HomeMy WebLinkAbout2022-11-28 PacketPage 1 of 2
City Council
Special Meeting
AGENDA
Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482
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November 28, 2022 - 4:00 PM
1. ROLL CALL AND PLEDGE OF ALLEGIANCE
2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in,
you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is
within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please
limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act
regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.
3. UNFINISHED BUSINESS
3.a. Approval of a $1.62 Million Loan through the Ukiah Housing Trust Fund to DANCO
Communities for Development of the 71-Unit Mixed-Use Project at 210 East Gobbi Street; and
Authorization for the City Manager to Execute Loan Documents and any Related Agreements
Thereto; Approve Corresponding Budget Amendment.
Recommended Action: Approve a loan for $1.62 million to DANCO Communities through the
Ukiah Housing Trust Fund for the development of the 71-unit mixed-use project at 210 East Gobbi
Street and authorize the City Manager to execute loan documents and any related agreements
thereto; approval of associated budget amendment, if necessary.
Attachments:
1. 4-3-19 Staff Report 210 E Gobbi
2. State Income Limits- 2022
3. DANCO-City Note and Deed
4. NEW BUSINESS
5. ADJOURNMENT
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Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or
interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to
reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted
to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the
Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday,
8:00 am to 5:00 pm.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on
the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California,
not less than 24 hours prior to the meeting set forth on this agenda.
Shannon Riley, Deputy City Manager
Dated: November 23, 2022
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Agenda Item No: 3.a.
MEETING DATE/TIME: 11/28/2022
ITEM NO: 2022-2221
AGENDA SUMMARY REPORT
SUBJECT: Approval of a $1.62 Million Loan through the Ukiah Housing Trust Fund to DANCO Communities
for Development of the 71-Unit Mixed-Use Project at 210 East Gobbi Street; and Authorization for the City
Manager to Execute Loan Documents and any Related Agreements Thereto; Approve Corresponding Budget
Amendment.
DEPARTMENT: Community
Development PREPARED BY: Craig Schlatter, Community Development Director,
Shannon Riley, Deputy City Manager
PRESENTER: Shannon Riley, Deputy City Manager; Craig
Schlatter, Community Development Director
ATTACHMENTS:
1. 4-3-19 Staff Report 210 E Gobbi
2. State Income Limits- 2022
3. DANCO-City Note and Deed
Summary: Council will consider approving a loan for $1.62 million to DANCO Communities through the Ukiah
Housing Trust Fund for the development of the mixed-use project at 210 East Gobbi Street. Council will also
consider authorizing the City Manager to execute loan documents, budget amendment, and any related
agreements with DANCO Communities for this project.
Background: On April 3, 2019, Council authorized an Exclusive Negotiating Agreement (ENA) with DANCO for
the development of a mixed-use commercial and affordable housing project at 210 East Gobbi Street; the
associated staff report is provided as Attachment 1, and the video for this meeting is available on the City’s
website at https://www.cityofukiah.com/meetings.
This staff report utilizes terminology for market-rate and affordable housing, as defined below:
Market-rate housing: housing built without the use of federal, state, or local subsidies and that receives no
ongoing subsidies, such as from the U.S. Department of Housing and Urban Development (HUD)’s Section 8
Project Based Vouchers program. Residents of all incomes can live in market-rate housing, provided they can
afford what is normally a higher rent than affordable housing rents.
Affordable housing: housing built with the use of federal, state, or local subsidies and that may receive
ongoing subsidies, such as from HUD’s Section 8 Project Based Vouchers program. Affordable housing is
restricted to residents with gross annual household incomes less than 30%, 50%, 60%, or 80% of the county
Area Median Income, with income restrictions generally set depending on the competitiveness of the project
for certain sources of federal or state funding. See Page 9 of Attachment 2 for income limits within Mendocino
County. Subsidies provided for the financing of the project, and ongoing operating and tenant-based
subsidies, enable rents to be set at a maximum of no more than 30% of the income of the household’s
income.
Discussion: As noted within the April 3, 2019 staff report, Staff’s recommendation to Council was that the
ENA be used to facilitate a similar transaction to that of the Norton-Main market-rate housing project, in which
the City purchased the land and leased it back to the developer with lease payments paid by the developer
into the City’s housing trust fund. However, over the last three years and despite attempts by DANCO
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Communities to develop a mixed-income and mixed-use project with a combination of market-rate, affordable,
and commercial units, the developer was not able to secure funding for this style of project. DANCO
Communities was able to secure funding for a mixed-use affordable/commercial project, but doing so would
require a loan from the City’s housing trust fund for 100% of the purchase price of the land, with no lease or
lease to purchase options available due to the funding structure of the affordable housing project.
Council authorized $1.5 million, plus closing costs, through the Ukiah Housing Trust Fund for the facilitation of
the project at 210 East Gobbi Street; however, Council did not specifically approve a loan to DANCO
Communities for this amount. This recommendation completes that step, facilitating the development of 71
affordable housing and four commercial units on three vacant parcels.
In speaking with the President of DANCO Communities on November 21, 2022, Staff was informed that the
closing date for the mixed-use project at 210 East Gobbi Street, Acorn Valley Plaza, must occur no later than
December 7, 2022, in order to meet the deadlines of other funding sources secured for the project. Therefore,
Staff scheduled this special meeting to meet the loan closing deadline for the project.
The City’s leadership in facilitating this project and a possible loan of $1.62 million to DANCO Communities
will fulfill a number of goals, policies and implementing programs within the City’s 2019-2027 Housing
Element. These include goals H2-H5, policies 2-2, 2-4, 2-5, 3-3, and 5-3, and implementing programs 2e, 2h,
and 3e.
Staff requests Council approve a loan for $1.62 million to DANCO Communities through the Ukiah Housing
Trust Fund for the development of the mixed-use project at 210 East Gobbi Street and authorize the City
Manager to execute loan documents, a budget amendment (to account for the revenue from the loan), and
any related agreements thereto with DANCO Communities for this project. Copies of the draft promissory note
and deed of trust are included in Attachment 3.
Recommended Action: Approve a loan for $1.62 million to DANCO Communities through the Ukiah Housing
Trust Fund for the development of the 71-unit mixed-use project at 210 East Gobbi Street and authorize the
City Manager to execute loan documents and any related agreements thereto; approval of associated budget
amendment, if necessary.
BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 24900000.10520.18389 (Loan Receivable): $0
PROPOSED BUDGET AMOUNT: 24900000.10520.183389 (Loan Receivable): $1,620,000
FINANCING SOURCE: Fund 249 Ukiah Housing Trust Fund
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Chris Dart, President, DANCO Communities
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RECOMMENDED ACTION:Authorize the City Manager to negotiate and execute the agreement for the acquisition
of approximately 2.4 acres located on East Gobbi Street at Village Circle, utilizing Ukiah Housing Trust Fund
monies, in an amount not to exceed $1.5 million plus closing costs; also, authorize City Manager to negotiate and
execute an Exclusive Negotiating Agreement with Danco Communities for the development of a mixed-use
project to include commercial and market-rate or a combination of market-rate and affordable (low-income)
residential units.
BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 0
PROPOSED BUDGET AMOUNT: $1,500,000, 24923400.80210
FINANCING SOURCE: Ukiah Housing Trust Fund, fund 249, unspent redevelopment housing bond proceeds
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Chris Dart, President, Danco Communities; Finance Department
Agenda Item No.: 12b
MEETING DATE/TIME: 4/3/2019
PEAK ITEM NO: COU-647-2017
AGENDA SUMMARY REPORT
SUBJECT: Authorization for the City Manager to Negotiate and Execute the Agreement for the Acquisition of
Approximately 2.4 Acres of Property Located at 210 East Gobbi Street (APNs 003-040-077, -078, and -079) for
the Development of a Mixed-Use Project in an Amount not to Exceed $1.5 Million Plus Closing Costs;
Authorize City Manager to Negotiate and Execute the Exclusive Negotiating Agreement for the Development of
Said Project with Danco Communities.
DEPARTMENT:Economic Development PREPARED BY: Shannon Riley
ATTACHMENTS:
Attachment 1 - Purchase Agreement - 210 East Gobbi St Ukiah ID 340432
Attachment 2 ENA CityofUkiah Danco Communities
Summary: The Council will consider authorizing the City Manager to approve of the acquisition of approximately
2.4 acres located on East Gobbi Street at Village Circle, utilizing Ukiah Housing Trust Fund monies, in an
amount not to exceed $1.5 million plus closing costs; also, authorize City Manager to execute an Exclusive
Negotiating Agreement with Danco Communities for the development of a mixed-use project to include
commercial and market-rate or a combination of market-rate and affordable (low-income) residential units.
Attachment 1
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2
Background: At the direction of the City Council, Staff has negotiated for the purchase of approximately 2.4
acres of land located on East Gobbi Street at Village Circle (APNs 003-040-077, -078, and -079). These infill
parcels, zoned C-2 (Heavy Commercial), are ideal for a mixed-use development that includes commercial and
housing due to their proximity to services, public transportation, and major employment centers.
