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2023/12/19 City of Menifee Agreement Containing Covenants Affecting Real Property (with use and occupancy covenants) Permanent Local Housing Allocation (PLHA) First-Time Homebuyer Down Payment Assistance ProgramRECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: City Manager (Space above for Recorder's Use Only) This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383. AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (WITH USE AND OCCUPANCY COVENANTS) Permanent Local Housing Allocation (PLHA) First -Time Homebuyer Down Payment Assistance Program (City Program) This AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (WITH USE AND OCCUPANCY COVENANTS) (this "Declaration") is made as of December 19, 2023, by and between Douglas Edward Railey and Carla Denine Railev, Husband and Wife as Community Property with Right of Survivorship ("Owner") (together with its permitted successors and assigns, the "Owner") and the CITY OF MENIFEE, a California municipal corporation ("City"). RECITALS A. Owner is purchasing a single-family residence located at 28235 Windsor Drive, Menifee, California, bearing Riverside County Assessor's Parcel Number (APN) 337-183-022, and more particularly described in Exhibit A attached hereto (the "Property"). In connection with the purchase of the Property, City has agreed to make Owner a second lien position down payment assistance loan in the amount of One Hundred Thousand Dollars $100,000 ("City Loan"). B. Chapter 364, Statutes of 2017 (Senate Bill (SB) 2, Atkins), as authorized by Health and Safety Code (HSC) Section 50470, established the Building Homes and Jobs Trust Fund (Fund) and the Permanent Local Housing Allocation ("PLHA") Program, which was designed to provide a permanent source of funding to all local governments in California to help cities and counties implement plans to increase affordable housing stock. C. The State of California (the "State"), Department of Housing and Community Development ("HCD") issued a Notice of Funding Availability ("NOFA"), dated February 26, 2020, to provide approximately $195,000,000 under the PLHA Program through its Entitlement and Non -entitlement Local Government Formula Component from the Fund for assistance to local governments pursuant to HSC section 50470 et seq. and SB 2 (Chapter 364, Statutes of 2017) (the "PLHA Statutes"). D. To implement the PLHA Program, HCD adopted and issued the HCD 2019 PLHA Final Guidelines ("Guidelines" or "PLHA Guidelines"). E. City is an eligible local government for the program to administer one or more eligible activities within the City. F. The PLHA Statutes, Guidelines, NOFA, and any Standard Agreement entered into for the use of PLHA funds within the City, and all applicable rules and regulations imposed by HCD on PLHA funding recipients shall collectively be referred to herein as the "PLHA Program." G. City has received one or more allocations of PLHA funds for use within the City in accordance with the PLHA Program. In its application to HCD for PLHA funds, the City indicated that the PLHA funds would be allocated toward a down payment assistance program. H. The City has adopted a PLHA First Time Homebuyer Down Payment Assistance Program ("City Program") funded with PLHA funds. Such assistance is available to qualified first-time home buyers who meet specific income and other requirements of the City Program. I. City has agreed to provide the City Loan to Owner pursuant to the City Program. In connection with the City Loan, Owner is required to deliver a number of loan documents to City, including, but not limited to, this Declaration, an Affordable Housing Loan Agreement ("Loan Agreement"), a Promissory Note Secured by Deed of Trust ("Note"), Disclosure Statement, a second lien position Deed of Trust, Assignment of Rents and Security Agreement ("City Deed of Trust") and supplemental escrow and title instructions of the City ("Instructions") (collectively, and together with all other documents delivered to City in connection herewith, the "City Loan Documents"). Capitalized terms not defined herein shall have the meaning set forth in the Loan Agreement. J. Owner acknowledges that without the City's provision of the City Loan, Owner would not have been able to purchase the Property on the favorable terms included in the City Loan Documents. K. Owner has represented that he/she/they is/are a "First Time Homebuyer" (as hereinafter defined) as required by the City Program and qualifies as a "Low Income Household" (as defined below). AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference and made a part hereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree, and covenant as follows: ARTICLE I NONDISCRIMINATION Section 1. Nondiscrimination. Notwithstanding that Owner is prohibited from making any lease or other "Transfer" (as defined herein) of the Property during the "Affordability Period" (as