HomeMy WebLinkAboutRedevelopment Agency - 244 RESOLUTION NO. 244
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH AUTHORIZING EXECUTION
BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF
LOAN AGREEMENTS FOR LOANS FUNDED BY
HOUSING SET ASIDE MONIES
WHEREAS, the City Council of the City of Huntington Beach has
approved an Affordable Housing Program; and
The City Council has authorized the Director of Economic Development to
administer the program; and
The preparation of certain documentation is necessary in order to
implement the program and comply with regulations which govern the use of
housing set aside funds in order to implement the redevelopment plan and
subsidize low and moderate income households to the extent those households
cannot obtain housing at affordable costs on the open market;
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency
of the City of Huntington Beach as follows:
SECTION 1. The Director of Economic Development, or his/her
designated representative is hereby authorized to sign all documents necessary
and appropriate to carry out and implement the Affordable Housing Program and
execute loan agreements using housing set aside funds for first-time
homebuyers who qualify as persons of low or moderate income.
SECTION 2. A loan agreement prepared by the City Attorney is
attached hereto and incorporated into this resolution by this reference. Said
agreement is hereby approved for use in the administration of loans using
housing set aside money for downpayment or other assistance to low and
moderate income households.
SECTION 3. The Director of Economic Development is directed to
submit to the Redevelopment Agency for approval the names of the loan
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applicant, the location of the housing, the amount of the loan, and any unique
features of the loan or the housing which might be required, prior to execution of
loan agreement or other documents in compliance with Huntington Beach City
Charter Section 613, "Execution of Contracts."
SECTION 4. The Agency finds that the Agreement is categorically
exempt under CEQA, pursuant to Section 15326 of the Guidelines to the
California Environmental Quality Act.
SECTION 5. The Agency finds and determines that expenditures
from the Housing Fund as contemplated by the Agreement will directly and
specifically benefit, improve, and preserve the community's supply of lower
income housing within the meaning of Section 33334.2 of the California Health
and Safety Code.
SECTION 6. The Agency finds and determines that expenditures
from the housing fund as contemplated by the loan agreement are of benefit to
the Redevelopment Project Areas.
PASSED AND ADOPTED by the Redevelopment Agency of the City of
Huntington Beach at a regular meeting thereof held on the 1st day of
November , 1993.
J.
Chairman
A EST: APPROVE AS TO FORM:
LV �_f comer-ems.
Agency Clerk iooJ �$S_ Cansel
R EWED AND APPROVED: INITIATED AND APPROVED:
Executive Direc r Deputy City Administrator/
Director of Economic Development
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REDEVELOPMENT AGENCY
OF THE
CITY OF HUNTINGTON BEACH
AFFORDABLE HOUSING PROGRAM
2ND TRUST DEED
LOAN DOCUMENTS
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Recording Requested By
And When Recorded Return To:
The Redevelopment Agency of
The City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Executive Director
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this
day of 119 by and between ("Participant") and THE
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a
public body, corporate and politic ("Agency").
RECITALS
A. Participant has entered into an agreement (the "Purchase
Agreement") to purchase that certain real property commonly known as
Huntington Beach, California, and more
particularly described in Exhibit"A" attached hereto and incorporated herein
(the "Property").
B. Participant requires assistance to purchase the Property and would
not be able to purchase the Property without such assistance. Participant is a
person or family of low or moderate income and currently earns less than 120%
of the current annual median income for the Orange County area, as those terms
are defined by California Health and Safety Code Section 50093.
C. Participant has represented to Agency that Participant and
Participant's immediate family intend to reside in the Property at all times
throughout the term of this Agreement.
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D. Agency desires to utilize tax increment money to assist persons of
low and moderate income to purchase residential property to increase, improve,
and preserve low and moderate income housing available at an affordable
housing cost within the City of Huntington Beach, all of which is consistent with
the goals of Affordable Housing Program and the Huntington Beach
Redevelopment Plan.
E. The Agency wishes to lend, and Participant wishes to borrow,
Program funds to assist Participant to purchase the Property upon the terms and
conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties
agree as follows:
1. Agency Loan. Agency shall loan to Participant (the "Loan")
the amount of
Dollars ($ ), subject to the conditions and restrictions set forth
herein, the Promissory Note, the Disclosure Statement for the Program, the
Deed of Trust and all applicable state, local and federal law. The Loan shall be
paid to the seller of the Property (the "Seller") by the Agency through deposit of
the Loan proceeds into escrow with (the
"Escrow Agent") (Escrow No. ). The Agency shall direct the Escrow
Agent to apply the proceeds of the Loan on behalf of Participant to the purchase
price of the Property, and, at Participant's election, to the costs of closing,
escrow fees, recording fees, loan points and fees, and/or document fees. At
such time, Participant shall execute and deliver to the Agency a promissory note
in favor of the Agency as holder, in the amount of the Loan, with simple interest
at 5% per year. The Loan, together with accrued interest, shall be due in the
event that Participant fails to comply with the terms of this Agreement.
Participant shall execute and deliver a Promissory Note substantially in the form
of the Promissory Note attached hereto as Exhibit "B" and incorporated herein by
this reference. Participant shall also execute and deliver to the Agency a deed
of trust encumbering the Property which shall secure the Promissory Note (the
"Deed of Trust"), in the form of Exhibit "C" attached hereto and incorporated
herein.
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2. Maintenance of Property. Participant shall maintain the
improvements on the Property in a manner consistent with community standards
and in a manner which will uphold the value of the Property, and shall keep the
Property free from any accumulation of debris and waste materials. Participant
agrees to comply with any and all covenants and agreements established by any
homeowner's association or other regulatory entity recognized by area property
owners and comply with all applicable federal, state and local laws.
3. Acceleration/Due on Sale. The Loan, all interest accrued thereon
and the equity share amount as defined herein below, shall be due and payable
upon (i) such sale, transfer, or other disposition of the Property, including,
without limitation, lease, exchange or rent of any part of the Property, except
sale to a purchaser approved by Agency, (ii) the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an
authorization period longer than the loan secured by the First Mortgage, or, (iv) is
in material default of any other obligation contained in this Agreement or any
provision of the Affordable Housing Agreement or Covenant, as defined herein,
recorded on the property, or, (v) Participant violates any condition of the deed of
trust or promissory note, or (vi) the death of Participant (unless the Participant's
household, occupying the property, contains more than one qualified participant
and at least one qualified participant survives). At the request of Participant, the
Agency may, in its sole discretion, extend the term of the Loan.
4. Notice to Agency. Participant agrees to notify the Agency not less
than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any
refinancing of the lien of the Deed of Trust or any lien to which the lien of the
Deed of Trust is subordinante (the "First Mortgage").
5. Occupancy Standards. The Property shall be used as the
personal residence of Participant and Participant's immediate family and for no
other purpose. Participant shall not enter into an agreement for the rental or
lease of the Property.
6. Income Information.Participant has submitted an eligibility
verification form to the Agency prior to execution of this Agreement. Participant
represents and warrants to the Agency that all information Participant has
provided and will provide in the future is and will be true, correct and complete.
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Participant acknowledges that the Agency is relying upon Participant's
representations that Participant's income does not exceed 120% of the area
median income and would not have entered this Agreement if Participant's
income exceeded 120% of the area median income.
