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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. ### 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