HomeMy WebLinkAboutRDA Packet 1998/07/14
Notice is hereby given that the Chair of the Redevelopment Agency has called and will convene a special meeting
of the Redevelopment Agency, Tuesday, July 14, 1998 at 6:00 p.m., immediately following the regular City Council
meeting, in Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California
to consider, deliberate and act upon the following:
~~
Tuesday, July 14, 1998
6:00 p.m.
(immediately following the City Council meeting)
Council Chambers
Public Services Building
Soecial Meeting of the Redevelooment Agencv of the City of Chula Vista.
CALL TO ORDER
1.
ROLL CALL:
Agency Members Moot _' Padilla_,
Rindone _, Salas _' and Chair/Mayor Horton_
CONSENT CALENDAR
(Item2and3)
(Will be voted on immediately following the Council Consent Calendar during the City Council meeting)
The staff recommendations regarding the following item listed under the Consent Calendar will be enacted by
the Agency by one motion without discussion unless an Agency member, a member of the public or City staff
requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a
"Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or
the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items.
Items pulled by the public will be the first items of business.
2. APPROVAL OF MINUTES:
June 9, 1998; June 16, 1998
3. RESOLUTION 1593:
APPROVING A CONSULTANT AGREEMENT WITH
AFFORDABLE HOUSING APPLICATIONS, INC. TO
IMPLEMENT AND ADMINISTER THE REISSUED MORTGAGE
CREDIT CERTIFICATE PROGRAM FOR THE CITY OF
CHULA VISTA--On 3/3/98. the Agency approved a resolution
authorizing staff to negotiate an agreement with Affordable Housing
Applications, Inc. to implement and administer the Reissued Mortgage
Credit Certificate Program (RMCC). The RMCC Program will allow
current and future Mortgage Credit Certificate (MCC) holders to
refinance their original mortgage and maintain the tax benefit of the
MCC. Staff recommends approval of the resolution. (Community
Development Director)
* * * END OF CONSENT CALENDAR * * *
IT
Agenda
-2-
July 14, 1998
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the
Redevelopment Agency or the City Clerk prior to the meeting.
4. PUBLIC HEARING:
TO CONSIDER A SPECIAL LAND USE PERMIT TO ALLOW
EDUCATIONAL AND COUNSELING SERVICES TO CLIENTS WITH
SUBSTANCE ABUSE PROBLEMS AT 314 PARKWAY--Episcopal
Community Services submitted a Land Use Permit application to establish the
South Bay Recovery Center at 314 Parkway. The Center plans to provide
educational and counseling services to clients who have substance abuse
problems. Staff recommends rescheduling and renoticing a public hearing to
be determined between staff and the applicant in order to provide staff time to
evaluate and analyze the revisions to the project's operational profile.
(Community Development Director) Continued from the meeting of 6/9/98.
ITEMS PULLED FROM THE CONSENT CALENDAR
This is the time the Redevelopment Agency will discuss items which have been removed from the Consent
Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency
Members.
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within
the Agency's jurisdiction thal is not an item on this agenda. (State law, however, generally prohibits the
Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to
address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form"
available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the
meeting. Those who wish to speak, please give your name and address for record purposes and follow up action.
OTHER BUSINESS
5. DIRECTOR'S REPORTlS)
6. CHAIR'S REPORTiS)
7. AGENCY MEMBER COMMENTS
ADJOURNMENT
The meeting will adjourn to a closed session and thence to a Special Redevelopment Agency Meeting on July 28,
1998 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers.
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Agenda
-3-
July 14, 1998
CLOSED SESSION
Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the
Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the
subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to
best protect the interests of the City. The Agency is required by law to return to open session, issue any reports
of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up
by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency's
return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless,
the report of final action taken will be recorded in the minutes which will be available in the Office of the
Secretary to the Redevelopment Agency and the City Clerk's Office.
8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section
54956.8
Property:
340-368 Bay Boulevard (5 parcels totaling 3.65 acres):
567-022-35
567-022-17
567-022-31
567-022-33
567 -022-28
340 Bay Boulevard
350 Bay Boulevard
360 Bay Boulevard
364 Bay Boulevard
368 Bay Boulevard
1. 02 acres
0.65 acres
0.73 acres
0.63 acres
0.62 acres
Negotiating Parties:
Redevelopment Agency (Chris Salomone); San Diego Unified Port District;
B.F. Goodrich
Under Negotiations:
Purchasellease terms and conditions
Tr
MINUTES OF A SPECIAL JOINT MEETING OF THE REDEVELOPMENT
AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA
Tuesday, June 9, 1998
8: 27 p.m.
Council Chambers
Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT:
Agency Members: Moot, Padilla, Rindone, Salas, and Chair
Horton
ABSENT:
Agency Members: None
ALSO PRESENT:
Executive Director, David D. Rowlands; Legal Counsel,
John M. KahenYi City Clerk, Beverly A. Autheletj and
Deputy City Clerk, Charline V. Long
CONSENT CALENDAR
(Items pulled: none)
CONSENT CALENDAR OFFERED BY MEMBER RINDONE, headings read, texts waived, passed
and approved unanimously 5-0.
2. APPROVAL OF MINUTES: May 19, 1998
3.a) AGENCY RESOLUTION 1586 APPROVING ITS REPORT TO THE CITY COUNCIL FOR THE
AMENDMENT NO. 5 TO THE BAYFRONT REDEVELOPMENT PLAN AND AUTHORIZING TRANSMITTAL
OF THE REPORT AND THE PROPOSED AMENDED REDEVELOPMENT PLAN TO THE CITY COUNCIL--In
1997, the Agency requested that staff proceed with amendments to the Bayfront and
Town Centre I Redevelopment Plans to address limitations that currently impede
the Agency from removing blight and completing its redevelopment program in both
Project Areas. The plan amendment process involves a series of steps. Per
staff's recommendation, the Agency approved the resolutions 5-0 to submit the
Bayfront and Town Centre I Plan Amendment documents to the City Council for
consideration. (Community Development Director)
b) AGENCY RESOLUTION 1587 APPROVING ITS REPORT TO THE CITY COUNCIL FOR THE
AMENDMENT NO. 5 TO THE TOWN CENTRE I REDEVELOPMENT PLAN AND AUTHORIZING SUBMITTAL
OF THE REPORT AND THE PROPOSED AMENDED REDEVELOPMENT PLAN TO THE CITY COUNCIL
* * * END OF CONSENT CALENDAR * * *
ORAL COMMUNICATIONS
None.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
4. PUBLIC HEARING: CONSIDERATION OF: 1) GPA-98-03 AMENDING THE GENERAL PLAN
LAND USE ELEMENT TO INCLUDE "MIXED LAND USE DESIGNATION AREA" TEXT INCLUDING
PROPERTY IN CHULA VISTA BAYFRONT; AND 2) AMENDMENTS NUMBERS FIVE TO THE BAYFRONT
AND TOWN CENTRE I REDEVELOPMENT PLANS--In 1997, the Agency requested that staff
proceed with amendments to the Bayfront and Town Centre I Redevelopment Plans to
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RDA Minutes
June 9, 1998
Page 2
address time limitations that currently impede the Agency from removing blight
and completing its redevelopment program in both Project Areas. In addition, the
Agency is seeking to amend the Bayfront Redevelopment Plan to add approximately
398 acres of Port District tidelands to the Project Area and to modify the
existing Bayfront Redevelopment Plan's land use plan to correlate with the Chula
Vista Certified Local Coastal Program and the City's General Plan. Staff
recommends approval of the resolutions and to place the ordinances on first
reading. (Community Development Director)
a) AGENCY RESOLUTION 15BB AND COUNCIL RESOLUTION 19036: CERTIFYING THE FINAL
PROGRAM ENVIRONMENTAL IMPACT REPORT FOR THE TOWN CENTRE I/BAYFRONT REDEVELOPMENT
PLAN AMENDMENTS (EIR-9B-2), ADOPTING THE FINDINGS OF FACT RELATING TO THE
FEASIBILITY OF MITIGATION MEASURES IDENTIFIED IN EIR-9B-2, AND ADOPTING A RELATED
MITIGATION MONITORING AND REPORTING PROGRAM
b) COUNCIL RESOLUTION 19037: AMENDING THE GENERAL PLAN LAND USE DESIGNATION
FOR THE TIDELANDS PROPERTY LOCATED GENERALLY NORTH OF "J" STREET, SOUTH OF "G"
STREET AND WEST OF THE MEAN HIGH TIDE LINE FROM OPEN SPACE, PARK, RESEARCH &
LIMITED MANUFACTURING, VISITOR COMMERCIAL, AND GENERAL INDUSTRIAL TO MIXED LAND
USE
c) ORDINANCE 2734: APPROVING AND ADOPTING THE REDEVELOPMENT PLAN AMENDMENT
NO.5 FOR THE BAYFRONT REDEVELOPMENT PROJECTS (first readinq)
d) ORDINANCE 2735: APPROVING AND ADOPTING THE REDEVELOPMENT PLAN AMENDMENT
NO. 5 FOR THE TOWN CENTRE I REDEVELOPMENT PROJECTS (first readinq)
Pam Buchan, Principal Community Development Specialist, stated that approximately
one year ago the City Council and Redevelopment Agency directed staff to proceed
with the redevelopment plan amendments for Town Centre I and Bayfront to
eliminate blight in those areas. The staff and consultants teamed for the
project are Joe Monaco, environmental review; Duane Bazzel, advanced planning for
the general plan amendment; Mark Huebsch, our special counsel; Kathy Rosenow and
Jim Simon, Rosenow Spevacek Group, Inc., redevelopment specialists.
. Jim Simon, Redevelopment Consultant with Rosenow Spevacek Group (RSG),
remarked that over the last 12 months, RSG has worked with the Agency preparing
various documents identifying the rationale behind the proposed plan amendments
to both Town Centre I and Bayfront Redevelopment Plans and the benefits and
purposes of the amendments. The Bayfront amendment consists of a series of
technical amendments involving the extensions of various time limits and the
addition of property to the project area enabling the Agency to undertake
redevelopment activities within the Port District tidelands area. This area was
not originally included in the project area when it was established in 1974. The
amendments address existing deficiencies of the Town Centre I and Bayfront
Redevelopment Plans that include: establishing a twelve-year period in order to
commence eminent domain activities from the amendment adoption date; allow the
Agency to initiate eminent domain activities within the existing Bayfront
Redevelopment Project area; extending the time frame to incur debt which allows
the Agency to initiate new redevelopment programs until the year 2004; extending
the plans effectiveness; allowing the Agency to continue implementing
redevelopment programs and to collect tax increments for an additional 15 years
beyond its limit. Likewise, the Town Centre I amendments are very similar in
that they extend time frame limits for eminent domain and the ability to incur
debt plans and to collect tax increment revenue. These amendments are necessary
to allow the Agency to eliminate blighting conditions within the project area as
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RDA Minutes
June 9, 1998
Page 3
well as undertaking new redevelopment programs in the added area.
Chris Salomone, Director Community Development, responding to the issue of blight
stated that blight can be incompatible parcels, large vacancy rates, depressed
lease rates, environmental issues, lack of infrastructures, lack of response to
marketing, all of which this area has experienced. The territory to be added
should have been added when the Council adopted the redevelopment area in 1974.
Despite the millions of dollars spent on creating redevelopment enhancement
opportunities, the conditions that existed twenty-five years ago largely exist
today. When you think of our Bayfront, the term blight would probably not be
thought of by the lay person. But, when you think of the litany of issues and
the efforts of the Agencies, City, and Port District to market those areas; the
term does fit the state definition and that's why staff feels very secure in
recommending this action.
This being the time and place as advertised, the public hearing was opened.
