HomeMy WebLinkAboutAna Carrillo - 1995-01-03RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Huntington Beach
Office of Business Development
2000 Main Street, PO Box 190
Huntington Beach, CA 92648
Address:7861 Happy Drive, #102
Project: Pacific Park Villas
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
II I I II II II I I I I II I I I I I I II II 15.00
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SPACE ABOVE THIS LINE FOR RECORDER'S USE
FULL RECONVEYANCE
THE CITY OF HUNTINGTON BEACH as duly appointed Trustee under Deed of Trust hereinafter referred to,
having received from holder of the obligations thereunder a written request to reconvey, reciting that all sums
secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured
thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY, without warranty,
to the person or persons legally entitled thereto, the estate now held by it thereunder.
Said Deed of Trust was executed by Ana Carrillo, Trustor, and recorded in the official records of Orange
County, California, on February 15, 1995 as Instrument No. 19950063875.
DESCRIPTION:
See "Exhibit A" for full legal description of property commonly known as 7861 Happy Drive, #102, Huntington
Beach, CA 92648.
Kellee Fritzal V
Deputy Director of Business Development
Housing Authority of the City of Huntington Beach
Beneficiary
�',3O-/7
DATE
7861 Happy Drive, 102 Reconvey.doc
RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO:
City of Huntington Beach
Office of Business Development
2000 Main Street, PO Box 190
Huntington Beach, CA 92648
Address:7861 Happy Drive, #102
Project: Pacific Park Villas
SPACE ABOVE THIS LINE FOR RECORDER'S USE
FULL RECONVEYANCE
THE CITY OF HUNTINGTON BEACH as duly appointed Trustee under Deed of Trust hereinafter referred to,
having received from holder of the obligations thereunder a written request to reconvey, reciting that all sums
secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured
thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY, without warranty,
to the person or persons legally entitled thereto, the estate now held by it thereunder.
Said Deed of Trust was executed by Ana Carrillo, Trustor, and recorded in the official records of Orange
County, California, on February 15, 1995 as Instrument No. 19950063875.
DESCRIPTION:
See "Exhibit A" for full legal description of property commonly known as 7861 Happy Drive, #102, Huntington
Beach, CA 92648.
WAN
Kellee Fritzal
Deputy Director of Business Development
Housing Authority of the City of Huntington Beach
Beneficiary
�,-,30 -/
DATE
7861 Happy Drive, 102 Reconvey.doc
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity
of the individual who signed the document to which this certificate is attached, and
not the truthfulness, accuracy, or validity of that document.
State of California
County of Orange
On August 30, 2017 before me, Maxwell Edward Daffron, Notary Public,
personally appeared, Kellee Fritzal who proved to me on the basis of satisfactory
evidence to be the person whose name is subscribed to the within instrument and
acknowledged to me that she executed the same in her authorized capacity, and
that by her signature on the instrument the person, or the entity upon behalf of
which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
MAXWELL EDWARD DAFFRON
Commission # 2136139 z
.® Notary Public - California D
Orange County
My Comm. Expires Dec 10.2019
Signgfure `-7 (Seal)
EXHIBIT "A"
LEGAL DESCRIPTION
The land referred to in this Report is described as follows:
All that certain real property situated in the County of Orange, State of California, described as follows:
A CONDOMINIUM COMPRISED OF:
PARCELI:
AN UNDIVIDED 1/22ND FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO ALL OF
THE COMMON AREA DEFINED IN DECLARATION REFERRED TO BELOW AND DESCRIBED IN
THE CONDOMINIUM PLAN ("PLAN") FOR LOT I OF TRACT NO. 14828, WHICH PLAN WAS
RECORDED ON AUGUST 25, 1994 AS INSTRUMENT NO. 94-525335 OF OFFICIAL RECORDS OF
ORANGE COUNTY, OVER LOT 1 OF TRACT NO. 14828, IN THE CITY OF HUNTINGTON BEACH,
COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 706 PAGES 27 TO 29
OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
EXCEPT THEREFROM ALL OIL, PETROLEUM, ASPHALTUM, GAS, MINERALS AND OTHER
HYDROCARBON SUBSTANCES, AS RESERVED IN DEED RECORDED AUGUST 16, 1921 IN BOOK
401 PAGE 356 OF DEEDS, AND IN VARIOUS OTHER DEEDS OF RECORD.
PARCEL 2:
UNIT NO. 3, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS SHOWN AND
DESCRIBED IN THE CONDOMINIUM PLAN REFERRED TO IN PARCEL ABOVE.
