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JOHNSON, HOLLY H.0 Monthly Rent: Security Deposit: November 29, 2006 Little Hollywood Rent Schedule 2£6oV Mission Street Holly H. Johnson November Rent (2 days @ $17.46 per day) Total due at November 29, 2006 January 1, 2007 $ 524.00 $ 524.00 0 January 1, 2007 Rent Security Deposit of $524.00 to be paid in 10 payments of $52.40 Total due January 1, 2007 Prepared November 29, 2006 Tenant Hblly Hnson Witness: ✓r Margaret M.d cClCllean, President MDM and Associates Housing Consultant City of San Juan Capistrano $ 34.93 558.93 $524.00 $ 52.40 576.40 0 SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY LITTLE HOLLYWOOD AFFORDABLE HOUSING PROGRAM RESIDENTIAL LEASE This residential lease is made this 29th day of November, 2006, by and between the San Juan Capistrano Community Redevelopment Agency, hereinafter "Agency", and Holly H. Johnson, hereinafter referred to as "Tenant". Recitals: 1. This Lease is for property which has been rehabilitated and purchased by the San Juan Capistrano Community Redevelopment Agency (hereinafter referred to as AAgency@) with the assistance of Community Development Block Grant (CDBG) funds from the Department of Housing & Urban Development (HUD). 2. As such, this property is required to be leased only to individuals who qualify under HUD's income standards as being in the very low and low income bracket. Rent is calculated on an annual basis based upon the recommendations and formulas of HUD and other State housing agencies. Guidelines for income qualification and rent calculation are provided in the document titled ALittle Hollywood Affordable Rental Housing Program Guidelines/Operating Procedures@ (hereinafter referred to as AProgram Guidelines@) (Exhibit A). Now Therefore, Agency and Tenant mutually agree as follows: 1. Premises: Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, on the terms and conditions hereinafter set forth, that certain real property and the residence located thereon situated in the City of San Juan Capistrano, County of Orange, State of California, commonly known as 26604 Mission Street, San Juan Capistrano, CA 92675. 2. Term: The term of this lease shall be for a period of twelve (12) months, to and including December 1, 2006 through December 31, 2007. The tenant agrees to pay a two day pro -rated amount from November 29, 2006 to December 1, 2006. 3. Rent: Tenant shall pay to Landlord as rent for the Premises, the sum of 524.00 dollars per month, in advance on the first day of each month during the term hereof. Rent shall be payable without notice or demand and without any deduction, off -set, or abatement in lawful money of the United States to the Landlord at the address stated herein for notices or to such other persons or such other places as the Landlord may designate to Tenant in writing. Tenant agrees to open a checking account and set up auto draft for monthly rent payment at Union Bank of California, the San Juan Capistrano Branch Office. 4. Security Deposit: Tenant has on deposit the sum of $ 524.00 dollars as a security deposit for the Tenant's faithful performance of the provisions of this Lease. If Tenant fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord may use the security deposit, or any portion of it, to cure the default or compensate Landlord for all damages sustained by Landlord resulting from Tenant's default. Tenant shall immediately on demand pay to Landlord the sum equal to that portion of the security deposit expended or applied by Landlord which was provided for in this paragraph so as to maintain the security deposit in the sum initially deposited with Landlord. Landlord shall not be required to keep the security deposit separate from its general account nor, shall Landlord be required to pay Tenant any interest on the security deposit. If Tenant performs all of Tenant's obligations under this Lease, the security deposit or that portion thereof which has not previously been applied by the Landlord, shall be returned to Tenant within fourteen (14) days after the expiration of the term of this Lease, or after Tenant has vacated the premises, whichever is later. 5. Possession: If the Landlord for any reason cannot deliver possession of the Premises to Tenant at the commencement of the term, the Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, but there shall be a proportionate deduction of rent; nor shall this Lease be void or voidable for a period of ten (10) days thereafter; and if for any reason the Premises cannot be delivered within said ten (10) day period, the Tenant may, prior to Landlord's delivery of the Premises, declare this Lease to be null and void and all money paid to Landlord shall be refunded to Tenant. 