defined herein), except for a "Permitted Transfer" (as defined herein), Owner covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, Railey Covenants or any part of it, nor shall the Owner or any person claiming under or through it, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property, including the Property or any portion thereof. The foregoing covenants shall run with the land. Section 2. Nondiscrimination Clauses. Owner shall refrain from restricting the sale of the Property, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code. All such deeds, leases, contracts, or subcontracts shall contain or be subject to substantially the following nondiscrimination and nonsegregation clauses: a. In deeds: "In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." C. In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in connection with the performance of this contract nor shall the contracting party himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, contractors, subcontractors or vendees with respect to the premises." The covenants in this Article I shall run with the Property in perpetuity. Railey Covenants ARTICLE II GENERAL DUTIES OF OWNER Section 1. Maintenance. Owner, or its successor in interest, shall maintain the Property and all of the improvements thereon in good condition in accordance with the terms and conditions hereof and in conformity with all applicable governmental regulations, including, without limitation, the City of Menifee Municipal Code (the "Code"). The Owner shall keep the Property free from graffiti and from any accumulation of debris or waste materials and shall maintain the landscaping in good condition. All exterior, and painted surfaces of any structures located on the Property shall be maintained at all times in a clean, safe, and presentable manner. Section 2. No Nuisance. Owner shall not maintain, cause to be maintained, or allow to be maintained on or about the Property any public or private nuisance, including without limitation, the conduct of criminal activities set forth in the nuisance abatement provisions of the Uniform Controlled Substances Act (Health & Safety Code Sections 11570, et seq.) or the Street Terrorism Enforcement and Prevention Act (Penal Code Sections 186.22 et seq.) or any successor statute or law. Section 3. Structural Modifications. In order to protect and maintain the architectural and structural integrity of the Property, no structural modification shall be made to the Property without a validly issued building permit in accordance with the requirements of the Code. Any application for a building permit pursuant to this section and in connection with a proposed exterior modification to the Property shall be accompanied by elevations and plans depicting the proposed modifications. Section 4. Use and Occupancy Standards. The Property shall be used as Owner's principal residence during the Affordability Period and for no other purpose. Owner shall not enter into an agreement for the rental or lease of all or any portion of the Property during the Affordability Period. The maximum occupancy of the Property shall not exceed the maximum occupancy allowed by applicable law. Owner shall, upon demand by City, submit to City an affidavit of occupancy verifying Owner's compliance with this section. Said affidavit may be required by City on an annual basis. Section 5. Obligation To Repair And Rebuild. (a) Damage and Destruction Affecting Property -Duty to Rebuild. If all or any portion of the Property and the improvements thereon is damaged or destroyed by fire or other casualty, it shall be the duty of the Owner to rebuild, repair or reconstruct the Property in a timely manner to restore it to Code compliance condition. (b) Variance in Exterior Appearance and Design. If the Property is damaged or destroyed by casualty, Owner may apply to City for approval to reconstruct, rebuild or repair the Property in a manner which will provide different exterior appearance and lot design from that which existed prior to the date of the casualty. (c) Time Limitation. In the event of damage or destruction due to casualty, Owner shall be obligated to proceed with all due diligence and commence reconstruction within Railey Covenants 4 two (2) months after the damage occurs and complete reconstruction within six (6) months after damage occurs, unless prevented by causes beyond the reasonable control of Owner. ARTICLE III AFFORDABLE HOUSING OBLIGATIONS AND RESALE RESTRICTIONS Section 1. Purpose. Owner acknowledges that the purpose of the City Loan is to encourage homeownership among "Low Income Households" (as defined herein). Section 2. Covenants and Warranty of Qualifications. Owner covenants, represents and warrants that the applications and information previously submitted to City by Owner are true, complete, and not misleading, and that Owner meets or will meet all of the following criteria: (a) Until the expiration of the