Addressing the Agency was:
. Mrs. Diane Gaffney, 376 Center St, #139, Chula Vista, 91910 stated she
visits the Bayfront frequently and believes its a possibility that Rohr will
eventually move and that property will become available. She would like to see
a partnership with Rohr to develop the area close to the J Street entrance. By
utilizing this area, a park could be developed and the spare buildings could be
used for a day care center.
There being no one else indicating a desire to address the Agency, the public
hearing was closed.
Member Moot stated that the staff's explanation of the addition of the land to
the Bayfront area was appropriate and highly necessary, that a public explanation
is vitally important to the approval of this project, and he is satisfied that
the legal requirements to add that particular area have been met under the text
of the redevelopment law.
ORDINANCES 2734 AND 2735 PLACED ON FIRST READING, AGENCY RESOLUTUION 1588 AND
COUNCIL RESOLUTIONS 19036 AND 19037, OFFERED BY MEMBER MOOT, headings read, text
waived.
Chris Salomone interjected that there may be a problem with introducing the
ordinances at this time due to a letter, which was delivered after the meeting
had started from the County of San Diego.
Mr. Huebsch, Special Counsel, stated that there is a procedural requirement
needed due to this letter, a copy of which is to be placed on file with the city
clerk and is made a part of the record with all of the other written material.
Under redevelopment law, the Council is not able to consider ordinances tonight.
It requires that seven days or more from now a written report, prepared by staff,
addressing the written material be received and at that point Council would be
called on to overrule any objections. His recommendation would be that Council
act on the resolutions tonight, and continue action on the ordinances until
another meeting of the City Council and Redevelopment Agency.
Chris Salomone stated they have some confidence that they will be able to
negotiate and mitigate the issues described in the letter.
Member Moot questioned what interests the County of San Diego'S Department of
Housing and Community Development have in a redevelopment area in the City of
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RDA Minutes
June 9, 1998
Page 4
Chula Vista and did the letter come through the member of the Board of
Supervisors with jurisdiction over Chula Vista.
Chris Salomone replied that the San Diego County Community Development Department
oversees this one redevelopment area. In addition, they are charged with
reviewing these types of documents. The department also undertakes this similar
type of activity on other redevelopment area plan amendments or plan proposals
such as the South Embarcadero proposal. Our Supervisor was made aware late this
afternoon, he expressed concern and was apologetic for the late notice to our
staff. We have been negotiating with them since October, and they gave no
indication of an objection to this action.
Mark Huebsch stated that a written response, thoroughly analyzing the writing,
may be brought back for action and if the objections are acted on at that time,
then under redevelopment law Council would be able to proceed with first reading
of the ordinances.
VOTE: Resolutions approved unanimously 5-0.
5. PUBLIC HEARING: TO CONSIDER A SPECIAL LAND USE PERMIT TO ALLOW EDUCATIONAL
AND COUNSELING SERVICES TO CLIENTS WITH SUBSTANCE ABUSE PROBLEMS AT 314 PARK WAY-
Episcopal Community Services submitted a Land Use Permit application to establish
the South Bay Recovery Center at 314 Park Way. The Center is planned to provide
educational and counseling services to clients who have substance abuse problems.
The project is located within the Town Centre I Redevelopment Project Area and
has been reviewed by the Town Centre Project Area Committee and the Downtown
Business Association. The project is exempt from environmental review. Staff
recommends the public hearing be continued indefinitely. (Community Development
Director)
Pam Buchan, Principal Community Development Specialist, stated that when they
said indefinitely, staff would probably bring this back mid-July. The request
for continuance was made so that Community Development and the Attorney's Office
could resolve some issues as well as answer some questions and concerns from the
publ ic.
This being the time and place as advertised, the public hearing was declared
open.
. Robert Schaeffer, 490 Fourth Avenue, Chula Vista, 91910, offered that this
program can do a lot for the people that need treatment. He has been around the
park and Chula Vista for years and believes that Chula Vista is participating in
making the neighborhood a better place. The program would help in keeping people
out of the park.
. Diane Gaffney, 376 Center St, #139, Chula Vista 91910, stated she lives
directly over the park and can observe everything that goes on. Over the last
two years, she has called the police over fifteen times, of which they have only
responded twice. She has seen everything from drug deals to immoral activities.
The police did respond to a call yesterday concerning underage drinking, but by
the time they arrived, the perpetrators had disposed of their liquor bottles.
She has been involved in drug abuse since 1958, working in private therapy and
knows the problems. That's why she calls the police. We need a drug treatment
center; it's the only answer.
Member Rindone requested that a referral be made to the Police Department for
consideration of either foot or bike patrols for the area in Memorial Park that
has been alleged to have the drug trafficking problem for a period of time and
bring a report back to Council.
02-<1
RDA Minutes
June 9, 1998
Page 5
Member Moot questioned whether the applicant was in attendance and what their
position was on an indefinite continuation. He had received a call regarding
this matter, some two months ago, suggesting that it wasn't being handled in a
timely manner and that the person who owned the building was anxious to get a
decision. Having passed this information on to the appropriate person in
Community Development, he was surprised that a request for an indefinite
extension is before Council.
· Jack Cuda, 59 K Street, Chula Vista, representing the property owners and
tenants, stated that with regard to avoiding blight and fostering maintenance and
supervision of those properties, a timely action is vital. Both the tenants and
property owners are handicapped by indecision. The property at 314 Park Way has
been an office building for a considerable length of time. The tenants are not
looking for a variance trying to convert a residential house to office use. If
the Episcopal Community Services, the appliclant and proposed tenant, who are
well respected in the San Diego community of social and environmental counseling
services, conduct themselves in such a way as not to annoy, disturb, or create
a blight on the neighborhood; then a rapid decision to support their occupancy
should be made. The owners of this property are very proactive in regards to
supervision, terms of leasing, and deal affirmatively with misuse, annoyances,
disturbances, and improper conduct. We have a legitimate office user who is
going to conduct themselves in an appropriate fashion, and we have the support
of the property owner to see that that happens. In regards to the continuance,
he stated that an affirmative immediate decision from the Council would be
preferred.
Chris Salomone stated that because the applicant is operating the business
without a permit, the continuation will not affect their operation. The
continuance is that of a legal issue, a de facto permit being issued and its
impact on the existing redevelopment plan. Its our position to resolve these
issues as soon as possible. Staff agrees with Mr. Cuda that the owners and
tenants deserve a resolution, but acting on this item tonight would not be
appropriate.
Member Moot commented that since we don't have an staff report we wouldn't be
able to act tonight. In the future when a matter is continued indefinitely, it
would be helpful to get some further background, especially when
one council member has already made a specific inquiry.
MSUC (Horton/Moot) that the Public Hearing be continued until July 14, 1998.
ITEMS PULLED FROM THE CONSENT CALENDAR
None.
OTHER BUSINESS
6. DIRECTOR/CITY MANAGER'S REPORTIS\ - None.
7. CHAIR/MAYOR'S REPORTtS\ - None.
8. AGENCy/COUNCIL MEMBER COMMENTS - None.
co2 -s
"
RDA Minutes
June 9, 1998
Page 6
ADJOURNMENT
The meeting adjourned at 9:05 p.m.
Respectfully submitted,
BEVERLY A. AUTHELET, CMC/AAE, City Clerk
By:
Charline Long, Deputy City Clerk
r::J-(,;,
MINUTES OF A JOINT MEETING OF THE REDEVELOPMENT
AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA
Tuesday, June 16, 1998
9:22 p.m.
Council Chambers
Public Services Building
CALL TO ORDER
1. ROLL CALL:
PRESENT:
Agency Members: Moot, Padilla, Rindone, Salas, and Chair
Horton
ABSENT:
Agency Members: None
ALSO PRESENT:
Executive Director, David D. Rowlands; Legal Counsel,
John M. KahenYi City Clerk, Beverly A. Authelet; and
Deputy city Clerk, Charline Long
ACTION ITEMS
2. a) COUNCIL RESOLUTION 19048 AND AGENCY RESOLUTION 1589: ADOPTING WRITTEN
RESPONSE TO WRITTEN OBJECTION TO THE PROPOSED AMENDMENT OF THE BAYFRONT
REDEVELOPMENT PLAN - On 6/9/98, the Council/Agency approved the Environmental
Impact Report for the Town Centre IjBayfront Redevelopment Plan Amendments; and
Council approved amending the General Plan Land Use Designation for the Tidelands
Property. The first reading to adopt ordinances approving the redevelopment plan
amendments was postponed in order to respond to written comments protesting the
determination of blight in the Bayfront project area. Staff recommends approval
of the resolutions. (Director of Community Development)
b) COUNCIL RESOLUTION 19049 AND AGENCY RESOLUTION 1590: ADOPTING WRITTEN
RESPONSE TO WRITTEN OBJECTION TO THE PROPOSED AMENDMENT OF THE TOWN CENTRE I
REDEVELOPMENT PLAN.
Pam Buchan, Principal Community Development Specialist, stated that a letter from
San Diego County was received which raised several objections to the Bayfront
redevelopment plan amendment. In accordance with redevelopment amendment law,
whenever there is a written objection, the City has to respond in writing.
Staff has prepared a written response to the County and is recommending that City
Council adopt and authorize staff to forward the written response to the County.
Also, to adopt and approve Ordinances 2734 and 2735.
COUNCIL RESOLUTIONS 19048, 19049, AND AGENCY RESOLUTIONS 1589 AND 1590 OFFERED BY
MA.YOR!CHAIR ffORI(fi, headings waived, texts waived. Resolutions approved nnanimously 5-0.
3.a) ORDINANCE 2734: APPROVING AND ADOPTING THE REDEVELOPMENT PLAN AMENDMENT NO.
5 FOR THE BAY FRONT REDEVELOPMENT PROJECTS - Staff recommends the ordinance be
placed on first reading. (Community Development Director)
b) ORDINANCE 2735: APPROVING AND ADOPTING THE REDEVELOPMENT PLAN AMENDMENT NO.
S FOR THE TOWN CENTRE I REDEVELOPMENT PROJECTS - Staff recommends the ordinance
be placed on first reading. (Community Development Director)
ORDINANCES 2734
texts waived.
AND 2735 PLACED ON FIRST READING
Approved unanimously 5-0.
BY MEMBER MOOT, headings read,
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RDA Minutes
June 16, 1998
Page 2
4. AGENCY RESOLUTION 1591: APPROVING A SEMI-EXCLUSIVE NEGOTIATING AGREEMENT
WITH CHRISMATT CORPORATION DBA THE PIERI COMPANY FOR DEVELOPMENT OF A COMMERCIAL
CENTER LOCATED AT THE NORTHWEST CORNER OF THIRD AVENUE AND "H" STREET - Chrismatt
has requested a Semi-Exclusive Negotiating Agreement for six months in order to
negotiate the purchase of Agency-owned properties, develop plans and secure
financing. The are under consideration consists of sixteen separate parcels
including four properties owned by the Agency. Staff recommends approval of the
resolution and to direct staff to extend owner Participation Rights within 30
days of the effective date of the agreement. (Community Development Director)
Pam Buchan, Principal Community Development Specialist, stated that in April,
Chrismatt Corporation approached the City staff regarding a proposal for a major
commercial project at Third Avenue and H Street. To continue negotiations with
the Agency, since there is Agency property involved, a semi-exclusive negotiation
agreement is recommended. This agreement provides a six-month negotiating
period to set out terms for a disposition and development agreement for the
acquisition or sale of Agency property; to discuss land costs, development plans,
and property owner's participation rights. It does not commit the Agency to
approve the project. Staff advised affected property owners of the meeting and
that a semi-exclusive negotiating agreement has been developed.
MAYOR/CHAIR HORTON OFFERED RESOLUTION 1591 heading read, text waived.
unanimously 5-0.
