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HomeMy WebLinkAbout07 - CC-7 - Authorize and Direct Conveyance and Assi - 3/1/2016CITY COUNCIL AND COSTA MESA HOUSING AUTHOR/TY AGENDA REPORT MEETING DATE: MARCH 1, 2016 ITEM NUMBER: CC -7 SUBJECT: AUTHORIZE AND DIRECT THE CITY OF COSTA MESA'S CONVEYANCE AND ASSIGNMENT TO THE COSTA MESA HOUSING AUTHORITY OF ALL INTERESTS IN THAT CERTAIN REAL PROPERTY AND AFFORDABLE HOUSING PROJECT LOCATED AT 717, 721 JAMES STREET ACQUIRED THROUGH FORECLOSURE PROCEEDINGS DATE: FEBRUARY 11, 2016 FROM: THOMAS R. HATCH, CHIEF EXECUTIVE OFFICER PRESENTATION BY: DANIEL K. BAKER, ASSISTANT TO THE CEO CELESTE STAHL BRADY, SPECIAL COUNSEL FOR FURTHER Dan Baker 714. 754.5156 Daniel. Baker(a-_)costamesaca.gov INFORMATION CONTACT: CITY COUNCIL AND HOUSING AUTHORITY RECOMMENDED ACTION Staff recommends that the City Council and Housing Authority adopt a Joint Resolution authorizing and directing: (1) the City's (a) conveyance and transfer of fee title by Quitclaim Deed to the Costa Mesa Housing Authority, and (b) Assignment of Regulatory Agreement and bill of sale to all personal property to the Housing Authority, and (2) the Housing Authority's acceptance of such conveyance by Quitclaim Deed and the Assignment of Regulatory Agreement and bill of sale, all relating to certain real property located at 717, 721 James Street (APNs: 424-053-06 and 424-053-07) in the City of Costa Mesa, State of California, and (3) the CEO and his authorized representative(s) on behalf of the City, and the Executive Director and his authorized representative(s) on behalf of the Housing Authority, to execute, and the City Clerk/Secretary to attest, the Quitclaim Deed and the Assignment and Bill of Sale Agreement for such affordable housing Property. BACKGROUND AND ANALYSIS In connection with foreclosure proceedings initiated by the City relating to 8 Very Low income units in two 4-plexes located at 717, 721 James Street, Costa Mesa (together, "Property"), a Trustee sale by auction was held on February 8, 2016, at the Santa Ana Superior Court for this affordable housing project that had been owned and operated by Civic Center Barrio Housing Corporation ("CCBHC"). At the Trustee sale, the City's credit bid of $2,150,607.48 was the successful and only bid to acquire the Property. The purpose of this agenda report is to recommend that the Property, and related affordable housing Regulatory Agreement of record, and personal property be transferred to the Costa Mesa Housing Authority (Housing Authority). As explained in agenda reports and information presented to the City Council and Housing Authority on September 15, 2015 about three other CCBHC projects (22 units in three projects) were acquired through foreclosure proceedings and Trustee sales that occurred on August 28, 2015 due to the defaults of the series of loans provided by Costa Mesa to CCBHC. After foreclosure, Trustee deeds were recorded in the Official Records, County of Orange on September 1, 2015, with one project vesting in the Housing Authority and two projects vesting in the City as those entities provided the original financings. Thereafter, by quitclaim deeds the City transferred its two projects to the Housing Authority under a joint City Council and Housing Authority resolution adopted on September 15, 2015. For this Property the City too had provided the original subordinate financing, so upon foreclosure of the deed of trust securing the loan, the Property vested with the City. City staff is currently providing the property management services in concert with Proactive Realty Investments Inc. for the 22 units owned by the Housing Authority and Proactive will add this Property for property management. Under the California Housing Authorities Law (HAL), Section 34200, et seq. of the Health and Safety Code (HSC), there exists in every city a housing authority, which entity is an arm of the State, is activated by action of the city council and its statutory purpose is to promote and provide decent, safe and sanitary housing in the community. As you recall, in preparation for and response to Assembly Bill x1 26 that caused the dissolution of all California redevelopment agencies, including the former Costa Mesa Redevelopment Agency, on January 17, 2012 the City Council adopted an ordinance activating the Costa Mesa Housing