HomeMy WebLinkAbout06.11.2025@631 SP Joint CC and SAWednesday, June 11, 2025
6:31 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
Library Parks & Recreation Building, Council Chambers
901 Civic Campus Way, South San Francisco, CA
Joint Special Meeting City Council and Successor Agency
EDDIE FLORES, Mayor/Chair (District 5)
MARK ADDIEGO, Vice Mayor/Vice Chair (District 1)
JAMES COLEMAN, Councilmember/Boardmember (District 4)
MARK NAGALES, Councilmember/Boardmembe (District 2)
BUENAFLOR NICOLAS, Councilmember/Boardmembe (District 3)
ROSA GOVEA ACOSTA, City Clerk
FRANK RISSO, City Treasurer
SHARON RANALS, City Manager
SKY WOODRUFF, City Attorney
Special Meeting Agenda
1
June 11, 2025Joint Special Meeting City Council
and Successor Agency
Special Meeting Agenda
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Page 2 City of South San Francisco Printed on 6/6/2025
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June 11, 2025Joint Special Meeting City Council
and Successor Agency
Special Meeting Agenda
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS: Comments are limited to items on the Special Meeting Agenda.
CONSENT CALENDAR
Report regarding a Resolution approving the transfer of the Successor Agency to the
former Redevelopment Agency real property from the Successor Agency to the City
of South San Francisco as Housing Successor and a Resolution authorizing a Second
Amendment to the Land Lease Agreement with Magnolia SSF LP for 630 Baden
Avenue. (Elia Moreno, Management Analyst I)
1.
Resolution of the Successor Agency to the Former Redevelopment Agency of the City
of South San Francisco approving the transfer of certain former Redevelopment
Agency real property located at 630 Baden Avenue from the Successor Agency to the
City of South San Francisco as Housing Successor.
1a.
Resolution of the City Council approving the transfer of certain former
Redevelopment Agency real property from the Successor Agency to the Former
Redevelopment Agency of the City of South San Francisco to the City of South San
Francisco as Housing Successor and authorizing a Second Amendment to the Land
Lease Agreement with Magnolia SSF LP for 630 Baden Avenue.
1b.
ADJOURNMENT
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:25-541 Agenda Date:6/11/2025
Version:1 Item #:1.
Report regarding a Resolution approving the transfer of the Successor Agency to the former Redevelopment Agency real
property from the Successor Agency to the City of South San Francisco as Housing Successor and a Resolution
authorizing a Second Amendment to the Land Lease Agreement with Magnolia SSF LP for 630 Baden Avenue.(Elia
Moreno, Management Analyst I)
RECOMMENDATION
Staff recommends that:
1.The Successor Agency to the Former Redevelopment Agency of the City of South San Francisco adopt a
resolution approving the transfer of former Redevelopment Agency real property from the Successor
Agency to the City of South San Francisco as Housing Successor; and
2.City Council adopt a resolution accepting the transfer of former Redevelopment Agency real property
from the Successor Agency to the City of South San Francisco as Housing Successor and authorizing a
Second Amendment to the Land Lease Agreement with Magnolia SSF LP for 630 Baden Avenue.
BACKGROUND
The Successor Agency to the Former Redevelopment Agency of the City of South San Francisco is the current owner of
the land located at 630 Baden Avenue in South San Francisco.The Former Redevelopment Agency of the City of South
San Francisco and South San Francisco Magnolia Plaza Associates,a California limited partnership,were original parties
to a Land Lease dated May 1,1987,which enabled the development of a mix of market rate affordable senior housing
units at Magnolia Plaza.BRIDGE Housing Corporation,along with a private owner,comprised South San Francisco
Magnolia Plaza Associates.
Following the dissolution of all redevelopment agencies in California under Assembly Bill x1 26 (ABx1 26),the City of
South San Francisco elected to serve as the Successor Agency to the Former Redevelopment Agency.As the designated
Successor Agency,the City assumed responsibility for managing the former agency’s enforceable obligations and real
property assets, including the Land Lease for 630 Baden Avenue.