6. Use: It is agreed that the Premises shall be used only for residence purposes, for one family consisting of —1 adult(s), (hereinafter referred to as ATenant Household@ and as referenced in Exhibit A), 1 minor children, and 0_ pet(s)*, and for no other purposes whatsoever. Any change in occupants must be approved in writing by Landlord. Tenant in his possession, use and occupancy of the Premises agrees to observe and comply with all restrictions, laws and ordinances affecting said property or occupancy thereof including all rules and requirement as outlined in the Little Hollywood Affordable Rental Housing Program Guidelines and Operating Procedures as amended from time to time (See Exhibit A). Tenant further agrees that no use shall be made of the Premises, nor acts done which will increase the existing rate of insurance upon the Premises, or will cause a cancellation of any insurance policy covering the Premises. 7. Utilities: The Tenant shall pay for all utilities including water, gas, heat, light, power, telephone service, and other services supplied to the Premises. 8. Repairs and Maintenance: The Landlord shall at its sole cost and expense keep and maintain the exterior walls, roof, electrical wiring, heating system, air conditioning systems (if any), water heater, built-in appliances, and water lines in good and sanitary order, condition and repair, except where damage (if any) has been caused by the abuse or negligence of the Tenant, in which event Tenant shall repair same at his sole cost and 0 expense. Any damage caused by the Tenant will be repaired by the Landlord and billed to the Tenant. Except as herein provided, Tenant hereby agrees that the Premises are now in a tenantable and good condition and shall at his sole cost and expense keep and maintain the Premises, appurtenances and every part thereof, in the manner in which they were received, reasonable wear and tear excepted, including household furniture, fixtures, goods and chattels belonging to the Landlord, so that they shall remain in good and satisfactory order, condition and repair. The Tenant agrees to maintain landscaping, and Tenant agrees to adequately water said landscaping. 9. Alterations and Additions: Tenant shall not, without the Landlord's prior written consent, make any interior or exterior alterations, improvements or additions in or about the Premises, with the exception of movable furniture. Any approved alteration oraddition shall at once become a part of the realty and belong to the Landlord. The Tenant shall keep the Premises free from any liens arising out of any work performed, materials furnished or obligations incurred by the Tenant. 10. Hold Harmless: Tenant shall indemnify and hold Landlord harmless from and against any and all claims arising from Tenant's use or occupancy of the Premises or from any activity, work, or things which may be permitted or suffered by Tenant in or about the Premises including all damages, costs, attorney's fees, expenses and liabilities incurred in the defense of any claim or action or proceeding arising therefrom. Except for Landlord's willful or grossly negligent conduct, Tenant hereby assumes all risk of damage to property including household furniture and goods, or injury to any person in or about the Premises from any cause, and Tenant hereby waives all claims in respect thereof against Landlord. 11. Damage to Premises: (a) If the Premises are so damaged by fire or from any other causes as to render it untenantable, then either party shall have the right to terminate this Lease as of the date on which such damage occurs, through written notice to the other party, to be given within fifteen (15) days after the occurrence of such damage; except that should such damage or destruction occur as the result of the abuse or negligence of Tenant, or its invitees, so as to render the Premises untenantable, the Landlord only shall have this right of termination. Should the right be exercised by either the Landlord or Tenant, then rent for the current month shall be prorated between the parties as of the date on which such damage occurred and any prepaid rent and unused security deposit shall be refunded to Tenant. (b) If this Lease is not terminated as provided in this paragraph 13, the Landlord shall promptly repair the Premises and there shall be a proportionate reduction of rent until the Premises are repaired and ready for Tenant's occupancy, such proportionate reduction to be based upon the extent to which the making of repairs interferes with reasonable use of the Premises. 12. _Assignment and Subletting: Tenant shall not voluntarily or by operation of law assign, transfer, sublet, mortgage, or otherwise transfer or encumber all or part of Tenant's interest in this Lease or in the Premises. 