Authority pursuant to the HAL and selected the Housing Authority to be the "housing successor" on and after February 1, 2012. Therefore, the Housing Authority operates both under the HAL and serves as the housing successor under the Dissolution Law, Parts 1.8 and 1.85, Division 24 of the HSC, in particular Sections 34176 and 34176.1. In its role as housing successor, the Housing Authority assumed the housing assets and functions of the former RDA under the affordable housing laws of the Community Redevelopment Law, HSC Section 33000, et seq. While a city has broad powers and purposes, a housing authority is more limited in purpose; this narrower focus equates to a more detailed statutory scope of affordable housing functions. These powers include ownership, operation, maintenance, financing by loans, issuance of bonds, rehabilitation and new construction of housing and enforcement of applicable laws. Simply stated, the Housing Authority is an entity that is an affordable housing specialist, with specific regulations, policies and "tools" to accomplish affordable housing in the community under State and local laws. For these and other legal reasons, the City Attorney and Special Counsel have recommended that the City convey title by deed the Property, and assign the Regulatory Agreement and transfer by bill of sale all personal property to the Housing Authority based on its statutory purpose to provide affordable housing programs and projects in the community. Attached to this agenda report are the following: (i) a joint resolution of City Council and Housing Authority (Attachment A); (ii) the form of the Quitclaim Deed for the City to transfer all of its interests in the 717 and 721 James St. Property to the Housing Authority (Attachment B); and (iii) Assignment and Bill of Sale Agreement to fully transfer the affordable housing Regulatory Agreement and all personal property for the Property to the Housing Authority (Attachment C). The joint resolution, if approved, also authorizes and directs the Chief Executive Officer and his authorized representative(s) and the City Clerk on behalf of the City, and the Executive Director and his authorized representative(s) and the Secretary on behalf of the Housing Authority to sign and attest, respectively, the Quitclaim Deed and the Assignment. ALTERNATIVES CONSIDERED The City Council may choose to not convey or assign the Property to the Housing Authority; and the Housing Authority may choose to not accept the conveyance or assignment of the Property. FISCAL REVIEW If the joint Resolution is approved, then the Finance Department will evidence the transfer of the Property from the City to the Housing Authority. LEGAL IMPACT Special Counsel, Celeste Brady, of Stradling Yocca Carlson & Rauth has prepared the joint resolution, Quitclaim Deed and Assignment; and, the agenda report and has been reviewed and approved by the City Attorney. Both the City Attorney and Special Counsel have reviewed this matter and concur with the recommended actions. CONCLUSION Staff recommends that the City Council and Housing Authority approve the joint Resolution. DANIEL K. BAKER Assistant to the CEO THOMAS R. HATCH Chief Executive Officer Attachments: A. Joint Resolution of City Council and Housing Authority\ B. Quitclaim Deed C. Assignment and Bill of Sale Agreement Attachment A JOINT RESOLUTION NO. 16- A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA AND THE COSTA MESA HOUSING AUTHORITY AUTHORIZING AND DIRECTING: (1) THE CITY'S (A) CONVEYANCE AND TRANSFER OF FEE TITLE BY QUITCLAIM DEED, AND (B) ASSIGNMENT OF REGULATORY AGREEMENT AND BILL OF SALE TO ALL PERSONAL PROPERTY TO THE COSTA MESA HOUSING AUTHORITY, AND (2) THE HOUSING AUTHORITY'S ACCEPTANCE OF SUCH CONVEYANCE, ASSIGNMENT AND BILL OF SALE, RELATING TO A CERTAIN AFFORDABLE HOUSING PROJECT AND REAL PROPERTY LOCATED AT 717 AND 721 JAMES STREET (APNS 424-053-06 AND 424 053-07) IN THE CITY OF COSTA MESA, STATE OF CALIFORNIA, AND (3) THE CEO ON BEHALF OF THE CITY, AND THE EXECUTIVE DIRECTOR ON BEHALF OF THE HOUSING AUTHORITY ARE AUTHORIZED AND DIRECTED TO EXECUTE THE QUITCLAIM DEED AND ASSIGNMENT AGREEMENT FOR SUCH PROPERTY. THE CITY COUNCIL OF THE CITY OF COSTA MESA AND THE COSTA MESA HOUSING AUTHORITY DO HEREBY RESOLVE AS FOLLOWS: WHEREAS, the City of Costa Mesa ("City') is a California municipal