" shall mean the deed of trust to the City on the Carlsbad, California, a public body, corporate and politic. Declaration of Restrictive Covenants. Property which secures repayment of the Loan and performance of this Agreement. 1010\05\114762.5 05/24/99 2 1821 (0 "Development" shall mean the Property and the ninety-two (92) units to be constructed on the Property, as well as all landscaping, roads and parking spaces existing thereon, as the same may from time to time exist. (g) "Ground Lessor" shall mean BRIDGE Housing Corporation- (h) "HCD" shall mean the California Department of Housing and (9 "Loan" shall mean all funds loaned to Owner pursuant to the Loan 0') "Loan Agreement" shall mean the City Loan Agreement entered (k) "Lower Income Household" shall mean a household with an Southern California, a California nonprofit public benefit corporation. Community Development. Agreement. into by and between the City and Owner and dated of even date herewith. Adjusted Income that does not exceed one hundred twenty percent (120%) of the qualifying limits for very low income households as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, and as published by HCD. (1) "Lower Income Units" shall mean the Units which, pursuant to (m) "Median Income" shall mean the median gross yearly income Section 2.2 below, are required to be occupied by Lower Income Households. adjusted for actual household size, in the County of San Diego, California, as published from time to time by HCD. In the event that such income determinations are no longer published, or are not updated for a period of at least eighteen (1 8) months, the City shall provide the Owner with other income determinations which are reasonably similar with respect to methods of calculation to those previously published by HCD. (4 "Moderate Income Household" shall mean a household whose annual gross income does not exceed one hundred and twenty percent (120%) of Median Income, adjusted for household size. (0) "Moderate Income Units" shall mean the Units limited to (P) "Note" shall mean the promissory note from the Owner to the City (4) "Owner" shall mean Poinsettia Housing Associates, a California 6) "Property" shall mean the real property described in Exhibit A occupancy by Moderate Income Households pursuant to Section 2.1 below. evidencing all or any part of the Loan. Limited Partnership and its successors and assigns to the Development. attached hereto and incorporated herein. 1010\05\114762.5 05/24/99 3 (SI "Rent" shall mean the total of monthly payments by the tenants of a Unit for the following: use and occupancy of the Unit and land and associated facilities, including parking; any separately charged fees or service charges assessed by Owner which are required of all tenants, other than security deposits; an allowance for the cost of an adequate level of service for utilities paid by the tenant, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but not telephone service; any other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than Owner, and paid by the tenant. (t) "Term" shall mean the period of time beginning on the date of recordation of this Agreement and ending fifty-five (55) years after a Certificate of Occupancy is issued by the City for all Units. (u) "Units" shall mean the nine-two (92) rental units to be constructed on the Property by the Owner, but excluding therefrom one (1) resident manager's unit. ARTICLE 2 AFFORDABILITY COVENANTS 2.1 Occuuancv Reauirement. Forty-five (45) of the Units shall be rented and occupied by or, if vacant, available for rental and occupancy by Lower Income Households. The remainder of the Units shall be occupied by Moderate Income Households. 2.2 Allowable Rent. (4 Subject to Section 2.3 below, the Rent charged the occupants of the Lower Income Units shall not exceed one-twelfth of thirty percent (30%) of sixty percent (60%) of Median Income, adjusted for household size. The Rent charged the occupants of the Moderate Income Units shall not exceed one-twelfth of thirty percent (30%) of one hundred ten percent (1 10%) of Median Income, adjusted for household size. (b) Subject to Section 2.3(b) below, in calculating the allowable Rent for the Lower Income Units and the Moderate Income Units, the following assumed household sizes shall be utilized: Number of Bedrooms Assumed Household Size Studio One Two Three Four 1010\05\114762.5 05/24/99 4 2.3 Increased Income of Occuuving Households. (4 In the event, upon recertification of an occupant household's income, the Owner discovers that a Lower Income Household no longer qualifies as a Lower Income Household (but does qualify as a Moderate Income Household), such household's Unit shall be considered a Moderate Income Unit (and the Rent may be increased to one-twelfth of thirty percent of one hundred ten percent (1 10%) of Median Income upon sixty (60) days written notice to the household) and the Owner shall rent the next available Lower Income Unit to a Lower Income Household to comply with the requirements of Section 2.1 above. In the event that the income of a Lower Income Household or a Moderate Income