Approved
ORAL COMMUNICATIONS
None.
OTHER BUSINESS
5. DIRECTOR/CITY MANAGER'S REPORT(Sl - none.
6. CHAIR/MAYOR'S REPORTISI - none.
7. AGENCY/COUNCIL MEMBER COMMENTS - none.
ADJOURNMENT
The meeting adjourned at 9:30 p.m.
Respectfully submitted,
BEVERLY A. AUTHELET, CMC/AAE, City Clerk
BY:
Charline Long, Deputy City Clerk
c::2 - ?
REDEVELOPMENT AGENCY AGENDA STATEMENT
Item ...3
Meeting Date 01114/98
ITEM TITLE: RESOLUTION /,j-q 3 APPROVING A CONSULTANT AGREEMENT WITH
AFFOROABlE HOUSING APPLICATIONS, INC. (AHA) TO IMPLEMENT ANO
ADMINISTER THE REISSUED MORTGAGE CREDIT CERTIFICATE PROGRAM FOR
THE CITY OF CHUlA VISTA
---7
SUBMITTED BY: Community Development Director
REVIEWED BY: (4/5ths Vote: Yes_ NoLI
BACKGROUND:
On March 3, 1998 the Redevelopment Agency approved Resolution 1571 authorizing staff to negotiate an
agreement with Affordable Housing Applications, Inc. (AHA) to implement and administer the Reissued
Mortgage Credit Certificate Program (RMCC) for the City of Chula Vista. The Redevelopment Agency also
approved the waiver of the consultant selection process as outlined in Section 2.56.070 of the Chula Vista
Municipal Code as part of the previous action. As a result, staff has negotiated the consultant agreement
with AHA and are presenting it for Agency approval.
RECOMMENDATION: That the Redevelopment Agency approve the consultant agreement authorizing
Affordable Housing Applications, Inc. (AHA) to implement and administer a Reissued Mortgage Credit
Certificate Program for the City of Chula Vista.
BOARDS/COMMISSIONS RECOMMENDATION: The Housing Advisory Commission supports the
implementation of a Reissued Mortgage Credit Certificate (RMCC) program.
DISCUSSION:
The RMCC Program will allow current and future Mortgage Credit Certificate (MCC) holders to refinance
their original mortgage and maintain the tax benefit of the MCC. The decline in interest rates have created
a demand for MCC holders to refinance the mortgage for more favorable rates. Until recently, home owners
with MCCs who refinanced their loans could no longer claim the tax credit, thus losing the financial
advantage that enabled them to afford their homes. This loss of the MCC was particularly difficult for
home buyers who originally took a variable rate mortgage in order to qualify for a loan. In Oecember 1996,
the IRS finalized regulations to allow local agencies to reissue MCCs to home owners who refinance their
existing MCC loan and continue to live in the home. This reissue program is known as the Reissued
Mortgage Credit Certificate (RMCC) program.
.d - (
Page 2, Item ..3
Meeting Date 07/14/98
A major benefit of establishing a RMCC program is that it will increase the affordability of the housing
payments for existing MCC home owners. It could also potentially help prevent some home owners from
going into default on their loans. Because an MCC holder must continue to occupy hislher home to qualify
for the RMCC, it may create an incentive for home buyers to remain in their homes. The RMCC program
should benefit a substantial number of MCC.assisted home owners who have refinanced at any time since
the MCC program began, and anyone who refinances in the future.
Selection of Consultant
Existing staff is not able to absorb the additional program administrative duties and do not have the
requisite knowledge and expertise to staff the RMCC program. Affordable Housing Applications, Inc. (AHA)
is one of three RMCC program administrators in the state and is the only housing consultant located within
San Diego County and Orange County with the qualifications necessary to successfully implement and
administer a RMCC program. In addition, through the City of Chula Vista's efforts to implement the RMCC
program, other cities such as Oceanside and San Diego have approved a RMCC program and will utilize
AHA's experience to administer their programs. Also, the County of San Diego's Regional MCC program has
selected AHA to continue to administer the MCC program in addition to the RMCC program.
Attached as Exhibit A is the standard two party consultant agreement. AHA will be responsible for
providing the City of Chula Vista with the following.
Forms and Documents. All necessary processing forms, RMCC documents, certificates
and affidavits have been designed for the City of Chula Vista RMCC program and will be
provided to MCC holders and lenders.
Information and Marketing Materials. AHA will provide marketing materials which will
include general information about RMCCs; illustrations of how the RMCC program works;
answers to the most frequently asked questions about the program, underwriting
instructions for the lenders, and a list of lenders participating in the RMCC program.
Record Keeping, Tracking and Reporting System. AHA will set up a Windows-based
software package to store, track and report on all aspects of the City of Chula Vista RMCC
program. All information will be available in an organized and comprehensive format.
RMCC Processing. AHA will process all paperwork in conjunction with the loan
refinancing. The MCC holder will obtain a lender from the participating lender list and
proceed with the loan refinancing paperwork. The lender will submit to AHA the RMCC
documents for processing. AHA will review the documents for compliance with IRS
regulations and the City of Chula Vista RMCC program policy. Upon completion of the
review process, if the applicant has complied with all program guidelines, a RMCC will be
issued to the home owner. The fee to apply for a RMCC is $500.00 of which $250 is the
--.3 - ~
If
Page 3. Item 3
Meeting Date 07114/98
RMCC is $500.00 of which $250 is the processing fee charged by AHA with the remaining
$ 250.00 to be paid to the City of Chula Vista.
o lender Participation and Training. Only lenders enrolled in the current MCC program will be
eligible to participate in the RMCC program. However, new lenders are encouraged to participate
in both the MCC and RMCC programs. The enrolled lender will be required to execute a RMCC
lender Participation Agreement; pay an annual enrollment fee for RMCC training and materials.
This enrollment fee will be determined based on the San Diego County Regional RMCC program.
This fee will allow participating lenders to refinance loans for the Regional RMCC program,
including the cities of Chula Vista, Oceanside, and San Diego; and designate one representative
from the company's compliance division to participate in the initial RMCC training session and
take responsibility for providing RMCC training for additional employees of the company.
o Reporting and Accounting. AHA shall maintain accurate files and records including RMCC
processing files and participating lender files. In addition, AHA will monitor and complete all IRS
reporting requirements.
Specialized Application Forms and Documents
Attached as Exhibit B are the RMCC informational materials and forms that were developed for the City of Chula
Vista RMCC program. The informational materials were developed by AHA and the forms were reviewed and
approved by Bond Counsel Perry Israel of Orrick, Herrington and Sutcliff. These forms will be reviewed and
approved as to form by Community Development staff and the City Attorney's office.
FISCAL IMPACT:
Currently the City of Chula Vista has issued approximately 372 MCC certificates since the inception of the
program in 1991. It is anticipated that revenues collected, over time, from the RMCC program will be
approximately $90,000. The RMCC application fee is $500.00. AHA will collect $250.00 for processing and
monitoring of the RMCCs and will forward $250.00 to the City. It is estimated that eight RMCCs will be issued
per month or 96 per year. At $250.00 per application, AHA will collect annually, based on 96 RMCCs per year,
$24,000. In addition, the City will also collect $24,000 per year. These funds will be deposited into a revenue
account and will be used to further firsHime home buyer efforts in the City of Chula Vista. The impact on staff
will be limited to referring potential RMCC applicants to AHA for information and assistance and will be absorbed
by the low and Moderate Income Housing Fund.
Attachments:
Exhibit A
Exhibit B
Consultant Agreement wilh Affordable Housing Applications, Inc.
Draft RMCC Informational and Application Material
J-.3
If
RESOLUTION NO. /513
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA APPROVING A CONSULTANT AGREEMENT
WITH AFFORDABLE HOUSING APPliCATIONS, INC (AHA) TO
IMPLEMENT AND ADMINISTER THE REISSUED MORTGAGE
CREDIT CERTIFICATE (RMCC) PROGRAM FOR THE CITY OF
CHULA VISTA
WHEREAS, on March 3, 1998 the Redevelopment Agency approved Resolution 1571
approving the implementation of a Reissued Mortgage Credit Certificate (RMCC) program and
authorizing staff to negotiate a consultant agreement with Affordable Housing Applications,
Inc.(AHA) to implement and administer the RMCC program; and
WHEREAS, the Redevelopment Agency approved waiving the consultant selection
process as outlined in Section 2.56.070 of the Chula Vista Municipal Code which allowed staff to
negotiate a consultant agreement with AHA.
WHEREAS, AHA is one of three RMCC program administrators in the state and is
the only housing consultant located within San Diego County and Orange County with the
qualifications necessary to successfully implement and administer a RMCC program.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of
Chula Vista does hereby find, order, determine and resolve to approve the consultant agreement
with AHA to implement and administer the Reissued Mortgage Credit Certificate (RMCC) program
for the City of Chula Vista as outlined in the consultant agreement attached as Exhibit A.
BE IT FURTHER RESOLVED that Community Development staff and the City
Attorney's Office are authorized to review and approve all RMCC implementation documents and
affidavits.
Presented by
Approved as to form by
&,~-
Chris Salomone
Director of Community Development
c:;;
"
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L~
[(JF) M:\HOME\COMMDEVlRESOS\RMCC2.RES (July 8, 1998 (11:20am)]
...3-4
EXHIBIT A
Agreement between
City of Chula Vista
and
Affordable Housing Applications, Inc.
for Consultant Services to Implement and Administer the Reissued
Mortgage Credit Certificate (RMCC) Program
This agreement ("Agreement"), dated July 14, 1998 for the
purposes of reference only, and effective as of the date last
executed unless another date is otherwise specified in Exhibit A,
Paragraph 1 is between the Agency-related entity as is indicated on
Exhibit A, paragraph 2, as such ("Agency"), whose business form is
set forth on Exhibit A, paragraph 3, and the entity indicated on
the attached Exhibit A, paragraph 4, as Consultant, whose business
form is set forth on Exhibit A, paragraph 5, and whose place of
business and telephone numbers are set forth on Exhibit A,
paragraph 6 ("Consultant"), and is made with reference to the
following facts:
Recitals
Whereas, Consultant has special expertise in administering a
Reissued Mortgage Credit Certificate (RMCC) program; and,
Whereas,on March 3, 1998 the Redevelopment Agency of the City
of Chula Vista authorized staff to waive the consultant selection
process for Consultant to administer the Reissued Mortgage Credit
Certificate (RMCC) program in accordance with Chula Vista Municipal
Code 82.56.070; and
Whereas, Consultant warrants and represents that they are
experienced and staffed in a manner such that they are and can
prepare and deliver the services required of Consultant to Agency
within the time frames herein provided all in accordance with the
terms and conditions of this Agreement;
NOW, THEREFORE, BE IT RESOLVED that the Agency and Consultant
do hereby mutually agree as follows:
1. Consultant's Duties
A. General Duties
Consultant shall perform all of the services described on the
attached Exhibit A, Paragraph 7, entitled "General Duties"; and,
B. Scope of Work and Schedule
In the process of performing and delivering said
Duties", Consultant shall also perform all of the
"General
services
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 1
-3-~
described in Exhibit A, Paragraph 8, entitled" Scope of Work and
Schedule", not inconsistent with the General Duties, according to,
and within the time frames set forth in Exhibit A, Paragraph 8, and
deliver to Agency such Deliverables as are identified in Exhibit A,
Paragraph 8, within the time frames set forth therein, time being
of the essence of this agreement. The General Duties and the work
and deliverables required in the Scope of Work and Schedule shall
be herein referred to as the "Defined Services". Failure to
complete the Defined Services by the times indicated does not,
except at the option of the Agency, operate to terminate this
Agreement.