In 2018, City Council authorized the pledge of $500,000 of Ukiah Housing Trust Fund monies to developer
Danco Communities for an affordable housing project on this same site. Danco has been in escrow for this
site since that time. However, roughly one year later, the project has not come to fruition, as the remaining
funds necessary have not been secured.
During that same time, additional affordable housing (within and outside of the city limits) is in the process of
being developed (Willow Terrace on East Gobbi at Leslie) and Brush Meadows (on Brush Street), and two
more projects are in the pre-development phase--an affordable senior housing project behind Rite Aid on West
Gobbi and another affordable project from RCHDC at the corner of Brush Street and Orchard Avenue. While
this development is very encouraging, there remains a need for market-rate housing, and the City has
committed to facilitating all types of housing.
Recently, the City successfully employed a model for the facilitation of market-rate housing on City-owned
property located on North Main and Norton Streets. By structuring a long-term lease with an option to purchase
(which prevented the need for up-front capital to purchase land), the developers were able to plan and build a
35-unit market-rate apartment complex that will begin leasing later this year. All proceeds from the land lease
are returned to the City’s affordable housing fund, which can then be utilized for future development of
affordable housing or other related activities.
Discussion: Staff is recommending a similar approach for the subject properties on East Gobbi Street. By
eliminating the need for the developer to purchase the property, it becomes more feasible to develop the
project. With Council’s authorization, Danco Communities will assign the purchase agreement to the City of
Ukiah (Attachment #1), and Staff will complete the transaction for the acquisition of these parcels in an amount
not to exceed $1.5 million plus closing costs.
The valuations for these parcels is consistent with other similar sites, as demonstrated in a recent appraisal for
the City-owned parcels at Main and Norton Streets. Additionally, Danco Communities has commissioned a
Phase One Environmental Review on the site, which determined that they are free of contamination and of any
development restrictions.
Staff is recommending that Council authorize the City Manager to negotiate and execute the Assignment of
Purchase Agreement and complete the site acquisition. Additionally, Staff recommends authorizing the City
Manager to negotiate and execute an Exclusive Negotiating Agreement with Danco Communities for the
development of a mixed-use project on these parcels, to consist of commercial and housing, either market-rate
a combination of market-rate and affordable (low-income) (Attachment #2). As with the recent Norton-Main
development, the proceeds from the lease or lease-option agreement with Danco will be returned to the
Housing Trust Fund, thereby creating a revolving fund for affordable housing and returning the City's original
investment in the properties. Once a specific project is proposed for these properties, additional details and a
development agreement will be presented to the Council.
Currently, a community garden is located on one of the three parcels. As an addendum to the Purchase
Agreement, Staff recommends restricting development activities through the end of 2019 in order to provide
ample time for relocation efforts. Community gardens are an important asset to the neighborhood, and this
garden has been in place since 2014.
Throughout this process, Staff has been working with Gardens Project employees and various property owners
in an effort to identify alternative locations for the garden, preferably a more permanent site. Additionally, Danco
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3
Communities has remained open to discussions regarding whether part of the garden may remain on site.
In summary, Staff is recommending Council’s approval of the acquisition of approximately 2.4 acres located on
East Gobbi Street at Village Circle, utilizing Ukiah Housing Trust Fund monies, in an amount not to exceed $1.5
million plus closing costs; also, authorize City Manager to execute an Exclusive Negotiating Agreement with
Danco Communities for the development of a mixed-use project to include commercial and market-rate or a
combination of market-rate and affordable (low-income) residential units.
Fiscal analysis: unspent redevelopment housing bond proceeds are proposed to be used for the acquisition of
this property. The current amount of unspent bond proceeds is $2,818,175.55.
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916)263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 13, 2022
MEMORANDUM FOR: Interested parties
FROM: Megan Kirkeby, Deputy Director
Division of Housing Policy Development
SUBJECT: State Income Limits for 2022
Attached are briefing materials and Revised State Income Limits for 2022 that are now in effect,
replacing the previous 2021 State Income Limits. Income limits reflect updated median income
and household income levels for acutely low -, extremely low-, very low-, low-, and moderate-
income households for California’s 58 counties. The 2022 State Income Limits are on the
Department of Housing and Community Development (HCD) website at
http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits.shtml.
State Income Limits apply to designated programs, are used to determine applicant eligibility
(based on the level of household income), and may be used to calculate affordable housing
costs for applicable housing assistance programs. Use of State Income Limits are subject to a
particular program’s definition of income, family, family size, effective dates, and other factors. In
addition, definitions applicable to income categories, criteria, and geographic areas sometimes
differ depending on the funding source and program, resulting in some programs using other
income limits.
The attached briefing materials detail California’s 2022 Income Limits and were updated based
on: (1) changes to income limits the U.S. Department of Housing and Urban Development (HUD)
released on April 19, 2022, for its Public Housing, Section 8, Section 202 and Section 811
programs and (2) adjustments HCD made based on State statutory provisions and its 2013 Hold
Harmless (HH) Policy. Since 2013, HCD’s HH Policy has held State Income Limits harmless
from any decreases in household income limits and median income levels that HUD may apply
to the Public Housing and Section 8 Income Limits. HUD determined its HH Policy was no longer
necessary due to federal law changes in 2008 (Public Law 110-98) prohibiting rent decreases in
federal or private activity bond funded projects.
For questions concerning State Income Limits, please see the Questions and Answers on page
5. You can also contact HCD staff at (916) 263-2911.
Attachment 2
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2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932
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Overview
The Department of Housing and Community Development (HCD), pursuant to Health & Safety Code
Section 50093(c), must file updates to its State Income Limits with the Office of Administrative Law.
HCD annually updates these income limits based on U.S. Department of Housing and Urban
Development (HUD) revisions to the Public Housing and Section 8 Income Limits that HUD most
recently released on April 19, 2022.
HUD annually updates its Public Housing and Section 8 Income Limits to reflect changes in median
family income levels for different size households and income limits for extremely low-, very low-, and
low-income households. HCD, pursuant to statutory provisions, makes the following additional revisions:
(1) if necessary, increase a county’s area median income to equal California’s non-metropolitan median
income, (2) adjusts area median income and household income category levels to not result in any
decrease for any year after 2009 pursuant to HCD’s February 2013 Hold Harmless (HH) Policy (HCD’s
HH Policy was implemented to replace HUD’s HH Policy, discontinued in 2009, to not decrease income
limits and area median income levels below a prior year’s highest level), and (3) determines income
limits for California’s acutely low-income and moderate-income category.
Following are brief summaries of technical methodologies used by HUD and HCD in updating income
limits for different household income categories. For additional information, please refer to HUD’s
briefing materials at https://www.huduser.gov/portal/datasets/il//il22/IncomeLimitsMethodology-
FY22.pdf
HUD Methodology
HUD Public Housing and Section 8 Income Limits begin with the production of median family incomes.
HUD uses the Section 8 program’s Fair Market Rent (FMR) area definitions in developing median
incomes, which means developing median incomes for each metropolitan area, parts of some
metropolitan areas, and each non-metropolitan county. The 2022 FMR area definitions for California are
unchanged from last year. HUD calculates Income Limits for every FMR area with adjustments for
family size and for areas with unusually high or low family income or housing-cost-to-income
relationships.
Extremely Low-Income
In determining the extremely low-income limit, HUD uses the Federal Poverty Guidelines, published by
the Department of Health and Human Services. The poverty guidelines are a simplified version of the
federal poverty thresholds used for administrative purposes — for instance, determining financial
eligibility for certain federal programs. HUD compares the appropriate poverty guideline with 60% of the
very low-income limit and chooses the greater of the two as the extremely low-income limit. The value
may not exceed the very low-income level.
Very Low-Income
The very low-income limits are the basis for the extremely low- and low-income limits. The very low-
income limit typically reflects 50 percent of median family income (MFI), and HUD's MFI figure generally
equals two times HUD's 4-person very low-income limit. However, HUD may adjust the very low-income
limit for an area or county to account for conditions that warrant special considerations. As such, the
very low-income limit may not always equal 50% MFI.
Low-Income
In general, most low-income limits represent the higher level of: (1) 80 percent of MFI or, (2) 80 percent
of state non-metropolitan median family income. However, due to adjustments that HUD sometimes
makes to the very low-income limit, strictly calculating low-income limits as 80 percent of MFI could
produce unintended anomalies inconsistent with statutory intent (e.g., very low-income limits being
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2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932
Page 3 of 5
higher than low-income limits). Therefore, HUD’s briefing materials specify that, with some exceptions,
the low-income limit reflect 160 percent of the very low-income limit. HUD may apply additional
adjustments to areas with unusually high or low housing-costs-to-income relationships and for other
reasons. This can result in low-income limits exceeding MFI in certain counties.