Household increases above the qualifying limit for a Moderate Income Household, the rent shall remain at the level required for a Moderate Income Unit and the Unit shall be deemed to be a Moderate Income Unit until the occupying household vacates the Unit, and the next available Unit shall be rented to a Lower Income Household or an Moderate Income Household as necessary to meet the requirements of Section 2.1 above. Moreover, a Unit occupied by a Lower Income Household or Moderate Income Household shall be deemed, upon the termination of such Lower Income Household's or Moderate Income Household's occupancy, to be continuously occupied by a Lower Income Household or a Moderate Income Household, as applicable, until reoccupied, at which time the character of the Unit shall be redetermined. (b) If the Development is subject to federal low income housing tax credit requirements, the provisions of those requirements regarding assumed household size and continued occupancy by households whose incomes exceed the eligible income limitations and rents to be charged to those households shall apply in place of the provisions set forth in subsections 2.2(b) and 2.3(a) above. 2.4 Lease Provisions. Owner shall include in leases for all Units provisions which authorize Owner to immediately terminate the tenancy of any household one or more of whose members misrepresented any fact material to the household's qualification as a Lower Income Household or a Moderate Income Household. Each lease or rental agreement shall also provide that the household is subject to annual certification in accordance with Section 3.1 below, and that, if the household's income increases above the applicable limits for a Lower Income Household or a Moderate Income Household, as applicable, such household's Rent may be subject to increase. 2.5 Section 8 Certificate Holders. The Owner will accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates for rent subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act, or its successor. The Owner shall not apply selection criteria to Section 8 certificate or voucher holders that is more burdensome than criteria applied to all other prospective tenants, nor shall the Owner apply or permit the application of management policies or lease provisions with respect to the Development which have the effect of precluding occupancy of units by such prospective tenants. 1010\05\114762.5 05/24/99 5 2.6 Condominium Conversion. The Owner shall not convert Development units to condominium or cooperative ownership or sell condominium or cooperative conversion rights to the Property during the Term of this Agreement. ARTICLE 3 INCOME CERTIFICATION AND REPORTING 3.1 Income Certification. The Owner will obtain, complete and maintain on file, immediately prior to initial occupancy and annually thereafter, income certifications from each Lower Income Household and each Moderate Income Household renting any of the Units. The Owner shall make a good faith effort to verify that the income provided by an applicant or occupying household in an income certification is accurate by taking one or more of the following steps as a part of the verification process: (1) obtain a pay stub for the most recent pay period; (2) obtain an income tax return for the most recent tax year; (3) conduct a credit agency or similar search; (4) obtain an income verification form from the applicant's current employer; (5) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies; or (6) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. Copies of tenant income certifications shall be available to the City upon written request. 3.2 Annual Reuort to Citv. Each year Owner shall submit an annual report to the City and the Agency, in a form approved by the City and the Agency. The annual report shall include for each Unit covered by this Agreement, the Rent and the income and household size of the household occupying the Unit. The report shall also state the date the tenancy commenced for each rental Unit and such other information as the City may be required by law to obtain. 3.3 Additional Information. Owner shall provide any additional information reasonably requested by the City or the Agency. Upon 5 days prior written request and during regular business hours, the City and the Agency shall have the right to examine and make copies of all books, records or other documents of Owner which pertain to any Unit. 3.4 Records. Owner shall maintain complete, accurate and current records pertaining to the Units, and, upon 5 days prior written request by the City or the Agency, shall permit any duly authorized representative of the City and the Agency to inspect records, including records pertaining to income and household size of tenant households. 3.5 Welfare Reform Act Comuliance. Unless Owner is othenvise exempt from the following requirement under applicable law, Owner shall comply with the requirements of the Public Responsibility and Work Opportunity Reform Act of 1996, as amended, including, without limitation, verifying the citizenship or immigration status of prospective tenants in accordance with the verification procedures established under such Act. 1010\05\114762.5 05/24/99 6 ARTICLE 4 OPERATION OF THE DEVELOPMENT 4.1 Residential Use. The Development shall be operated only for residential use. No part of the Development shall be operated as transient housing. 