7. First Time Homebuyer. Participant represents and warrants to
the Agency that neither Participant nor any of Participant's immediate family
residing in the Property has, or has had, a present ownership interest in a
principal residence at any time during all or any part of the three (3) years
immediately prior to the funding of the Agency Loan.
8 Loan Servicing. The Agency may contract with a private lender
to originate and service the Agency Loan.
9. Participant Financing. Participant shall obtain financing for the
purchase of the Property from a reputable institutional lender approved by the
Agency (the "Lender"). The lien secured by the Deed of Trust shall only be
subordinated to a first lien on the Property held by the Lender or Lender's
assigns. In addition, not less than three percent (3%) of the Purchase Price of
the Property shall be paid in cash from Participant's own resources and not from
the proceeds of a loan.
10. Covenants. Recorded in the Official Records of Orange County,
California, may be a declaration of conditions, covenants and restrictions for
property, which is known as an Affordable Housing Agreement or covenants
which may be attached as Exhibit "D" hereto and incorporated herein. If such a
document is recorded on the property, Participant agrees that the Property shall
only be owned by Participant or other persons or families of low or moderate
income available at an affordable housing cost, as those terms are defined in the
Affordable Housing Agreement, and that Participant shall not discriminate
against any person or group of persons on the basis of race, color, religion, sex,
marital status, national origin or ancestry, all as set forth in the Affordable
Housing Agreement.
Such affordable housing covenant ❑ is ❑ is not (Borrower's
initials ) applicable to this property.
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11. Equity Share. In the event that the Agency Loan becomes
due and payable prior to the thirtieth anniversary of the date of this Agreement,
Trustor shall pay to Beneficiary concurrent with the principal and accrued
interest, an amount equal to the "Equity Share Amount." The Equity Share
Amount shall be determined by applying a percentage factor (the "Applicable
Factor") to the difference between the Sales Price and the Purchase Price
(defined below) as follows:
1. Prior to fifth anniversary fifty percent (50%)
of the Agency Deed of Trust:
2. After fifth anniversary but forty-eight percent
prior to sixth anniversary: (48%)
3. After sixth anniversary but forty-six percent (46%)
prior to seventh anniversary:
4. After seventh anniversary but forty-four percent (44%)
prior to eighth anniversary:
5. After eighth anniversary but forty-two percent (42%)
prior to ninth anniversary:
6. After ninth anniversary but forty percent (40%)
prior to tenth anniversary:
7. After tenth anniversary but thirty-eight percent (38%)
prior to eleventh anniversary:
8. After eleventh anniversary but thirty-six percent (36%)
prior to twelfth anniversary:
9. After twelfth anniversary but thirty-four percent (34%)
prior to thirteenth anniversary:
10. After thirteenth anniversary but thirty-two percent (32%)
prior to fourteenth anniversary:
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11. After fourteenth anniversary but thirty percent (30%)
prior to fifteenth anniversary:
12. After fifteenth anniversary but twenty-eight percent
prior to sixteenth anniversary: (28%)
13. After sixteenth anniversary but twenty-six percent
prior to seventeenth anniversary: (26%)
14. After seventeenth anniversary but twenty-four percent
prior to eighteenth anniversary: (24%)
15. After eighteenth anniversary but twenty-two percent
prior to nineteenth anniversary: (22%)
16. After nineteenth anniversary but twenty percent (20%)
prior to twentieth anniversary:
17. After twentieth anniversary but eighteen percent (18%)
prior to twenty-first anniversary:
18. After twenty-first anniversary but sixteen percent (16%)
prior to twenty-second anniversary:
19. After twenty-second anniversary but fourteen percent (14%)
prior to twenty-third anniversary:
20. After twenty-third anniversary but twelve percent (12%)
prior to twenty-fourth anniversary:
21. After twenty-fourth anniversary but ten percent (10%)
prior to twenty-fifth anniversary:
22. After twenty-fifth anniversary but eight percent (8%)
prior to twenty-sixth anniversary:
23. After twenty-sixth anniversary but six percent (6%)
prior to twenty-seventh anniversary:
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24. After twenty-seventh anniversary but four percent (4%)
prior to twenty-eighth anniversary:
25. After twenty-eighth anniversary but two percent (2%)
prior to twenty-ninth anniversary:
26. After twenty-ninth anniversary but one percent (1%)
prior to thirtieth anniversary:
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the original purchase price paid by the Participant
to the Seller for Seller's interest in the Property, exclusive of escrow fees, title
insurance costs, broker's commission, loan fees or any other closing or
transaction costs.
The "Sales Price" is the price to be paid by the buyer of the Property (the
"Buyer") to Participant for Participant's interest in the Property, exclusive of
escrow fees, title insurance costs, broker's commissions, loan fees or any other
closing or transaction costs.
In the event of sale of the Property and at the election of the Agency, the
Agency may appoint a certified, independent appraiser to conduct any appraisal
of the Property, at Participant's expense to assist the Agency in determining if
the Sales Price is at or near the fair market value of the Property at such time. If
the Sales Price is determined by the appraisal to be three percent (3%) or more
below the fair market value of the Property as estimated in said appraisal, then
the "Sales Price" for purposes of determining the Equity Share Amount shall be
the fair market value of the Property established in said appraisal.
PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE
OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3
ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY TO
AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE
OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT
TO THIS SECTION. THE AGENCY ACKNOWLEDGES AND AGREES THAT
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PARTICIPANT SHALL ONLY PAY THE NOTE AMOUNT AND THE EQUITY
SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS
TO CONTINUOUSLY OWN AND OCCUPY THE PROPERTY FOR THIRTY (30)
YEARS AND PARTICIPANT COMPLIES WITH THE PROVISIONS OF THIS
AGREEMENT OR PARTICIPANT SELLS THE PROPERTY TO A BUYER
QUALIFIED BY THE AGENCY WHO ASSUMES THE LOAN WHICH IS THE
SUBJECT OF THIS AGREEMENT.
PARTICIPANT AGENCY
The value of all capital improvements to the Property made while
Participant owned and occupied the Property shall be deducted from the Sales
Price when calculating the Equity Share Amount, if Participant complies with the
following:
The costs incurred by the Participant for capital improvements
shall be deducted from the Sales Price only if Participant
submits the following to the Agency: (i) an itemized list of the
improvements, (ii) reliable proof of completion of the
improvements (as evidenced e.g., by final building permits or
certificate of completion), and (iii) reliable evidence of the cost
of the improvements and that Participant paid those costs (as
evidenced e.g., by an itemized invoice or receipt).
Notwithstanding the foregoing, Participant's obligation to pay the Equity
Share Amount is subject to a superior right of Participant, upon termination of the
Agency Loan, to receive repayment of money paid by the Participant without
Agency assistance for purchase of the Property (including down payment,
installment payments of mortgage principal pursuant to the First Lien, escrow
fees, transfer taxes, recording fees, brokerage commissions, and similar costs
actually paid by the Participant) and money paid by the Participant for capital
improvements to the Property.
12. Non-Waiver. Failure to exercise any right the Agency may have or
be entitled to, in the event of default hereunder, shall not constitute a waiver of
such right or any other right in the event of a subsequent default.