Median Family Income/Area Median Income
HUD references and estimates the MFI in calculating the income limits. California law and State Income
Limits reference Area Median Income (AMI) that, pursuant to Health & Safety Code 50093(c), means
the MFI of a geographic area, estimated by HUD for its Section 8 Program.
HUD’s calculations of Income Limits begin with the production of MFI estimates. This year, MFI
estimates use the 2019 American Community Survey. HUD then adjusts the survey data to account for
anticipated income growth by applying the Consumer Price Index inflation forecast published by the
Bureau of Labor Statistics through the fiscal year 2022. Previously, HUD has relied on inflation forecasts
from the Congressional Budget Office (CBO) in updating ACS estimates. However, at the time of FY
2022 median family income calculation, CBO had not issued an updated CPI forecast suitable for use
by HUD. The inflation factor, representing the cumulative change in the CPI from 2019 through February
2022, is approximately 1.1116. HUD uses the MFI to calculate very low-income limits, used as the basis
to calculate income limits for other income categories. MFIs are calculated at the family level only, not
the per person level as is done for income limits. The average family size is over 3, so, by convention,
HUD equates the median family income for an area with a four-person family for the purposes of
calculating income limits. For additional information, please see HUD’s methodology describing 2022
MFI’s at
https://www.huduser.gov/portal/datasets/il/il22/Medians-Methodology-FY22.pdf.
Adjustment Calculations
HUD may apply adjustments to areas with unusually high or low family income, uneven housing-cost-to-
income relationship, or other reasons. For example, HUD applies an increase if the four-person very
low-income limit would otherwise be less than the amount at which 35 percent of it equals 85 percent of
the annualized two-bedroom Section 8 FMR (or 40th percentile rent in 50th percentile FMR areas). The
purpose is to increase the income limit for areas where rental-housing costs are unusually high in
relation to the median income.
In certain cases, HUD also applies an adjustment to the income limits based on the state non-
metropolitan median family income level. In addition, HUD restricts adjustments, so income limits do not
increase more than five percent of the previous year's very low-income figure OR twice the increase in
the national MFI as measured from the 2018 to the 2019 American Community Survey, whichever is
greater. For the 2022 income limits, the maximum increase is 11.89% from the previous year. This
adjustment does not apply to the extremely low-income limits.
Please refer to HUD briefing materials for additional information on the adjustment calculations.
Income Limit Calculations for Household Sizes Other Than 4-Persons
The income limit statute requires adjustments for family size. The legislative history and conference
committee report indicates that Congress intended that income limits should be higher for larger families
and lower for smaller families. The same family size adjustments apply to all income limits, except
extremely low-income limits, which are set at the poverty income threshold. They are as follows:
Number of Persons in Household: 1 2 3 4 5 6 7 8
Adjustments: 70% 80% 90% Base 108% 116% 124% 132%
Income Limit Calculations for Household Sizes Greater Than 8-Persons
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2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932
Page 4 of 5
For households of more than eight persons, refer to the formula at the end of the table for 2022 Income
Limits. Due to the adjustments HUD can make to income limits in a given county, table data should be
the only method used to determine program eligibility. Arithmetic calculations are applicable only when a
household has more than eight members. Please refer to HUD’s briefing material for additional
information on family size adjustments.
HCD Methodology
State law (see, e.g., Health & Safety Code Section 50093) prescribes the methodology HCD uses to
update the State Income Limits. HCD utilizes HUD’s Public Housing and Section 8 Income Limits.
HCD’s methodology involves: (1) if necessary, increasing a county’s median income established by
HUD to equal California’s non-metropolitan county median income determined by HUD, (2) applying
HCD’s HH Policy, in effect since 2013, to not allow decreases in area median income levels and
household income category levels, (3) applying to the median income the same family size adjustments
HUD applies to the income limits, and (4) determining income limit levels applicable to California’s
moderate-income households defined by law as household income not exceeding 120 percent of county
area median income.
Area Median Income and Income Category Levels
HCD, pursuant to federal and State law, adjusts median income levels for all counties so they are not
less than the non-metropolitan county median income established by HUD ($80,300 for 2022). Next,
HCD applies its HH policy to ensure area median income and income limits for all household income
categories do not fall below any level achieved in the prior year. Health and Safety Code section 50093
requires HCD to adjust the AMI for family size in accordance with adjustment factors adopted by HUD
and illustrated on the previous page. This establishes that the MFI published by HUD equals the four-
person AMI for California counties.
Acutely low-Income Levels
Chapter 345, Statues of 2021 (Assembly Bill 1043) established California’s acutely low-income levels.
See Health & Safety Code, § 50063.5. After calculating the 4-person area median income (AMI) level as
previously described, HCD sets the maximum acutely low-income limit to equal 15 percent of the
county’s AMI, adjusted for family size.
Moderate-Income Levels
HCD is responsible for establishing California’s moderate-income limit levels. After calculating the 4-
person area median income (AMI) level as previously described, HCD sets the maximum moderate-
income limit to equal 120 percent of the county’s AMI, adjusted for family size.
Applicability of California’s Official State Income Limits
Applicability of the State Income Limits are subject to particular programs as program definitions of
factors such as income, family, and household size vary. Some programs, such as Multifamily Tax
Subsidy Projects (MTSPs), use different income limits. For MTSPs, separate income limits apply per
provisions of the Housing and Economic Recovery Act (HERA) of 2008 (Public Law 110-289). Income
limits for MTSPs are used to determine qualification levels as well as set maximum rental rates for
projects funded with tax credits authorized under Section 42 of the Internal Revenue Code (Code). In
addition, MTSP income limits apply to projects financed with tax-exempt housing bonds issued to
provide qualified residential rental development under Section 142 of the Code. These income limits are
available at http://www.huduser.org/datasets/mtsp.html.
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2022 State Income Limits Briefing Materials
California Code of Regulations, Title 25, Section 6932
Page 5 of 5
Questions and Answers
In Los Angeles, as well as several other counties in the state, why does the very low-income limit
not equal 50% of the AMI (or the low-income limit not equal 80% of the AMI)?
There are many exceptions to the arithmetic calculation of income limits. These include adjustments for
high housing cost relative to income, the application of state nonmetropolitan income limits in low-income
areas, and national maximums in high-income areas. In Los Angeles County, as well as several
others, the magnitude of these adjustments results in the low-income limit exceeding the AMI.
These exceptions are detailed in the FY 2022 Income Limits Methodology
Document, https://www.huduser.gov/portal/datasets/il//il22/IncomeLimitsMethodology-FY22.pdf.
For further information on the exact adjustments made to an individual area of the country, please see
HUD’s FY 2022 Income Limits Documentation System. The documentation system is available
at https://www.huduser.gov/portal/datasets/il.html#2022_query. Once the area in question is selected, a
summary of the area’s median income, Very Low-Income, Extremely Low-Income, and Low-Income
Limits are displayed. Detailed calculations are obtained by selecting the relevant links.
Why don’t the income limits for my area reflect recent gains?
Although HUD uses the most recent data available concerning local area incomes, there is still a lag
between when the data are collected and when the data are available for use. For example, FY 2022
Income Limits are calculated using 2015-2019 5-year American Community Survey (ACS) data, and one-
year 2019 data where possible. This is a three-year lag, so more current trends in median family income
levels are not available.
How does HUD calculate Median Family Income (MFI)?
HUD estimates Median Family Income (MFI) annually for each metropolitan area and non-metropolitan
county. The basis for HUD’s median family incomes is data from the American Community Survey, table
B19113 - MEDIAN FAMILY INCOME IN THE PAST 12 MONTHS. A Consumer Price Index (CPI)
forecast as published by the Bureau of Labor Statistics is used in the trend factor calculation to bring the
2018 ACS data forward to FY 2022.
For additional details concerning the use of the ACS in HUD’s calculations of MFI, please see HUD’s FY
2022 Median Family Income methodology document,
at https://www.huduser.gov/portal/datasets/il.html#2022_data.
Additionally, full documentation of all calculations for Median Family Incomes are available in the FY
2022 Median Family Income and the FY 2022 Income Limits Documentation System. These systems are
available at https://www.huduser.gov/portal/datasets/il.html#2022_query.
Why didn’t the income limits for my county change from last year?
HCD’s Hold Harmless Policy likely prevented the income limits from decreasing from last year’s levels
and has maintained them despite a decrease in median income and/or income limits published by HUD.
Why do the income limits or area median income for my county not match what was published by
HUD?
HCD adjusts each county’s area median income to at least equal the state non-metropolitan county
median income, as published by HUD. Further, HCD’s Hold Harmless Policy prevents any decrease in
income limits or median family income published by HUD to be applied to State Income Limits.