4.2 Comoliance with Loan Ameement. Owner shall comply with all the terms and provisions of the Loan Agreement. 4.3 Prouertv Tax Exemotion. Owner shall only apply for a property tax exemption for the Property under Revenue and Taxation Section 214(g), and not under any other provision of law, without the City's prior written consent, which consent, shall not be unreasonably withheld. 4.4 Taxes and Assessments. Owner shall pay all real and personal property taxes, assessments and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Property; provided, however, that Owner shall have the right to contest in good faith, any such taxes, assessments, or charges. In the event Owner exercises its right to contest any tax, assessment, or charge against it, Owner, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest. 4.5 Nondiscrimination. All of the Units shall be available for occupancy on a continuous basis to members of the general public who are income eligible. Owner shall not give preference to any particular class or group of persons in renting or selling the Units, except to the extent that the Units are required to be leased to Lower Income Households and Moderate Income Households or to Agency or City displacees pursuant to Section 4.6 below. There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of any Unit nor shall Owner or any person claiming under or through the Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of any Unit or in connection with the employment of persons for the operation and management of the Development. All deeds, leases or contracts made or entered into by Owner as to the Units or the Development or portion thereof, shall contain covenants concerning discrimination as prescribed by the Loan Agreement. 1010\05\114762.5 05/24/99 7 4.6 Preference to Disolacees. Owner shall give a preference in the rental of any Units to eligible households displaced by activity of the Agency or the City upon receiving a written request of the Agency or the City regarding such displacement. ARTICLE 5 PROPERTY MANAGEMENT AND MAINTENANCE 5.1 Management Resoonsibilities. The Owner is responsible for all management functions with respect to the Development, including without limitation the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The City and the Agency shall have no responsibility over management of the Development. The Owner shall retain a professional property management company approved by the City in its reasonable discretion to perform its management duties hereunder, unless the Owner demonstrates to the City that it has the capacity to self-manage the Development and receives written City approval for self-management. A resident manager shall also be required, selection of whom shall be at the discretion of the Owner. 5.2 Management Anent: Periodic Reoorts. The Development shall at all times be managed by an experienced management agent reasonably acceptable to the City, with demonstrated ability to operate residential facilities like the Development in a manner that will provide decent, safe, and sanitary housing (as approved, the "Management Agent"). The Owner shall submit for the City's approval the identity of any proposed Management Agent. The Owner shall also submit such additional information about the background, experience and financial condition of any proposed Management Agent as is reasonably necessary for the City to determine whether the proposed Management Agent meets the standard for a qualified Management Agent set forth above. If the proposed Management Agent meets the standard for a qualified Management Agent set forth above, the City shall approve the proposed Management Agent by notifying the Owner in writing. Unless the proposed Management Agent is disapproved by the City within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved. The City hereby approves BRIDGE Property Management Company as the initial management agent for the Development. 5.3 Performance Review. The City reserves the right to conduct an annual (or more frequently, if deemed necessary by the City) review of the management practices and financial status of the Development. The purpose of each periodic review will be to enable the City to determine if the Development is being operated and managed in accordance with the requirements and standards of this Agreement. The Owner shall cooperate with the City in such reviews. 