0 0 13. Default: It is agreed between the parties hereto that if any rent shall be due hereunder and unpaid, at any time during the term of the lease, or if the Tenant Household is not in compliance with any provision of the Program Guidelines, including income qualifications, or if Tenant shall default and breach any other covenant or provisions, Landlord may terminate this agreement in accordance with law based upon breach of this agreement. Further, the Landlord may, at his option, either maintain the Lease in full force and effect and recover the rent and other charges as they become due or, in the alternative, terminate this Lease. In addition, the Landlord may recover all rentals and any other damages and pursue any other rights and remedies which the Landlord may have against the Tenant by reason of such default as provided by law. 14. Abandonment: Tenant shall not vacate or abandon the Premises at any time during the term of this Lease. 15. Entry by Landlord: The Tenant shall permit the Landlord and/or its agents to enter into and upon the Premises at all reasonable times and upon reasonable notice for the purpose of inspecting it or for the purpose of maintaining the Premises, or for the purpose of exhibiting the Premises to prospective purchasers or tenants. 16. Attorney's Fees: If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorney's fees and costs of suit. 17. Surrender: On the last day of the term of this Lease, Tenant shall surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage by fire and the elements excepted. 18. Binding on Successors and Assigns: Each provision of this Lease performable by Tenant shall be deemed both a covenant and a condition. The terms, conditions and covenants of this Lease shall be binding upon and shall inure to the benefit of each of the parties hereto, their heirs, personal representatives, successors and assigns. 19. Notices: Whenever under this Lease a provision is made for any demand, notice or declaration of any kind, it shall be in writing and served either personally or sent by registered or certified United States mail, postage prepaid, addressed at the addresses as set forth below: TO LANDLORD AT: City of San Juan Capistrano Community Redevelopment Agency 32400 Paseo Adelanto San Juan Capistrano, CA 92675 TO TENANT AT: Holly H. Johnson 26604 Mission Street San Juan Capistrano, CA 92675 0 0 Such notice shall be deemed to be received within forty-eight (48) hours from the time of mailing, if mailed as provided for in this paragraph. 20. Waivers: No waiver by Landlord of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Tenant of the same or any other provisions. 21. Time: Time is of the essence of this Lease. 22. Joint and Several Obligations: "Party" shall mean Landlord and Tenant; and if more than one person or entity is the Landlord or Tenant, the obligations imposed on the party shall be joint and several. The parties hereto have executed this Lease on the date first above written. TENANT BYUa=::: SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY By Oo-,,� :F GAI David F. Adams, Executive Director 0 0 Copy for Holly H. Johnson EXHIBIT "A" SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY LITTLE HOLLYWOOD AFFORDABLE RENTAL HOUSING PROGRAM GUIDELINES & OPERATING PROCEDURES Adopted April 18, 2000 Amended August 16, 2005 1. INTRODUCTION The San Juan Capistrano Community Redevelopment Agency (Agency) acquired, rehabilitated, and constructed single-family residences in the area known as Little Hollywood. The purpose of the program is to provide affordable housing to lower and very -low income tenant households for a period of three -to -five years to allow sufficient time for the households to improve their financial situation and become self-sufficient. The program guidelines and operating procedures provide a basis for determining applicant eligibility and rules that are to be followed by all tenant=s households. II. DEFINITIONS Tenant Household — One household per unit occupied by those persons identified on the executed residential lease. Extremely Verv-Low Income Household —A household with a combined annual income for all household members 18 years of age or older that does not exceed 30 percent of the Orange County annual median income. Very -Low Income Household — A household with a combined annual income for all household members 18 years of age or older that does not exceed 50 percent of the Orange County annual median income. Lower -Income Household — A household with a combined annual income for all household members 18 years of age or older that does not exceed 60 percent of the Orange County annual median income. Rental Subsidy Waiting List — A list maintained by the City of San Juan Capistrano's Planning Services Department of those persons that have submitted a written request to be added to a waiting list to receive rental assistance from the City/Agency. Declaration of Conditions, Covenants and Restrictions — A document adopted by the Community Redevelopment Agency on August 16, 