CCP012 lease agree
CITY OF SAN JUAN CAPISTRANO
COUNCIL POLICY
Subject: Effective Policy
Page Date Number
ADMINISTRATION OF CITY AND
AGENCY LEASE AGREEMENTS 1 of 2 6/6/95 012
The City and Community Redevelopment Agency maintain lease agreements with
residential and commercial tenants. It is a policy of the City Council that all rents should
be negotiated at fair market value except for those properties providing low and
moderate income housing or providing facilities for non-profit entities. It is further a
policy of the City Council and Agency Board to provide guidelines for the administration
of these leases. The following process shall be followed when a breach of terms of a
City or Agency lease occurs:
Residential
A. When a tenant fails to pay the scheduled lease payment as invoiced by
the City's cashier, the following will take place:
1. When a payment becomes ten (10) calendar days past due, a
reminder letter (Exhibit 1) will be sent requiring full payment of rent
due.
2. If the tenant fails to pay the rent due by the last day of the month
and has failed to contact City/CRA property management regarding
the situation, then a three (3) day notice to quit or pay (Exhibit 2)
will be served on the tenant at the property site.
If the tenant contacts the City/CRA to make payment arrangements
for the delinquent month, the tenant may have up to three (3)
months to clear the delinquent amount provided that all subsequent
monthly rents and arrearage payments are current each month. If
no steps are taken by the tenant to clear the past due amount or if
any subsequent payment is late, the process specified in #2 will
proceed. In no case will a delinquency of more than thirty (30) days
be allowed.
3. If a tenant is delinquent twice during any twelve month period, the
City Council or Agency Board may consider a thirty (30) day notice
of termination of the lease.
CITY OF SAN JUAN CAPISTRANO
COUNCIL POLICY
Subject: Effective Policy
Page Date Number
ADMINISTRATION OF CITY AND
AGENCY LEASE AGREEMENTS 2 of 2 6/6/95 012
B. If a tenant fails to comply with any other lease term, the tenant will be
notified by letter and given thirty (30) days to correct the breach. If no
correction is made by the thirty (30) day deadline, then the same process
outlined in #A-2 above will take place.
Commercial
A. When a tenant fails to meet specific terms of their lease the following will
take place:
1. When a lease payment becomes ten (10) calendar days past due,
a three (3) day notice to quit or pay (Exhibit 2) will be served on the
tenant at the property site.
2. When a tenant fails to provide property, liability, worker's
compensation, automobile, or any other insurance or insurance
endorsement, or fails to comply with any other lease term, the
tenant will be notified by letter of the breach (Exhibit 3). If the
breach is not corrected within ten (10) calendar days, the tenant will
receive a three (3) day notice to quit or correct (Exhibit 4).
B. If a tenant is in breach of lease terms twice during any twelve month
period, the City Council may consider a thirty (30) day notice of
termination of the lease.
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EXHIBIT 1
(City or CRA Letterhead)
Date
Tenant Name
Street Address
San Juan Capistrano, CA 92675
RE: Property Address
Dear XXXX:
This letter is a reminder that your rent for the month of ________, 200__ has not been
received. The total amount due is $_______. It is very important that your rent be paid
in full by the end of the month unless other arrangements can be made.
If your rent has not been paid by 5:00 p.m. on ________, 200__ it will be necessary to
give you a three (3) day notice to pay rent or vacate the property.
Sincerely,
XXX
City/CRA Property Manager
cc: City Manager
City Attorney
EXHIBIT 2
(City or CRA Letterhead)
NOTICE TO PAY RENT OR SURRENDER POSSESSION OF THE PREMISES
TO: (Tenant Name; Site Address;) San Juan Capistrano, CA 92675
NOTICE IS HEREBY GIVEN that, within three (3) days after service on you of this
notice, you must submit the required rent(s) as stipulated in the lease executed between
you and the (City/CRA) on XXX as specified in that lease Section XXX to the
undersigned in totality on the premises described above, that became due on (Date), for
the period XXXX, or to surrender possession of the premises to the undersigned, your
lessor, or the lessor’s authorized agent.
If you fail to submit the required rent or to surrender possession within the three day
period, legal proceedings will be commenced against you to recover possession and
damages for your unlawful detention of the premises, including, but not limited to,
attorney’s fees and costs.
FURTHER NOTICE IS GIVEN that the undersigned lessor elects to declare forfeited the
lease under which you hold possession of the premises if you fail to submit the above
rent within the three day period.
Dated: XXXX
___________________________
(City Manager/Executive Director) and Authorized Agent
EXHIBIT 3
(City or CRA Letterhead)
Date
Tenant Name
Street Address
San Juan Capistrano, CA 92675
RE: Property Address
Dear XXXX:
This letter is to inform you that the required insurance verification(s) as specified by the
lease between you and the (City/CRA) for the above referenced property has not been
submitted to the City Clerk’s office. It is important that you immediately provide the
required insurance verification to the City Clerk’s office or contact (City/CRA) property
management at (949) 493-1171 regarding your ability to meet these requirements.
If the required document(s) is/are not received by the City Clerk by 5:00 p.m. on
________, 200__ it will be necessary to inform the City Council that you are not meeting
the terms of your lease and you will be given a three (3) day notice to comply or vacate.
Sincerely,
XXX
City/CRA Property Manager
cc: City Manager
City Attorney
EXHIBIT 4
(City or CRA Letterhead)
NOTICE TO SUBMIT INSURANCE OR SURRENDER POSSESSION OF THE
PREMISES
TO: (Tenant Name; Site Address;) San Juan Capistrano, CA 92675
NOTICE IS HEREBY GIVEN that, within three (3) days after service on you of this
notice, you must submit the required insurance as stipulated in the lease executed
between you and the (City/CRA) on XXX as specified in that lease Section XXX to the
undersigned in totality on the premises described above, that became due on (Date), for
the period XXXX, or to surrender possession of the premises to the undersigned, your
lessor, or the lessor’s authorized agent.
If you fail to submit the required insurance or to surrender possession within the three
day period, legal proceedings will be commenced against you to recover possession
and damages for your unlawful detention of the premises, including, but not limited to,
attorney’s fees and costs.
FURTHER NOTICE IS GIVEN that the undersigned lessor elects to declare forfeited the
lease under which you hold possession of the premises if you fail to submit the above
insurance within the three day period.
Dated: XXXX
___________________________
(City Manager/Executive Director) and Authorized Agent