corporation; and WHEREAS, the City Council by Resolution adopted on January 17, 2012 declared the need for a housing authority to function in the City of Costa Mesa, established the "Costa Mesa Housing Authority" ("Authority"), and declared that the members of the City Council are the Commissioners of the Housing Authority so formed all pursuant to the California Housing Authorities Law, commencing with Health & Safety Code Section 34200, et seq. ("HAL"); and WHEREAS, the Authority is the housing successor under Parts 1.8 and 1.85, Division 24, of the California Health and Safety Code ("Dissolution Law"); and WHEREAS, the City acquired certain real property and affordable housing project and all interests and improvements therein and thereon located at 717, 721 James Street in the City, through foreclosure proceedings at a Trustee's sale held on February 8, 2016 and by Trustee Deed recorded on February 9, 2016 in the Official Records, County of Orange, State of California ("Official Records") as Instrument No. 2016-000054705 ("Property"); and WHEREAS, in order to preserve this "at -risk" affordable housing, the City and Housing Authority acquired the Property at the Trustee sale; and WHEREAS, under the HAL a housing authority's statutory purpose is to promote and provide decent, safe and sanitary housing in the community; and WHEREAS, the Housing Authority also serves as the housing successor that assumed the affordable housing assets and functions of the now dissolved Costa Mesa Redevelopment Agency pursuant to Parts 1.8 and 1.85 of Division 24 of the Health and Safety Code, in particular Sections 34176 and 34176.1 ("Dissolution Law"); and WHEREAS, while a city has broad powers and purposes, a housing authority is more limited in purpose; this narrower focus equates to a more detailed statutory scope of affordable housing functions, which powers include ownership, operation, maintenance, financing by loans, issuance of bonds, rehabilitation and new construction of housing and enforcement of applicable laws; and WHEREAS, the City desires to convey all of its interests in the Property to the Housing Authority; and WHEREAS, the Housing Authority desires to accept from the City all of its interests in the Property and to continue to operate the existing structures and facilities for affordable housing purposes subject to the HAL and the Dissolution Law; and WHEREAS, the subject transfers of the Property and assignment of all interests will be completed by Quitclaim Deed and Assignment and Bill of Sale Agreement, substantially in the forms attached to this joint Resolution as Exhibits A and B, respectively; and WHEREAS, the subject transfer of the Property is intended to involve no or negligible expansion of the existing uses of the Property as affordable housing other than continued operation, repair, maintenance, leasing, or minor alteration; and WHEREAS, pursuant to the California Environmental Quality Act, California Public Resources Code Section 21000, et seq., and the implementing regulations set forth at Title 14 California Code of Regulations Section 15000, et seq. (collectively, "CEQA"), in particular Section 15301, Existing Facilities, provides that the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, involving negligible or no expansion of use beyond that existing at the time of the City's and Housing Authority's determination qualifies as a project that is categorically exempt under CEQA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COSTA MESA AND THE COSTA MESA HOUSING AUTHORITY as follows: Section 1. The foregoing recitals are true and correct and are a substantive part of this joint Resolution. Section 2. By this joint Resolution the City Council and Housing Authority authorize and direct (a) the City's (i) conveyance and transfer of fee title of the Property by the Quitclaim Deed substantially in the form of Exhibit A, and (ii) the City's assignment of the Regulatory Joint Resolution No. 16 - Page 2 of 5 Agreement of record against the Property and bill of sale to all personal property related thereto held by the City to the Housing Authority, and (b) the Housing Authority's acceptance of such Quitclaim Deed and Assignment and bill of sale, for the Property located at 717 and 721 James Street (APNs 424-053-06, and 424-053-07) in the City of Costa Mesa, State of