On December 10,2021,the Successor Agency and South San Francisco Magnolia Plaza Associates executed an
Assignment and Assumption of Land Lease,which was recorded on December 16,2021.Under the Assignment and
Assumption of Land Lease,all right,title,and interest in the Land Lease were assigned to Magnolia SSF LP,a single-
purpose entity wholly owned by BRIDGE Housing Corporation,a nonprofit affordable housing developer.Magnolia SSF
LP assumed the remaining term and all obligations under the Land Lease.The Successor Agency formally acknowledged
Magnolia SSF LP as the tenant under the Land Lease.
DISCUSSION
The Successor Agency and Magnolia SSF LP now seek to amend the Land Lease to accommodate modifications
requested by Magnolia SSF LP.
Magnolia SSF LP is in the process of securing a new loan from the County of San Mateo.The proposed County loan is a
$3,000,000 low-interest,long-term loan from Measure K funds,through the County’s Affordable Housing Fund.The loan
has a 55-year term and is intended to support rehabilitation and related project expenses.As a condition of this loan,the
County requires that the Land Lease term with the City be extended to align with the loan term.Magnolia SSF LP has
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therefore requested an amendment to the Land Lease extending its term accordingly.
To comply with this condition,Magnolia SSF LP has requested to enter into a Second Amendment to the Land Lease to
extend its term accordingly.However,during preparation for this amendment,it was determined that the Successor
Agency to the Former Redevelopment Agency of the City of South San Francisco remains the fee owner of the 630
Baden Avenue property.
As such,to facilitate both the loan and the long-term preservation of affordable housing,staff recommends that the
Successor Agency formally transfer the property to the City as Housing Successor.The City,acting as the Housing
Successor, would then execute the Second Amendment to the Land Lease with Magnolia SSF LP.
As part of the negotiations with BRIDGE Housing Corporation regarding the Second Amendment to the Land Lease,City
staff proposed changes to the Land Lease Agreement that include marketing available units following current best
practices,such as utilizing the Doorway portal,together with requirements for local preferences to apply under the
extended 55-year lease term.A significant modification to the operation of the property is the conversion of 13 previously
unrestricted,market-rate units to Low Income or 80%of the Area Median Income (AMI)for San Mateo County.Aside
from two management units,all of the units at this property will now be subject to either City,County,or project-based
voucher requirements to preserve affordability for tenants through the extended lease term.
FISCAL IMPACT
The proposed amendments to the Lease will not change the financial obligations of the Successor Agency or the City as
Housing Successor.
CONCLUSION
Staff recommends that the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco
adopt a resolution approving the transfer of former Redevelopment Agency real property located at 630 Baden Avenue
from the Successor Agency to the City of South San Francisco as Housing Successor and then for the City as Housing
Successor to adopt a Resolution accepting the transfer and authorize the execution of a Second Amendment to the Land
Lease Agreement with Magnolia SSF LP.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:25-581 Agenda Date:6/11/2025
Version:1 Item #:1a.
Resolution of the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco approving
the transfer of certain former Redevelopment Agency real property located at 630 Baden Avenue from the Successor
Agency to the City of South San Francisco as Housing Successor.