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13. Indemnification. The Participant shall defend, indemnify and
hold harmless the Agency and the City of Huntington Beach and its respective
officers, agents, employees, representatives and volunteers from and against
any loss, liability, claim or judgment relating in any manner to the Property of this
Agreement. The Participant shall remain fully obligated for the payment of
property taxes and assessments related to the Property. There shall be no
reduction in taxes for Participant, nor any transfer of responsibility to the Agency
to make such payments, by virtue of the Loan.
14. Insurance. Participant shall maintain, during the term of the
Agency Loan, an all-risk property insurance policy insuring the Property in an
amount equal to the full replacement value of the structures on the Property.
The policy shall name the Agency as loss payee and shall contain a statement of
obligation on behalf of the carrier to notify the Agency of any material change,
cancellation or termination of coverage at least thirty (30) days in advance of the
effective date of such material change, cancellation or termination. Participant
shall transmit a copy of the certificate of insurance and loss payee endorsement
to Agency within thirty (30) days of the effective date of this Agreement, and
Participant shall annually transmit to Agency a copy of the certificate of
insurance and a loss payee endorsement, signed by an authorized agent of the
insurance carrier setting forth the general provisions of coverage. The copy of
the certificate of insurance and loss payee endorsement shall be transmitted to
Agency as follows:
REDEVELOPMENT AGENCY OF THE
City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Any certificate of insurance must be in a form approved by_the City
Attorney.
15. Defaults. Failure or delay by either party to perform any term or
provision of this Agreement which is not cured within thirty (30) days after receipt
of notice from the other party constitutes a default under this Agreement;
provided, however, if such default is of the nature requiring more than thirty (30)
days to cure, the defaulting party shall avoid default hereunder by commencing
to cure within such thirty (30) day period and thereafter diligently pursuing such
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cure to completion. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and shall complete
such cure, correction or remedy with diligence.
The injured party shall give written notice of default to the party in
default, specifying the default complained of by the injured party. Except as
required to protect against further damages, the injured party may not institute
proceedings against the party in default until thirty (30) days after giving such
notice. Failure or delay in giving such notice shall not constitute a waiver of any
default, nor shall it change the time of default.
16. Documents. Participant is aware that the Agency has prepared
certain documents to implement the Program and secure repayment of the Loan.
Participant has reviewed and agrees to execute the following documents prior to
receiving the Loan:
(a) Disclosure Statement
(b) Promissory Note;
(c) Deed of Trust; and
(d) The Affordable Housing Agreement (Exhibit "D").
(e) Notice of Right of Recission
Participant agrees and acknowledges that the Deed of Trust, Disclosure
Statement and the Affordable Housing Agreement shall be recorded with the
County Recorder of the County of Orange and shall appear of record with
respect to and as encumbrances to the Property.
Participant further agrees to all terms and conditions set forth in the
Disclosure Statement which is hereby incorporated as if fully set forth herein.
17. Further Assurances. The Participant shall execute any further
documents consistent with the terms of this Agreement, including documents in
recordable form, as the Agency shall from time to time find necessary or
appropriate to effectuate its purposes in entering into this Agreement and making
the Loan.
18. Governing Law. This Agreement shall be governed by the laws
of the State of California. Any legal action brought under this Agreement must
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be instituted in the Superior Court of the County of Orange, State of California, in
an appropriate municipal court in that county, or in the Federal District Court in
the Central District of California.
19. Amendment of Agreement. No modification, recission,
waiver, release or amendment of any provision of this Agreement shall be made
except by a written agreement executed by the Participant and Agency.
20. Agency May Assign. Agency may, at its option, assign its
right to receive repayment of the loan proceeds without obtaining the consent of
the Participant.
21. Assumption Permitted/Assignment Prohibited. In no event shall
Participant assign or transfer any portion of this Agreement without the prior
express written consent of the Agency, which consent may be given or withheld
in the Agency's sole discretion. Assumption of the Loan shall be permitted, if
consent is given by Agency. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
22. Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties. This Agreement integrates all of
the terms and conditions mentioned herein or incidental thereto, and supersedes
all prior negotiations, discussions and previous agreements between the Agency
and the Participant concerning all or any part of the subject matter of this
Agreement.
23. Relationship of Participant and Agency. The relationship of
Participant and Agency pursuant to this Agreement is that of debtor and creditor
and shall not be, or be construed to be a joint venture, equity venture,
partnership, or other relationship.
24. Notices. Any notices, requests or approvals given under this
Agreement from one party to another may be personally delivered or deposited
with the United States Postal Service for mailing, postage prepaid, registered or
certified mail, return receipt requested to the following address:
To participant:
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To Agency: THE REDEVELOPMENT AGENCY OF
The City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Either party may change its address for notice by giving written
notice thereof to the other party.
25. Term of Agreement. Except as may be provided herein, the
term of this Agreement is thirty (30) years commencing on the date of execution.
(END OF PAGE)
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IN WITNESS WHEREOF, the parties have executed this Agreement as of
the day and year written below.
"PARTICIPANT"
Date: By:
Print Name:
Title:
Date: By:
Print Name:
Title:
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a
municipal corporation
Date: By:
Print Name:
Its:
APPROVED AS TO FORM:
By: q
GAIL HUTTON +U
154'* 6ity Attorney/Agency Counsel
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RECORDING REQUESTED BY )
AND WHEN RECORDED RETURN TO: )
The City of Huntington Beach )
2000 Main Street )
Huntington Beach, California 92648 )
Attn: Housing Department )
[Space Above This Line For Recorder's Use.]
This document is exempt from
recording fees pursuant to
Government Code Section 6103.
DEED OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST is made this day of , 1993, by and among
,whose address is ,
(the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the
"Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a
public body corporate and politic (the 'BENEFICIARY"), whose address is 2000 Main Street,
Huntington Beach, California 92648.
WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to
Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of
Orange, State of California, described legally in the Legal Description attached hereto as
Exhibit "A" and incorporated herein.
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or
hereafter placed thereon, it being understood and agreed that all classes of property attached
or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and
profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d)
all sums of money payable on the purchase price of said property secured by a lien thereon or
payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power
and authority hereinafter given to and conferred upon Beneficiary to collect and apply such
rents, issues and profits, and all sums of money payable on the purchase price of said property
secured by a lien thereon or payable under any agreement.
A. FOR THE PURPOSE OF SECURING:
1. Payment of the sum of with
interest thereon according to the terms of a Promissory Note of even date herewith, made by
Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.
2. Payment of such additional sums with interest thereon as: (a) may be hereafter
borrowed from the Beneficiary by the then record owner or owners of said property when
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evidenced by another Promissory Note or Notes, or(b) as may be added to the indebtedness
secured hereby in accordance with the provision of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise or agreement of
Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
, 1993, and in that certain Affordable Housing Agreement currently recorded
on the property, insofar as the terms and conditions of that agreement may apply to Trustor.
4. Payment, with interest thereon, future indebtedness or obligation of the Trustor
(or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether
created directly or acquired by assignment, whether absolute or contingent, whether due or not,
whether otherwise secured or not, or whether existing at the time of the execution of the Deed
of Trust, or arising thereafter.