2005, that restricts the maximum incomes for households and the maximum rents the Agency may charge for the Agency's housing units within the Agency's project area boundaries for a period of 55 years. Page 1 of 12 Housing Units — The Little Hollywood rental units located on Assessor's Parcel Nos. 649-281-05,121-142-01, and 121-142-07 in the Los Rios District within the Community Redevelopment Agency project boundaries that are owned by the Community Redevelopment Agency. Housing Development — The Little Hollywood property owned by the Community Redevelopment Agency on Assessor's Parcel Nos. 649-281-05, 121-142-01, and 121-142-07 located in the Los Rios District, adjacent to Mission Street and Ramos Street in the City of San Juan Capistrano. Monthly Rent — The total of monthly payments for use and occupancy of the Housing Unit and land and facilities associated therewith in accordance with Section V (Monthly Rental Amount) of these regulations. Additional monthly fees, utility charges, or service charges which are required of all tenants may be assessed by the Agency. Utility Allowance — The amount that may be added to the monthly rent each month for all tenant households for utility services provided by the Agency pursuant to the Utility Allowance published annually by the County of Orange Housing & Community Services Development Multi -Family Affordable Rental Housing Utility Allowance. III. ELIGIBLE TENANT HOUSEHOLDS A. U.S. Citizenship/Permanent Alien Resident Status - All occupants of the tenant household must be either a U.S. citizen or a permanent resident alien. A valid social security card, proof of citizenship and/or permanent residential alien status must be provided for all members of the household. B. Income Eligibility - For the purpose of this program, the tenant households must be certified as income eligible as a lower and/or very -low income household. The definition of a lower-income household is a Tenant Household that has a gross annual income that does not exceed 60 percent of the Orange County median income, adjusted for household size. A very -low income household is a tenant household that has a gross annual income that does not exceed 50 percent of the Orange County median income adjusted for household size. Income levels will be established annually on October 1 s', based on information provided by the U.S. Department of Housing and Community Development as amended annually, for the SJC-CRA. In accordance with the Declaration of Conditions, Covenants and Restrictions adopted by the Agency on August 16, 2005, four (4) of the housing units shall be made available, rented and occupancy restricted to Lower Income households at an affordable rent, and an additional ten (10) housing units shall Page 2 of 12 • 9 be made available, rented and occupancy restricted to Very Low Income households at an affordable rent. Units occupied prior to August 16, 2005, with a gross annual household income exceeding the lower-income household maximum shall be eligible to remain in the housing units provided their income does not exceed 80 percent of the median income, adjusted for household size. The designation of particular housing units as lower income units or very low income units shall be in the sole discretion of the Agency. The unit sizes shall be rented to lower and very -low income households as follows: No. of Bedroom Very -Low Income Lower Income 3 2 2 7 4 1 1 C. Determination of Income - Gross annual income, includes all payments from all sources that are anticipated to be received by all adult members of the Tenant Household over the subsequent twelve (12) month period of tenancy (Exhibit C of the Declaration of Conditions, Covenants and Restrictions). D. Household Priority - The program will assist income -eligible households on the affordable housing rental subsidy waiting list according to the following preferences. • A household that is willing to take action to improve their circumstances and works towards becoming self-sufficient within three -to -five years. • Current Little Hollywood Tenant in overcrowded unit w/minor children • Current Little Hollywood Tenant in overcrowded unit w/no minor children • Currently living or working in the City of San Juan Capistrano • A household that resides in an uninhabitable dwelling unit (as determined by the City's Building Official pursuant to the provisions of the Uniform Building Code), transitional dwelling unit, or an overcrowded dwelling unit (as determined by Section IV (Household Size) of these regulations). E. Alcoholic and/or Drug Abuse — No person or persons who is/are abusing alcohol and/or using illegal drugs shall be eligible to participate in the program. To determine if a household is abusing alcohol and/or using illegal drugs, the Agency will conduct a background check and interview each household during the