Affordability Period, Owner (and, if there is more than one individual Owner, then each such person individually) will occupy the Property as his or her principal residence for so long as he or she shall have an ownership interest in the Property. Failure to occupy the Property as Owner's principal residence entitles City to exercise any remedies permitted under applicable law, including acceleration of amounts due under the City Loan. (b) Owner (and, if there is more than one individual Owner, then each such person individually) does not own any other real property. (c) Owner (and, if there is more than one individual Owner, then Owner's Household) did not during the preceding calendar year and will not during the current calendar year have a combined annual "gross income" (calculated in accordance with Section 6914 of the California Code of Regulations) in excess of that permitted for a Low Income Household, adjusted for actual Household size. (d) Owner (and, if there is more than one individual Owner, then Owner's Household) is a First Time Homebuyer. (e) Owner (and, if there is more than one individual Owner, then each such person individually) has completed a Homebuyer Education Class. Section 3. Restriction on Transfer of Property. During the Affordability Period, Owner (and, if there is more than one individual Owner, then each such person individually) covenants and agrees to repay the City Loan upon a Transfer of the Property except for a Transfer that constitutes a "Permitted Transfer" hereunder. For purposes hereof, "Affordability Period" means the period commencing upon the date of recordation of this Declaration in the Official Records of Riverside County and ending on the thirtieth (301") anniversary thereof. For purposes hereof, First Time Homebuyer" means an individual or individuals or an individual and his or her spouse who have not owned a home during the three-year period before the purchase of a home with subsidy assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under this definition: Railey Covenants (a) A displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without remuneration to care for his or her home and family; (b) A single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; or (c) An individual or individuals who owns or owned, as a principal residence during the three-year period before the purchase of a home with assistance, a dwelling unit whose structure is: is Not permanently affixed to a permanent foundation in accordance with local or state regulations; or ii. Not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure. For purposes hereof, "Household" means one or more persons occupying or purchasing the Property. For purposes hereof, "Low Income Household" means a Household whose annual income does not exceed the qualifying limits under California law for "lower income households," adjusted for Household size, as established by the United States Department of Housing and Urban Development, and as published periodically by the State of California Department of Housing and Community Development for the County of Riverside. For purposes hereof, a "Transfer" is (i) any sale, assignment, or transfer of an interest in any or all of the Property, whether voluntary or involuntary, including, without limitation, a deed of trust, mortgage, fee simple interest, tenancy in common, joint tenancy, community property, tenancy by the entireties, life estate, or other limited estate, leasehold interest or any rental of all or a portion of the Property; (ii) any interest evidenced by a land contract, including without limitation, a deed of trust or other lien filed against the Property; (iii) the refinancing of the lien of the first position deed of trust, or (iv) the recordation of or refinancing of any lien without the written consent of City, regardless of whether the lien is senior or subordinate to the City Deed of Trust. Section 4. Violation of Transfer Restrictions. Owner specifically acknowledges, covenants and agrees that any Transfer or use of the Property in violation of the foregoing, (i) may be enjoined by City, (ii) will entitle City to demand payment in full of all amounts outstanding under the City Loan, and (iii) shall provide City with the right to void any Transfer, attempted Transfer or use in violation thereof. Railey Covenants 6 Section 5. Permitted -Transfers. Notwithstanding the above, however, the following Transfers of the Property shall be permitted (collectively, "Permitted Transfers"): (a) The Transfer of the Property to the surviving joint tenant Owner by operation of law, on the death of an Owner joint tenant; (b) A Transfer of the Property where the spouse of Owner becomes an owner of the property; (c) A Transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse of Owner becomes an owner of the Property; (d) A Transfer to an inter vivos trust in which the Owner is and rernains the sole beneficial owner and occupant