B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. To keep said property in good condition and repair; to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and access thereto,
shall be permitted for that purpose; not to remove or demolish any building thereon; not to
make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in
the general nature of the occupancy of the premises without Beneficiary's written consent; to
complete or restore promptly and in good workmanlike manner any building which may be
constructed, damaged or destroyed thereon, including, without restricting the generality of the
foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed
and materials furnished in connection with such property and not to permit any mechanic's lien
against such property; to comply with all laws affecting such property or requiring any
alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning
reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not
to commit, suffer or permit any act upon such property in violation of the law; and to paint,
cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use
of said property may be reasonably necessary; to promptly pay all amounts due others upon
agreements of lease or conditional sale of all fixtures, furnishings and equipment located
thereon.
If the loan secured hereby or any part thereof is being obtained or should any
additional loan be made hereafter for the purpose of financing rehabilitation improvements on
said property, Trustor further agrees, anything in,this Deed of Trust to the contrary
notwithstanding; (a) to complete the same in accordance with City approved plans and
specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all
times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary
within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice
may be given to Trustor by registered or certified mail, sent to his last known address, or by
personal service of the same; (d) that work shall not cease on the rehabilitation of such
improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether
consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all
claims of labor and materials furnished in connection with the said rehabilitation and not to
permit any claims of lien for said work or material to be filed of record against the property; (f)
not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a
larger tract upon which improvements will be constructed, Trustor shall make
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separate contracts and subcontracts for said construction which shall pertain to the said
property only and shall keep separate, full and complete records of all work and materials
furnished to the said property. Trustee upon presentation to it of an affidavit signed by the
Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized
to accept as true and conclusive all facts and statements therein, and to act thereon hereunder.
2. To provide, and maintain in force at all times with respect to said property, fire
and other types of insurance as may be required by Beneficiary. All of such insurance shall
have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form,
content, amount and in such companies as may be satisfactory to Beneficiary, and the policies
therefor shall be delivered to and remain in possession of Beneficiary as further security for the
faithful performance of these trusts. At least thirty (30) days prior to the expiration of any
insurance policy, a policy or policies renewing or extending such expiring insurance shall be
delivered to Beneficiary together with written evidence showing payment of the premium
therefor and, in the event any such insurance policy and evidence of the payment of the
premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed
of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without
obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from
any obligation hereof, may obtain such insurance through or from any insurance agency or
company acceptable to it, pay the premium thereof, and may add the amount thereof to the
indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may
furnish to any insurance agency or company, or any other person, any information contained in
or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any
information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be
responsible for such insurance or for the collection of any insurance monies, or for any
insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is
hereby authorized either (a) to settle and adjust any claim under the insurance policies provided
for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the
insurance company or companies on the amount to be paid upon the loss. In either case, the
Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is
obligated to restore or replace the damaged or destroyed buildings or improvements under the
terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such
damage or destruction does not result in cancellation or termination of such lease, such
proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be
used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or
improvements on said premises. In all other cases, such insurance proceeds, at the option of
the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether
due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and
used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or
improvements on said premises. Such buildings and improvements shall be so restored or
rebuilt as to be of at least equal value and substantially the same character as prior to the
damage or destruction, and shall be in a condition satisfactory to Beneficiary. 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. Any and all unexpired insurance shall inure to the benefit of, and
pass to the purchaser of, the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) at least ten (10) days before delinquency, all general and special
City and County taxes, and all assessments on appurtenant water stock, affecting such
property, (b) when done, all special assessments for public improvements, without permitting
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any improvement bond to issue for any special assessment (c) when done, all encumbrances,
charges and lines, with interest, on said property, or any part thereof, which are or appears to
be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make
any payment or do any act required of the Lessee or its successor in interest under the terms of
the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this
trust, (f) for any statement regarding the obligation secured hereby any amount demanded by
Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is
made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's
request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable.
If, by the laws of the United States of America, or of any state having jurisdiction over
the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby
secured, the Trustor covenants and agrees to pay such tax in the manner required by such law.
Should Trustor fail to make any such payment, Beneficiary may elect to make such payment,
Beneficiary may elect to make such payment and any amount so paid may be added by
Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.
4. That, should Trustor fail to make any payment or do any act as provided in this
Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to
or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a)
make or do the same in such 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, (b) commence, appear in, or defend any action or proceeding purporting to
affect the security hereof or the property covered by this Deed of Trust, or the rights or powers
of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge
or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable
fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any
amount so expended may be added by Beneficiary to the indebtedness secured hereby and
shall bear a like rate of interest.
5. To appear in and defend any action or proceeding purporting to affect the
security hereof or the property which is covered by this Deed of Trust, or the rights or powers of
Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and
expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any
such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made
a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in
such property id directly questioned by such action, including any action for the condemnation
or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of
Trust.
6. To pay immediately and without demand, all sums expended under the terms of
this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the
rate which the principal obligation secured hereby bears at the time such payment is made, and
the repayment of such sums shall be secured hereby.
7. That, should the Trustor or any successor in interest to Trustor in such property
drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon
substances or any mineral of any kind or character, or sell, convey, further encumber, or
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alienate said property, or any party thereof, or any interest therein, or be divested of his title or
any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall
have the right, at its option, to declare any indebtedness or obligations secured hereby
irrespective of the maturity date specified in any Note evidencing the same, immediately due
and payable, and no waiver of this right shall be effective unless in writing.
8. That any award, settlement or damages for injury or damages to such property,
or in construction with the transaction financed by such loan, and any award of damages in
connection with any condemnation for public use of or injury to said property, or any part
thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such
monies received by it in such manner and with the same effect as above provided for the
disposition of proceeds of fire or other insurance.
9. That, by accepting payment of any sums secured hereby after its due date, or by
making any payment, performing any act on behalf of Trustor, that Trustor was obligated
hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to
the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt
payment when due of all sums so secured or to declare a default for failure so to pay.
10. That at any time, or from time to time, without liability of the Beneficiary or
Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this
Deed of Trust and any Note secured hereby for endorsement, and without affecting the
personal liability of any person for payment of the indebtedness secured hereby, or the lien of
the Deed of Trust upon the remainder of said property for the full amount of the indebtedness
then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with
respect to the remainder of said property, Trustee may: (a) reconvey any part of said property,
(b) consent to the making of any map or plat thereof, (c)join in granting any easement thereon,
(d)join in any agreement subordinating the lien or charge hereof.
11. That the lien hereof shall remain in full force and effect during any postponement
or extension of time of payment of the indebtedness secured hereby, or any part thereof.
12. That, upon written request of Beneficiary stating that all sums secured hereby
have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for
cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without
warranty, the property then held hereunder. The recitals in such reconveyance of any matters
of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may
be described as "the person or persons legally entitled thereto." Such request and
reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned
to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy
said Note and this Deed of Trust (unless directed in such request to retain them).
13. That as additional security, Trustor irrevocably assigns to Agency the rents,
issues, and profits of the property affected by this Trust Deed for the purposes and upon the
terms and conditions set forth below. This assignment shall not impose upon Agency any duty
to produce rents from the property affected by this Trust Deed, or cause Agency to be (a)
"mortgages in possession" for any purpose; (b) responsible for performing any of the
obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees
or any other parties, for any dangerous or defective condition of the property affected by this
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Trust Deed, or for any negligence in the management, upkeep, or control of such rights to
rents, issues and profits is not contingent upon, and may be exercised without possession of,
the property affected by this Trust Deed.