C. Reductions in Scope of Work
Agency may independently, or upon request from Consultant,
from time to time reduce the Defined Services to be performed by
the Consultant under this Agreement. Upon doing so, Agency and
Consultant agree to meet in good faith and confer for the purpose
of negotiating a corresponding reduction in the compensation
associated with said reduction.
D. Additional Services
In addition to performing the Defined Services herein set
forth, Agency may require Consultant to perform additional
consulting services related to the Defined Services ("Additional
Services"), and upon doing so in writing, if they are within the
scope of services offered by Consultant, Consultant shall perform
same on a time and materials basis at the rates set forth in the
"Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate
fixed fee is otherwise agreed upon. All compensation for
Additional Services shall be paid monthly as billed.
E. Standard of Care
Consultant, in performing any Services under this agreement,
whether Defined Services or Additional Services, shall perform in
a manner consisten~ with that level of care and skill ordinarily
exercised by members of the profession currently practicing under
similar conditions and in similar locations.
F. Insurance
Consul tant represents that it and its agents, staff and
subconsultants employed by it in connection with the Services
required to be rendered, are protected against the risk of loss by
the following insurance coverages, in the following categories, and
to the limits specified, policies of which are issued by Insurance
Standard Two Party Agreement
Page 2
City of Chula Vista
RMCC Program
3-'"
Companies that have a Best's Rating of "A, Class V" or better, or
shall meet with the approval of the Agency:
Statutory Worker's Compensation
Liability Insurance coverage in the
attached Exhibit A, Paragraph 9.
Insurance and Employer's
amount set forth in the
Commercial General Liability Insurance including Business
Automobile Insurance coverage in the amount set forth in Exhibit A,
Paragraph 9, combined single limit applied separately to each
project away from premises owned or rented by Consultant, which
names Agency and Applicant as an Additional Insured, and which is
primary to any policy which the Agency may otherwise carry
("Primary Coverage"), and which treats the employees of the Agency
and Applicant in the same manner as members of the general public
("Cross-liability Coverage") .
Errors and Omissions insurance, in the amount set forth in
Exhibit A, Paragraph 9, unless Errors and Omissions coverage is
included in the General Liability policy.
G. Proof of Insurance Coverage.
(1) Certificates of Insurance.
Consultant shall demonstrate proof of coverage herein
required, prior to the commencement of services required under this
Agreement, by delivery of Certificates of Insurance demonstrating
same, and further indicating that the policies may not be canceled
without at least thirty (30) days written notice to the Additional
Insured.
(2) Policy Endorsements Required.
In order to demonstrate the Additional Insured Coverage,
Primary Coverage and Cross-liability Coverage required under
Consultant's Commercial General Liability Insurance Policy,
Consultant shall deliver a policy endorsement to the Agency
demonstrating same, which shall be reviewed and approved by the
Risk Manager.
H. Security for Performance.
(1) Performance Bond.
In the event that Exhibit A, at Paragraph 19, indicates
the need for Consultant to provide a Performance Bond (indicated by
a check mark in the parenthetical space immediately preceding the
subparagraph entitled "Performance Bond"), then Consultant shall
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 3
3-7
provide to the Agency a performance bond by a surety and in a form
and amount satisfactory to the Risk Manager or Agency Attorney'
which amount is indicated in the space adj acent to the term,
"Performance Bond", in said Paragraph 19, Exhibit A.
(2) Letter of Credit.
In the event that Exhibit A, at Paragraph 19, indicates
the need for Consultant to provide a Letter of Credit (indicated by
a check mark in the parenthetical space immediately preceding the
subparagraph entitled "Letter of Credit"), then Consultant shall
provide to the Agency an irrevocable letter of credit callable by
the Agency at their unfettered discretion by submitting to the bank
a letter, signed by the City Manager, stating that the Consultant
is in breach of the terms of this Agreement. The letter of credit
shall be issued by a bank, and be in a form and amount satisfactory
to the Risk Manager or City Attorney which amount is indicated in
the space adjacent to the term, "Letter of Credit", in said
Paragraph 19, Exhibit A.
(3) Other Security
In the event that Exhibit A, at Paragraph 19, indicates
the need for Consultant to provide security other than a
Performance Bond or a Letter of Credit (indicated by a check mark
in the parenthetical space immediately preoeding the subparagraph
entitled "Other Security"), then Consultant shall provide to the
Agency such other security therein listed in a form and amount
satisfactory to the Risk Manager or City Attorney.
I. Business License
Consultant agrees to obtain a business license from the City
and to otherwise comply with Title 5 of the Chula Vista Municipal
Code.
2. Duties of the Agency
A. ConsultaU.on and Cooperation
Agency shall regularly consult the Consultant for the purpose
of reviewing the progress of the Defined Services and Schedule
therein contained, and to provide direction and guidance to achieve
the objectives of this agreement. The Agency shall permit access
to its office facilities, files and records by Consultant
throughout the term of the agreement. In addition thereto, Agency
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 4
.3 -?
agrees to provide the information, data, items and materials set
forth on Exhibit A, Paragraph 10, and with the further
understanding that delay in the provision of these materials beyond
30 days after authorization to proceed, shall constitute a basis
for the justifiable delay in the Consultant's performance of this
agreement.
B. Compensation
Upon receipt of a properly prepared billing from Consultant
submitted to the Agency periodically as indicated in Exhibit A,
Paragraph 18, but in no event more frequently than monthly, on the
day of the period indicated in Exhibit A, Paragraph 18, Agency
shall compensate Consultant for all services rendered by Consultant
according to the terms and conditions set forth in Exhibit A,
Paragraph 11, adjacent to the governing compensation relationship
indicated by a "checkmark" next to the appropriate arrangement,
subject to the requirements for retention set forth in paragraph 19
of Exhibit A, and shall compensate Consultant for out of pocket
expenses as provided in Exhibit A, Paragraph 12.
All billings submitted by Consultant shall contain sufficient
information as to the propriety of the billing to permit the Agency
to evaluate that the amount due and payable thereunder is proper,
and shall specifically contain the Agency's account number
indicated on Exhibit A, Paragraph 18 @ to be charged upon making
such payment.
3. Administration of Contract
Each party designates the individuals ("Contract
Administrators") indicated on Exhibit A, Paragraph 13, as said
party's contract administrator who is authorized by said party to
represent them in the routine administration of this agreement.
4. Term.
The term of this Agreement shall commence on the Effective
Date and shall terminate on July 1, 2000 unless otherwise earlier
terminated in accordance with the terms hereof.
5. Liquidated Damages
The provisions of this section apply if a Liquidated Damages
Rate is provided in Exhibit A, Paragraph 14.
It is acknowledged by both parties that time is of the essence
in the completion of this Agreement. It is difficult to estimate
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 5
3-9
the amount of damages resulting from delay in performance. The
parties have used their judgment to arrive at a reasonable amount
to compensate for delay.
Failure to complete the Defined Services within the allotted
time period specified in this Agreement shall result in the
following penalty: For each consecutive calendar day in excess of
the time specified for the completion of the respective work
assignment or Deliverable, the consultant shall pay to the Agency,
or have withheld from monies due, the sum of Liquidated Damages
Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages
Rate") .
Time extensions for delays beyond the consultant's control,
other than delays caused by the Agency, shall be requested in
writing to the Agency's Contract Administrator, or designee, prior
to the expiration of the specified time. Extensions of time, when
granted, will be based upon the effect of delays to the work and
will not be granted for delays to minor portions of work unless it
can be shown that such delays did or will delay the progress of the
work.
6. Financial Interests of Consultant
A. Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Paragraph 15, as an
"FPPC filer", Consultant is deemed to be a "Consultant" for the
purposes of the Political Reform Act conflict of interest and
disclosure provisions, and shall report economic interests to the
City Clerk on the required Statement of Economic Interests in such
reporting categories as are specified in Paragraph 15 of Exhibit A,
or if none are specified, then as determined by the City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant shall not make, or participate in making or in
any way attempt to use Consultant's position to influence a
governmental decision in which Consultant knows or has reason to
know Consultant has a financial interest other than the
compensation promised by this Agreement.
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 6
,3-(0
C. Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant warrants and represents that Consultant has
diligently conducted a search and inventory of Consultant's
economic interests, as the term is used in the regulations
promulgated by the Fair Political Practices Commission, and has
determined that Consultant does not, to the best of Consultant's
knowledge, have an economic interest which would conflict with
Consultant's duties under this agreement.
D. Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant further warrants and represents that Consultant
will not acquire, obtain, or assume an economic interest during the
term of this Agreement which would constitute a conflict of
interest as prohibited by the Fair Political Practices Act.
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant further warrants and represents that Consultant
will immediately advise the City Attorney of Agency if Consultant
learns of an economic interest of Consultant's which may result in
a conflict of interest for the purpose of the Fair Political
Practices Act, and regulations promulgated thereunder.
F. Specific warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant,
nor Consultant's immediate family members, nor Consultant's
employees or agents ("Consultant Associates") presently have any
interest, directly or indirectly, whatsoever in any property which
may be the subject matter of the Defined Services, or in any
property within 2 radial miles from the exterior boundaries of any
property which may be the subject matter of the Defined Services,
("Prohibited Interest"), other than as listed in Exhibit A,
Paragraph 15.
Consultant further warrants and represents that no promise of
future employment, remuneration, consideration, gratuity or other
reward or gain has been made to Consultant or Consultant Associates
in connection with Consultant's performance of this Agreement.
Consultant promises to advise Agency of any such promise that may
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 7
...:3 - ( I
be made during the Term of this Agreement, or for 12 months
thereafter.
Consultant agrees that Consultant Associates shall not acquire
any such Prohibited Interest within the Term of this Agreement, or
for 12 months after the expiration of this Agreement, except with
the written permission of Agency.
Consultant may not conduct or solicit any business for any
party to this Agreement, or for any third party which may be in
conflict with Consultant's responsibilities under this Agreement,
except with the written permission of Agency.
7. Hold Harmless
Consultant shall defend, indemnify, protect and hold harmless
the Agency, its elected and appointed officers and employees, from
and against all claims for damages, liability, cost and expense
(including without limitation attorneys' fees) arising out of the
conduct of the Consultant, or any agent or employee, subcontrac-
tors, or others in connection with the execution of the work
covered by this Agreement, except only for those claims arising
from the sole negligence or sole willful misconduct of the Agency,
its officers, or employees. Consultant's indemnification shall in-
clude any and all costs, expenses, attorneys' fees and liability
incurred by the Agency, its officers, agents, or employees in
defending against such claims, whether the same proceed to judgment
or not. Further, Consultant at its own expense shall, upon written
request by the Agency, defend any such suit or action brought
against the Agency, its officers, agents, or employees. Consult-
ants' indemnification of Agency shall not be limited by any prior
or subsequent declaration by the Consultant.
8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to fulfill in a
timely and proper manner Consultant's obligations under this
Agreement, or if Consultant shall violate any of the covenants,
agreements or stipulations of this Agreement, Agency shall have the
right to terminate this Agreement by giving written notice to
Consultant of such termination and specifying the effective date
thereof at least five (5) days before the effective date of such
termination. In that event, all finished or unfinished documents,
data, studies, surveys, drawings, maps, reports and other materials
prepared by Consultant shall, at the option of the Agency, become
the property of the Agency, and Consultant shall be entitled to
receive just and equitable compensation for any work satisfactorily
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 8
...3 - I.;;L
completed on such documents and other materials up to the effective
date of Notice of Termination, not to exceed the amounts payable
hereunder, and less any damages caused Agency by Consultant's
breach.
9. Errors and Omissions
In the event that the Agency Administrator determines that the
Consultants' negligence, errors, or omissions in the performance of
work under this Agreement has resulted in expense to Agency greater
than would have resulted if there were no such negligence, errors,
omissions, Consultant shall reimburse Agency for any additional
expenses incurred by the Agency. Nothing herein is intended to
limit Agency's rights under other provisions of this agreement.