Page 12 of 34
Section 6932. 2022 Income Limits
Number of Persons in Household:1 2 3 4 5 6 7 8
Income Category
Acutely Low 15000 17100 19250 21400 23100 24800 26550 28250
Extremely Low 30000 34300 38600 42850 46300 49750 53150 56600
Very Low Income 50000 57150 64300 71400 77150 82850 88550 94250
Low Income 76750 87700 98650 109600 118400 127150 135950 144700
Median Income 99950 114250 128500 142800 154200 165650 177050 188500
Moderate Income 119950 137100 154200 171350 185050 198750 212450 226200
Acutely Low 10000 11400 12850 14250 15400 16550 17650 18800
Extremely Low 19100 21800 24550 27750 32470 37190 41910 46630
Very Low Income 31800 36350 40900 45400 49050 52700 56300 59950
Low Income 50900 58150 65400 72650 78500 84300 90100 95900
Median Income 66450 75900 85400 94900 102500 110100 117700 125250
Moderate Income 79750 91100 102500 113900 123000 132100 141250 150350
Acutely Low 9100 10400 11700 13000 14050 15100 16100 17150
Extremely Low 18200 20800 23400 27750 32470 37190 41910 46630
Very Low Income 30350 34650 39000 43300 46800 50250 53700 57200
Low Income 48550 55450 62400 69300 74850 80400 85950 91500
Median Income 60600 69300 77950 86600 93550 100450 107400 114300
Moderate Income 72750 83100 93500 103900 112200 120500 128850 137150
Acutely Low 8950 10200 11500 12750 13750 14800 15800 16850
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 59500 68000 76500 85000 91800 98600 105400 112200
Moderate Income 71400 81600 91800 102000 110150 118300 126500 134650
Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800
Extremely Low 18900 21600 24300 27750 32470 37190 41910 46630
Very Low Income 31500 36000 40500 45000 48600 52200 55800 59400
Low Income 50400 57600 64800 72000 77800 83550 89300 95050
Median Income 63000 72000 81000 90000 97200 104400 111600 118800
Moderate Income 75600 86400 97200 108000 116650 125300 133900 142550
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 15000 17100 19250 21400 23100 24800 26550 28250
Extremely Low 30000 34300 38600 42850 46300 49750 53150 56600
Very Low Income 50000 57150 64300 71400 77150 82850 88550 94250
Low Income 76750 87700 98650 109600 118400 127150 135950 144700
Median Income 99950 114250 128500 142800 154200 165650 177050 188500
Moderate Income 119950 137100 154200 171350 185050 198750 212450 226200
Calaveras County
Area Median Income:
$90,000
Colusa County
Area Median Income:
$80,300
Contra Costa County
Area Median Income:
$142,800
Last page instructs how to use income limits to determine applicant eligibility and calculate affordable housing cost and rent
Alameda County
Area Median Income:
$142,800
Alpine County
Area Median Income:
$94,900
Amador County
Area Median Income:
$86,600
Butte County
Area Median Income:
$85,000
Page 13 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 10750 12300 13800 15350 16600 17800 19050 20250
Extremely Low 21300 24350 27400 30400 32850 37190 41910 46630
Very Low Income 35500 40550 45600 50650 54750 58800 62850 66900
Low Income 56750 64850 72950 81050 87550 94050 100550 107000
Median Income 71550 81750 92000 102200 110400 118550 126750 134900
Moderate Income 85850 98100 110400 122650 132450 142250 152100 161900
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8700 9900 11150 12400 13400 14400 15400 16350
Extremely Low 17400 19850 23030 27750 32470 37190 41910 46630
Very Low Income 28950 33100 37250 41350 44700 48000 51300 54600
Low Income 46350 52950 59550 66150 71450 76750 82050 87350
Median Income 57900 66150 74450 82700 89300 95950 102550 109150
Moderate Income 69500 79400 89350 99250 107200 115150 123050 131000
Fresno County
Area Median Income:
$80,300
Glenn County
Area Median Income:
$80,300
Humboldt County
Area Median Income:
$80,300
Imperial County
Area Median Income:
$80,300
Inyo County
Area Median Income:
$82,700
Del Norte County
Area Median Income:
$80,300
El Dorado County
Area Median Income:
$102,200
Page 14 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16900 19300 23030 27750 32470 37190 41910 46630
Very Low Income 28150 32150 36150 40150 43400 46600 49800 53000
Low Income 45000 51400 57850 64250 69400 74550 79700 84850
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 9550 10900 12300 13650 14750 15850 16950 18000
Extremely Low 25050 28600 32200 35750 38650 41500 44350 47200
Very Low Income 41700 47650 53600 59550 64350 69100 73850 78650
Low Income 66750 76250 85800 95300 102950 110550 118200 125800
Median Income 63750 72900 82000 91100 98400 105700 112950 120250
Moderate Income 76500 87450 98350 109300 118050 126800 135550 144300
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 17450 19900 22400 24900 26900 28900 30900 32850
Extremely Low 39150 44750 50350 55900 60400 64850 69350 73800
Very Low Income 65250 74600 83900 93200 100700 108150 115600 123050
Low Income 104400 119300 134200 149100 161050 173000 184900 196850
Median Income 116200 132800 149400 166000 179300 192550 205850 219100
Moderate Income 139450 159350 179300 199200 215150 231050 247000 262950
Madera County
Area Median Income:
$80,300
Marin County
Area Median Income:
$166,000
Kern County
Area Median Income:
$80,300
Kings County
Area Median Income:
$80,300
Lake County
Area Median Income:
$80,300
Lassen County
Area Median Income:
$80,300
Los Angeles County
Area Median Income:
$91,100
Page 15 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16900 19300 23030 27750 32470 37190 41910 46630
Very Low Income 28150 32150 36150 40150 43400 46600 49800 53000
Low Income 45000 51400 57850 64250 69400 74550 79700 84850
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8550 9750 11000 12200 13200 14150 15150 16100
Extremely Low 17050 19500 23030 27750 32470 37190 41910 46630
Very Low Income 28450 32500 36550 40600 43850 47100 50350 53600
Low Income 45300 51800 58250 64700 69900 75100 80250 85450
Median Income 56850 64950 73100 81200 87700 94200 100700 107200
Moderate Income 68200 77950 87700 97450 105250 113050 120850 128650
Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800
Extremely Low 23900 27300 30700 34100 36850 39600 42300 46630
Very Low Income 39800 45500 51200 56850 61400 65950 70500 75050
Low Income 63700 72800 81900 91000 98300 105600 112850 120150
Median Income 63050 72100 81100 90100 97300 104500 111700 118950
Moderate Income 75650 86500 97300 108100 116750 125400 134050 142700
Acutely Low 12550 14300 16100 17900 19350 20750 22200 23650
Extremely Low 26500 30300 34100 37850 40900 43950 46950 50000
Very Low Income 44150 50450 56750 63050 68100 73150 78200 83250
Low Income 70550 80600 90700 100750 108850 116900 124950 133000
Median Income 83600 95500 107450 119400 128950 138500 148050 157600
Moderate Income 100300 114650 128950 143300 154750 166250 177700 189150
Modoc County
Area Median Income:
$80,300
Mono County
Area Median Income:
$81,200
Mariposa County
Area Median Income:
$80,300
Mendocino County
Area Median Income:
$80,300
Merced County
Area Median Income:
$80,300
Monterey County
Area Median Income:
$90,100
Napa County
Area Median Income:
$119,400
Page 16 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 10350 11800 13300 14750 15950 17100 18300 19450
Extremely Low 20650 23600 26550 29500 32470 37190 41910 46630
Very Low Income 34450 39400 44300 49200 53150 57100 61050 64950
Low Income 55100 63000 70850 78700 85000 91300 97600 103900
Median Income 68900 78700 88550 98400 106250 114150 122000 129900
Moderate Income 82650 94500 106300 118100 127550 137000 146450 155900
Acutely Low 12500 14300 16050 17850 19300 20700 22150 23550
Extremely Low 28500 32550 36600 40650 43950 47200 50450 53700
Very Low Income 47450 54200 61000 67750 73200 78600 84050 89450
Low Income 75900 86750 97600 108400 117100 125750 134450 143100
Median Income 83350 95300 107200 119100 128650 138150 147700 157200
Moderate Income 100050 114300 128600 142900 154350 165750 177200 188650
Acutely Low 10750 12300 13800 15350 16600 17800 19050 20250
Extremely Low 21300 24350 27400 30400 32850 37190 41910 46630
Very Low Income 35500 40550 45600 50650 54750 58800 62850 66900
Low Income 56750 64850 72950 81050 87550 94050 100550 107000
Median Income 71550 81750 92000 102200 110400 118550 126750 134900
Moderate Income 85850 98100 110400 122650 132450 142250 152100 161900
Acutely Low 8650 9900 11100 12350 13350 14350 15300 16300
Extremely Low 17150 19600 23030 27750 32470 37190 41910 46630
Very Low Income 28600 32700 36800 40850 44150 47400 50700 53950
Low Income 45750 52300 58850 65350 70600 75850 81050 86300
Median Income 57700 65900 74150 82400 89000 95600 102200 108750
Moderate Income 69250 79100 89000 98900 106800 114700 122650 130550
Acutely Low 9150 10500 11800 13100 14150 15200 16250 17300
Extremely Low 18500 21150 23800 27750 32470 37190 41910 46630
Very Low Income 30800 35200 39600 44000 47550 51050 54600 58100
Low Income 49300 56350 63400 70400 76050 81700 87300 92950
Median Income 61200 69900 78650 87400 94400 101400 108400 115350
Moderate Income 73450 83900 94400 104900 113300 121700 130100 138450
Acutely Low 10750 12300 13800 15350 16600 17800 19050 20250
Extremely Low 21300 24350 27400 30400 32850 37190 41910 46630
Very Low Income 35500 40550 45600 50650 54750 58800 62850 66900