Agency confers upon Trustor a license ("License") to collect and retain the rents, issues
and profits of the property affected by this Trust Deed as they become due and payable, until
the occurrence of a default hereunder. Upon such default, the License shall be automatically
revoked and Agency may collect and retain the rents, issues and profits without notice and
without taking possessions of the property affected by this Trust Deed. This right to collect
rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as
otherwise provided herein; and neither said right, nor termination of the License, shall impose
upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of
the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to
collect any such money shall cease and Beneficiary shall have the right, with or without taking
possession of the property affected hereby, to collect all rents, issues, royalties and profits and
shall be authorized to, and may, without notice and irrespective of whether declaration of
default has been delivered to Trustee and without regard to declaration of default has been
delivered to Trustee and without regard to the adequacy of the security for the indebtedness
secured hereby, either personally or by attorney or agent without bringing any action or
proceeding, or by receiver to be appointed by the Court, enter into possession and hold,
occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain
and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive
and collect all or any part of the said rents, issues, and profits of the property affected hereby,
and after paying such costs of maintenance, operation of said property, and of collection
including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the
balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of
said property being hereby assigned to Beneficiary for said purposes. The acceptance of such
rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee
or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or
discontinuance by Beneficiary at any time, or from time to time, to collect any such rents,
issues, royalties or profits shall not in any manner affect the subsequent enforcement by
Beneficiary of the right, power and authority to collect the same. The receipt and application by
said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution
and delivery of declaration of default and demand for sale as hereinafter provided, or during the
pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not
affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues,
royalties and profits, less all costs of operation, maintenance, collection and reasonable
attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness
secured hereby, from time to time, in such order as Beneficiary may determine. Nothing
contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed
to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of
liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy,
lease or option.
14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees
that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate";
(b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to
do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary
regarding any notice, request or demand received by him from the lessor under the Lease and
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promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as
any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall
otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but
shall always be kept separate and distinct, notwithstanding the union of said estates in any
party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply
with all covenants, agreements, terms, conditions and provisions under any lease affecting the
premises and to neither do anything, nor to permit anything to be done which may cause
modification or termination of any such lease or of the obligations of any lessee or person
claiming through such lease or the rents provided for therein or the interest of the lessor or the
Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or
mortgage which may be or become superior to any leasehold estate that is security for this
Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph,
Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately
due and payable. Consent to or waiver of one of said violations shall not be deemed to be a
consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold
estate, the term "property" as used in this Deed of Trust shall be deemed to mean the
leasehold estate whenever the context so requires for the protection of the Beneficiary.
15. That upon default by Trustor in payment of any indebtedness secured hereby or
in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon
default by Trustor under the terms of any encumbrance, charge or lien which is or appears to
be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due
and payable by delivery to Trustee of written declaration of default and demand for sale of
written notice of default and of election to cause to be sold said property, which notice Trustee
shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust
and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of
such time as then may be required by law following recordation of such notice of default, and
notice of sale having been given as then required by law, Trustee, without demand on Trustor,
shall sell said property at the time and place fixed by it in such notice of sale, whether as a
whole or in separate parcels, and in such order as it may determine, at public auction to the
highest bidder for case in lawful money of the United States, payable at time of sale. Trustee
may postpone sale of all or any portion of said 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 fixed by the preceding postponement. Trustee shall deliver to such
purchaser its Deed conveying the property so sold, but without any covenant or warranty,
express or implied. The recital in such Deed of any matters of fact shall be conclusive of the
truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter
defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof
any shares of corporate stock securing the obligations secured hereby, and Trustor waives
demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares
by independent pledge sale, and Trustor waives demand and notice of such sale). After
deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence
of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all
sums expended under the terms hereof, not then repaid, with accrued interest at the rate then
payable under the Note or Notes secured hereby, and then of all other sums secured hereby,
and, if there are any proceeds remaining, shall distribute them to the person or persons legally
entitled thereto.
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16. To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby.
17. That Beneficiary may, from time to time, by instrument in writing, substitute a
successor or successors to any Trustee named herein or acting hereunder, which instrument,
executed and acknowledged by Beneficiary and recorded in the office of the recorder of the
county or counties where such property is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall, without conveyances from the
Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not
limited to the power to reconvey the whole or any part of the property covered by this Deed of
Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall
have been recorded, this power of substitution cannot be exercised until after the costs, fees
and expenses of the then acting Trustee shall have been paid to such Trustee, who shall
endorse receipt thereof upon such instrument. The procedures herein provided for substitution
of Trustee shall not be exclusive of other provisions for substitution provided by law.
18. That 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 owner and holder, including pledgee, of the Note secured
hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the
context so requires, the masculine gender includes the feminine and/or neuter, and the singular
number includes the plural.
19. That in the event the property secured by this Deed of Trust is income producing
property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's
request, monthly, on or before the 15th day of each month, a written operational report. Such
operational report shall contain a brief but complete statement of the month's income and,
expenses of such property, a list of all vacancies, and a statement of any material change in the
property or business carried on therein for such period.
20. That in the event of a demand for, and the preparation and delivery of a written
statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943
and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable
charge, not exceeding the maximum amount which is permitted by law at the time the
statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other
services rendered to Trustor or rendered in Trustor's behalf in connection with said property of
this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and
the loan secured hereby in connection with the transfer of said property, or releasing an existing
policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same
with another such policy.
21. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. 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.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said
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indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust
even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of
any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums
secured hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of
Trust secures, and in the event that Trustor has made any material misrepresentation or failed
to disclose any material fact, Beneficiary at its option and without notice, shall have the right to
declare the indebtedness secured hereby, irrespective of the maturity date specified in such
Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a
written declaration of default and demand for sale as in paragraph No. 15 herein set forth.
Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing
a default by Trustor under this paragraph, is authorized to accept as true and conclusive all
facts and statements therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address hereinabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate in writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of
default and of any notice of sale hereunder be mailed to him at his address hereinbefore set
forth.
TRUSTEE: TRUSTOR:
THE CITY OF HUNTINGTON BEACH
By:
By:
Title: By:
By:
BENEFICIARY:
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
By:
Title:
APPROVED AS TO FORM:
A)
City ttorney oi•
Y— ,a-93
7\DEEDRENT109/30/93/B Page 9 of 9
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RIDER TO AGENCY DEED OF TRUST
AFFORDABLE HOUSING PROGRAM
This Agency Deed of Trust is subject to the terms and conditions
of that certain Loan Agreement entered into by and between Beneficiary
and Trustor dated 19 , to which this rider is
attached as Exhibit "C" and incorporated by reference ("the Loan
Agreement") , pursuant to which Beneficiary has agreed to loan Trustor
the sum of Dollars ($ ) (the "Loan Amount") with
interest at 596 yearly. All terms in this Rider to Agency Deed of
Trust, if not separately defined herein, shall have the meanings as
defined in the Loan Agreement.
I. INTEREST AMOUNT,
A. Simple interest shall accrue on the Note Amount at a rate of
five percent (5%) per year.