screening process. F. A tenant household can be rejected for a criminal history that includes physical/sexual abuse, sale or distribution of controlled substances, and any acts of violence that could affect the health, safety or welfare of other residents. Page 3 of 12 IV. APPLICATION PROCESS A. Initial application - Upon availability of a unit, staff will contact the households on the waiting list in accordance with the criteria set forth in Section II (D)(Household Priority) above. Staff will attempt to contact the party by mail and by phone. If staff is unable to contact the interested party after thirty (30) days, the name will be deleted from the waiting list. When an interested party is contacted, they will have thirty (30) days from receipt of the tenant application package to complete all documents and submit all necessary information to the Agency. Failure to do so will result in determining the applicant ineligible for the program. Upon verification of all eligibility requirements, the tenant will be required to sign the standard lease document and move -in within forty-five (45) days. Failure to do so will result in determining the applicant ineligible for the program. B. Background Checks — A criminal record check will be required for each adult household member prior to execution of a residential lease or at any other time as deemed necessary at the Agency's discretion. An application for tenant household can be rejected for a criminal history that includes physical/sexual abuse, sale or distribution of controlled substances, and any acts of violence that could affect the health, safety or welfare of other residents. C. Annual Re -certification - Each year on October 1St, each existing tenant household will be required to complete the tenant application package and submit it to the Agency no later than the following November 1St. Agency staff will review the application and make a determination on eligibility for the coming calendar year. Tenant households meeting the eligibility requirements and interested in continuing in the pro S9 will be required to execute their new lease no later than December 31s. . Failure to submit re- certification information by November 1 or execute anew lease document by December 31, will result in determining the tenant household ineligible for the program. If the Agency determines that a tenant household's income exceeds the lower-income eligibility requirements, the household will be deemed ineligible to continue in the program. Upon determination by the Agency during this recertification process that the household does not meet the income requirement, any subsequent decrease in household income in orderto meet the income requirement will not change the Agency's decision to require the tenant to vacate the unit. The Agency may consider, at its discretion, any adjustments to the lease and/or rent payments during the year due to unforeseen circumstances. Page 4 of 12 0 Tenant households residing in the housing unit prior to adoption of these revised guidelines on August 16, 2005, shall be allowed to exceed the lower- income eligibility requirements provided their household income does not exceed the low-income eligibility requirements. The Agency shall provide 90 days notice to the tenant household in writing that the tenant household has been deemed ineligible and shall be required to move out of the unit. The Agency may, at its sole discretion, extend the tenant's move -out deadline by an additional 60 days due to justifying circumstances. The Agency will review a tenant household's income once annually. If a tenant household's income decreases for whatever reason after the date of the Agency's determination of ineligibility, the original income certification will apply and the tenant household will be required to vacate the unit. V. HOUSEHOLD SIZE The household size must comply with that approved in the residential lease. All members of the household must be U.S. citizens or permanent resident aliens. Proof of citizenship, or resident alien status will be required of all household members. The premises shall only be used as a residence by the lessees. Occupancy shall be limited to those persons indicated in the residential lease, and no additional occupants may reside at the premises without prior written consent of the Agency. Any persons who desire to live in the unit, including new family members by marriage, must apply through the resident selection process. If a household size decreases to below the minimum number of people allowed, the occupant shall be required to transfer to the next available unit for which they qualify based upon their household size or move out of the unit. If no unit is available in the Little Hollywood Housing Development, the Agency may require the household to move to another affordable unit elsewhere in the