Reso25-02 0024 PC Reso 901 El Camino Real

Browse Search

Page 13 of 42 ARTICLE 4 OPERATION OF THE AFFORDABLE DEVELOPMENT Section 4.1 Residential Use. Affordable Development shall be operated only for residential use. No part of Affordable Development shall be operated as transient housing in which the term of occupancy is less than thirty (30) days. No part of the Affordable Development may be operated as an emergency shelter (including shelter for disaster victims) or facilities such as nursing homes, convalescent homes, hospitals, residential treatment facilities, correctional facilities, halfway houses, housing for students, or dormitories (including farmworker dormitories). Section 4.2 Taxes and Assessments. The Affordable Developer shall pay all real and personal property taxes, assessments and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Affordable Development; provided, however, that Affordable Developer shall have the right to contest in good faith, any such taxes, assessments, or charges. In the event Affordable Developer exercises its right to contest any tax, assessment, or charge against it, Affordable Developer, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest. Nothing herein shall prohibit Affordable Developer from applying for and obtaining the welfare tax exemption pursuant to Section 214(g) of the California Revenue and Taxation Code. Section 4.3 Notice of Litigation. Affordable Developer shall promptly notify the City in writing of any litigation materially affecting Affordable Developer or Affordable Development and of any claims or disputes that involve a material risk of such litigation. Section 4.4 Insurance Requirements. For the entire Term, the Affordable Developer or its successors and assigns acquiring title to the Affordable Site shall obtain, at their expense, commercial liability insurance for Affordable Development, naming the City as an additional named insured for the amount of Two Million ($2,000,000.00) per occurrence. If the submitted policies contain aggregate limits, such limits will apply separately to the Affordable Site, or the aggregate will be twice the required per occurrence limit. The General Liability policy will have comprehensive coverage for bodily injury and death and property damage, including coverages for contractual liability and products and completed operations, purchased by Affordable Developer or its successors or assigns from an insurance company duly licensed to engage in the business of issuing such insurance in the State and delivered to the City prior to the issuance of any building permit for any portion of the Affordable Development. Insurance shall be placed with insurers with a current A.M. Best's rating of no less than A: VII (a) Prior to commencement of construction, Affordable Developer or its successors and assigns acquiring title to the Affordable Site shall furnish City with certificates of insurance in form acceptable to City evidencing the required insurance coverage and duly executed endorsements evidencing such additional insured status. The certificates shall contain a statement of obligation on the part of the carrier to notify City of any material adverse change, cancellation, termination or non-renewal of the coverage at least thirty (30) days in advance of the effective date of any such material adverse change, cancellation, termination or non-renewal, except for ten (10) days advance notice for cancellation due to nonpayment of premium. ATTY/RESO.0024/PC RESO 901 EL CAMINO REV: 04-11-25 VR