California, and (iii) the CEO and his authorized representative(s) on behalf of the City, and the Executive Director and his authorized representative(s) on behalf of the Housing Authority shall execute, and the City Clerk and Secretary shall attest the Quitclaim Deed and Assignment and Bill of Sale Agreement for such Property. Section 3. The subject transfer and assignment of the Property are intended to involve no or negligible expansion of the existing uses of the Property as affordable housing other than continued operation, repair, maintenance, leasing, or minor alteration and therefore are categorically exempt from CEQA pursuant to Section 15301. Section 4. The City Clerk/Secretary is hereby directed to file a Notice of Exemption with the County Clerk of the County of Orange, pursuant to Public Resources Code Section 21152 and CEQA Guidelines Section 15062. Section 5. The Quitclaim Deed and Assignment shall be caused to be recorded in the Official Records. The conformed copies and recorded originals of the Quitclaim Deed and Assignment shall be placed on file in the office of the City Clerk/Secretary. Section 6. Further, the CEO and his authorized representative(s) and the Executive Director and his authorized representative(s) are authorized and directed to take all further actions and execute all documents referenced herein and/or necessary and appropriate to carry out this joint Resolution provided the actions shall not otherwise materially affect the rights and obligations of the City or the Housing Authority except as set forth in this joint Resolution. [Joint Resolution continues on next page] Joint Resolution No. 16 - Page 3 of 5 Section 7. The City Clerk and Authority Secretary shall certify to the adoption of this Joint Resolution. PASSED AND ADOPTED this 1st day of March, 2016. CITY COUNCIL: Stephen M. Mensinger, Mayor ATTEST: APPROVED AS TO FORM: Brenda Green, City Clerk Thomas P. Duarte, City Attorney COSTA MESA HOUSING AUTHORITY: Stephen M. Mensinger, Chair ATTEST: APPROVED AS TO FORM: Brenda Green, Secretary Celeste Stahl Brady, Special Counsel Joint Resolution No. 16 - Page 4 of 5 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa and Secretary of the Costa Mesa Housing Authority, DO HEREBY CERTIFY that the above and foregoing Resolution No. 16- is the original joint resolution of the City Council and Authority that was duly passed and adopted by the City Council of the City of Costa Mesa and the Costa Mesa Housing Authority at a regular meeting held on the 1St day of March 2016, by the following roll call vote, to wit: CITY COUNCIL: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: Housing Authority: AYES: BOARD MEMBERS: NOES: BOARD MEMBERS: ABSENT: BOARD MEMBERS: Joint Resolution No. 16 - Page 5 of 5 EXHIBIT A TO JOINT RESOLUTION QUITCLAIM DEED (attached) Exhibit A to Joint Resolution No. 16 - Quitclaim Deed EXHIBIT B TO JOINT RESOLUTION ASSIGNMENT AND BILL OF SALE AGREEMENT (attached) Exhibit B to Resolution No. 16- ATTACHMENT B (attached) ATTACHMENT B to Agenda Report Quitclaim Deed Recording Requested By and When Recorded Mail To: COSTA MESA HOUSING AUTHORITY 77 Fair Drive Costa Mesa, CA 92628 Attn: Housing Authority Secretary/City Clerk This document is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. APNs: 424-053-06,424-053-07 MAIL TAX STATEMENTS TO: 717 and 721 James Street, Costa Mesa, CA DOCUMENTARY TRANSFER TAX $0 (exempt; no consideration) QUITCLAIM DEED For valuable consideration, receipt of which is hereby acknowledged, The CITY OF COSTA MESA, a California municipal corporation ("City" or "Grantor") hereby does REMISE, RELEASE, AND FOREVER QUITCLAIM to the COSTA MESA HOUSING AUTHORITY, a public body corporate and politic ("Housing Authority" or "Grantee"), all of Grantor's right, title, and interest in and to that certain real property the real property described in Exhibit A attached hereto and incorporated herein by this reference. IN WITNESS WHEREOF, Grantor has executed this Quitclaim Deed as of March , 2016. ATTEST: Brenda Green, City Clerk CITY OF COSTA MESA, a California municipal corporation By: Thomas R. Hatch, Chief Executive Officer Quitclaim Deed Page 1 of 1 EXHIBIT A LEGAL DESCRIPTION (717 and 721 James Street, Costa Mesa, CA) THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: LOT 26 OF TRACT NO. 