1010\05\114762.5 05/24/99 5.4 Reulacement of Management Agent. If, as a result of a periodic review, the City determines in its reasonable judgement that the Development is not being operated and managed in accordance with any of the material requirements and standards of this Agreement, the City shall deliver notice to Owner of its intention to cause replacement of the Management Agent, including the reasons therefor. Within fifteen (15) days of receipt by Owner of such written notice, City staff and the Owner shall meet in good faith to consider methods for improving the financial and operating status of the Development, including, without limitation, replacement of the Management Agent. If, after such meeting, City staff recommends in writing the replacement of the Management Agent, Owner shall promptly dismiss the then Management Agent, and shall appoint as the Management Agent a person or entity meeting the standards for a Management Agent set forth in Section 5.2 above and approved by the City pursuant to Section 5.2 above. Any contract for the operation or management of the Development entered into by Owner shall provide that the contract can be terminated as set forth above. Failure to remove the Management Agent in accordance with the provisions of this Section shall constitute default under this Agreement, and the City may enforce this provision through legal proceedings as specified in Section 6.3. 5.5 Auuroval of Management Policies. The Owner shall submit its written management policies with respect to the Development to the City for its review, and shall amend such policies in any way necessary to ensure that such policies comply with the provisions of this Agreement. 5.6 Prooertv Maintenance. The Owner agrees, for the entire Term of this Agreement, to maintain all interior and exterior improvements, including landscaping, on the Property in good condition and repair (and, as to landscaping, in a healthy condition) and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials. The City and the Agency place prime importance on quality maintenance to protect its investment and to ensure that all Agency and City-assisted affordable housing projects within the City are not allowed to deteriorate due to below-average maintenance. Normal wear and tear of the Development will be acceptable to the City and the Agency assuming the Owner agrees to provide all necessary improvements to assure the Development is maintained in good condition. The Owner shall make all repairs and replacements necessary to keep the improvements in good condition and repair. In the event that the Owner breaches any of the covenants contained in this section and such default continues for a period of five (5) days after written notice from the City with respect to graffiti, debris, and waste material, or thirty (30) days after written notice with respect to general maintenance, landscaping and building improvements, (and subject to any stricter requirements included in any applicable City ordinance) then the City, in addition to whatever other remedy it may have at law or in equity, shall have the right to enter upon the Property and 1010\05\114762.5 05/24/99 9 perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City shall be permitted (but is not required) to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Property, and to attach a lien on the Property, or to assess the Property, in the amount of the reasonable expenditures arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such cure, including an administrative charge equal to ten percent (10%) of such expenditures, which amount shall be promptly paid by the Owner to the City upon demand. ARTICLE 6 MISCELLANEOUS 6.1 b. The provisions of this Agreement shall apply to the Property for the entire Term even if the entire Loan is paid in full prior to the end of the Term. This Agreement shall bind any successor, heir or assign of Owner, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the City and the Agency. The City makes the Loan on the condition, and in consideration of, this provision, and would not do so otherwise. 6.2 Covenants to Run With the Land. The City, the Agency, the Owner, and the Ground Lessor hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the City and the Agency expressly release such conveyed portion of the Property from the requirements of this Agreement. 6.3 Enforcement bv the Citv and the Aeency. If Owner fails to perform any obligation under this Agreement, and fails to cure the default within 30 days after the City or the Agency has notified the Owner in writing of the default or, if the default cannot be cured within 30 days, failed to commence to cure within 30 days and thereafter diligently pursue such cure to completion within ninety (90) days (and subject also to the notice and cure rights of the limited partner of Borrower set forth in Section 7.1(1) of the Loan Agreement), the City and the Agency shall have the right to enforce this Agreement by any or all of the following actions, or any other remedy provided by law: (4 Calling the Loan. The City may declare a default under the Note, accelerate the indebtedness evidenced by the Note, and proceed with foreclosure under the Deed of Trust. 1010\05\114762.5 05/24/99 10 (b) Action to Comoel Performance or for Damages. The City andor the Agency may bring an action at law or in equity to compel Owner's performance of its obligations under this Agreement, and/or for damages. (c) Remedies Provided Under Loan Ameement. The City may exercise any other remedy provided under the Loan Agreement. 