B. Ecu'ty Share. In the event that the Agency Loan becomes
due and payable prior to the thirtieth anniversary of the date of the
Loan Agreement, Trustor shall pay to Beneficiary concurrent with the
principal and accrued interest, an amount equal to the "Equity Share
Amount. " The Equity Share Amount shall be determined by applying a
percentage factor (the "Applicable Factor") to the difference between
the Sales Price and the Purchase Price (defined below) as follows:
1. Prior to fifth anniversary fifty percent
of the Agency Deed of Trust: (50%)
2 . After fifth anniversary but forty-eight percent
prior to sixth anniversary: (4816)
3 . After sixth anniversary but forty-six percent
prior to seventh anniversary: (4696)
4. After seventh anniversary but forty-four percent
prior to eighth anniversary: (44%)
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5 . After eighth anniversary but forty-two percent
prior to ninth anniversary: (42%)
6 . After ninth anniversary but forty percent (40%)
prior to tenth anniversary:
7. After tenth anniversary but thirty-eight percent
prior to eleventh anniversary: (38%)
8. After eleventh anniversary but thirty-six percent
prior to twelfth anniversary: (3616)
9. After twelfth anniversary but thirty-four percent
prior to thirteenth anniversary: (34%)
10. After thirteenth anniversary but thirty-two percent
prior to fourteenth anniversary: (3296)
11. After fourteenth anniversary but thirty percent (30%)
prior to fifteenth anniversary:
12 . After fifteenth anniversary but twenty-eight percent
prior to sixteenth anniversary: (28%)
13 . After sixteenth anniversary but twenty-six percent
prior to seventeenth anniversary: (2696)
14. After seventeenth anniversary but twenty-four percent
prior to eighteenth anniversary: (24%)
15. After eighteenth anniversary but twenty-two percent
prior to nineteenth anniversary: (22%)
16 . After nineteenth anniversary but twenty percent (2001)
prior to twentieth anniversary:
17 . After twentieth anniversary but eighteen percent
prior to twenty-first anniversary: (18%)
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18 . After twenty-first anniversary but sixteen percent (16%)
prior to twenty-second anniversary:
19. After twenty-second anniversary but fourteen percent
prior to twenty-third anniversary: (14%)
20. After twenty-third anniversary but twelve percent (12%)
prior to twenty-fourth anniversary:
21. After twenty-fourth anniversary but ten percent (10%)
prior to twenty-fifth anniversary:
22 . After twenty-fifth anniversary but eight percent (816)
prior to twenty-sixth anniversary:
23 . After twenty-sixth anniversary but six percent (6%)
prior to twenty-seventh anniversary:
24. After twenty-seventh anniversary but four percent (496)
prior to twenty-eighth anniversary:
25. After twenty-eighth anniversary but two percent (2%)
prior to twenty-ninth anniversary:
26. After twenty-ninth anniversary but one percent (1%)
prior to thirtieth anniversary:
27 . After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the original purchase price paid by the
Participant to the Seller for Seller's interest in the Property,
exclusive of escrow fees, title insurance costs, broker's commission,
loan fees or any other closing or transaction costs.
The "Sales Price" is the price to be paid by the buyer of the
Property (the "Buyer") to Participant for Participant's interest in
the Property, exclusive of escrow fees, title insurance costs,
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broker's commissions, loan fees or any other closing or transaction
costs.
In the event of sale of the Property and at the election of the
Agency, the Agency may appoint a certified, independent appraiser to
conduct any appraisal of the Property, at Participant's expense to
assist the Agency in determining if the Sales Price is at or near the
fair market value of the Property at such time. If the Sales Price is
determined by the appraisal to be three percent (3%s) or more below the
fair market value of the Property as estimated in said appraisal, then
the "Sales Price" for purposes of determining the Equity Share Amount
shall be the fair market value of the Property established in said
appraisal.
PARTICIPANT ACKNOWLEDGES AND AGREES THAT IN THE EVENT THAT THE
LOAN WHICH THE DEED OF TRUST SECURES BECOMES DUE AND PAYABLE PRIOR TO
THE 30TH ANNIVERSARY OF THE LOAN AGREEMENT, PARTICIPANT SHALL PAY TO
AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE
APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION.
THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE
NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF,
PARTICIPANT FAILS TO CONTINUOUSLY OWN AND OCCUPY THE PROPERTY FOR
THIRTY (30) YEARS AND PARTICIPANT COMPLIES WITH THE PROVISIONS OF THIS
AGREEMENT OR PARTICIPANT SELLS THE PROPERTY TO A BUYER QUALIFIED BY
THE AGENCY IN ACCORDANCE WITH PARAGRAPH "C" BELOW.
PARTICIPANT/TRUSTOR AGENCY
The value of all capital improvements to the Property made while
Participant owned and occupied the Property shall be deducted from the
Sales Price when calculating the Equity Share Amount, if Participant
complies with the following:
The costs incurred by the Participant for capital
improvements shall be deducted from the Sales Price only
if Participant submits the following to the Agency: (i)
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an itemized list of the improvements, (ii) reliable proof
of completion of the improvements (as evidenced e.g. , by
final building permits or certificate of completion) , and
(iii) reliable evidence of the cost of the improvements
and that Participant paid those costs (as evidenced e.g. ,
by an itemized invoice or receipt) .
Notwithstanding the foregoing, Participant's obligation to pay
the Equity Share Amount is subject to a superior right of Participant,
upon termination of the Agency Loan, to receive repayment of money
paid by the Participant without Agency assistance for purchase of the
Property (including down payment, installment payments of mortgage
principal pursuant to the First Lien, escrow fees, transfer taxes,
recording fees, brokerage commissions, and similar costs actually paid
by the Participant) and money paid by the Participant for capital
improvements to the Property.
C. Loan Assumption. Notwithstanding the provisions herein
above, if the Property is sold by the Trustor to a Buyer of low or
moderate income, as defined by Section 50093 of the California Health
and Safety code, ("Eligible Person or Family") and the Sales Price
does not exceed an affordable housing cost, " as defined by Section
50052 . 5 of the California Health and Safety Code, to such Buyer, and
the Buyer assumes the Trustor' s loan, then no Equity Share Amount is
due to the Beneficiary upon such sale. In order to verify the Buyer' s
status as an Eligible Person or Family, Trustor shall submit to the
Beneficiary, together with the notice of proposed sale pursuant to the
Loan Agreement, the identity of the proposed Buyer and adequate
information evidencing the income of the proposed Buyer. Said income
information shall include original or true copies of pay stubs, income
tax records or other financial documents in order that the Beneficiary
may determine and verify the household income of the proposed Buyer to
determine Eligible Person or Family status and whether the Property
is available to such Buyer at affordable housing cost. If the
Beneficiary is unable to verify the Buyer's income as provided herein,
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then the Buyer's income shall be deemed to exceed the maximum
allowable income limit for Eligible Persons and Families and the
Equity Share Amount shall be due and payable concurrent with the
repayment of the Note Amount.
II. PROTECTION OF BENEFICIARY'S RIGHTS IN THE PROPERTY.
A. If Trustor fails to perform the covenants and agreements
contained in this Agency Deed of Trust, or there is a legal proceeding
that may significantly affect Beneficiary's rights in the Property
(such as a proceeding in bankruptcy, probate, for condemnation or
forfeiture or to enforce laws or regulations) , then beneficiary may do
and pay for whatever is necessary to protect the value of the Property
and Beneficiary's rights in the Property. Beneficiary's actions may
include paying any sums secured by a lien which has priority over this
Agency Deed of Trust, appearing in court, paying reasonable attorneys'
fees and entering on the Property to make repairs. Although
Beneficiary may take action under this Section II, Beneficiary does
not have to do so.