of the Property; (e) A Transfer resulting from a change in the manner in which title to the Property is held (for example, a change from joint tenancy to community property) which does not result in (i) Owner ceasing to be the sole beneficial owner of the Property, or (ii) failure of the beneficial owner(s) to occupy the Property; and (f) A Transfer which, under applicable law, would not, by itself, permit City to exercise a due on sale or due on encumbrance clause. Section 6. Transfer Review. At least sixty (60) days prior to any proposed Transfer, Owner shall submit to City a Notice of Intent to Transfer in the form attached as Exhibit B hereto. Owner shall not cause or permit a Transfer of the Property or of an interest therein to occur without prior written confirmation from City that City has determined that the proposed transfer will require repayment of the City Loan or constitutes a Permitted Transfer. Section 7. Owner Occupancy Requirement. OWNER COVENANTS THAT OWNER SHALL RESIDE IN THE PROPERTY AS OWNER'S PRINCIPAL RESIDENCE AT ALL TIMES THROUGHOUT THE AFFORDABILITY PERIOD. FAILURE OF OWNER TO RESIDE IN THE PROPERTY SHALL RESULT IN AN EVENT OF DEFAULT UNDER THIS DECLARATION AND THE CITY LOAN DOCUMENTS. UPON SUCH AN EVENT OF DEFAULT, CITY SHALL BE ENTITLED TO DECLARE ALL AMOUNTS OUTSTANDING UNDER THE CITY LOAN IMMEDIATELY DUE AND PAYABLE. ARTICLE IV ENFORCEMENT Section 1. Remedies. Subject to the notice and cure rights of the Owner, in the event of default or breach of any of the terms or conditions of this Declaration by Owner, its heirs, executors, administrators or assigns, City may pursue the remedy thereof by any and all means of enforcement, both in equity and at law, as provided by the laws of the State of California, including, but not limited to, injunctive relief and/or specific performance. Performance of the obligations set forth herein is secured by a deed of trust recorded against the Property concurrently herewith. Railey Covenants 7 By way of example and not limitation, if any default, breach or violation of the City Loan Documents is not cured to the satisfaction of City within the applicable cure period, City may declare an "Event of Default" hereunder and may take any one or more of the following actions: (a) Collect all rents and income in connection with the operation or sale of the Property, if any, and use the same and the reserve funds for the sale, operation and/or maintenance of the Property. (b) Take possession of the Property and bring any action necessary to enforce any rights of the City growing out of the sale or Transfer of the Property. (c) Apply to any court, state or federal, for specific performance of this Declaration or for the appointment of a receiver to take over and operate and sell the Property in accordance with the terms of this Declaration, or for such other relief as may be appropriate. It is agreed by the Owner that the injury to City arising from a default under any of the terms of this Declaration would be irreparable and that the amount of compensation which would provide adequate relief to City, in light of the purposes and requirements of the programs applicable to the Property, would be impossible to ascertain. (d) Accelerate all amounts, including outstanding principal and interest, due under the terms of the City Loan Documents and demand immediate repayment thereof. Upon a failure to repay such accelerated amount in full, the City Loan Documents provide that City may proceed with a foreclosure or sale under the power of sale in accordance with the provisions of the City Deed of Trust and state law regarding foreclosures. (e) Seek such other appropriate remedies as may be available under the law. The remedies of City hereunder and under the other City Loan Documents are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by City of any one or more of its other remedies. Section 2. Rights of City. As a party to this Declaration, City is entitled to the following rights: a. City has the right, .but not the obligation, to enforce all of the provisions of this Declaration. b. Any amendment to this Declaration shall require the written consent of City. C. This Declaration does not in any way infringe on the right or duties of the City to enforce any of the provisions of its Code including, but not limited to, the abatement of dangerous buildings. Section 3. Cumulative Remedies. The remedies herein provided for breach of the covenants contained in this Declaration shall be deemed cumulative, and none of such remedies shall be deemed exclusive. Railey Covenants Section 4. Failure to Enforce. The failure to enforce any of the covenants contained in this Declaration shall not constitute a waiver of the right to enforce the same thereafter. Section 5. Third Party Beneficiary. This Declaration is made and entered into for the sole protection and benefit of the City and its respective successors and assigns, and Owner, and its permitted successors and assigns, and no other person or persons shall have any right of action hereon. Section 6. Remedies; Attorneys' Fees and Costs. Breach of the covenants contained herein may be enjoined, abated or remedied by appropriate legal proceeding. In the event that City incurs any attorney's fees, court costs, or any other costs or expenses in investigating compliance with or enforcing this Declaration, or investigating or defending claims brought by Owner under this Declaration„ City shall be entitled to recover any such fees, costs and expenses from Owner. ARTICLE V GENERAL PROVISIONS Section 1. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. Section 2. Construction. The provisions of this Declaration shall be liberally construed for the purpose of maintaining the Property as affordable housing and restricting the sale of the Property thereon in accordance with this Declaration and the Agreement. The article and section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Section 3. Amendments. This Declaration may be amended only by the written agreement of Owner and City. Section 4. Notices. Any notice permitted or required to be delivered as provided herein from one party to another shall be in writing and may be delivered either personally or by first-class or registered mail. If delivery is made by mail, it shall be deemed to have been delivered seventy-two (72) hours after a copy of same has been deposited in the United States Mail, postage prepaid. Notices to Owner shall be sent to , CA, Notices to City shall be sent to 29844 Haun Road, Menifee, CA 92586, Attention: City Manager. Such addresses may be changed from time to time by notice in writing, which shall be made by certified mail to the other party in accordance herewith. Section 5. Notice of Inspection. Owner agrees and acknowledges that City and its employees and agents shall have the right to enter upon the Property during normal business hours to ensure compliance with this Declaration and other applicable federal, state and local laws and regulations. City agrees to notify Owner not less than forty-eight (48) hours prior to City's proposed time of inspection of the Property, and agrees to attempt to obtain Owner's consent to the timing of such inspection. Upon receipt of such notice, Owner agrees to cooperate with City in making the Property available for inspection by City. Owner acknowledges and agrees that in the event that if for any reason Owner fails to consent to such inspection, City may obtain an Railey Covenants 9 administrative inspection warrant or take such other legal actions as may be necessary to gain entry to and inspect the Property. Section 6. Term of Use. Except for the non-discrimination covenants set forth above, which shall run in perpetuity, the covenants, conditions and restrictions of this Declaration shall run with the Property for a period of thirty (30) years from the date of recordation of this Declaration. Section 7. Cure Rights. Owner shall notify City in writing within three (3) days of receiving any notice of default, delinquency or foreclosure with respect to any lien or agreement (including any defaults under any other loan secured by an interest in the Property) which could potentially affect Owner's or City's right, title and interest in the Property. City shall have the option, but not the obligation, to advance any sums due or take any other actions necessary to stay or cure the default, delinquency or foreclosure, and City shall thereafter be entitled to immediately recover from Owner and Owner shall immediately pay to City any payments, cost and expenses incurred in connection with the stay and/or cure, including but not limited to attorneys fees and court costs, together with interest thereon at the rate of seven (7%) percent per annum (or the maximum rate permitted by law) from the date advanced or incurred until the date repaid. Section 8. Transfer Voidable If Procedure Not Followed. Any Transfer in violation of the terms and procedures set forth in this Declaration shall be voidable by City at City's election in its sole and absolute discretion. Section 9. Insurance. Owner must maintain insurance for not less than the full insurable replacement cost of the Property, less deductibles, including coverage for municipal building code requirements at the time the insurance is purchased and at each renewal date. A standard mortgage clause form 438-BFU naming City as an additional insured and loss payee as its interests may appear must be endorsed to the Property insurance, and, if purchased by or on behalf of Owner, to all applicable flood and earthquake policies. In addition, the policy shall contain a provision that obligates the insurer to notify the City at least thirty calendar days in advance of the effective date of a material change (other than diminution of policy limits due to a claim), cancellation or termination of the policy. Insurance