City or to move out of the unit. If, during the year, the household size increases to above the maximum number of people, the tenant household will not be eligible to be certified in the following year. The occupancy limits are outlined as follows: MINIMUM MAXIMUM UNIT SIZE NUMBER OF PERSONS NUMBER OF PERSONS 0 BEDROOM 1 2 1 BEDROOM 1 3 2 BEDROOM 2 5 3 BEDROOM 5 7 Page 5 of 12 VI. MONTHLY RENTAL AMOUNT The Monthly Rent payable by a Lower -Income Household shall not exceed one - twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of Orange County median income, as determined by regulation of the State of California, for a household size appropriate to the unit or the current market rent based upon unit size in accordance with the Orange County Income and Rents limit issued annually by the County of Orange, whichever is lower. The Monthly Rent payable by a Very -Low Income Household shall not exceed one - twelfth (1 /12) of thirty percent (30%) of fifty percent (50%) of Orange County median income, as determined by regulation of the State of California, for a household size appropriate to the unit or the current market rent based upon unit size in accordance with the Orange County Income and Rents limit issued annually by the County of Orange, whichever is lower. The Monthly Rent payable by a Extremely Very -Low Income Household shall not exceed one -twelfth (1/12) of thirty percent (30%) of thirty percent (30%) of Orange County median income, as determined by regulation of the State of California, for a household size appropriate to the unit or the current market rent based upon unit size in accordance with the Orange County Income and Rents limit issued annually by the County of Orange, whichever is lower. The maximum Monthly Rent chargeable for the Housing Units shall be annually determined by the Agency in accordance with the foregoing requirements. If, based upon an updated income certification, a tenant no longer qualifies as a Very- Low Income Household, the Agency shall rent the next available Housing Unit and any necessary Housing Units thereafter to a Very -Low Income Household in accordance with the terms of the affordability covenant agreement. In addition, except in the event of fraud or misrepresentation, no tenant shall be denied continued occupancy in a Housing Unit solely because such tenant no longer qualifies as a Very -Low Income Household because of an increase in household income subsequent to such tenant's initial date of occupancy, provided that the tenant qualifies as a Lower -Income Household as provided for below. Notwithstanding the foregoing, if a tenant's income exceeds the qualifying limits for a Very -Low Income recertification but qualifies as a Lower -Income Household, the Agency may increase the monthly rent payable by such tenant in accordance with the monthly rental amount for a Lower -Income Household. Upon the vacation of the Housing Unit by such tenant, the Housing Unit shall be rented to an Extremely Very -Low, Very -Low, or Lower -Income Household, in accordance with the requirements of the DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS adopted by the San Juan Capistrano Community Redevelopment Agency on August 16, 2005. Page 6 of 12 VII. CRITERIA FOR CONTINUED RESIDENCY The San Juan Capistrano Community Redevelopment Agency, at its sole discretion, may require the tenant household to vacate the affordable housing units for any of the following reasons: A. The tenant household is no longer income eligible (i.e. income exceeds 60% of area median income adjusted for household size). B. The tenant household fails to complete the recertification process. C. The tenant household has resided in the housing development for three years and has made no progress towards increasing their income and/or education. Participating eligible households that have complied with the guidelines and operating procedures and performance standards set forth in these guidelines may reside in the housing development for up to three years, with the possibility of renewal for two additional one-year leases. To qualify for renewal of up to two additional one year leases, the tenant household must provide written documentation to the Agency staff each year that they have made progress towards improving their financial situation and/or education. D. A tenant household has resided in the housing development for the maximum of five years. E. If it is determined by the Agency that any member of the tenant household is: Using the housing unit or any portion of the housing development for the illegal sale or use of drugs and other controlled substances as defined by Penal Code and the Health and Safety Codes of the State of California. ii. Arrested during the term of the lease for use, sale, distribution or delivery of illegal drugs. iii. Conducting any other illegal