B. Any amount disbursed by Beneficiary under this Section II,
shall become additional debt of Trustor secured by this Agency Deed of
Trust. Unless Trustor and Beneficiary agree to other terms of
payment, these amounts shall bear interest from the date of
disbursement at the highest rate permitted by law and shall be
payable, with interest, upon notice from Beneficiary to Trustor
requesting payment.
III . ,SUBORDINATION.
A. The Beneficiary has found and declared that an economically
feasible method of financing, refinancing or assisting first time
homebuyers pursuant to the Program on substantially comparable terms
and conditions without subordination is not reasonably available.
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Any first lien on the Property ("First Lien") held by an
institutional lender or investor (the "Lender") shall be prior an
superior to the Declaration and this Agency Deed of Trust. Thus, any
party its successors and assigns receiving title to the Property
through a trustee's sale, judicial foreclosure sale, or deed in lieu
of foreclosure, and any conveyance or transfer thereafter, shall
receive title free and clear of this Agency Deed of Trust and the
Declaration.
Trustor agrees it shall instruct the escrow holder for the
acquisition of the Property by the Trustor that the order of recording
in the escrow for the purchase of the Property by the Trustor shall
occur as follows: 1) the first Lien; 2) The Declaration; and 3)
the Agency Deed of Trust.
The Trustor shall cause a Request for Notice to be recorded on
the Property subsequent to the recordation of the First Lien deed of
trust or mortgage requesting a statutory notice of default as set
forth in the California Civil Code.
TRUSTOR'S SIGNATURE
TRUSTOR'S SIGNATURE
REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
Chairman
APPROVED AS TO FORM:
Agency Counsel ,
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244
PROMISSORY NOTE
Property Address Huntington Beach, California
, 1993
1. Promise to Pay. ("Borrower")
promises to pay the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,
a public body, corporate and politic ("Holder,"also referred to as "Agency"), at the office of the
Agency in Huntington Beach, California, or at such other place as the Holder may designate in
writing, the principal sum of
Dollars ($____j (the "Note Amount"), together with interest.
2. Interest Rate Simple interest shall be charged by the Agency on the portion of
the Note Amount remaining unpaid from time to time, from the date of the disbursement of the
Note Amount until the date which is thirty (30)years from the date of the disbursements of the
Note Amount, at the rate of five percent (5%) per annum.
3. Affordable Housing Agreement This Promissory Note is made and
delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on
the property as a covenant binding upon Borrower(the "Agreement"), a copy of which is on file
as a public record with the Holder and is incorporated herein by reference, and a Loan
Agreement between Borrower and Agency dated This promissory note is
attachment "B"to the Loan Agreement.
4. Acceleration The whole of the Note Amount, any interest accrued thereon, and
all other payments due hereunder and under the Agreement shall, at the option of the Holder,
become due and be immediately payable to the Holder by the Borrower upon the occurrence
of any one of the following events:
(a) Borrower sells, transfers or makes disposition of the Property in whole or
in part, including, without limitation, the lease, exchange or rental of the Property
or any interest therein, whether voluntary or involuntary, except, however, a
buyer approved by the Agency may assume the loan evidenced by this Note;
(b) Borrower refinances any lien or encumbrances to which the Agency
Deed of Trust is subordinate for loan amount in excess of the then current loan
balance secured by such lien or encumbrance;
(c) Borrower fails to occupy the Property as Borrower's principal residence
pursuant to the Loan Agreement or is in default of any other obligation under the
Agreement or violates the terms of the Affordable Housing Agreement;
(d) The close of a probate estate following the death of Borrower(unless
Borrower is more than one person and one or more of the other people
comprising Borrower survive);
(e) Borrower defaults on this Promissory Note;
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244
(f) Borrower defaults on the Agency Deed of Trust;
5. Application of Payments Any sums received hereunder may, at the options
of Holder hereof, be applied in any order to the payment of costs, interest, or principal due
hereunder.
6. Prepayment Privilege is reserved to make prepayments of principal on this
Note without penalty or fee.
7. Non-Waiver Failure to exercise any right the Holder may have or be entitled
to, in the event of any default hereunder, shall not constitute a waiver of such right or any other
right in the event of subsequent default.
8. Waiver of Presentment. etc. The Borrower and all guarantors and endorsers
hereof hereby severally waive presentment for payment, protest and demand, notice of
protest, demand and of dishonor and nonpayment of this Note and consent that the Holder
hereof may extend the time of payment or otherwise modify the terms of payment of any part
or the whole of the debt evidenced by this Note, by agreement between the Holder and
Borrower, and such consent shall not alter or diminish the liability of any person or the
enforceability of this Note. Each and every party signing or endorsing this Note binds itself as
a principal and not a surety. In any action or proceeding to recover any sum herein provided
for, no defense of adequacy of security, or that resort must first be had to security or to any
other person shall be asserted. All of the terms, covenants, provisions, and conditions herein
contained are made on behalf of, and shall apply to and bind, the undersigned and its
successors and assigns, jointly and severally.
9. Collection Costs If any attorney is engaged by the Agency to enforce or
construe any provision of this Note or the Deed of Trust, or if Agency incurs any other expense
by virtue of collecting sums due to the Agency under this Note, as a consequence of any
default or event of default hereunder, with or without the filing of any legal action or
proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other
costs incurred by the Agency, together with interest thereon from the date of such demand
until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid
attorney fees and costs have been added to the principal.
10. Security of Note This Note is secured by a Deed of Trust (The "Deed of
Trust") of even date herewith executed by Borrower covering property located in Orange
County, State of California, together with the buildings and improvements now or hereafter
erected thereon.
11. Maximum Interest No provision of this Note or any instrument securing
payment hereof or otherwise relating to the debt evidenced hereby shall require the payment
or permit the collection of interest in excess of the maximum permitted by applicable law. If
any excess of interest in such respect is herein or in such other instrument provided for, or
shall be adjudicated to be so provided for herein or in any such instrument, the provisions of
this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their
respective heirs, personal representatives, successors or assigns shall be obligated to pay the
amount of such interest to the extent it is in excess of the amount permitted by applicable law.
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12. Business Purpose The undersigned warrants and represents that all funds
advanced under this Note shall be applied and are intended solely for personal, family or
household purposes as set forth in the Agreement and not for any business or commercial
purposes.
13. Notice Any demand or notice to be made or given under the terms
hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall
be effective when mailed or delivered in the manner specified in the Deed of Trust.
14. Default In the event that there is a default in payment as scheduled
herein or a default under the terms of the Deed of Trust securing this Note, or a default of the
Agreement or in any other instrument executed by Borrower or any guarantor in favor of the
Agency, may at its elections and without further notice, declare all amounts of the outstanding
principal and accrued interest thereon immediately due and payable.
IN WITNESS HEREOF, this instrument has been executed as of the date set forth
below.