pursuant to this Section must be in a form and content acceptable to and underwritten by insurers financially acceptable to City. Section 10. No Waiver. Failure by City to enforce or delay by City in enforcing any right or remedy with respect to this Declaration shall not bar or limit any subsequent enforcement of the same or any other right or remedy with respect to the same subject matter or a different subject matter. Rights and remedies of City under this Declaration may be waived or modified only by a written instrument signed by City which states an express intention to waive or modify such rights and remedies. Section 11. Further Assurances. Owner shall from time to time provide City with such further information and shall execute such further documentation and agreements as may be reasonably necessary or appropriate to carry out the purposes of this Declaration. Section 12. Joint and Several Obligations. If at any time the Property is owned or occupied by more than one individual, all of the Owners shall be jointly and severally liable for the obligations imposed by this Declaration. Railey Covenants 10 Section 13. Venue/Choice of Law. The parties agree that this Declaration shall be deemed entered into and performed in the County of Riverside„ California, and that any litigation under this Declaration shall be brought in the Superior Court for Riverside County and governed and construed in accordance with the laws of the State of California. [Signatures on Next Page] Railey Covenants I 1 IN WITNESS WHEREOF, City and Owner have executed this Declaration as of the date set forth above. «cit,„ CITY OF MENIFEE, a California municipal corporation By: e, V4 Q) Date: , 2023 APPROVED AS TO FORM: RUTAN & TUCKER, LLP: am Railey Covenants "Owner" Print Name: Douglas Edward Railev Date: .2023 "Owner" Print Name: Carla Denine Railev Date: .2023 [DECLARATION SIGNATURE PAGE] EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCELI: LOT 14 AND AN UNDIVIDED 1/3RD INTEREST IN AND TO LOT 13 OF TRACT NO. 3453, IN THE CITY OF MENIFEE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 56, PAGES 10 AND 11 OF MAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. PARCEL 2: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS IN, OVER AND ACROSS LOT 13 TO BE USED IN COMMON WITH THE OWNERS OF LOTS 14, 15, AND 16 IN TRACT NO. 3453, AS SHOWN BY MAP ON FILE IN BOOK 56, PAGES 10 AND I l OF MAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBON SUBSTANCES, AS PREVIOUSLY RESERVED. ASSESSOR'S PARCEL NUMBER: 337-183-022 Railey Covenants Exhibit "A" CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 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 County of On D�cen� - ?�I,?�Z?�b before me, OEM fyirlikyalmb a, Wb I(U piki l c, Date r,� ,,� Here Insert Name and Title of the O icer personally appeared I�C.Qi�� r ' Q NW f Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. '.°, ,y RACHEL DENISE VALENCIA 4 Notary Public _ California z Riverside County Commission # 2454218 Comm. Expires Jul 21, 2027 Place Notary Seal and/or Stamp Above 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. i0j4vi,7P111A-4 11�40) Signature V-1 IN Signature of Notary Public OPTIONAL - Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: Number of Pages: Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: �ei:l;;}:�"., ., ., _...3:. � ....� , _ . x _,bt icy: �:,-��:i�".-�:'s�>.,s,.:c:;.,u:;.:.._,..34f.v�.. _ �,t *<i.., _ . ::'..r+;:�ai-:.F�, .�:;c�:i:� �........� •:..3....=..:�,;:.,..�..� �a�:�:� 02019 National Notary Association 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 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 name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. Signature of Notary Railey Covenants (Affix seal here) 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 County of On before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. Signature of Notary Railey Covenants (Affix seal here) 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 ) County of ) On . before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal. Signature of Notary Railey Covenants (Affix seal here) EXHIBIT "B" NOTICE OF INTENT TO TRANSFER [See attached] Railey Covenants NOTICE OF INTENT TO TRANSFER NOTICE OF INTENT TO TRANSFER MUST BE DELIVERED TO THE CITY OF MENIFEE PRIOR TO PROCEEDING WITH ANY TRANSFER OF THE PROPERTY. From: To: City of Menifee 29844 Haun Road Menifee, CA 92586 Attn: Date: I:Z0 APN: (the "Property") ("Owner") Owner desires to [sell, convey, transfer by inheritance or devise, lease, gift, otherwise transfer] (circle appropriate words) the Property. The Property is subject to affordability and other covenants given by Owner in favor of City, including that the City Loan shall be due and payable upon any Transfer during the Affordability Period except for a Permitted Transfer. Date: &xhibit — Do Not Sign Signature of Owner Day time telephone of Owner Railey Covenants