activity in violation of Federal, State, or local laws. Page 7 of 12 0 9 F. The tenant household fails to comply with the program guidelines and operating procedures. G. The tenant household fails to pay the monthly rent on time per the terms of the residential lease. VIII. CRITERIA FOR TRANSFER TO ANOTHER UNIT The San Juan Capistrano Community Redevelopment Agency, at its sole discretion, may require the tenant household to transfer into another affordable housing unit within the Little Hollywood Housing Development or transfer to an affordable unit located elsewhere in the City, for any of the following reasons: A. If the Agency determines that a tenant household is no longer able to provide day-to-day maintenance of the unit and/or to maintain the unit in a clean, safe, sanitary and attractive condition, including landscaping. B. If the tenant household size has decreased below the minimum number of persons, the occupant shall be required to transfer to the next available unit for which they qualify based upon their household size. If no unit is available in the Little Hollywood Housing Development, the Agency may require the household to move to another affordable unit elsewhere in the City or to move out of the unit. IX. TENANT RULES AND REGULATIONS A. SUBLETTING OF HOUSING UNIT — Subletting of any Housing Unit by the tenant household is prohibited and may result in eviction by the Agency of the tenant household. B. MAINTENANCE - Tenants are required to provide minor day-to-day maintenance of their units. This includes but is not limited to minor landscape maintenance, trash pickup, etc. Personal household items such as furniture, appliances, etc. shall not be kept outside the dwelling and/or within vision of other tenants so as to become an eyesore. These items are to be kept in storage. Under no circumstances will tenant store or allow to be stored any items within the common areas of the neighborhood. C. MAINTENANCE OF COMMON AREAS - The Agency shall maintain all common area landscaping. Page 8 of 12 0 0 D. STORAGE SHEDS - Storage sheds will be used for storage of yard and personal items. Tenants will not allow storage sheds to be used as living quarters. Tenants will observe proper storage requirements for combustibles. E. TRASH - Trash shall be disposed of in the containers provided by CR&R. Tenants shall follow the guidelines provided by the Agency for disposal of trash. Large items may be picked up by CR&R with prior approval. Residents shall be provided with three bins, black for general trash (non - recyclable), blue for recyclables and green for green (plant) waste. F. AGENCY INSPECTION - Each tenant household shall be required to allow access of their rental unit for monthly site inspections, or as deemed necessary by the Agency or its designated consultant, to verify household size, maintenance of the unit, and adherence to the program rules. G. PARKING - Each household will have available parking for two vehicles. Guests will park in the designated guest parking spaces. No parking of any vehicle is allowed on the street or common areas. Guest parking spaces shall not be used for vehicle repair. Driveways and parking areas shall be kept free from debris and items that may be hazardous to vehicular and pedestrian traffic. H. NUISANCES — No noxious or offensive activity (including but not limited to the repair of motor vehicles) shall be carried on, in or at any housing unit or within the housing development common areas. A tenant household shall not do anything which may be or become an unreasonable annoyance or a nuisance to any other tenants in the housing development. Without limiting the generality of the foregoing provisions, no loud noises or noxious odors, no exterior speakers, horns, whistles, bells or other sound devices, noisy or smoky vehicles, large power equipment or large power tools, unlicensed off- road motor vehicles or items which may be unreasonably interfere with television or radio reception of any tenant household in the housing development, shall be located, used, or placed on any portion of the housing development or exposed to the view of other tenant households without the prior written approval of the Agency. The Agency shall have the right to determine if any noise, odor, interference or activity producing such noise, odor or interference constitutes a nuisance. COURTESY TO OTHER RESIDENTS - Residents shall respect the peace and privacy of others. Tenants shall not make nor permit any disturbing noises. Any disturbances should be reported to Agency staff. J. GUESTS — Occupants must receive written approval from the Agency for guests staying over fourteen consecutive days within any 90 -day period. Occupancy by guests, including family members, staying over 14 Page 9 of 12 0 Cl consecutive days or for 14 days within any 90 -day period, without