WHEREAS,the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco is the
current owner of real property located at 630 Baden Avenue in South San Francisco; and
WHEREAS,following the dissolution of all redevelopment agencies in California under Assembly Bill x1 26 (ABx1 26),
the City of South San Francisco serves as the Successor Agency to the Former Redevelopment Agency; and
WHEREAS,pursuant to Resolution No.8-2012,adopted by the City Council of the City of South San Francisco on
January 25,2012,the City of South San Francisco (“City”)agreed that upon dissolution of the Redevelopment Agency of
the City of South San Francisco on February 1,2012,pursuant to Assembly Bill x1 26 (“ABx1 26”),the City would
assume the housing functions of the Redevelopment Agency and serve as Housing Successor; and
WHEREAS,Health and Safety Code Section 34176(a),added by Assembly Bill x1 26 and modified by Assembly Bill
1484 (“AB 1484”),provides that the housing assets of a former redevelopment agency shall be transferred to the entity
that assumes the housing functions formerly performed by such redevelopment agency (the “Housing Successor”); and
WHEREAS,on December 10,2021,the Successor Agency and South San Francisco Magnolia Plaza Associates executed
an Assignment and Assumption of Land Lease,where all right,title,and interest in the Lease were assigned to Magnolia
SSF LP, a single-purpose entity wholly owned by BRIDGE Housing Corporation; and
WHEREAS,Magnolia SSF LP is in the process of securing a new loan from the County of San Mateo intended to support
rehabilitation and related project expenses; and
WHEREAS,to facilitate both the loan and the long-term preservation of affordable housing,the Successor Agency
wishes to formally transfer the property located at 630 Baden Avenue to the City of South San Francisco as Housing
Successor.
NOW,THEREFORE,the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco
does hereby authorize and direct the Executive Director and designees to execute all documents and take all actions
necessary to implement and carry out the intent of this Resolution,including without limitation the execution of grant
deeds,certificates of acceptance,and all other necessary instruments,as applicable,subject to approval as to form by
Agency Counsel.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:25-548 Agenda Date:6/11/2025
Version:1 Item #:1b.
Resolution of the City Council approving the transfer of certain former Redevelopment Agency real property from the
Successor Agency to the Former Redevelopment Agency of the City of South San Francisco to the City of South San
Francisco as Housing Successor and authorizing a Second Amendment to the Land Lease Agreement with Magnolia SSF
LP for 630 Baden Avenue.
WHEREAS,following the dissolution of all redevelopment agencies in California under Assembly Bill x1 26 (ABx1 26),
the City of South San Francisco serves as the Successor Agency to the Former Redevelopment Agency; and
WHEREAS,pursuant to Resolution No.8-2012,adopted by the City Council of the City of South San Francisco on
January 25,2012,the City of South San Francisco (“City”)agreed that upon dissolution of the Redevelopment Agency of
the City of South San Francisco on February 1,2012,pursuant to Assembly Bill x1 26 (“ABx1 26”),the City would
assume the housing functions of the Redevelopment Agency and serve as Housing Successor; and
WHEREAS,Health and Safety Code Section 34176(a),added by Assembly Bill x1 26 and modified by Assembly Bill
1484 (“AB 1484”),provides that the housing assets of a former redevelopment agency shall be transferred to the entity
that assumes the housing functions formerly performed by such redevelopment agency (the “Housing Successor”); and
WHEREAS,the Successor Agency to the Former Redevelopment Agency of the City of South San Francisco (“Successor
Agency”) is the fee owner of the land located at 630 Baden Avenue in South San Francisco; and
WHEREAS,the Former Redevelopment Agency of the City of South San Francisco and South San Francisco Magnolia
Plaza Associates,a California limited partnership,were parties to that certain Land Lease dated as of May 1,1987
(“Original Lease”).Pursuant to the Original Lease,the Magnolia Plaza project was constructed at 630 Baden Avenue,
including affordable residential units; and
WHEREAS,pursuant to an Assignment and Assumption of Land Lease dated as of December 10,2021,and together with
the Original Lease,(collectively the “Lease”),the Successor Agency and South San Francisco Magnolia Plaza Associates
assigned all of its right, title, and interest, as tenant under the Original Lease, to Magnolia SSF LP; and
WHEREAS,Magnolia SSF LP agreed to assume the Original Lease for the balance of the term and to perform all of the
covenants,duties,and obligations of South San Francisco Magnolia Plaza Associates,as tenant under the Original Lease;
and
WHEREAS,Magnolia SSF LP is in the process of securing a new loan from the County of San Mateo intended to support
rehabilitation and related project expenses; and
WHEREAS,to facilitate both the loan and the long-term preservation of affordable housing,the Successor Agency
wishes to formally transfer the property to the City as Housing Successor,and the City as Housing Successor wishes to
formally accept the conveyance of the property.
