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Home My Public Portal About08) 7G Amend lease agreementCity Council February 21,2012 Page 2 4. On May 3, 2011, the First Amendment to Monthly Rental Agreement entered into was for the period March 1, 2011 through August 31, 2011 . On direction from the City Manager , the City Attorney sent a letter notifying Ms. Howard that the reduced rate expired and she needed to pay the past due rent as well as the original rental amount of one thousand two hundred fifty dollars ($1 ,250 .00) as of September 1, 2011. 5. On February 7 , 2012 , Ms . Howard met with the City Manager and City Attorney and requested a permanent rent reduction from one thousand two hundred fifty dollars ($1 ,250.00) to eight hundred fifty dollars ($850.00) commencing September 1' 2011. ANALYSIS: The attached Second Amendment to Monthly Rental Agreement amends the Monthly Rental Agreement, as amended, by adding a permanent rent reduction provision due to the financial hardship of the tenant. The City may (but is not required) to grant a permanent reduction in rent in an amount not to exceed 40% of the total monthly rent amount. The rent reduction may be approved by either the City Council or a concurrence of the City Manager, Finance Director and City Attorney . The permanent rent reduction period will end upon termination of the Monthly Rental Agreement, as amended, and vacation of the premises . The attached Second Amendment also contains a section whereby the City Council approves the permanent rent reduction request presented by Ms . Howard . By approving the Second Amendment, the City Council would be approving a permanent reduction in the monthly rent Ms. Howard must pay to eight hundred fifty dollars ($850). This rent reduction would be permanent for the period from September 1, 2011 through the period Ms . Howard remains a tenant. Ms . Howard has stated that her income remains reduced due to both a reduction in the number of hours at her job and loss of additional income. CONCLUSION : It is recommend the City Council approve the attached Second Amendment to Monthly Rental Agreement permanently reducing the monthly rent from one thousand two hundred fifty dollars ($1,250 .00) to eight hundred fifty dollars ($850 .00) commencing September 1 , 2011 . FISCAL IMPACT By approving this rent reduction, the City will have reduced rental income from the RIV #4823 -6290-689 4 vl City Council February 21 , 2012 Page 3 property at 5934 Primrose by $400 per month . ATIACHMENT(S) A. Second Amendment to Monthly Rental Agreement RIV #4823 -6290 -6894 vl SECOND AMENDMENT TO MONTHLY RENTAL AGREEMENT This Second Amendment to Monthly Rental Agreement ( .. First Amendment"") is entered into as of , 2012, by and between the CITY OF TEMPLE CITY, a California charter city ("'Landlord""}.and E LI ZA BETH HOWARD, an individual ("Tenant"). as follows : RECITALS A. Landlord and Tenant entered in a Monthly Rental Agreement on December 8, 2007, ("'Agreement"'), whereby the Landlord rents to Tenant on a month to month basis the residence commonly known as 5394 Primrose Avenue; Temple City, California, 91780 (the ··Premises")." B. The Agreement requires Tenant to pay twelve-hundred fifty dollars ($1 ,250.00) per month in rent to the Landlord. Twelve hundred dollars ($1 ,200.00) is due by the fifth of each month, and the remaining fifty dollars ($50.00) is due by the fifteenth of each month. C. The Agreement was amended by that First Amendment to Monthly Rental Agreement on May 3 , 2011 reducing the rent to eight hundred fifty dollars ($850.00) for month for the period March 1, 2011 through August 31, 2011. D. Tenant is currently experiencing financial hardship and has seen a significant drop in her monthly income. As such, Tenant has requested that Landlord permanently reduce the rent for the Premises to eight hundred and fifty dollars ($850.00) per month. E. This Second Amendment amends the Agreement, as amended, to allow the Tenant to apply for and Landlord to grant a hardship determination whereby Landlord may reduce the rent Tenant must pay by up to forty percent ( 40%). F. By this Second Amendment, Landlord al so makes the determination that Tenant is experiencing significant financial hardship and grants Tenant her requested permanent rent reduction for as long as she remains a tenant at the Premises. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the promises made and recited herein, the parties do hereby enter into this Second Amendment, which modifies and amends the Agreement as follows : 1. ADDITION OF SECTION 47. A new Section 47 is hereby added to the Agreement to read as follows : "47. Hardship Rent Reduction. Notwithstanding any other provision of this Agreement, if Tenant or Tenant's household experiences a significant loss of household income that renders the Tenant unable to pay the monthly rental amount, Tenant may request a hardship rent reduction from the Landlord. Tenant must request the hardship rent reduction in writing and submit documentation to City proving the loss of income and inability to pay the full RJV 114839-1263-66 ~6 v i -I- monthly rental amount. Landlord may grant Tenant's request by reducing the rent Tenant must pay by an amount not to exceed forty percent (40%) of the monthly rental amount. Landlord may grant Tenant's permanent rent reduction request by either (I) a majority vote of the Landlord's City Council; or (2) the concurrence of the Landlord's City Manager. Finance Director and City Attorney. The permanent rent reduction period granted by Landlord will tenninate when Tenant has terminated this Agreement and vacated the Premises as provided for in Section 22 herein. Tenant may not request any further rent reductions. 2. HARDSHIP RENT REDUCTION GRANTED. Beginning on September I, 2011, the monthly rent due under the Agreement shall be eight hundred and fifty dollars ($850.00), of which eight hundred dollars ($800.00) is due by the fifth of each month, and the remaining fifty dollars ($50.00) is due by the fifteenth of each month. 3. GENERAL PROVISIONS. 3.1 Remainder Unchanged. Except as specifically modified and amended in this Second Amendment, the Agreement remains in full force and effect and binding upon the parties. 3.2 Integration. This Second Amendment consists of pages l through 3 inclusive, which constitute the entire understanding and agreement of the parties and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the transaction discussed in this First Amendment. 3.3 Effective Date. This Second Amendment shall not become effective until the date it has been executed by the appropriate authorities of the Landlord and Tenant. 3.4 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Second Amendment. 3 .5 References . All references to the Agreement include all their resp ective terms and provisions. All defined terms utili zed in this Second Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Second Amendment. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above. JSIGNATURES ON FOLLOWING PAGEl RlV 114K39-1263-66!!6 v i -2- ATIEST: Mary Flandrick, City Clerk APPROVED AS TO FORM Eric S. Vail, City Attorney RIV 114839-1263-6686 vi LANDLORD: CITY OF TEMPLE CITY By:....------;;:--;-;--.----=-:-----:-~------ Jose Pulido, City Manager TENANT: ELIZABETH HOWARD By: ;E~li-za~b-e~th~H=-ow-M~d~---------- -3-