Low Income 56750 64850 72950 81050 87550 94050 100550 107000
Median Income 71550 81750 92000 102200 110400 118550 126750 134900
Moderate Income 85850 98100 110400 122650 132450 142250 152100 161900
Acutely Low 11050 12600 14200 15750 17000 18250 19550 20800
Extremely Low 22100 25250 28400 31550 34100 37190 41910 46630
Very Low Income 36800 42050 47300 52550 56800 61000 65200 69400
Low Income 58900 67300 75700 84100 90850 97600 104300 111050
Median Income 73550 84100 94600 105100 113500 121900 130300 138750
Moderate Income 88250 100900 113500 126100 136200 146300 156350 166450
Nevada County
Area Median Income:
$98,400
Orange County
Area Median Income:
$119,100
Placer County
Area Median Income:
$102,200
Plumas County
Area Median Income:
$82,400
Riverside County
Area Median Income:
$87,400
Sacramento County
Area Median Income:
$102,200
San Benito County
Area Median Income:
$105,100
Page 17 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 9150 10500 11800 13100 14150 15200 16250 17300
Extremely Low 18500 21150 23800 27750 32470 37190 41910 46630
Very Low Income 30800 35200 39600 44000 47550 51050 54600 58100
Low Income 49300 56350 63400 70400 76050 81700 87300 92950
Median Income 61200 69900 78650 87400 94400 101400 108400 115350
Moderate Income 73450 83900 94400 104900 113300 121700 130100 138450
Acutely Low 11250 12850 14450 16050 17350 18600 19900 21200
Extremely Low 27350 31250 35150 39050 42200 45300 48450 51550
Very Low Income 45550 52050 58550 65050 70300 75500 80700 85900
Low Income 72900 83300 93700 104100 112450 120800 129100 137450
Median Income 74850 85500 96200 106900 115450 124000 132550 141100
Moderate Income 89800 102650 115450 128300 138550 148850 159100 169350
Acutely Low 17450 19900 22400 24900 26900 28900 30900 32850
Extremely Low 39150 44750 50350 55900 60400 64850 69350 73800
Very Low Income 65250 74600 83900 93200 100700 108150 115600 123050
Low Income 104400 119300 134200 149100 161050 173000 184900 196850
Median Income 116200 132800 149400 166000 179300 192550 205850 219100
Moderate Income 139450 159350 179300 199200 215150 231050 247000 262950
Acutely Low 8950 10200 11500 12750 13750 14800 15800 16850
Extremely Low 17400 19900 23030 27750 32470 37190 41910 46630
Very Low Income 29000 33150 37300 41400 44750 48050 51350 54650
Low Income 46350 53000 59600 66200 71500 76800 82100 87400
Median Income 59500 68000 76500 85000 91800 98600 105400 112200
Moderate Income 71400 81600 91800 102000 110150 118300 126500 134650
Acutely Low 11500 13100 14750 16400 17700 19000 20350 21650
Extremely Low 23000 26250 29550 32800 35450 38050 41910 46630
Very Low Income 38300 43800 49250 54700 59100 63500 67850 72250
Low Income 61250 70000 78750 87500 94500 101500 108500 115500
Median Income 76450 87350 98300 109200 117950 126650 135400 144150
Moderate Income 91750 104850 117950 131050 141550 152000 162500 173000
Acutely Low 17450 19900 22400 24900 26900 28900 30900 32850
Extremely Low 39150 44750 50350 55900 60400 64850 69350 73800
Very Low Income 65250 74600 83900 93200 100700 108150 115600 123050
Low Income 104400 119300 134200 149100 161050 173000 184900 196850
Median Income 116200 132800 149400 166000 179300 192550 205850 219100
Moderate Income 139450 159350 179300 199200 215150 231050 247000 262950
Acutely Low 10500 12000 13500 15000 16200 17400 18600 19800
Extremely Low 29350 33550 37750 41900 45300 48650 52000 55350
Very Low Income 48900 55900 62900 69850 75450 81050 86650 92250
Low Income 78350 89550 100750 111900 120900 129850 138800 147750
Median Income 70050 80100 90100 100100 108100 116100 124100 132150
Moderate Income 84050 96100 108100 120100 129700 139300 148900 158550
San Bernardino County
Area Median Income:
$87,400
San Diego County
Area Median Income:
$106,900
San Francisco County
Area Median Income:
$166,000
San Joaquin County
Area Median Income:
$85,000
San Luis Obispo County
Area Median Income:
$109,200
San Mateo County
Area Median Income:
$166,000
Santa Barbara County
Area Median Income:
$100,100
Page 18 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 17700 20250 22750 25300 27300 29350 31350 33400
Extremely Low 35400 40450 45500 50550 54600 58650 62700 66750
Very Low Income 59000 67400 75850 84250 91000 97750 104500 111250
Low Income 92250 105400 118600 131750 142300 152850 163400 173950
Median Income 117950 134800 151650 168500 182000 195450 208950 222400
Moderate Income 141550 161750 182000 202200 218400 234550 250750 266900
Acutely Low 12550 14300 16100 17900 19350 20750 22200 23650
Extremely Low 32700 37350 42000 46650 50400 54150 57850 61600
Very Low Income 54450 62200 70000 77750 84000 90200 96450 102650
Low Income 87350 99800 112300 124750 134750 144750 154700 164700
Median Income 83500 95450 107350 119300 128850 138400 147950 157500
Moderate Income 100200 114500 128850 143150 154600 166050 177500 188950
Acutely Low 9400 10750 12100 13450 14550 15600 16700 17750
Extremely Low 16700 19050 23030 27750 32470 37190 41910 46630
Very Low Income 27800 31800 35750 39700 42900 46100 49250 52450
Low Income 44450 50800 57150 63500 68600 73700 78750 83850
Median Income 62850 71850 80800 89800 97000 104150 111350 118550
Moderate Income 75450 86200 97000 107750 116350 125000 133600 142250
Acutely Low 9450 10800 12150 13500 14600 15650 16750 17800
Extremely Low 18900 21600 24300 27750 32470 37190 41910 46630
Very Low Income 31500 36000 40500 45000 48600 52200 55800 59400
Low Income 50400 57600 64800 72000 77800 83550 89300 95050
Median Income 63000 72000 81000 90000 97200 104400 111600 118800
Moderate Income 75600 86400 97200 108000 116650 125300 133900 142550
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 11400 13050 14650 16300 17600 18900 20200 21500
Extremely Low 22850 26100 29350 32600 35250 37850 41910 46630
Very Low Income 38050 43450 48900 54300 58650 63000 67350 71700
Low Income 60800 69450 78150 86800 93750 100700 107650 114600
Median Income 76100 86950 97850 108700 117400 126100 134800 143500
Moderate Income 91300 104350 117400 130450 140900 151300 161750 172200
Acutely Low 11850 13500 15200 16900 18250 19600 20950 22300
Extremely Low 25000 28550 32100 35650 38550 41400 44250 47100
Very Low Income 41600 47550 53500 59400 64200 68950 73700 78450
Low Income 66550 76050 85550 95050 102700 110300 117900 125500
Median Income 78950 90250 101500 112800 121800 130850 139850 148900
Moderate Income 94750 108300 121800 135350 146200 157000 167850 178650
Santa Clara County
Area Median Income:
$168,500
Santa Cruz County
Area Median Income:
$119,300
Shasta County
Area Median Income:
$89,800
Sierra County
Area Median Income:
$90,000
Siskiyou County
Area Median Income:
$80,300
Solano County
Area Median Income:
$108,700
Sonoma County
Area Median Income:
$112,800
Page 19 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16750 19150 23030 27750 32470 37190 41910 46630
Very Low Income 27900 31900 35900 39850 43050 46250 49450 52650
Low Income 44650 51000 57400 63750 68850 73950 79050 84150
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Acutely Low 8850 10100 11400 12650 13650 14650 15700 16700
Extremely Low 17500 20000 23030 27750 32470 37190 41910 46630
Very Low Income 29150 33300 37450 41600 44950 48300 51600 54950
Low Income 46600 53250 59900 66550 71900 77200 82550 87850
Median Income 59000 67450 75850 84300 91050 97800 104550 111300
Moderate Income 70800 80900 91050 101150 109250 117350 125450 133500
Acutely Low 12100 13850 15550 17300 18700 20050 21450 22850
Extremely Low 26350 30100 33850 37600 40650 43650 46650 49650
Very Low Income 43900 50200 56450 62700 67750 72750 77750 82800
Low Income 70250 80300 90350 100350 108400 116450 124450 132500
Median Income 80800 92300 103850 115400 124650 133850 143100 152350
Moderate Income 96950 110800 124650 138500 149600 160650 171750 182800
Stanislaus County
Area Median Income:
$80,300
Sutter County
Area Median Income:
$80,300
Tehama County
Area Median Income:
$80,300
Trinity County
Area Median Income:
$80,300
Tulare County
Area Median Income:
$80,300
Tuolumne County
Area Median Income:
$84,300
Ventura County
Area Median Income:
$115,400
Page 20 of 34
Number of Persons in Household:1 2 3 4 5 6 7 8
Acutely Low 11200 12800 14400 16000 17300 18550 19850 21100
Extremely Low 20850 23800 26800 29750 32470 37190 41910 46630
Very Low Income 34700 39650 44600 49550 53550 57500 61450 65450
Low Income 55550 63450 71400 79300 85650 92000 98350 104700
Median Income 74600 85300 95950 106600 115150 123650 132200 140700
Moderate Income 89550 102300 115100 127900 138150 148350 158600 168850
Acutely Low 8450 9650 10850 12050 13000 14000 14950 15900
Extremely Low 16350 18700 23030 27750 32470 37190 41910 46630
Very Low Income 27300 31200 35100 38950 42100 45200 48300 51450
Low Income 43650 49850 56100 62300 67300 72300 77300 82250
Median Income 56200 64250 72250 80300 86700 93150 99550 106000
Moderate Income 67450 77100 86700 96350 104050 111750 119450 127200
Instructions:
Eligibility Determination:
Use household size income category figures in this chart. Determine eligibililty based on actual number
of persons in household and total of gross income for all persons.