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco as Housing Successor
that the City Council:
1.Hereby accepts the conveyance of real property located at 630 Baden Avenue by the Successor Agency to the
City of South San Francisco Redevelopment Agency.
2.Hereby authorizes and directs the City Manager and designees to execute all documents and take all actions
necessary to implement this Resolution,including without limitation the execution of grant deeds,certificates of
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File #:25-548 Agenda Date:6/11/2025
Version:1 Item #:1b.
necessary to implement this Resolution,including without limitation the execution of grant deeds,certificates of
acceptance,Second Amendment to the Land Lease Agreement in substantially the form as included as Exhibit A
to this Resolution,and all other necessary instruments,as applicable,subject to approval as to form by the City
Attorney.
EXHIBIT A: Draft Second Amendment to the Land Lease Agreement
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SECOND AMENDMENT TO LAND LEASE
THIS SECOND AMENDMENT TO LAND LEASE (this “Second Amendment”) is
entered into as of ________________, 2025, by and between the SUCCESSOR AGENCY TO
THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO,
a public body, corporate and politic (“Agency”), and MAGNOLIA SSF, LP, a California limited
partnership (“Magnolia”). Magnolia and Agency are collectively referred to herein as the
“Parties.”
RECITALS
A. Agency is the Successor Agency to the former Redevelopment Agency of the City
of South San Francisco (“Landlord’s Predecessor in Interest”), and is the fee owner of that
certain real property located in the City of South San Francisco, California (the “City”), as more
particularly described in Exhibit “A” attached hereto (the “Land”).
B. Agency’s Predecessor in Interest and South San Francisco Magnolia Plaza
Associates, a California limited partnership (“SSMPA”) entered into that certain Land Lease dated
as of May 1, 1987 (“Original Lease”), which was recorded in the official records of San Mateo
County on May 28, 1987 as Instrument No. 87080910, and of which a short form was recorded in
the official records of San Mateo County on May 20, 1987 as Instrument No. 87078328.
C. Pursuant to an Assignment and Assumption of Land Lease dated as of December
10, 2021 (the “Assignment”), which was recorded in the official records of San Mateo County on
December 16, 2021 as Instrument No.2021-172432, SSMPA assigned all of its right, title and
interest as tenant under the Original Lease to Magnolia, and Magnolia agreed to assume the
Original Lease for the balance of the term thereof and to perform all of the covenants, duties, and
obligations of SSMPA as tenant under the Original Lease, from and after the effective date of the
Assignment. Agency, having consented to the Assignment, has acknowledged Magnolia as the
tenant under the Lease.
D. Agency and Magnolia entered into a First Amendment to Land Lease dated April
22, 2022, and recorded in the official records of San Mateo County on __________, 2022 as
Instrument No. _____________________. The Original Lease, as amended by the First
Amendment, is referred to herein as the “Lease.”
E. The term of the Lease currently expires on May 1, 2062, and the parties desire to
extend the term of the Lease to December 31, 2080 in connection with Magnolia’s refinancing of
its leasehold estate in the Land, and to make other changes as set forth herein.
NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth and other good and valuable consideration, the Parties agree to amend the
Lease as follows:
1. Term. The date of expiration of the Term of the Lease, as set forth in Sections
1.1(x) and 2.2 of the Lease, is hereby revised to December 31, 2080.
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2. Elderly Household Definition. The definition of “Elderly Household,” as set forth
in Section 1.1(i) of the Lease, is hereby revised as follows:
“(i) ‘Elderly Household’ means a household containing at least one senior citizen, and
which may also contain a qualified permanent resident, permitted health care resident or other
person permitted to occupy the Dwelling Unit pursuant to California Civil Code Section 51.3 or
successor statute.”