6.4 Attornevs Fees and Costs. In any action brought to enforce this Agreement, the prevailing party shall be entitled to all reasonable costs and expenses of suit, including reasonable attorneys' fees. This section shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute. 6.5 Recording and Filing. The City, the Agency, the Owner, and the Ground Lessor shall cause this Agreement, and all amendments and supplements to it, to be recorded against the Property in the Official Records of the County of San Diego. 6.6 Governing Law. This Agreement shall be governed by the laws of the State of California. 6.7 Amendments. This Agreement may be amended only by a written instrument executed by all the parties hereto or their successors in title, and duly recorded in the real property records of the County of San Diego, California. 6.8 Notice. All notices given or certificates delivered under this Agreement shall be deemed received on the delivery or refusal date shown on the delivery receipt, if: (i) personally delivered by a commercial service which furnishes signed receipts of delivery or (ii) mailed by certified mail, return receipt requested, postage prepaid, addressed as shown on the signature page. Any of the parties may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or communications shall be sent. A copy of all notices given to Borrower under this Agreement shall also be given as follows: Edison Capital Housing Investments 18101 Von Karman Ave., Suite 1700 Imine, CA 92612-1046 Attn: Asset Manager-Poinsettia Gardens 6.9 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be affected or impaired thereby. 1010\05\114762.5 05/24/99 11 ,- IN WITNESS WHEREOF, the City, the Agency, the Owner, and the Ground Lessor have executed this Agreement by duly authorized representatives, all on the date first written above. CITY: CITY OF CARLSBAD, a municipal corporation Address: Housing and Redevelopment Department 2965 Roosevelt Street, Suite B Carlsbad, CA 92008 Ciii’hanager Attn: Housing and Redevelopment Director AGENCY: Carlsbad Redevelopment Agency, Carlsbad California, a public body, corporate and politic Address: Housing and Redevelopment Department 2965 Roosevelt Street, Suite B Carlsbad, CA 92008 Attn: Housing and Redevelopment Director Address: One Hawthorne St., 4th Floor SanFrancisco, CA 94105 Attention: President Id R. Patchett Executive Director -w. OWNER POINSETTIA HOUSING ASSOCIATES, a California Limited Partnership By: BRIDGE Housing Corporation- Southern California, a California nonprofit public benefit corporation, its general partner A 1010\05\114762.5 05/24/99 12 Address: One Hawthorne St., 4th Floor San Francisco, CA 94105 Attention: President APPROVED AS TO FORM By: &ty Attorney 1010\05\114762.5 05/24/99 13 GROUND LESSOR: BRIDGE Housing Corporation-Southem California, a California nonprofit public benefit corpoytion By: Its: x CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California I ,@personally known to me C proved to me on the basis of satisfactory evidence to be the person(s) whose name@) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hislherltheir authorized capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument, WITNESS my hand and official seal Place Notary Seal Above OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Clai Signer's Name: 0 Individual 0 Corporate Officer - Title@): 0 Partner - C Limited 0 General 0 Attorney in Fact 0 Trustee 0 1997 Natlanal Notary Assmiation. 9350 De Safo Ave., PO Box 2402. Chafsworth, CA 9j313-2402 Prod. No 5907 Reorder: Call Toll-Free 1-800-876-6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of san Fruv\&5Co +proved to me on the basis of satisfactory 0 personally known to me evidence to be the person(s) whose name(s) islare subscribed to the within instrument and the same in hislherltheir authorized acknowledged to me that helshelthey executed capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s). or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. OPTIONAL Though the information below is not required by law, if may prove valuable to persons relying on the document end muld prevent fraudulent removal and reattachment of this form lo anolher document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer@.) Other Than Named Above: Capacity(1es) Claimed by Signer Signer’s Name: 0 Individual 0 Corporate Officer - Title@): 0 Partner - 0 Limited 0 General 0 Attorney in Fact 0 Trustee 0 Guardian or Conservator 0 Other: Signer Is Representing: Pd. No. 5907 1834 - EXBIBIT A The land refked to is situated in the State of California, County of San Diego and is described as follows: PARCEL A: THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON MAY 21,1999. LOT 4 OF CARLSBAD TRACT NO. 97-10, POINSElTJA PROPERTIES MAP NO. 13785 FILED IN EXCEPTING THEREFROM ANY AND ALL BUILDINGS AND IMPROVEMENTS LOCATED UPON SAID LAND. PARCEL B: ALL BUILDINGS AND IMPROVEMENTS LOCATED UPON THE FOLLOWING DESCRIBED REAL PROPERTY LOT 4 OF CARLSBAD TRACT NO 97-10, POINSETTIA PROPERTIES MAP NO. 13785 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON MAY 21, 1999. 144\123\120927.1