10. Termination of Agreement for Convenience of Agency
Agency may terminate this Agreement at any time and for any
reason, by giving specific written notice to Consultant of such
termination and specifying the effective date thereof, at least
thirty (30) days before the effective date of such termination. In
that event, all finished and unfinished documents and other
materials described hereinabove shall, at the option of the Agency,
become Agency's sole and exclusive property. If the Agreement is
terminated by Agency as provided in this paragraph, Consultant
shall be entitled to receive just and equitable compensation for
any satisfactory work completed on such documents and other
materials to the effective date of such termination. Consultant
hereby expressly waives any and all claims for damages or
compensation arising under this Agreement except as set forth
herein.
11. Assignability
The services of Consultant are personal to the Agency, and
Consultant shall not assign any interest in this Agreement, and
shall not transfer any interest in the same (whether by assignment
or novation), without prior written consent of Agency. Agency
hereby consents to the assignment of the portions of the Defined
Services identified in Exhibit A, Paragraph 17 to the
subconsultants identified thereat as "Permitted Subconsultants".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms,
designs, plans, procedures, systems and any other materials or
properties produced under this Agreement shall be the sole and
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 9
--3'-/3
exclusive property of Agency. No such materials or properties
produced in whole or in part under this Agreement shall be subject
to private use, copyrights or patent rights by Consultant in the
United States or in any other country without the express written
consent of Agency. Agency shall have unrestricted authority to
publish, disclose (except as may be limited by the provisions of
the Public Records Act), distribute, and otherwise use, copyright
or patent, in whole or in part, any such reports, studies, data,
statistics, forms or other materials or properties produced under
this Agreement.
13. Independent Contractor
Agency is interested only in the results obtained and
Consultant shall perform as an independent contractor with sole
control of the manner and means of performing the services required
under this Agreement. Agency maintains the right only to reject or
accept Consultant's work products. Consultant and any of the
Consul tant 's agents, employees or representatives are, for all
purposes under this Agreement, an independent contractor and shall
not be deemed to be an employee of Agency, and none of them shall
be entitled to any benefits to which Agency employees are entitled
including but not limited to, overtime, retirement benefits,
worker's compensation benefits, injury leave or other leave
benefits. Therefore, Agency will not withhold state or federal
income tax, social security tax or any other payroll tax, and
Consultant shall be solely responsible for the payment of same and
shall hold the Agency harmless with regard thereto.
14. Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this
agreement, against the Agency unless a claim has first been
presented in writing and filed with the Agency and acted upon by
the Agency in accordance with the procedures set forth in Chapter
1.34 of the Chula Vista Municipal Code, as same may from time to
time be amended, the provisions of which are incorporated by this
reference as if fully set forth herein, and such policies and
procedures used by the Agency in the implementation of same.
Upon request by Agency, Consultant shall meet and confer in
good faith with Agency for the purpose of resolving any dispute
over the terms of this Agreement.
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 10
-3-/c./
15. Attorney's Fees
Should a dispute arising out of this Agreement result in
litigation, it is agreed that the prevailing party shall be
entitled to recover all reasonable costs incurred in the defense of
the claim, including costs and attorney's fees.
16. Statement of Costs
In the event that Consultant prepares a report or document, or
participates in the preparation of a report or document in
performing the Defined Services, Consultant shall include, or cause
the inclusion of, in said report or document, a statement of the
numbers and cost in dollar amounts of all contracts and
subcontracts relating to the preparation of the report or document.
17. Miscellaneous
A. Consultant not authorized to Represent Agency
Unless specifically authorized in writing by Agency, Consult-
ant shall have no authority to act as Agency's agent to bind Agency
to any contractual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Salesman
If the box on Exhibit A, Paragraph 16 is marked, the
Consultant and/or their principals is/are licensed with the State
of California or some other state as a licensed real estate broker
or salesperson. Otherwise, Consultant represents that neither
Consultant, nor their principals are licensed real estate brokers
or salespersons.
C. Notices
All notices, demands or requests provided for or permitted to
be given pursuant to this Agreement must be in writing. All
notices, demands and requests to be sent to any party shall be
deemed to have been properly given or served if personally served
or deposited in the United States mail, addressed to such party,
postage prepaid, registered or certified, with return receipt
requested, at the addresses identified herein as the places of
business for each of the designated parties.
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 11
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lr
D. Entire Agreement
This Agreement, together with any other written document
referred to or contemplated herein, embody the entire Agreement and
understanding between the parties relating to the subject matter
hereof. Neither this Agreement nor any provision hereof may be
amended, modified, waived or discharged except by an instrument in
writing executed by the party against which enforcement of such
amendment, waiver or discharge is sought.
E. Capacity of Parties
Each signatory and party hereto hereby warrants and represents
to the other party that it has legal authority and capacity and
direction from its principal to enter into this Agreement, and that
all resolutions or other actions have been taken so as to enable it
to enter into this Agreement.
F. Governing Law/Venue
This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action
arising under or relating to this Agreement shall be brought only
in the federal or state courts located in San Diego County, State
of California, and if applicable, the Agency of Chula Vista, or as
close thereto as possible. Venue for this Agreement, and
performance hereunder, shall be the Agency of Chula Vista.
[end of page. next page is signature page.]
City of Chula Vista
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Standard Two Party Agreement
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J-/~
Signature Page
to
Agreement between the Redevelopment Agency of the City of Chula
Vista and Affordable Housing Application, Inc.
for Implementation and Administration of the Reissued Mortgage
Credit Certificate (RMCC) Program
IN WITNESS WHEREOF, Agency and Consultant have executed this
Agreement thereby indicating that they have read and understood
same, and indicate their full and complete consent to its terms:
Dated:
19
City of Chula Vista
by:
Shirley Horton, Mayor
Attest:
Beverly Authelet, City Clerk
Approved as to form:
John M. Kaheny, City Attorney
Dated:
Affordable Housing
Applications, Inc.
By:
Kathy Stone, Owner
By:
Jim Hunt, Owner
Exhibit List to Agreement
( x ) Exhibit A.
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 13
,3-/7
Exhibit A
Agreement between
Redevelopment Agency of the City of Chula Vista
and
Affordable Housing Applications, Inc.
1. Effective Date of Agreement: July 14, 1998
2. Agency-Related Entity:
() City of Chula Vista, a municipal chartered corporation
of the State of California
(X ) Redevelopment Agency of the City of Chula Vista, a
political subdivision of the State of California
() Industrial Development Authority of the City of Chula
Vista, a
( )
Other:
[insert business form]
, a
("Agency" )
3. Place of Business for Agency:
Redevelopment Agency of the City of Chula Vista
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: Affordable Housing Applications, Inc.
5. Business Form of Consultant:
( ) Sole Proprietorship
(x ) Partnership
( ) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
9620 Chesapeake Drive, Suite
San Diego, California 92123
Voice Phone (619) 292-3300
Fax Phone (619) 292-5199
101
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 14
..,i-( is
7. General Duties:
A. To provide consultant services to implement and
administer the Reissued Mortgage Credit Certificate
(RMCC) program for the Redevelopment Agency of the City
of Chula Vista.
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
The following items will be considered the Scope of Work to be
provided by Consultant for the implementation and administration of
the Reissued Mortgage Credit Certificate (RMCC) Program.
1. RMCC Program Setup. Consultant will setup and implement
the RMCC and will provide the following:
1.1. Forms and Documents. All necessary processing
forms, RMCC documents, certificates and affidavits
shall be designed and provided to MCC holders and
lenders. These will include the RMCC Application
Package, the RMCC Certificate, the Exhibit A to the
RMCC; the Applicant Amortization Calculation Table,
the Lender Participation Agreement, and RMCC
Processing and Instructional Package for
participating lenders, and a tax information
package for RMCC recipients. All forms and
documents prepared for the City of Chula Vista RMCC
program shall be subject to City approval.
1.2 Information and Marketing Materials. Consultant
will provide marketing materials which will include
general information about RMCCs; illustrations of
how they work; answers to the most frequently asked
questions about the program, underwriting
instructions for lenders, and a list of lenders
participating in the program. Marketing material
will. be prepared and sent to all City of Chula
Vista MCC holders and participating lenders.
1.3 Record Keeping, Tracking and Reporting System.
Consultant will set up software created especially
for Consultant to store, tract and report on all
aspects of the City of Chula Vista RMCC Program.
All information shall be available in a well
organized, comprehensive printed or digital report
format. Consultant will expand the computer
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 15
..,j-/9
network to accommodate the City of Chula Vista RMCC
processing and reporting requirements.
2. RMCC Program Administration. Consultant will be
available during normal working hours to accept and
process RMCC application packages; receive and deposit
all program income; answer written, faxed, phoned or
personal inquiries; provide educational, operational and
marketing materials; and to record, track, and report on
RMCC program business. Outside the office, lender
training sessions and other public information
presentations will be given. Cooperative working
relationships will be forged and maintained with all
participating jurisdictions, as well as the many
organizations which comprise the industry of affordable
home purchase and refinancing.
2.1. Marketing Program. Consultant shall provide a
marketing program to educate MCC holders, Realtors,
lenders, public interest groups and organizations
on the RMCC program. Consultant shall make public
presentations as necessary, and Consultant shall
leverage its staff resources by providing training
on the RMCC program and effective marketing
techniques to interested lender representatives,
city representatives and interested members of the
community.
2.2. RMCC Processing. The MCC holder will apply for the
RMCC after the close of the new loan which is the
subject of the refinance. The MCC holder will
submit (normally through their lender) a package
consisting of the required completed RMCC forms,
the application fee, and various documents related
to both the old (refinanced) and the new loan,
including the Note and Deed of Trust, Preliminary
Title Report; Loan Application; HUD Settlement
Statement and Mortgage Credit Certificate.
The Consultant will review the documents for
compliance with IRS regulations and the City of
Chula Vista RMCC Program policy, then issue the
RMCC to the home owner. Compliance will be
measured against several tests to include, but not
limited to:
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 16
....3 -...L 0
2.2.1.
Consistency in titling;
2.2.2
2.2.3.
2.2.4.
2.2.5.
2.2.6.
2.2.7.
New Certified Indebtedness Amount
limited to the balance of the old
loan upon closing;
Accuracy in completion of reissued
Credit Cap Limit calculation table
and Certified Indebtedness Amount
Ratio;
Cash out of the new
included in the
computation;
loan not to be
new credi t
Eligibility of the original loan and
MCC for re-issuance;
Eligibility of the lender to
participate in the RMCC program;
Consistency in occupation of
property as primary residence.
Consultant will review the package within one week and
issue either a denial, an acceptance or a conditional
acceptance of the package. Once the package is accurate
and complete and eligibility has been verified, the
Consultant will reissue the home owner's original MCC,
according to program and IRS regulations. A copy of the
reissued MCC (if desired) and a reissuance report will be
sent to the City of Chula Vista administrative office.
2.3 Lender Participation and Training. Only funding lenders
enrolled in the current MCC program will be eligible to
participate in the RMCC program. The enrolled lender
will be required to:
2.3.1.
2.3.2.
2.3.3
Execute a RMCC Lender Participation
Agreement;
Pay an annual enrollment fee for
RMCC training and materials;
Designate one representative from
the company's compliance division to
participate in the initial RMCC
training session and take
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 17
J-02(
responsibility for providing RMCC
training for additional employees of
the company.
Once the lending company is enrolled in the RMCC program
and has received the RMCC document and instructions
package, the lender can request the basic RMCC training.
Follow-up information will be available upon request by
the lender during the Consultant's normal business hours.