Determination of Income Limit for Households Larger than Eight Persons:
Per person (PP) adjustment above 8: (1) multiply 4-person income limit by eight percent (8%),
(2) multiply result by number of persons in excess of eight,
(3) add the amount to the 8-person income limit, and (4) round to the nearest $50.
E X A M P L E 4 persons 8% PP Adj + 8 person =9 persons E X A M 4 persons 8 person +8% Adj x 2 =10 persons
Acutely Low 12,050 964 15,900 16,850 12,050 15,900 1928 17,850
Extremely Low 27,750 2220 46,630 48,850 Extremely 27,750 46,630 4440 51,050
Very Low Income 38,950 3116 51,450 54,550 Very Low 38,950 51,450 6232 57,700
Lower Income 62,300 4984 82,250 87,250 Lower Inco 62,300 82,250 9968 92,200
Moderate Income 96,350 7708 127,200 134,900 Moderate 96,350 127,200 15416 142,600
Calculation of Housing Cost and Rent:
Refer to Heath & Safety Code Sections 50052.5 and 50053. Use benchmark household size and multiply
against applicable percentages defined in H&SC using Area Median Income identified in this chart.
Determination of Household Size:
For projects with no federal assistance, household size is set at number of bedrooms in unit plus one.
For projects with federal assistance, household size may be set by multiplying 1.5 by the number of bedrooms
in unit.
HUD Income Limits release: 4/19/2022
HUD FY 2022 California median incomes:
State median income: $101,600
Metropolitan county median income: $102,100
Non-metropolitan county median income: $80,300
Note: Authority cited: Section 50093, Health and Safety Code. Reference: Sections 50063.5, 50079.5, 50093, 50105 and 50106, Health and
Safety Code.
Nine Person Calculation - Example County Ten Person Calculation - Example County
Yolo County
Area Median Income:
$106,600
Yuba County
Area Median Income:
$80,300
Page 21 of 34
Page 1
PROMISSORY NOTE
(City Loan)
$1,620,000 __________ __, 2022
For value received, Ukiah Gobbi Street LP, a California limited partnership (hereinafter referred
to as “Maker”), promises to pay to the order of The City of Ukiah, a municipal corporation
(together with any future holders of this Note, “Holder”), at 300 Seminary Avenue, Ukiah, CA
95482, or as directed otherwise in writing by Holder, the principal sum of One Million Six
Hundred Twenty Thousand Dollars ($1,620,000). This Note is secured by the Deed of Trust (as
defined below) on real property upon which Maker intends to construct a 71-unit multifamily
apartment complex and related improvements (the “Project”). All capitalized terms used but not
otherwise defined herein shall have the meanings ascribed to them in the Maker’s Amended and
Restated Agreement of Limited Partnership dated as of _______, 2022 (“Partnership
Agreement”).
1.The Loan. This Promissory Note (the “Note”) evidences the obligation of the Maker to
the Holder for the repayment of funds loaned to the Holder by the Maker (the "Loan") as a seller
carryback to pay Project property acquisitions costs.
2.Interest. This Promissory Note (“Note”) shall bear simple interest at 3% annually.
3.Payments. Annually each year during the term of this Note commencing on the first
Payment Date following the Final Closing, Maker shall pay to Holder the 80% of Net Cash Flow
remaining after payment of items noted as clauses (__) through (__) of Section [_____] of the
Partnership Agreement. Accompanying each payment of Net Cash Flow, Maker shall provide
Holder with a detailed accounting of all revenue sources and expenses used to calculate Net Cash
Flow. Maker shall maintain accurate financial records in compliance with Generally Accepted
Accounting Principals (“GAAP”) which are auditable and available to the Holder to review, copy
and audited during regular business hours. If any audit or review of such revenues and expenses
establishes that Net Cash Flow was greater than reported to Maker, Holder shall pay all costs
incurred by Maker to conduct the Audit in addition to liquidated damages of __% of the
understated amount.
4.Maturity Date. The principal amount of this Note along with all accrued and unpaid interest
and/or other amounts due shall be due and payable on the fifty-fifth (55) anniversary of the date
of issuance of certificates of occupancy for the Project (the “Maturity Date”); provided, however,
that the Maturity Date may be accelerated in accordance with the terms and provisions of this Note.
5.Security. Payment of the indebtedness evidenced by this Note is secured by that certain
Subordinated Deed of Trust (the “Deed of Trust”), of even date herewith, and made by Maker, as
trustor, to Commonwealth Land Title Insurance Company, as trustee, for the benefit of Holder, as
beneficiary, which encumbers real property in the County of Mendocino, State of California, as
Attachment 3
Page 22 of 34
Page 2
more particularly described in Exhibit A to the Deed of Trust, together with the improvements
located thereon.
6. Default. If any of the following events (“Events of Default”) shall occur:
(a) a default in the payment when due of any amount hereunder and such payment is
not made within 10 business days after Maker received written notice thereof;
(b) failure to pay all outstanding principal and accrued interest on the indebtedness
evidenced by this Note on the Maturity Date; or
(c) any breach or default under the Deed of Trust past any applicable notice and cure
period,
then, subject to the provisions of the Deed of Trust, all sums of interest and principal remaining
outstanding under this Note shall be deemed automatically and immediately due and payable,
without any declaration or other determination by Holder and without notice of default,
presentment, demand, protest, or further notice of any kind, all of which are hereby expressly
waived by Maker. The rights of Holder under this Section 6 are in addition to other rights and
remedies which Holder may have.
7. Notice and Cure. [_____________] (the “Limited Partner”) or any other successor entity
in such entity’s capacity as a limited partner of the Maker, shall have the right, but not the
obligation, to cure any defaults hereunder following 10 business days notice (with respect to
monetary defaults) and 30 business days notice (with respect to non-monetary defaults). In the
event such default requires the removal of the general partner of Maker, the Limited Partner shall
have such additional time as is reasonably necessary to effectuate such removal and cause such
cure. Any default cure tendered by the Maker’s Limited Partner shall be accepted or rejected as
if tendered by the Maker. In the event Maker is provided notice by Holder under the Loan
Documents, Holder shall provide the Limited Partner with simultaneous written notice at the
following address:
[_______________]
8. Prepayment. The principal amount of this Note may be prepaid, in whole or in part, at any
time without penalty.
9. Interest Rate After Acceleration or Maturity. When this Note becomes due in full, whether
by acceleration (upon an Event of Default or otherwise), by the occurrence of the Maturity Date,
or in any other manner, if Maker fails to pay all amounts due the unpaid principal and interest (if
any) balance and costs incurred (and any judgment or decree with respect thereto) shall, from and
after the date due, bear interest until paid at an annual rate of ten percent (10%) per annum.
10. Waivers by Holder. Holder shall not by any act of omission or commission be deemed to
waive any of its rights or remedies hereunder unless such waiver be in writing and signed by
Holder, and then only to the extent specifically set forth therein. A waiver as to any one event
Page 23 of 34
Page 3
shall not be construed as continuing or as a bar to or waiver of such right or remedy as to the same
event on any other occasion or as to a different event on the same or any other occasion.