3102, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 120, PAGES 3 AND 4 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: AN EASEMENT FOR INGRESS, EGRESS AND PUBLIC UTILITIES ALONG THE SOUTH 10 FEET OF LOTS 1 TO 10 INCLUSIVE AND THE NORTH 10 FEET OF LOTS 11 TO 20 INCLUSIVE, OF TRACT NO. 3102, AS PER MAP RECORDED IN BOOK 120, PAGES 3 AND 4 MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY. EXCEPT THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PARCEL 3: LOT 27 OF TRACT NO. 3102, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 120, PAGES 3 AND 4 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Situs: 717 and 721 JAMES STREET, COSTA MESA, CA 92627 APNs: 424-053-06 and 424-053-07 Quitclaim Deed Legal Description A-1 CERTIFICATE OF ACCEPTANCE This is to certify that the fee interest in real property (717 and 721 James Street) conveyed under the foregoing Quitclaim Deed by the City of Costa Mesa is hereby accepted by the Chief Executive Officer and Executive Director of the Costa Mesa Housing Authority on behalf of the Costa Mesa Housing Authority pursuant to authority conferred by action of said Housing Authority taken on March 1, 2016, and the Grantee consents to recordation thereof by its duly authorized officer. COSTA MESA HOUSING AUTHORITY a public body corporate and politic Thomas R. Hatch, Executive Director and Chief Executive Officer ATTEST: Brenda Green, Secretary Costa Mesa Housing Authority A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ss. COUNTY OF ) On before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC ATTACHMENT C ASSIGNMENT AND BILLS OF SALE AGREEMENT (attached) ATTACHMENT C to Agenda Report Recording Requested By and When Recorded Mail To: Costa Mesa Housing Authority 77 Fair Drive Costa Mesa, CA 92628-1200 Attn: Secretary This document is exempt from the payment of a recording fee pursuant to Gov't Code Sections 6103 and 27383. ASSIGNMENT AND BILL OF SALE AGREEMENT (717 and 721 James Street) This ASSIGNMENT AND BILL OF SALE AGREEMENT (717 and 721 James Street) (together, "Assignment") is made and dated as of March 1, 2016 by the CITY OF COSTA MESA, a California municipal corporation ("City" or "Assignor"), and in favor of the COSTA MESA HOUSING AUTHORITY, a public body, corporate and politic ("CMHA" or "Assignee"). RECITALS A. Assignor is the fee owner of certain real property located in the City of Costa Mesa, County of Orange, State of California located at 717 and 721 James Street that is improved with eight apartments units in two four-plexes (together with all improvements thereon, the "Real Property"). B. The Real Property is legally described in Exhibit A attached hereto and fully incorporated by this reference. C. City acquired the Real Property and all interests and improvements therein and thereon through foreclosure proceedings at a Trustee's sale held on February 8, 2016 and by Trustee Deed recorded on February 9, 2016 in the Official Records, County of Orange, State of California ("Official Records") as Instrument No. 2016-000054705 D. Concurrently herewith, City, as grantor, is conveying to CMHA, as grantee, all of the City's interests in the Real Property by quitclaim deed to be recorded in the Official Records ("Quitclaim Deed"). E. By this Assignment and immediately after the recordation of the Quitclaim Deed in the next order of recording, the City, as Assignor, desires to assign to the CMHA, as Assignee, that certain Regulatory Agreement of record against the Real Property as Instrument No. 2002-0737039. F. And, by this Assignment and immediately after the recordation of the Quitclaim Deed City, as Assignor, desires to sell and convey to the CMHA, as Assignee by bill of sale all of its interests in the Personal Property (as the term is defined in Section 1. below) on, at or about the Real Property. Assignment and Bill of Sale Agreement Page 1 of 3 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and CMHA agree as follows: 1. ASSIGNMENTS a. ASSIGNMENT OF REGULATORY AGREEMENT. Subject to the prior recordation of the Quitclaim Deed, Assignor hereby grants, assigns to Assignee all of Assignor's right, title, and interest in the Regulatory Agreement of record against the Real Property. b. ASSIGNMENT OF PERSONAL PROPERTY. Subject to the prior recordation of the Quitclaim Deed, Assignor hereby grants, assigns, transfers, conveys, and