Additional basic training sessions will be provided for
a fee. Upon completing the training the lender will be
eligible to submit a RMCC application package for review.
2.4. Reporting and Accounting. Consultant shall maintain
accurate files and records in both digital and paper form
to include RMCC processing files and participating lender
files. A unique program code shall be issued to each
RMCC applicant that will also indicate the jurisdiction
in which the RMCC was issued. RMCC recipient information
will include: name(s); residence address; new loan amount
and interest rate; old loan amount and interest rate; and
date of RMCC issuance. Consultant will monitor and
complete all IRS reporting requirements.
Consultant shall collect and remit to the City of Chula
Vista the City's share of all program income in the
amount of $250.00 per RMCC application. All revenues
will be tracked by computer, with immediate access
provided to program monitors and auditors. Consultant
will track all lenders participating in the program
including: Name, location; phone/fax information; status
in the program (active-inactive) contact person (s) ;
persons trained; membership fee accounting and RMCCs
issued and in process.
B. Date for Commencement of Consultant Services:
(X) Same as Effective Date of Agreement
( ) Other:
C. Dates or Time Limits for Delivery of Deliverables:
Funds collected in behalf of the City of Chula Vista
shall be forwarded to the City on a quarterly basis on or
before the dates outlined below:
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 18
J -,;) d..-
First Quarter - 9-30-98
Second Quarter - 12-31-98
Third Quarter - 3-31-99
Fourth Quarter 6-30-99
D. Date for completion of all Consultant services:
July 1, 2000.
9. Insurance Requirements:
(X) Statutory Worker's Compensation Insurance
() Employer's Liability Insurance coverage: $1,000,000.
(x) Commercial General Liability Insurance: $1,000,000.
() Errors and Omissions insurance: None Required (included
in Commercial General Liability coverage) .
Errors and Omissions Insurance: $250,000 (not included
in Commercial General Liability coverage) .
10. Materials Required to be Supplied by Agency to Consultant:
Database of current and existing MCC holders
11. Compensation:
Consultant will provide the proposed setup and administrative
services for the price outlined below:
11.1.
Program Setup. The City of Chula Vista will
provide Consultant with a $2,000 fixed fee for
program setup and start up. This fee will
cover all the program setup and implementation
tasks as outlined in the Scope of Work and
shall be paid to Consultant upon Agency
approval of the agreement.
11.2.
RMCC Program Income and Distribution.
Consultant will provide RMCC program
administration services at outlined below:
11.2.1.
RMCC Application Fee: Consultant
will collect $500 per applicant to
apply for a RMCC to be distributed
as follows: $250 to Consultant for
processing and $250 to Agency.
This fee will be collected by check
made payable to Consultant.
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 19
J~3
11.2.2.
11.2.3.
Consultant will forward to Agency,
on a quarterly basis, Agency's share
of the RMCC buyer's fee.
Lender Fee. An annual participation
fee will be assessed on funding
lenders to participate in the RMCC
program. This fee will be $100
payable to Consultant and will be in
addition to the $100 annual re-
enrollment fee for the MCC program,
to be paid to Agency. Fee to be
paid by lenders to Consultant for
participating in the RMCC program
for Chula Vista.
Training Fees. Consultant will
provide RMCC training for
representatives of the lending
community at a cost of $25 per
person. This fee will be paid to
Consultant from lenders receiving
training for the RMCC program for
Chula Vista.
12. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant
in the performance of services herein required, Agency shall pay
Consultant at the rates or amounts set forth below:
(X) None, the compensation includes all costs.
13. Contract Administrators:
Agency:
Judith Atwood, Community Development Specialist, City of Chula
Vista Community Development Department, Legislative Office
Building, 430 Davidson Street, Suite B, Chula Vista,
California.
Consultant:
Affordable Housing Applications, Inc.
14. Liquidated Damages Rate: Not Applicable
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 20
Tr
~ -e:2 <I
15. Statement of Economic Interests, Consultant Reporting
Categories, per Conflict of Interest Code:
x) Not Applicable. Not an FPPC Filer.
FPPC Filer
16.
Consultant is Real Estate Broker and/or Salesman
Not Applicable.
17. Permitted Subconsultants:
Not Applicable
18. Payment Processing:
A. Consultant's Payment of RMCC application fee to be paid to
the Agency for the following period of time:
( Monthly
(x Quarterly
( Other:
B. Day of the Period for submission of Consultant's Payment
to Agency:
) First of the Month
) 15th Day of each Month
x) End of the Month
) Other:
C. Agency's Account Number: Not Applicable.
19. Security for Performance
Not Applicable
City of Chula Vista
RMCC Program
Standard Two Party Agreement
Page 21
-3 -c2 :s-
Exhi bit B
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By;
_ '~' _ Affordable Housing Applications, Inc.
~ ,9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Fax 619.292.5199
VVednesday, April 08, 1998
Mr. and Mrs. MCC Holder
Happiness Lane
ChulaVista,CA 91911
Dear Mr. and Mrs. Holder:
VVhen you purchased your home, you received a Mortgage Credit Certificate
(MCC) to help you meet your monthly mortgage obligations. You were informed
at that time that if you refinanced your mortgage, your MCC would become void.
Now there is good news about a change in that policy.
The City of Chula Vista is announcing a new Reissued Mortgage Credit
Certificate (RMCC) Program which will allow you to refinance your mortgage and
keep the MCC! Provided that your refinancing is approved under the new
program, you will be allowed to "trade in" your old MCC certificate, and receive a
new 20% MCC which will pertain to your new loan. VVhen you refinance, you will
even be allowed to borrow more than you currently owe on your first mortgage.
An adjustment will be made to your paper work to ensure that you do not take
more of a credit than you would have been allowed under your original MCC.
Please see "Questions and Answers" on the reverse, and the enclosed list of
enrolled lenders. Feel free to call the RMCC Program Office with any questions
at (619) 292-3300, or leave your message on (619) 292-3303. VVe look forward
to helping you retain your MCC while taking advantage of today's lower interest
rates!
The City of Chula Vista has arranged to have Affordable Housing Applications, Inc. administer the
Reissued Mortgage Credit Certificate Program on behalf of the City.
J-c:2(P
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Inc.
~ ", 9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Fax 619.292.5199
Questions and Answers On the Reissued MCC Program
1. Can I refinance and keep my MCC? Under IRS regulations, the City (within certain limitations) can reissue
an MCC to MCC Holders who refinance. The reissuance of an MCC is not automatic. You will need to apply through
a Participating Lender who is funding your refinancing, and the City cannot guarantee that any particular MCC Holder
will be issued a new certificate.
2. What If my Income has gone up? No problem. You do not need to requalify under the income limtts or the
home purchase price limits.
3. I have married since I first got my MCC. Does that affect my eligibility? No. A change in marital status
does not affect your eligibility for a Reissued MCC. However, the Reissued MCC will be in your name only, showing
your original name and any name change as a result of the marriage.
4. Can I refinance for more than the original loan amount or include closing costs In the new loan? Yes.
The new loan can be for more than the remaining principal balance of the Old Loan. However, the new Certified
Indebtedness Amount is limited to the outstanding balance of the Certified Indebtedness Amount of the Old Loan (the
amount you still owe on the date of refinance). If your New Loan is for more than the Certified Indebtedness Amount,
you will be provided with a percentage to be applied to your mortgage interest before figuring the federal tax credit.
5. What Is the Certified Indebtedness Amount? The Certified Indebtedness Amount is that portion of your loan
amount on which you calculate your federal income tax credit. Under the City's MCC Program, you can claim a tax
credit of 20 percent of the interest you paid on the Certified Indebtedness Amount. In all cases with respect to original
MCCs issued by the City program, the Certified Indebtedness Amount and the outstanding principal balance of your
Old Loan are the same. If you get a Reissued MCC, the Certified Indebtedness Amount and the original principal
amount of your New Loan may differ. The City will calculate for you the percentage difference, if any, between the
New Loan amount and the new Certified Indebtedness Amount. Before you calculate your tax credit, you will have to
multiply your total mortgage interest amount by that percentage.
6. How long Is the Reissued MCC good for? The Reissued MCC is valid only until the date that the original
loan was due. If you got a 30-year loan in June 1990, your last payment would have been due 30 years later in 2020.
If you refinance in 1999 with another 30-year loan, your last payment will be due in 2029 but the MCC will be valid
only until June 2020. You will receive tax instructions regarding this.
7. What is the application fee? There is a non-refundable processing fee, set by the issuing jurisdiction,
to apply for the RMCC Program. In Chula Vista the fee is $500.
8. Where can I go to refinance and get a Reissued MCC? Normally, the RMCC application is submitted
through the re-fi funding lender who is enrolled and trained in the Reissued MCC Program. A lender may participate
in the RMCC program if they are enrolled in the "regula(' MCC program, they sign a RMCC Lender Participation
Agreement and pay an annual fee to the City. A former MCC holder who has lost their MCC due to a refinancing in
the past may be eligible to apply directly to the Program Office without going through the lender. Call the Program
Office for information on the "Direct Application".
9. What If I already refinanced my MCC loan In the past, and now I want to refinance again. Can I do that
and get my MCC credit back? Possibly. But you would have to apply for your MCC to be reissued first for the
original refinancing loan, then apply for that reissued MCC to be reissued for the new refinancing loan. Both
refinancing transactions would have to be eligible under the RMCC program.
(end)
...3-0<..7
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Inc
~ ,9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Fax 619.292.5199
REISSUED MORTGAGE CREDIT CERTIFICATE
Reissued Mortgage Credit Certificate No. <<RmccNo))
For purposes of this Certificate, the term Original Loan means the loan to which the original Mortgage Credit
Certificate is related. Additionally, the term Existing Mortgage Credit Certificate means the certificate allocable to
the Original Loan, or to the last refinancing loan on this property for which a Mortgage Credit Certificate was
reissued. .
I. This reissued mortgage credit certificate No. <<RmccNm> ("the Reissued Mortgage Credit Certificate") reissued
on <<Rmccdate>> entirely replaces MCC No. <<MCCNm> (the "Existing Mortgage Credit Certificate") originally
issued on <<MCCDate>> by the City of Chula Vista, California (the "City"): TIN 95-6000690 and, if applicable,
completely replaces any reissued Mortgage Credit Certificate in a series ofrefmancings of the Existing Mortgage
Credit Certificate.
2. This Reissued Certificate is issued by the City ofChula Vista Redevelopment Agency, 276 4th Avenue, San
Diego, CA, 91910.
3. The Existing Mortgage Credit Certificate for this residence, No. <<MCCNm> , (and any reissued Mortgage Credit
Certificate in a series ofrefmancings) is null and void.