SIGNATORY
DATE: By
"Borrower"
DATE: By
"Borrower"
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
By:
Its:
APPROVED AS TO FORM:
Al,
Agency Counsel
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244
Recording Requested By
And When Recorded Return To:
Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Executive Director
Property Address:
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
LOAN DISCLOSURE STATEMENT
I/We
("Applicant") understand and agree that the provision of financial assistance from
The Redevelopment Agency of the City of Huntington Beach ("Agency") is
conditioned upon a number of factors, including, but not limited to:
• I/We must qualify for a home loan from an institutional lender
acceptable to the Agency.
• I/We must pay at least 3% of the home purchase price from our
own funds.
• I/We must qualify for assistance under the guidelines of the
Agency's Program.
I/We further understand and agree that:
• I/We will be responsible for repaying the loan at the time I/we sell,
transfer, refinance, or no longer occupy my/our home, or breach
any part of the Loan Agreement.
• I/We have a right to cancel or rescind this loan at any time prior to
midnight on the third business day after the loan agreement is
signed by sending a notice of my/our decision to rescind or cancel
the loan to:
Redevelopment Agency of the
City of Huntington Beach
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92648
Attn: Executive Director
1
7\discls\09/28/93
244
• The Agency will not require me/us to make payments of principal or
interest during the term of the loan. The full balance of principal
and interest will be due and payable if I/we do not comply with the
terms of the agreement to which this statement is attached. There
are no loan closing costs, prepayment penalties or charges, points,
fees, finance charges, service charges, investigation fees, credit
report fees, insurance premiums, notary or escrow fees, late
payment charges or other fees payable pursuant to this loan. An
appraisal fee may be payable upon the refinancing of my/our
house.
• The Agency shall not be held responsible for any costs associated
with the institutional loan for the home I/we purchase with such
assistance including, but not limited to, any loan fees or charges,
any charges for appraisals, or any escrow costs or other costs
relating to the transfer of property.
• The Agency cannot ensure that information provided by or on
behalf of Applicant will be kept confidential.
• The Agency shall not be responsible for the selection of a home by
the Applicant, the selection of a lender providing funds assisting in
the purchase of the home, providing information concerning other
public or private sources of loans, or the competitiveness of the
terms of the Program. I/we assume all responsibility for
determining whether I/we desire to be considered for the Program,
and I/we will inform myself/ourselves as to the availability and
terms of other public or private loans.
• The Agency shall not be charged with knowledge of the contents of
the documents of the primary lender.
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244
• The Agency financial assistance I/we receive under this Program
may be considered to be income for purposes of federal or state
income taxes and the Agency shall not be held responsible for the
payment of any taxes which I/we may incur by virtue of the receipt
of such financial assistance.
Dated:
Signature of applicant
Dated:
Signature of applicant
Dated:
Signature of applicant
APPROVED AS TO FORM:
A ency Counsel
�I
3
7\discls\09/28/93
244
REDEVELOPMENT AGENCY OF HUNTINGTON BEACH
NOTICE OF RIGHT OF RESCISSION
AFFORDABLE HOUSING PROGRAM
Notice To Customer Required by Federal Law:
You have entered into a transaction on , 19 , which may
result in a lien, mortgage or other security interest on your home. You have a legal
right under federal law to cancel this transaction, if you desire to so, without any penalty
or obligation within three business days from the above date or any later date on which
all material disclosures required under the Truth in Lending Act have been given to you.
If you so cancel this transaction, any lien, mortgage, or other security interest on your
home arising from this transaction is automatically void. You are also entitled to receive
a refund of any down payment or other consideration if you cancel. If you decide to
cancel this transaction, you may do so by notifying
Redevelopment Agency of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Executive Director
by mail or telegram sent not later than midnight of , 19_.
You may also use any other form of written notice identifying the transaction if it is
delivered to the above address not later than that time. This notice may be used for
that purpose by dating and signing below.
hereby cancel this transaction.
(Date) (Participant's Signature)
SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT
YOUR RIGHT OF RESCISSION.
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244
EXPIRATION OF RESCISSION PERIODS
Direct Loans
(Truth in Lending - Real Estate and Home Improvement Loans)
Participant's Name Loan Amount Address of Residence
In connection with the Agreement of the Redevelopment Agency of Huntington Beach to make the loan
described above, which will be secured by a deed of trust on the residence at the above address, each of
the undersigned hereby represents as follows:
1. The undersigned understands the terms of this Agreement and its attachments.
2. The undersigned has been notified that it must inform the Huntington Beach Redevelopment
Agency by today's date should any of them desire to rescind or terminate this transaction.
3. The undersigned acknowledges that this loan has not been funded for at least three days from the
date of execution, in order to provide them with an opportunity to rescind should they so desire.
4. The Huntington Beach Redevelopment Agency agreed, subject only to the occurrence of certain
conditions, to make the above described loan and delivered to each undersigned a Disclosure
Statement setting forth terms of said loan and a Notice of right of Rescission advising each
undersigned of their right to rescind and cancel said transaction in accordance with the Truth in
Lending Act on or before the date the undersigned executed this document.
5. Prior to the date shown above, no proceeds of said loan have been disbursed to or for the benefit
of any of the undersigned.
6. None of the undersigned have canceled or rescinded the above described loan transaction nor
have any of the undersigned notified said Agency of any intention to cancel or rescind said loan
transaction.
The undersigned request the Huntington Beach Redevelopment Agency to proceed with the making of the
above described loan in reliance upon the foregoing representations.
(Participant's Signature) (Date)
(Participant's Signature) (Date)
Tresciss1\09/30/93\B
244
ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE
Each of the undersigned hereby acknowledges receipt of two completed copies
of the Notice of Right of Rescission.
(Participant's Signature) (Date)
(Participant's Signature) (Date)
EFFECT OF RESCISSION. When a customer exercises his right to rescind he
is not liable for any finance or other charge, and any security interest becomes void
upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the
creditor shall return to the customer any money or Property given as earnest money,
down payment, or otherwise, and shall take any action necessary or appropriate to
reflect the termination of any security interest created under the transaction. If the
creditor has delivered any property to the customer, the customer may retain
possession of it. Upon the performance of the creditor's obligations under this section,
the customer shall tender the property to the creditor, except that if return of the
property in kind would be impracticable or inequitable, the customer shall tender its
reasonable value. Tender shall be made at the location of the property or at the
residence of the customer, at the option of the customer. If the creditor does not take
possession of the property within ten (10) days after tender by the customer, ownership
of the Property vests in the customer without obligation on his part to pay for it.
7\resdss1\09/30/93\B
244
Res. No. 244
STATE OF CALIFOK41A )
COUNr'Y OF ORANGE )
CITY OF HUNTINGPON BEACH)
I, CMUE B MMAY, Clerk of the Redevelopment Agency of the
City of Huntington Beach, California, DO MMEBY CERTIFY that the foregoing
resolution was duly adopted by the Redevelopment Agency of the City of
Huntiogtai Beach at a meeting of said Redevelopment Agency held on the
1ST day of NOVEMBER , 19 93 , and that it was so adopted
by the following vote:
AYES: Members:
Robitaille, Bauer, Moulton-Patterson, Winchell, Silva, Sullivan, Leipzig
NOW: Members:
None
ABSENTP: Members:
None
. s
Clerk of the l Agency of
the City of Huntingtcn Beach, Ca.
244