delivers to Assignee all of Assignor's right, title, and interest, if any, in and to the following described property (collectively, the "Personal Property"): i. Warranties. All unexpired warranties, guarantees, indemnities, rights, and claims against third parties relating to the Real Property, including, but not limited to, warranties, guarantees, indemnities, rights, and claims against prior owners of the Real Property; ii. Governmental Approvals. All existing and pending permits, approvals, licenses, entitlements, applications for permits, approvals, licenses, entitlements, and other governmental approvals relating to the construction of improvements on the Real Property; iii. Plans and Specifications. All plans, specifications, drawings, and other matters prepared for the construction of improvements on the Real Property, and all studies, data, and drawings related thereto, if any, held by City; and iv. Other Rights and Property. All other rights, benefits, privileges, and property associated with, or related to, the ownership, operation, maintenance, repair, replacement, renovation, management, development, or construction of the Real Property or the improvements thereon. 2. GENERAL. (a) Successors and Assigns. This Assignment shall be binding on the parties hereto and shall inure to the benefit of their respective heirs, successors, and assigns. (b) Governing Law. This Assignment shall be governed by and construed in accordance with the local law of the State of California. The Assignment was made in and is to be performed entirely within the State of California, and its interpretation, its construction and the remedies for its enforcement or breach are to be applied pursuant to, and in accordance with, the laws of the State of California for contracts made and to be performed therein. [Assignment continues on next page] Assignment and Bill of Sale Agreement Page 2 of 3 IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first written above. ASSIGNOR: CITY OF COSTA MESA, a California municipal corporation Thomas R. Hatch, Chief Executive Officer ATTEST: Brenda Green, City Clerk APPROVED AS TO FORM JONES & MAYER Thomas P. Duarte, City Attorney ASSIGNEE: COSTA MESA HOUSING AUTHORITY, a public body, corporate and politic By: Thomas R. Hatch, Executive Director and Chief Executive Officer ATTEST: Brenda Green, Secretary APPROVED AS TO FORM STRADLING YOCCA CARLSON & RAUTH Celeste Stahl Brady, Special Counsel Assignment and Bill of Sale Agreement Page 3 of 3 EXHIBIT A LEGAL DESCRIPTION (717 and 721 James Street, Costa Mesa, CA) THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: LOT 26 OF TRACT NO. 3102, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 120, PAGES 3 AND 4 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: AN EASEMENT FOR INGRESS, EGRESS AND PUBLIC UTILITIES ALONG THE SOUTH 10 FEET OF LOTS 1 TO 10 INCLUSIVE AND THE NORTH 10 FEET OF LOTS 11 TO 20 INCLUSIVE, OF TRACT NO. 3102, AS PER MAP RECORDED IN BOOK 120, PAGES 3 AND 4 MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY. EXCEPT THEREFROM THAT PORTION INCLUDED WITHIN PARCEL 1 ABOVE DESCRIBED. PARCEL 3: LOT 27 OF TRACT NO. 3102, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 120, PAGES 3 AND 4 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Situs: 717 and 721 JAMES STREET, COSTA MESA, CA 92627 APNs: 424-053-06 and 424-053-07 Assignment and Bill of Sale Agreement Legal Description A-1 CERTIFICATE OF ACCEPTANCE This is to certify that the assignment, sale and conveyance of that certain Regulatory Agreement and Personal Property in the Real Property conveyed under the foregoing Assignment and Bill of Sale Agreement by the City of Costa Mesa is hereby accepted by the Chief Executive Officer and Executive Director of the Costa Mesa Housing Authority on behalf of the Costa Mesa Housing Authority pursuant to authority conferred by board action of said Housing Authority taken on March 1, 2016, and the Grantee consents to recordation thereof by its duly authorized officer. COSTA MESA HOUSING AUTHORITY a public body corporate and politic By: Thomas R. Hatch Executive Director and Chief Executive Officer ATTEST: Brenda Green, Secretary Costa Mesa Housing Authority A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ss. COUNTY OF ) On before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC