Harbor Bancorp & Subsidiaries - Page 8

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          owned by Mr. Keefe, Steven Tetrick, and Steve Jarchow.  Mr.                 
          Tetrick was Unified's chief executive officer.                              

          Notice of Hearing                                                           

               In November and December of 1985, the Housing Authority                
          published notices of a hearing on the Ironwood bond issue in the            
          Press Enterprise, a newspaper of general circulation in Riverside           
          County.  Subsequently, on December 17, 1985, the Housing                    
          Authority authorized the issuance of the Ironwood bonds in the              
          amount of $13 million.                                                      
               Apparently because of staff oversight, there was no                    
          newspaper publication concerning hearings held on December 3,               
          1985, on the Whitewater bonds by both the Advisory Commission and           
          the Housing Authority.  However, both the Housing Authority and             
          the Advisory Commission followed notification procedures for such           
          hearings under a California statute known as the Brown Act.  As             
          required by the Brown Act, the Advisory Commission posted notices           
          containing the agenda of its December 3, 1985, meeting regarding            
          the proposed issuance of the Whitewater bonds at least 72 hours             
          prior to the date thereof.  The notice containing the agenda was            
          posted at Riverside County's eight public housing projects and at           
          the Indio and Riverside County Housing Authority offices.  Listed           
          in the notice as "New Business" was "Recommend approval of                  
          Resolution Number 85-052 - Bond Financing - Whitewater Garden               
          Apartments Multi-Family Housing Revenue Bond ($17,200,000)."                




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