3. Use of Development. Paragraphs (a), (b) and (c) of Section 2.4 of the Lease are
hereby revised to read as follows:
(a) Elderly Households. The Development and the Land are to be used by Magnolia
for housing solely for Elderly Households and related ancillary uses, except that up to two units of
the Development may be set aside, one for a resident manager and one for an assistant resident
manager, whose households need not qualify as Elderly Households (the “Manager’s Units”).
(b) Compliance with Other Regulatory Agreements. Magnolia shall meet any
requirements of any regulatory agreement executed by Magnolia which regulatory agreement shall
enforce the requirements of any program or instruments of tax-exempt financing, low income
housing tax credits, loans or grants, or other assistance to the Development provided by the County
of San Mateo, the City of South San Francisco, the State of California, California Tax Credit
Allocation Committee, or any other governmental agency.
(c) Affordable Housing Requirements.
(i) Affordable Units. During the Term, Magnolia shall rent
seventy-five (75) Dwelling Units in the Development to, and ensure that these Units are occupied
or, if vacant, available for occupancy by, Low- Income Households with incomes at or below 80%
of the Area Median Income.(the “Affordable Units”).
(ii) Allowable Rent. Magnolia shall charge Tenants of Affordable Units no more
than the Allowable Housing Expenses for such Affordable Unit. Allowable Housing Expenses
shall not exceed one-twelfth (1/12) of thirty percent (30%) of sixty percent (80%) of Area
Median Income for a Household Size Appropriate for the Unit. For purposes hereof:
“Allowable Housing Expenses” includes rent and a Reasonable Allowance for Utilities, as well
as all monthly payments made by the Tenant to the lessor in connection with use and occupancy
of the housing unit and land and facilities associated therewith, including any separately charged
fees, utility charges, or service charges assessed by the lessor and payable by the tenant.
“Household Size Appropriate for the Unit” means one person for a zero bedroom dwelling
unit, two persons for a one bedroom dwelling unit, three persons for a two-bedroom dwelling
unit, four persons for a three-bedroom dwelling unit, and five persons for a four-bedroom
dwelling unit.
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“Reasonable Allowance for Utilities” means the utility allowance published by the Housing
Authority of the County of San Mateo from time to time.
“Utilities” means garbage collection, sewer, water, electricity, gas and other heating, cooling,
cooking and refrigeration fuels for a dwelling unit. Utilities does not include telephone, cable or
internet service.
(iii) Increased Income of Tenants
Non-Qualifying Households in Affordable Units. If, upon
recertification of the income of a Tenant of an Affordable Unit, Magnolia determines that a
former Low- Income Household’s Adjusted Income has increased and exceeds the income limit
for a Low- Income Household as defined above, upon sixty (60) days’ written notice to Tenant,
such Tenant’s rent may be increased to 30% of the Tenant’s actual monthly household income or
to a comparable rent for Low- Income Households occupying units of comparable size. If such
an increase is expressly prohibited under a deed restriction of a lienholder, or federal IRS tax
credit regulations applicable to the Property at the time, the rent shall remain at the then-current
Low- Income Rent Limit, and the number of Low-Income Units occupied by Tenants with
incomes over the Low- Income limit shall be reported to the Agency on an annual basis in
Magnolia’s annual reports to the Agency as required herein.
(iv) Over Income Households. Notwithstanding anything to the contrary
contained herein, if any household’s income has been determined to be at or above 120% AMI for
two consecutive annual income certifications, Magnolia may terminate such Tenant’s lease with a
six month notice to vacate.
(v) Termination of Occupancy. Upon termination of occupancy of an
Affordable Unit by a Low-Income Tenant, such Affordable Unit shall be deemed to be
continuously occupied by a Low-Income household, until such Affordable Unit is reoccupied,
at which time the status of the Affordable Unit shall be determined based on the income level
of the new Tenant.