prior approval of the Agency, will subject the tenant household to eviction. K. PROGRAM PARTICIPATION — All tenant households shall be required to participate in appropriate classes, workshops, and other activities as assigned, at the discretion of the Agency. L. PERFORMANCE STANDARDS — All tenant households shall be evaluated monthly based upon the following performance standards: L Household size and occupancy must comply with that listed in the lease agreement. ii. Tenant household must maintain the housing unit in a satisfactory and safe living environment. iii. Tenant household must maintain the exterior and the interior of the housing unit in a clean, sanitary, and attractive condition (including landscaping) iv. Tenant household must pay the rent on time per the terms in the lease agreement. V. Tenant household members must comply with the Little Hollywood Affordable Rental Housing Program Guidelines and Operating Procedures. Unless exempted, all tenant households must comply with the following additional performance standards: All adult members of the household shall be employed or be a full- time student, unless retired or physically unable to work. ii. Tenant households shall be required to participate in a tenant education program that will be provided by either the Agency or a designated agency or Consultant that includes the following: a. Work with a case manager in preparing a monthly family budget (to include all monthly income and expenses) with the goal of saving 25-30 percent of their net income each month in a verifiable savings account; b. Attend group sessions at a designated location in San Juan Capistrano; C. Attend individual counseling, if recommended (parent/marital, anger management, children and teens evaluations and tutorial assistance); d. Attend monthly meetings with an assigned case manager to assess and evaluate the household's goals; e. Complete required monthly paperwork (as assigned); Page 10 of 12 0 0 f. Work with case manager to prepare a goals sheet for each adult in the household (as assigned); g. Submit supporting documents for monthly budget report (i.e. proof of income, pay stubs, child support documents, notice of action forms, bills received/paid, merchandise and grocery receipts, etc.) h. Agree to allow a monthly in-home visit by assigned case manager or the Agency; i. Attend workshops and classes, as assigned. iii. Tenant households shall be required to perform 5-6 hours of community service volunteer work monthly. Volunteer work shall be coordinated by the Agency or the Agency's property management company. At the Agency's discretion, a tenant household's failure to meet the performance standards may be grounds for termination of the lease. X. GRANDFATHER CLAUSE Tenant households with at least one member of the household 62 years of age or older as of August 15, 2005 shall be exempted from the three -to -five year term of residency requirement provided the tenants comply with all other provisions contained in these guidelines. Except for those tenant households identified above as exempt, all tenant households occupying the Little Hollywood Housing Development prior to August 16, 2005, shall be permitted to receive three -to -five years of assistance beginning August 16, 2005, provided the tenants comply with all other provisions contained in these guidelines. XI. RIGHT TO AN INFORMAL HEARING PROCEDURE Program participants may appeal a proposed program action that may have an adverse effect upon them by submitting a written request for a hearing to the City of San Juan Capistrano Planning Department. The written request shall include the participating tenant household's objection, the name and relationship of all potential parties, a list of documents to be presented, and the tenant household's current address and telephone number. The San Juan Capistrano Community Redevelopment Agency shall appoint a hearing officer. Once a hearing officer is appointed, an informal hearing will be scheduled as soon as possible. The informal hearing shall be conducted in English. Notice of Informal Hearing will be issued at least ten days prior to the hearing date. The participating tenant household may bring legal counsel and/or a translator at participant's expense. The participating tenant household may Page 11 of 12 C� • bring person(s) to testify and/or documents at the participant's expense. The participating tenant households may review pertinent file documentation as long as such documentation does not infringe on any other party's rights. Within ten business days following the informal hearing, the hearing officer's official decision will be mailed to the tenant household. The hearing officer's decision shall be final. XII. EXCEPTIONS No exceptions to these guidelines will be authorized without Community Redevelopment Agency approval. Page 12 of 12