4. This Reissued Mortgage Credit Certificate is issued to:
Last Name ofHolder(s) of Existing
Mortgage Credit Certificate
First Name of Holder(s) of Existing
Mortgage Credit Certificate
SS#
((Lastname h>
((Lastname2>>
((Firstname 1>>
((Firstname2>>
((Middle 1>>
((Middle2>>
<<SSI>>
<<SS2>>
5. This Reissued Mortgage Credit Certificate shall entitle Holder(s) to an annual credit (the "Reissued Credit") as
described below and in Exhibit A with respect to the Certified Indebtedness Amount of <<PrinPayoffi> of the new
loan (the "New Loan"). The Certified Indebtedness Amount of the New Loan the subject of this Reissued
Mortgage Credit Certificate does not exceed the outstanding principal balance of the certified indebtedness
amount of the Old Loan (or with respect to a series ofrefmancings what would have been such balance if the
Old Loan had not been refmanced) specified under the Existing Mortgage Credit Certificate and with respect to a
series ofrefmancings the outstanding principal balance of the certified indebtedness amount of the last loan in
the series, each as of the date of closing of the New Loan. The New Loan consists offmancing received from:
Participating Lender Name and Address
<<Lendem
(den streeD>
<<LenCitySD>
<<lenzip))
Reissued Credit is the Lesser of:
(a) Total Interest Paid on New Loan for Taxable Year x <<NewLnRate>> X <<MCCRate>> (as defmed in Exhibit A)
OR
(b) The Reissued Credit Cap Limit (as defmed in Exhibit A)
Chula Vista RMCC Cert. Page I of2
J-~
6. This Reissued Mortgage Credit Certificate is reissued to the Holder(s) of an Existing Mortgage Credit Certificate
(or Reissued Mortgage Credit Certificate) with respect to the same property (the "Residence") to which the
Existing Mortgage Credit Certificate (or Reissued Mortgage Credit Certificate) relates. This property is located
at:
Targeted Area
Qualified Residence Address:
<<PropertyStreeb,
<<PropCirySm<<Propz~>>
Original Acquisition Cost:
No
((homecosb,
7. Regarding the purchase of the Residence subject to the issuance of the Existing Mortgage Credit Certificate, the
Average Area Purchase Price for the area in which this residence is located is ((avourorice)). The acquisition
cost is ((homecosb). (These figures are the same as those calculated with respect to the Existing Mortgage
Credit Certificate).
8. This Reissued Mortgage Credit Certificate meets the requirements of:
a. Temporary IRS Regulation Section 1.25-3T(d) relating to residence requirement;
b. Temporary IRS Regulation Section 1.25-3T(e) relating to 3-year requirement;
c. Temporary IRS Regulation Section 1.25-3T(i) relating to prohibited mortgages;
d. Temporary IRS Regulation Section 1.25-3T(j) relating to particular lenders;
e. Temporary IRS Regulation Section 1.25-3T(k) relating to allocations to particular developments;
f. Temporary IRS Regulation Section 1.25-3T(n) relating to interest paid to related persons;
g. Temporary IRS Regulation Section 1.25-3T(p) relating to rules regarding the exception in the case of
refmancing mortgages;
h. Final IRS Regulations relating to rules regarding the Reissuance of Mortgage Credit Certificates
effective December 15,1996; and
i. Section 143 (t) relating to the income requirements.
9. The New Loan was closed (recording date) on ((reficlose>>.
10. This Reissued Mortgage Credit Certificate is effective as of the date the New Loan was closed, and shall
EXPIRE upon the earlier of revocation, repayment of the certified indebtedness amount of the New Loan
(including by sale or ref mance, including any deemed "refmancing" as a result of an alteration of the terms,
including an extension of maturity or change in interest rate, of the New Loan), or transfer of ownership in the
Residence or when the Residence ceases to be the principal residence of the Holder(s). This Reissued Mortgage.
Credit Certificate may not be transferred. In no event may the Term of the Reissued Mortgage Credit
Certificate extend past the maturity date of the Original Loan.
Original Scheduled Date of Final Payment of the Old Loan is (<lastomtoldlm, (absent refmancing).
Scheduled date of Final Payment of Last Loan in a series ofrefmancings (if different from Old Loan) is
<<Iastomtseriesln>>.
Date of Final Payment of the New Loan is (<lastomtoewlm,.
11. If the City becomes aware that a material misstatement, whether negligent or intentional, has been made in
application for this Reissued Mortgage Credit Certificate, this Reissued Mortgage Credit Certificate shall be
revoked. Further, if such material misstatement shall be due to fraud, this Reissued Mortgage Credit Certificate
shall automatically be null and void without need for further action on the part of the City.
Under penalty of perjury, I hereby declare that to the best of my knowledge and belief the determinations
required by the Temporary Regulations, as identified in paragraphs 7, 8, and 9 of this certificate, have been
made.
Administrator
Reissued Mortgage Credit Certificate Program
Chula Vista RMCC Cert. Page 2 of 2
J - oL9
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Inc.
, ,9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Fax 619.292.5199
EXHIBIT A to Reissued Mortgage Credit Certificate
IRS regulations require that the holder of a reissued MCC may not (in any given year) take a mortgage credit which is larger
than that which they would have been allowed to take with the original MCC. Since nearly all refinancings involve converting to
a lower interest rate, it is assumed that less interest per year will be paid on the refinanced loan, and the mortgage credit, if
any, will also be decreased. Thus, exceeding the original credit should not be a problem. Nevertheless, the IRS has
established a three step safeguard in the RMCC program to ensure that the reissued credit will never exceed the original
credit it is replacing.
This Exhib~ A explains the three step safeguard, and must be kept with your reissued MCC. You or your tax preparer must
take these three steps in figuring your reissued mortgage credit each year. The first two steps provide a formula which will
scale your new loan, and thus your new credit, down to the size of the principal and mortgage credit of your old loan. The
third step provides a table which calculates the maximum amount of credit you would have received each year under your old
financing and MCC. After you have figured your RMCC credit, and before you enter that amount on your tax returns, check
this table to make sure the amount does not exceed the amount for that year on the calculation table. The table is also
important because ~ reminds you are entitled to NO mortgage credit after the year in which your original loan and MCC would
have closed out.
THE REISSUED CREDIT = THE LESSER OF:
(a) The Reissued Credit derived from the formula below
OR
(b) The Reissued Credit Cap Limit for the Applicable Taxable Year (See Attached Calculation Table).
STEP ONE: Fiaurina the RMCC Ratio
The first step is to compute your RMCC Ratio which will be needed for Step Two. This is found by dividing the old loan
principal payoff amount by your new loan amount. (If the two amounts are equal, or you are borrowing less than the amount
you are repaying, your ratio is one or 100%, and does not alter the computation of the new credit in Step Two.)
Principal Balance Payoff Amount of the Old Loan $
Divided by
Original Principal Amount of the New Loan
$
=
% RMCC Ratio
STEP TWO: Fiaurina the Tax Credit
The Reissued Cred~ for any Taxable Year is calculated as follows:
(a) Total Interest Paid on New Loan for Taxable Year
x
RMCC Ratio
%
x
Original MCC Credit Rate (20%)
(RMCC Credit)
=
Note: If you are refinancing a refinancing loan (not the original MCC-related loan), the term "old loan"
refers to the loan being replaced by the refinancing which is the subject of this application.
STEP THREE: Check the Attached Calculation Table For Maximum Yearlv Credit
ExhiM A-Page 1 of 2
J-.30
11
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Inc.
~ ,9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Pax 619.292.5199
Reissued Mortgage Credit Certificate
Calculation of Reissued Credit Cap Limit
Taxable Year Annual Interest to be
(complete for each Paid or Accrued on
Taxable Year or Outstanding Principal
portion thereof Amount of Certified Certificate Reissued
the NEW Loan is Indebtedness Amount Credit Credit
to be outstanding) of OLD Loan (or Hypothetical Rate . Cap Limit
Loan)
Calendar No. of
Year Months
1996 $ x 20% = $
1997 $ x 20% = $
1998 $ x 20% = $
1999 $ x 20% = $
2000 $ x 20% = $
2001 $ x 20% = $
2002 $ x 20% = $
2003 $ x 20% = $
2004 $ x 20% = $
2005 $ x 20% = $
2006 $ x 20% = $
2007 $ x 20% = $
2008 $ x 20% = $
2009 $ x 20% = $
2010 $ x 20% = $
2011 $ x 20% = $
2012 $ x 20% = $
2013 $ x 20% = $
2014 $ x 20% = $
2015 $ x 20% = $
2016 $ x 20% = $
2017 $ x 20% = $
2018 $ x 20% = $
2019 $ x 20% = $
2020 $ x 20% = $
2021 $ x 20% = $
2022 $ x 20% = $
2023 $ x 20% = $
2024 $ x 20% = $
2025 $ x 20% = $
2026 $ x 20% = $
2027 $ x 20% = $
2028 $ x 20% = $
2029 $ x 20% = $
2030 $ x 20% = $
2031 $ x 20% = $
CAUTION: REISSUED CREDIT CANNOT EXCEED REISSUED CREDIT CAP LIMIT.
Exhibl A-Page 2 of 2 ..3 - ~I
n
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Inc.
~ ,9620 Chesapeake Drive, Suite 101
San Diego, California 92123
alia! Phone 619.292.3300 Fax 619.292.5199
RMCC Transmittal and Checklist
Primary Applicant Name (Last, First):
(Funding) Lending Company:
Mailing Address:
Printed Name of signatory below:
I certify that I have reviewed the enclosed RMCC application for accuracy and completeness. I have checked to
ensure that each item below is included in this package. I understand that this RMCC application will not be
processed until all the items below are received by the RMCC Program Office.
I
I
(Signature)
(Phone No.)
(Fax No.)
Each of the following items are to be submitted in an RMCC application, in the order of listing:
1. Transmittal and Checklist
2. Check for$500, made payable to The City of Chula Vista.
3. Reissued Mortgage Credit Certificate Application Affidavit This affidavit must be
signed by Applicant (s) and notarized.
4. Existing Mortgage Credit Certificate currently held by Applicant.
5. Hud-1 Settlement Statement For New Loan, certified.
6 Copy of Old Note, plus any addenda.
7. Copy of Old Deed Of Trust
8. Copy of Preliminary Title Report with respect to New Loan.
9. Copy Of Note For New Loan.
10. Copy of Deed of Trust For New Loan.
11. Self-Addressed Envelope to receive Lender copy of Reissued MCC.
(end)
J - 3 d....
If
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Inc
, .. - 9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Fax 619.292.5199
RMCC APPLICATION AND AFFIDAVIT
To be completed by Funding Lender. Incomplete applications will not be processed.
(Please note that when more than one refinancing of the original MCC-related loan has
taken place, the tenn "Old Loan" refers to the loan replaced by the refinancing which is the
subject of this application.)
Date:
Lending Company Name:
Lending Company Mailing Address:
Person Completing this Application:
Phone Number:
Fax Number:
Name of Primary Mortgagor: Last:
Social Security Number:
Street Address of Home:
City and Zip Code:
Mortgagor Phone Number: Home:
Name of Second Mortgagor: Last:
Social Security Number:
First:
Work:
First:
Re: Old Loan (MCC-Related Loan) :
Date of Closing of Old Loan:
Original Principal Balance on date of Closing of Old Loan:
Old Loan Payoff Amount (Principal Only):
Date of Last Scheduled Payment of Old Loan (from Old Note):
Interest Rate of Old Loan:
Circle Financing Type:
FHA VA Conventional
Chula Vista RMCC APPLlCA TtON and AFFIDAVIT-Page 1 of 3
J-33
Circle term of Old Loan: 15yrs 30yrs
Circle Rate Type of Old Loan: Fixed Variable
Re: New (Replacement) Loan:
Date of Closing of New Loan:
Date of Last Scheduled Payment of New Loan (from New Note):
Interest Rate of New Loan:
Circle Financing Type:
Circle Term of New Loan:
FHA VA Conventional
15 yrs
30 yrs
RE: VESTING:
Exact Vesting (Title) of Old Loan:
Any Changes Anticipated for New Loan Vesting? Circle one:
If Yes, What will the Exact Vesting Be:
No Yes
Does this refinancing transaction represent the first change to any terms of the mortgage
financing to which the original MCC was connected? Circle One: Yes No
Affidavit:
I ry.Je) the undersigned, as part of this application for a Reissued Mortgage Credit Certificate (RMCC)
from the City of Chula Vista, issuer of such certificates under the City of Chula Vista Mortgage Credit
Certificate Program, have provided the information above, and state the following:
I. I ry.Je) have occupied the residence continuously since I (We) purchased it. The residence will
not be used as an investment property, vacation home, or recreational home and not more than
15% of the area of the Residence will be used in a trade or business.