(vi) Lottery for Applications/ Waitlist.
a. Listing of units on Doorway Housing Portal. Magnolia or its designee shall list all
Affordable Housing Units on the Doorway Housing Portal
(https://housingbayarea.mtc.ca.gov/), the regional affordable housing application
platform administered by the Bay Area Housing Finance Authority (BAHFA). All
public marketing, applications, and tenant selection for the Affordable Units shall
be conducted through the Doorway system, unless otherwise approved in writing
by the Agency.
b. Lotteries through Doorway. The Owner or Owner’s designees shall use the
Doorway platform to conduct a lottery for lease-up of the Affordable Units. The
lottery shall be randomized and in accordance with an applicable Agency-approved
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Marketing Plan. Following the lottery, Doorway will generate a rank ed list of
applicants to determine the order of consideration for unit offers.
c. Live/ Work Preference. In order to ensure that there is an adequate supply of
affordable housing within the City for City residents and employees of businesses
located within the City, to the extent permitted by fair housing laws and other
applicable laws, and consistent with the program regulations for funding sources
used for development of the Project, at initial lease up, Magnolia shall give a
preference in the Development to households that include at least one member who
lives or works in the City of South San Francisco. Magnolia will implement any
preferences in the rental of Inclusionary Units in the Development pursuant to a
preference plan approved by the Agency.
Magnolia shall implement a preference policy prioritizing the selection of applicants who
meet any of the following requirements:
1. At least one member of the applicant household performs at least 20 hours of work within
each calendar week for an employer within the City;
2. At least one member of the applicant household currently resides within the City;
3. At least one member of the applicant household has previously resided in the City;
4. At least one member of the applicant household has received and accepted a bona fide
offer of employment within the City.
(vii) Income Certification. Magnolia shall obtain, complete, and maintain on
file, immediately prior to initial occupancy and annually thereafter, income certifications from
each Tenant renting any of the Affordable Units. Magnolia shall cause each Tenant in an
Affordable Unit to execute a Certification of Tenant Eligibility in the form attached as Exhibit C.
Magnolia shall fill out the "Development Owner" portion of the Certification of Tenant
Eligibility and provide it to the Agency along with supporting documentation collected by
Magnolia. Magnolia shall make a good faith effort to verify the accuracy of the income provided
by all applicants or all members of the occupying household, as the case may be, in the income
certification. To verify the information Magnolia shall take two or more of the following steps:
(a) obtain pay stubs for the most recent two months; (b) obtain an income tax return for the most
recent tax year; (c) conduct a credit agency or similar search; (d) obtain an income verification
form from the applicant's current employer verifying employment for the last two months; (e)
obtain an income verification form from the Social Security Administration and/or the California
Department of Social Services if the applicant receives assistance from either of such agencies,
verifying assistance for the last two months; or (f) if the applicant is unemployed and does not
have a tax return, obtain another form of independent verification. Copies of the Certifications
of Tenant Eligibility and accompanying documentation must be submitted to the Agency
annually for each of the Affordable Units.
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(viii) Annual Report to the Agency. Magnolia shall submit to the Agency: (a)
not later than the ninety (90th) day after the close of each calendar year, or such other date as may
be requested by the Agency, a signed copy of the Certification of Program Compliance in the
form attached as Exhibit B; and (b) within fifteen (15) days after receipt of a written request, any
other information or completed forms requested by the Agency in order to comply with reporting
requirements of HUD, the State of California, and the Agency; including but not limited to
reports, records, surveys evidencing compliance with the Agreement.
(ix) Additional Information. Magnolia shall provide any additional
information reasonably requested by the Agency to the Agency. The Agency shall have the right
to examine and make copies of all books, records or other documents of Magnolia which pertain
to the Project.