11. Waivers by Maker. Maker waives presentment for payment, demand, notice of non-
payment, notice of protest, and protest of this Note and all of the notices in connection with the
delivery, acceptance, performance, default or enforcement of the payment of this Note. Maker
consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Holder with respect to the payment or other provisions of this Note, and to the release of the
collateral or any part thereof with or without substitution and agree that additional makers,
endorsers, guarantors, or sureties may become parties hereto without notice to them and without
affecting their liability hereunder.
12. Application of Payments. All payments under this Note shall be made in lawful money of
the United States of America. Payments shall be credited first against any costs or expenses due
under this Note, then to any accrued interest (if any), and finally to principal.
13. Interest Rate Limitation. In no event shall the interest rate charged under this Note exceed
the maximum rate permitted under applicable law. In calculating whether any interest exceeds the
lawful maximum, all such interest shall be amortized, prorated, allocated and spread over the full
amount and term of all principal indebtedness of Maker to Holder, and if through any contingency
or event, Holder receives or is deemed to receive interest in excess of the lawful maximum, any
such excess shall be deemed to have been applied toward payment of the principal of any and all
then outstanding indebtedness of Maker to Holder, or if there is no such indebtedness, shall
immediately be returned to Maker.
14. No Acceleration Upon Transfer or Refinancing. The Maker shall be permitted to sell or
refinance the Project or any interest therein, and, provided such transferee agrees to assume
Maker’s obligations under this Note, the Note shall not become due and payable.
15. Non-Recourse. This Note shall be non-recourse to the Maker, the partners of Maker, and
its or their successors or assigns, and Holder shall look solely to the Property (as such term is
defined in the Deed of Trust) and other collateral granted to the Holder under and pursuant to the
Deed of Trust for satisfaction of its obligations under this Note.
16. Enforcement Costs. Should suit on this Note or foreclosure of the Deed of Trust be
commenced, Maker agrees to pay the costs of foreclosure and such additional sums as a court may
adjudge reasonable as attorneys fees in any suit.
17. Governing Law. Maker hereby agrees and acknowledges that this Note shall be construed
in accordance with the laws of the State of California. Any alteration, change or modification of
or to this Note, in order to become effective, shall be made by written instrument executed by both
Maker and Holder.
[Signature Page Follows]
Page 24 of 34
Page 4
IN WITNESS WHEREOF, Maker has executed this Note as of the date first written above.
MAKER:
UKIAH GOBBI STREET LP,
a California limited partnership
By: Ukiah Gobbi Street LLC,
a California limited liability company,
its Administrative General Partner
By: Danco Communities,
a California corporation,
its Manager
By:
Daniel Johnson
President
By: Community Revitalization and Development
Corporation, a California nonprofit public
benefit corporation, its Managing General Partner
By:
David Rutledge
President
Page 25 of 34
1
Recording Requested by and
After Recording Return to:
Ukiah Gobbi Street LP
c/o Danco Communities
5251 Ericson Way
Arcata, CA 95521
DEED OF TRUST
(CITY LOAN)
NOTE: This deed of trust contains a subordination clause which may result in your
security interest in the property becoming subject to and of lower priority than the lien of
some other or later security instrument.
THIS DEED OF TRUST is made as of ____________, 2022 by Ukiah Gobbi Street LP, a
California limited partnership (“Trustor”), in favor of COMMONWEALTH LAND TITLE
INSURANCE COMPANY (“Trustee”), for the benefit of THE CITY OF UKIAH (together with
any successor to its rights, duties and obligations), a municipal corporation and existing under
the laws of the State of California (“Beneficiary”).
TRUSTOR, in consideration of the indebtedness herein recited and the trust herein
created, irrevocably grants and conveys to Trustee, in trust, with power of sale, that real property
located in the County of Mendocino, State of California as more fully described in Attachment A
(“Real Property”).
TOGETHER with all the improvements now or hereafter erected on the Real Property,
and all easements, rights, appurtenances and rents (subject however to the rights and authorities
given herein to Beneficiary to collect and apply such rents), all of which shall be deemed to be
and remain a part of the property covered by this Deed of Trust; and all of the foregoing,
together with said property and the Real Property are hereinafter referred to as the “Property”.
TO SECURE to Beneficiary the payment of the indebtedness evidenced by a Promissory
Note, of even date herewith, and extensions and renewals thereof (herein “Note”), in the
principal sum of $1,620,000.
Trustor covenants that it is lawfully seized of the estate hereby conveyed and has the
right to grant and convey the Property, and that, to the best of Trustor’s knowledge, the Property
is unencumbered except for encumbrances of record. Trustor warrants and will defend generally
the title to the Property against all claims and demands, subject to encumbrances of record.
Page 26 of 34
2
A. To protect the security of this Deed of Trust, Trustor agrees as follows:
1. Preservation and Maintenance of Property. Trustor agrees to keep the Property in
good condition and repair; not to remove or demolish any building thereon; to the extent of
available insurance proceeds to complete or restore promptly and in good and workmanlike
manner any building which may be constructed, damaged, or destroyed thereon and to pay when
due all claims for labor performed and materials furnished therefore; to comply with all laws
affecting the Property or requiring any alterations or improvements to be made thereon; not to
commit or permit waste thereof; not to commit, suffer, or knowingly permit any act upon the
Property in violation of law or which constitutes a nuisance under applicable law.
2. Charges; Liens. Trustor shall pay at least ten days before delinquency all taxes
and assessments affecting the Property; when due, all encumbrances, charges, and liens, with
interest, on the Property or any part thereof, which appear to be prior or superior hereto; all costs,
fees, and expenses of this Deed of Trust. Trustor shall give sufficient notice to Beneficiary of
any default under any mortgage, deed of trust or other security agreement with a lien on the
Property to provide Beneficiary with adequate time to protect its legal interests.
3. Hazard Insurance. Trustor shall keep the improvements and personal property
now existing or hereafter erected on the Property insured against loss by fire, vandalism and
malicious mischief by a policy of standard fire and extended all-risk insurance with sufficient
policy limits to cover the full costs of repair or replacement.
Subject to the rights of senior mortgagees, the insurance policy shall be issued in the
name of the Trustor and the Beneficiary, as their interests appear. The insurance policy shall
contain an endorsement which provides that any proceeds shall be disbursed and used to repair
or rebuild any such improvements so damaged or destroyed.
The full replacement value of the improvements to be insured hereunder shall be
determined by the company issuing the policy at the time the policy is initially obtained.
4. Defense of Security. Trustor agrees to appear in and defend any action or
proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or
Trustee; and to pay all costs and expenses, including cost of evidence of title and attorneys’ fees
in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may
appear.
5. Reimbursement of Costs. Trustor agrees to pay immediately and without demand
all reasonable sums expended by Beneficiary or Trustee pursuant to the provisions hereof, with
interest from date of expenditure at the maximum amount allowed by law in effect at the date
hereof.
6. Right to Cure. Should Trustor fail to make any payment or to do any act as herein
provided, then Beneficiary or Trustee, but without obligation so to do and with 10 business days
(for payment defaults) and 30 days (for non payment defaults) notice to or demand upon Trustor
and without releasing Trustor from any obligation hereof, may make or do the same in such
Page 27 of 34
3
manner and to such extent as either may deem necessary to protect the security hereof,
Beneficiary or Trustee being authorized to enter upon said Property for such purposes; appear in
and defend any action or proceeding purporting to affect the security hereof or the rights or
powers of Beneficiary or Trustee; pay, purchase, contest, or compromise any encumbrance,
charge, or lien which in the judgment of either appears to be prior or superior hereto; and, in
exercising any such powers, or in enforcing this Deed of Trust by judicial foreclosure, pay
necessary expenses, employ counsel, and pay reasonable attorneys’ fees. Beneficiary may make
or cause to be made reasonable entries upon and inspections of the Property, subject to tenant
leases, provided that Beneficiary shall give Trustor notice prior to any such inspection specifying
reasonable cause therefor related to Beneficiary’s interest in the Property, provided, however,
that Beneficiary and Trustee will provide Trustor’s limited partners with written notice and a
reasonable opportunity to cure upon receipt of such written notice. In the event the limited
partner tenders a cure for Trustor’s default, such cure shall be accepted or rejected on the same
basis as if made or tendered by Trustor.
B. It is mutually agreed that:
1. Condemnation Award. Subject to the rights of senior mortgagees, any proceeds
of any insurance on the Property or award of damages in connection with any condemnation for
public use of or injury to the Property or any part thereof is hereby assigned and shall be paid to
Beneficiary who may apply such moneys received by it to any indebtedness secured hereby and
in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so
collected or any part thereof may be released to Trustor. Such application or release shall not
cure or waive any default or notice of default hereunder or invalidate any act done pursuant to
such notice. Notwithstanding anything herein to the contrary, if the Trustor is not then in default
and proceeds are sufficient therefor, or additional funds are made available to be sufficient
therefor, such proceeds shall be applied to the restoration of the Property.
2. Late Payment. By accepting payment of any sum secured hereby after its due
date, Beneficiary does not waive its right either to require prompt payment when due of all other
sums so secured or to declare default for failure so to pay.