2. I (We) understand that the RMCC, if issued, will entitle me (us) to an annual federal tax credit
which is directly related to my (our) annual tax credit, and that this credit will not be greater than
what we would have been eligible for under the terms and conditions of the original MCC.
3. I (We) agree to pay a non-refundable application fee for processing the RMCC.
4. I ry.Je) understand that the recapture provisions of my (our) original MCC are still valid and in full
effect if less than nine years have passed since our original purchase of the Residence, and that
these provisions may result in an additional tax liability in the year I ry.Je) sell or otherwise transfer
the Residence to someone else.
Chula Vista RMCC APPLICATION and AFFIDAVIT-Page 2 of 3
~-3Y
5. I 0Ne) understand that I 0Ne) will lose the right to continue taking the reissued mortgage credit if
and when we cease to use the property as our principal residence. I 0Ne) will notify the City of
Chula Vista in writing if the residence ceases to be my (our) principal residence.
6. I understand that any mortgage credit obtained through this RMCC application will only be in
effect during the life of the new refinancing loan. Subsequent refinancing would have to be
approved by the RMCC Program in order to continue the benefit of the mortgage credit.
7. I (We) acknowledge and understand that this Affidavit will be relied upon for purposes of
determining my (our) eligibility for an RMCC. I (We) acknowledge that a material misstatement
fraudulently or negligently made in this affidavit or in any other statement made by me (us) in
connection with an application for an RMCC may constitute a federal violation punishable by a fine
and/or denial of my (our) application for an RMCC, or, if an RMCC has been issued prior to
discovery of the false statement, immediate cancellation of the RMCC issued, which may be in
addition to any criminal penalty imposed by law.
Dated:
Signature of Applicant (s):
Subscribed and sworn to before me this
day of
,19 .
Notary Public in and for the County of
San Diego, State of California
My commission Expires:
Chula Vista RMCC APPLICATION and AFFIDAVIT-Page 3 of 3
..,J -.3 S
lf
City of Chula Vista
Reissued MCC Program
(619) 292-3300
Administered By:
_ '~' _ Affordable Housing Applications, Ine.
~ .. - 9620 Chesapeake Drive, Suite 101
San Diego, California 92123
aha! Phone 619.292.3300 Fax 619.292.5199
Lender Participation Agreement
THIS AGREEMENT is made and entered as of the _ day of , 199_, by and
between the City of Chula Vista a public body corporate and politic (hereinafter referred to as the City), and:
(hereinafter referred to as the Lender).
WITNESSETH:
WHEREAS, the Tax Reform Act of 1984 established the mortgage credit certificate program as a means
of assisting qualified individuals with the acquisition of new and existing single-family housing; and
WHEREAS, pursuant to Chapter 1399, Statutes of 1985, Section 50197, et seq., of the Health and Safety
Code, local issuers are authorized to issue mortgage credit certificates and administer mortgage credit certificate
programs; and
WHEREAS, the City Council of Chula Vista has established a mortgage credit certificate program and
directed the City to administer the program pursuant to the applicable federal, state and local policies and
procedures; and
WHEREAS, the City Council of Chula Vista has added a reissued mortgage credit certificate component
to their mortgage credit certificate program (the Reissued Mortgage Credit Certificate Program ); and
WHEREAS, the Lender wishes to participate in the Reissued Mortgage Credit Certificate Program
administered by the City of Chula Vista in connection with the refinancing mortgage loans (New Loans ) it will
make available;
NOW, THEREFORE, in consideration of the premises set forth herein, the parties agree as follows:
1. The City hereby designates the Lender as its agent for receipt and processing of applications for
reissued mortgage credit certificates (each a Reissued Mortgage Credit Certificate) under the City's Reissued
Mortgage Credit Certificate Program.
2. The Lender will make information regarding the Reissued Mortgage Credit Certificate Program
available to potential borrowers. The Lender will process and review the application for any potential borrower in
order to determine eligibility for the Reissued Mortgage Credit Certificate Program.
Chula Vista RMCC Lender Agreement Page 1 of 4
..3 - 3-&,
3. The lender will obtain from the borrower all documents and information required for the
application for (and receipt of) a Reissued Mortgage Credit Certificate as directed by the City.
4. The lender will perform all investigation and verification that it would normally perform for
underwriting a mortgage not provided in connection with a Reissued Mortgage Credit Certificate.
5. The lender will conduct such reasonable investigation as necessary to certify that the applicant
has satisfied all requirements of the Reissued Mortgage Credit Certificate Program, including those imposed by
temporary and permanent regulations issued pursuant to the Intemal Revenue Code and the City's eligibility
requirements.
6. The lender warrants that it is familiar with the Intemal Revenue Code and all temporary and
permanent regulations issued pursuant thereto applicable to the Reissued Mortgage Credit Certificate Program,
as well as all provisions of state law applicable to the Reissued Mortgage Credit Certificate Program and
guidelines established by the City. The lender hereby agrees to comply with all provisions of applicable federal
and state law and said regulations and guidelines.
7. The lender will charge a potential borrower applying for a Reissued Mortgage Credit Certificate
only those reasonable fees as would be charged to a potential borrower applying for mortgages not provided in
connection with a Reissued Mortgage Credit Certificate.
8. Notwithstanding the provisions in Paragraph 7 above, the lender may collect from each applicant
household a check representing the RMCC processing fee, this payment to be forwarded in the RMCC
application package to the RMCC Program Office.
g. The lender hereby agrees that it will immediately forward all information which it may receive
during the life of the New loan which tends to indicate that a misrepresentation was made in applying for a
Reissued Mortgage Credit Certificate or that may affect the applicant's continued eligibility for a Reissued
Mortgage Credit Certificate.
10. The lender understands that the reissued credit pursuant to a Reissued Mortgage Credit
Certificate (the Reissued Credit) may not be larger in any taxable year than the credit that would have been
available on the original loan with respect to the refinanced loan (or original loan with respect to a series of
refinancings) (the Old loan). In accordance with the provisions of a Reissued Mortgage Credit Certificate, the
lender agrees to give the applicant the Reissued Credit Cap Limit and the Certified Indebtedness Amount Ratio
(as defined in Exhibit A to the Reissued Mortgage Credit Certificate) calculated by the City. The lender agrees
to contact the lender with respect to the Old Loan (and the lender with respect to the last loan in a series of
refinancings) to verify the outstanding principal balance (or what would have been such a balance if such loan
had not been previously refinanced) of the certified indebtedness amount of such loan (exclusive of accrued
interest and other fees and charges) as of the date of closing of the New loan. The lender agrees to verify with
the lender with respect to the Old loan (or verify in some other manner) that the terms of the Old loan are the
same as the terms of the Old loan stated in the documents provided by the applicant pursuant to the Reissued
Mortgage Credit Certificate Application Affidavit. The lender agrees to examine the last loan in a series of
Regional RMCC Lender Agreement Page 2 of 4
3-37
refinancings to verify the terms and examine the mortgage credit certificate relating to the Old Loan (and last loan
in a series of refinancings) to ascertain that the last certificate is still outstanding and valid. .
11. The Lender understands that the Reissued Mortgage Credit Certificate must be issued to the
holder of an existing mortgage credit certificate with respect to the same property to which the Existing Mortgage
Credit Certificate (the certificate with respect to the Old Loan) relates.
12. The Lender understands that the Reissued Mortgage Credit Certificate must entirely replace the
Existing Mortgage Credit Certificate or the certificate with respect to the last loan in a series of refinancings (i.e.,
the holder cannot retain the Existing Mortgage Credit Certificate with respect to any portion of the outstanding
balance of the certified indebtedness amount specified on the Existing Mortgage Credit Certificate).
13. The Lender understands that the certified indebtedness amount specified on the Reissued
Mortgage Credit Certificate may not exceed the outstanding principal balance of the certified indebtedness
amount specified on the Existing Mortgage Credit Certificate as of the date of closing of the New Loan. The
certified indebtedness amount of the Old Loan does not include borrowing of principal subsequent to the closing
date of the Old Loan. Further, any prepayments as of the closing date of the New Loan (other than as a result of
the refinancing with the New Loan) must be taken into account. Further, the test in the previous sentence must
also be applied by substituting the last prior loan in a series of refinancings for the Old Loan.
14. The Lender understands that the certificate credit rate of the Reissued Mortgage Credit Certificate
may not exceed the certificate credit rate of the Existing Mortgage Credit Certificate or any certificate with respect
to a series of refinancings.
15. The City may at any time notify Lender that the Reissued Mortgage Credit Certificate Program is
tenninated with respect to all future Reissued Mortgage Credit Certificates for which an application has not yet
been received by the City.
16. This Agreement shall remain in full force and effect until terminated. The Lender may terminate
this Agreement, without cause, upon sixty (60) days written notice to the County. The City may immediately
terminate this Agreement and prohibit the Lender from participating in the Reissued Mortgage Credit Certificate
Program upon Lender's failure to comply with the terms and conditions of this Agreement and upon written notice
by the City. No amendment to this Agreement shall be effective unless in writing and signed by both parties
hereto.
17. The Lender understands that once a Reissued Mortgage Credit Certificate is issued, the
covenants of the Lender in this Agreement with respect to the Reissued Mortgage Credit Certificate remain for
each taxable year while the New Loan is outstanding.
18. The Lender agrees that prior to submitting the Lender's first application for a RMCC, the lender
will meet all of the City's RMCC program enrollment requirements, and will pay all RMCC program enrollment
and training fees in a timely manner.
Regional RMCC Lender Agreement Page 3 of 4
J-3~
or
For purposes of this Agreement, the term lender means the entity to appear on the deed of trust with respect to
the New loan.
THIS AGREEMENT is entered into as of the day and year written above.
lENDER
Company Name:
Street Address:
City:
Telephone:
Fax:
Designated RMCC Contact :
Designated Alternate:
Designated by:
Title:
Signature:
City Approval By:
date:
Please complete this form and return it to the RMCC Program Office We will return a signed copy of this form
after review.
Regional RMCC Lender Agreement Page 4 of 4
..3-31
REDEVELOPMENT AGENCY AGENDA 8T A TEMENT
Item 4
Meeting Date 07/14/98
REVIEWED BY:
PUBLIC HEARING: TO CONSIDER A SPECIAL LANO USE PERMIT TO ALLOW
EOUCATIONAL ANO COUNSELING SERVICES TO CLIENTS WITH SUBSTANCE
ABUSE PROBLEMS AT 314 PARKWAY
Community Development Director C R \
Executive Director})\<. \-:10 ~ 14/5ths Vote: Yes_ Noll
ITEM TITLE:
SUBMITTED BY:
BACKGROUND:
Episcopal Community Services has submitted a Land Use Permit application to establish the South Bay
Recovery Center at 314 Parkway. The Center is planned to provide educational and counseling services to
clients who have substance abuse problems. The project is located within the Town Centre I Redevelopment
Project Area and has been reviewed by the Town Centre Project Area Committee and the Downtown
Business Association. The project is exempt from environmental review.
Agency staff met with the South Bay Recovery Center's Coordinator to discuss recent revisions to the
Center's operational profile in accordance with the County's July 1 modified requirements. (The County of
San Diego funds the operation of the South Bay Recovery Center.) Staff is currently reviewing the project's
operational changes. The public hearing will be rescheduled following the completion of staff's analysis.
RECOMMENDATION: That the Redevelopment Agency approve the rescheduling and renoticing of a
public hearing to provide staff time to evaluate and analyze the revisions to the project's operational profile.
FISCAL IMPACT: Costs related to additional newspaper publication and mail notification of the public
hearing will result from postponement of the public hearing.
{pbl H:IHOMEICOMMOEVlSTAFF.REPI07-14-98Iso'th IJ,ly 9. 1998 110:25amll
L/-/
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