(x) Records. Magnolia shall maintain complete, accurate and current records
pertaining to the Development, and shall permit any duly authorized representative of the
Agency to inspect records, including records pertaining to income and household size of Tenants
and Rent charged to such Tenants. All Tenant lists, applications and waiting lists relating to the
Development are to be at all times: (a) separate and identifiable from any other business of
Magnolia; (b) maintained as required by the Agency, in a reasonable condition for proper audit;
and (c) subject to examination during business hours by representatives of the Agency.
Magnolia shall retain copies of all materials obtained or produced with respect to occupancy of
the units for a period of at least five (5) years. The Agency may audit, examine and make copies
of all books, records or other documents of Magnolia that pertain to the Development.
(xi) On-site Inspection. The Agency may perform, or cause to be performed,
an on-site inspection of the Development (including Affordable Units, subject to the rights of
Tenants) at least one (1) time per year during all business hours and upon reasonable notice (if
such inspection includes entering any occupied Affordable Unit, then twenty-four hours' notice
shall be considered reasonable) to monitor compliance with this Regulatory Agreement and any
other requirements of the Agreement. Magnolia shall cooperate in making the Development
available for such inspection.
After the completion of an inspection the Agency shall deliver a copy of the
inspection report to Magnolia. If the Agency determines as a result of such inspection that there
are any life-threatening health and safety related deficiencies, Magnolia has the obligation to
correct such deficiencies immediately. If the Agency determines as a result of the inspection that
there are any deficiencies for any of the inspectable items in the Development, Magnolia shall
correct such deficiencies within fifteen (15) days from the delivery of the inspection report or if a
period longer than fifteen (15) days is reasonably necessary to correct the deficiency, then
Magnolia must begin to correct the deficiency within fifteen (15) days and correct the deficiency
as soon as reasonably possible. In addition, Magnolia acknowledges that the Agency may re-
inspect the Development to verify all deficiencies have been corrected or rely on third party
documentation submitted by Magnolia for non-hazardous deficiencies.
4. No Modification or Waiver. Except as otherwise expressly set forth herein, all
other terms and conditions of the Lease shall remain in full force and effect.
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5. Counterparts. This Second Amendment may be executed in any number of
identical counterparts (including by facsimile and by “.pdf” or other digital format), each of which
shall be deemed to be an original, and all of which shall collectively constitute a single agreement.
6. Capitalized Terms. Capitalized terms used without definition herein have the
meaning ascribed to such terms in the Lease.
7. Successors and Assigns. This Second Amendment shall be binding upon Agency
and Magnolia and their respective successors and assigns. In the event that Agency transfers
ownership of the Land to the City or to the City of South San Francisco, as Housing Successor to
the former Redevelopment Agency of the City of South San Francisco (“Housing Successor”), and
assigns its rights under the Lease to the City or to the Housing Successor, Magnolia hereby
consents to such transfer and assignment.
IN WITNESS WHEREOF, the Parties have executed this Second Amendment as of the
date first written above.
LESSOR:
SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY
OF THE CITY OF SOUTH SAN FRANCISCO,
a public body, corporate and politic
By: ___________________________
Sharon Ranals,
Executive Director
ATTEST:
By: ___________________________
Rosa Govea Acosta,
Successor Agency Clerk
APPROVED AS TO FORM:
By: _____________________________
Sky Woodruff,
Successor Agency Attorney
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LESSEE:
MAGNOLIA SSF, LP,
a California limited partnership
By: _______________________________
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EXHIBIT A
LEGAL DESCRIPTION
[To Be Attached]
16
EXHIBIT B
INITIAL/ANNUAL CERTIFICATE OF PROGRAM COMPLIANCE
[To Be Attached]
17
EXHIBIT C
FORM OF CERTIFICATION OF TENANT ELIGIBILITY
[To Be Attached]
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STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public,
personally appeared ______________________________________, who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) 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.
______________________________________
Name: _______________________________
Notary Public
A 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 that document.
19
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public,
personally appeared ______________________________________, who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) 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.
______________________________________
Name: _______________________________
Notary Public
A 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 that document.
20