3. Release and Subordination. At any time or from time to time, without liability
therefor and without notice, upon written request of Beneficiary and presentation of this Deed of
Trust and Note for endorsement, Trustee may reconvey all or any part of said property; consent
to the making of any map or plat thereof; join in granting any easement thereon; or join in any
extension agreement or any agreement subordinating the lien or charge hereof.
4. Reconveyance. Upon written request of Beneficiary stating that all sums secured
hereby have been paid, upon surrender of this Deed of Trust and the Note to Trustee for
cancellation, and upon payment of its fees, Trustee shall reconvey, without warranty, the
Property. The recitals in any reconveyance executed under this Deed of Trust of any matters or
facts shall be conclusive proof of the truthfulness thereof.
5. Rents, Issues, and Profits. As additional security, Trustor hereby gives to and
confers upon Beneficiary the right, power, and authority, during the continuance of these Trusts,
Page 28 of 34
4
to collect the rents, issues, and profits of the Property, reserving unto Trustor the right, prior to
any default by Trustor in payment of any indebtedness secured hereby or in performance of any
agreement hereunder, to collect and retain such rents, issues, and profits as they become due and
payable. Upon any such default, Beneficiary may at any time without notice, either in person, by
agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any
security for the indebtedness hereby secured, enter upon and take possession of said property or
any part thereof, in its own name sue for or otherwise collect such rents, issues, and profits,
including those past due and unpaid, and apply the same, less costs and expenses of operation
and collection, including reasonable attorneys’ fees, upon any indebtedness secured hereby, and
in such order as Beneficiary may determine. The entering upon and taking possession of said
Property, the collection of such rents, issues, and profits, and the application thereof as aforesaid,
shall not cure or waive any default or notice of default hereunder or invalidate any act done
pursuant to such notice.
6. Notice. Except for any notice required under applicable law to be given in
another manner, (a) any notice to Trustor provided for in this Deed of Trust shall be given by
delivering it or by mailing such notice by certified mail return receipt requested addressed to
Trustor at Ukiah Gobbi Street LP, c/o Danco Communities, 5251 Ericson Way, Arcata, CA
95521 Attn: President, with copies to: [_______INVESTOR____________]
Attention: [________________], or at such other address as Trustor may designate by notice to
Beneficiary as provided herein, and (b) any notice to Beneficiary shall be given by certified mail
return receipt requested to Beneficiary’s address stated herein or to such other address as
Beneficiary may designate by notice to Trustor as provided herein. Any notice provided for in
this Deed of Trust shall be deemed to have been given to Trustor or Beneficiary when given in
the manner designated herein two (2) days after deposit into the United States Mail, or on the
date when personally served on the Trustor or Beneficiary.
7. Assignment. Trustor shall be permitted to assign the Note and this Deed of Trust
and provided such transferee agrees to assume Trustor’s obligations under the Note and this
Deed of Trust, the Note shall not become due and payable.
8. Powers of Sale. Upon default by Trustor in payment of any indebtedness secured
hereby or in performance of any agreement hereunder, after the expiration of applicable notice
and cure periods, all sums secured hereby shall immediately become due and payable at the
option of the Beneficiary. In the event of default, Beneficiary may employ counsel to enforce
payment of the obligations secured hereby, and shall execute or cause the Trustee to execute a
written notice of such default and of its election to cause to be sold the Property to satisfy the
obligations hereof, and shall cause such notice to be recorded in the office of the Recorder of
each county wherein the Property or some part thereof is situated.
Prior to publication of the notice of sale, Beneficiary shall deliver to Trustee this Deed of
Trust and the Note or other evidence of indebtedness which is secured hereby, together with a
written request for the Trustee to proceed with a sale of the Property described herein, pursuant
to the provisions of law and this Deed of Trust.
Page 29 of 34
5
Notice of sale having been given as then required by law, and not less than the time then
required by law having elapsed after recordation of such notice of default, Trustee, without
demand on Trustor, shall sell the Property at the time and place fixed by it in said notice of sale,
either as a whole or in separate parcels and in such order as it may determine, at public auction to
the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee
may postpone sale of all or any portion of the Property by public announcement at such time and
place of sale, and from time to time thereafter may postpone such sale by public announcement
at the time and place fixed by the preceding postponement. Trustee shall deliver to the purchaser
its deed conveying the property so sold, but without any covenant or warranty, express or
implied. The recitals in such deed of any matters or facts shall be conclusive proof of the
truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary, may purchase at
such sale.
After deducting all costs, fees, and expenses of Trustee and of this Deed of Trust,
including cost of evidence of title and reasonable attorneys’ fees in connection with sale, Trustee
shall apply the proceeds of sale to payment of all sums expended under the terms hereof, not then
repaid; all other sums then secured hereby; and the remainder, if any, to the person or persons
legally entitled thereto.
9. Trustor’s Right to Reinstate. Notwithstanding Beneficiary’s acceleration of the
sums secured by this Deed of Trust due to Trustor’s breach, Trustor shall have the right to have
any proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time
prior to five days before sale of the Property pursuant to the power of sale contained in this Deed
of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) Trustor
pays Beneficiary all sums which would be then due under this Deed of Trust if the Note had no
acceleration provision; (b) Trustor cures all breaches of any other covenants or agreements of
Trustor contained in this Deed of Trust; (c) Trustor pays all reasonable expenses incurred by
Beneficiary and Trustee in enforcing the covenants and agreements of Trustor contained in this
Deed of Trust, and in enforcing Beneficiary’s and Trustee’s remedies as provided herein,
including, but not limited to, reasonable attorney’s fees; and (d) Trustor takes such action as
Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary’s
interest in the Property and Trustor’s obligation to pay the sums secured by this Deed of Trust
shall continue unimpaired. Upon such payment and cure by Trustor, this Deed of Trust and the
obligations secured hereby shall remain in full force and effect as if no acceleration had
occurred.
10. Successors and Assigns. This Deed of Trust applies to, inures to the benefit of,
and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors,
and assigns. The term Beneficiary shall mean the holder and owner of the Note secured hereby;
or, if the Note has been pledged, the pledgee thereof. In this Deed of Trust, whenever the
context so requires, the singular number includes the plural.
11. Other Sales, Actions, or Proceedings. Trustee is not obligated to notify any party
hereto of pending sale under any other deed of trust or of any action or proceeding in which
Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
Page 30 of 34
6
12. Substitution of Trustee. Beneficiary may from time to time or at any time
substitute a Trustee or Trustees to execute the trust hereby created, and when any such
substitution has been filed for record in the office of the Recorder of the county in which the
Property is situated, it shall be conclusive evidence of the appointment of such Trustee or
Trustees, and such new Trustee or Trustees shall succeed to all of the powers and duties of the
Trustee or Trustees named herein.
15. Subordination. Trustor’s indebtedness evidenced by the Note is and shall be
subordinate in right of payment to the prior payment in full of all amounts then due and payable
(including, but not limited to, all amounts due and payable by virtue of any default or
acceleration or upon maturity) with respect to: (i) a loan from Pacific Western Bank.
16. Extended Use Agreement. In order to receive an allocation of federal low-income
housing tax credits, Trustor will be required to record against the Real Property in the real
property records of the County in which the Property is located, an “extended low-income
housing commitment” (as defined in Section 42(h)(6)(B) of the Internal Revenue Code of 1986,
as amended (“Code”)) (“Extended Use Agreement”). Beneficiary acknowledges and agrees that,
in the event of a foreclosure of its interest under this Deed of Trust or delivery by the Trustor of a
deed in lieu thereof (collectively, a “Foreclosure”), Beneficiary agrees to comply with the
following rule contained in Section 42(h)(6)(E)(ii) of the Code: For a period of three (3) years
from the date of Foreclosure, with respect to any unit that had been regulated by the Extended
Use Agreement, (i) none of the eligible tenants occupying those units at the time of Foreclosure
may be evicted or their tenancy terminated (other than for good cause, including but not limited
to, the tenants’ ineligibility pursuant to regulations of Section 42 of the Code), (ii) nor may any
rent be increased except as otherwise permitted under Section 42 of the Code.
[Signatures appear on next page]
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7
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date set
forth above.
TRUSTOR:
UKIAH GOBBI STREET LP,
a California limited partnership
By: Ukiah Gobbi Street LLC,
a California limited liability company,
its Administrative General Partner
By: Danco Communities,
a California corporation,
its Manager
By:
Daniel Johnson
President
By: Community Revitalization and Development
Corporation, a California nonprofit public
benefit corporation, its Managing General Partner
By:
David Rutledge
President
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8
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 the document.
STATE OF CALIFORNIA )
)
COUNTY OF ______________ )
On ___________________, 2022, before me, _______________________________, notary
public, personally appeared ____________________________________, who proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and
acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the
instrument the person, or the entity upon behalf of which the person 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
(SEAL)
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9
ATTACHMENT A
LEGAL DESCRIPTION OF THE PROPERTY
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