PARCEL 3:
NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE,
ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS
DESCRIBED IN THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS AND
RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLA, RECORDED
AUGUST 25, 1994 AS INSTRUMENT NO. 1994-525336 OF OFFICIAL RECORDS.
PARCEL 4:
EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS I AND 2 REFERRED TO ABOVE, FOR
BALCONY OR PATIO PURPOSES, OVER THE AREAS DEFINED, DEPICTED AND ASSIGNED ON
THE PLAN.
APN: 933-87-258
RECORDING REQUESTED BY:
WHEN RECORDED MAIL TO:
Clear Recon Corp.
4375 Jutland Drive Suite 200
San Diego, California 92117
866-931-0036
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
III I Iljj�jjj III $1111111 �1111 II $Ij J 11 1111 18.00
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7//zi/7 z�P/,
T.S. No.: 050961-CA
APN: 933-87-258 y� SPACE ABOVE THIS LINE FOR RECORDER'S USE
Property Address: 7861 HAPPY DR 102, Title Order No.: 160356509-CA-VOI
HUNTINGTON BEACH, CALIFORNIA 92648-
0000
NOTICE OF DEFAULT
Pursuant to CA Civil Code 2923.3
NOTE: THERE IS A SUMMARY OF THE INFORMATION IN THIS DOCUMENT
ATTACHED
��Af? g-dr ZA1011 0_Y_ 201M)F V:6 LlD
NOTA: SE ADJUNTA UN RESUMEN DE LA INFORMACi6N DE ESTE DOCUMENTO
TALA: MAYROONG BUOD NG IMPORMASYON SA DOKUMENTONG im NA
NAKALAKIP
LU'U 1(: KEM THEO flAY LA BAN TRINH BAY TOM LU'Q'C VE THONG TIN TRONG
TAI LIEU NAY
IMPORTANT NOTICE
IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE
BEHIND IN YOUR PAYMENTS, IT MAY BE SOLI) WITHOUT ANY
COURT ACTION, and you may have legal right to bring your account in good standing
by paying all of your past due payments plus permitted costs and expenses within the time
permitted by law for reinstatement of your account, which is normally five business days
prior to the date set for the sale of your property. No sale date may be set until
approximately 90 days from the date this notice of default may be recorded (which date of
recordation appears on this notice).
This amount is $21,259.62 as of 6/23/2017, and will increase until your account becomes
current. While your property is in foreclosure, you still must pay other obligations (such as
insurance and taxes) required by your note and deed of trust or mortgage. If you fail to
make future payments on the loan, pay taxes on the property, provide insurance on the
property, or pay other obligations as required in the note and deed of trust or mortgage, the
Page ] of 3
CRC NOD 09122014
Trustee Sale No.: 050961-CA Title Order No,: 160356509-CA-VOI
beneficiary or mortgagee may insist that you do so in order to reinstate your account in
good standing. In addition, the beneficiary or mortgagee may require as a condition of
reinstatement that you provide reliable written evidence that you paid all senior liens,
property taxes, and hazard insurance premiums.
Upon your written request, the beneficiary or mortgagee will give you a written itemization
of the entire amount you must pay. You may not have to. pay the entire unpaid portion of
your account, even though full payment was demanded, but you must pay all ftmounts in
default at the time payment is made. However, you and your beneficiary or mortgagee may
mutually agree in writing prior to the time the notice of sale is posted (which may not be
earlier than three months after this notice of default is recorded) to, among other things. (1)
provide additional time in which to cure the default by transfer of the property or
otherwise; or (2) establish a schedule of payments in order to cure your default; or both (1)
and (2).
Following the expiration of the time period referred to in the first paragraph of this notice,
unless the obligation being foreclosed upon or a separate written agreement b(4tween you
and your creditor permits a longer period, you have only the legal right to stop the sale of
your property by paying the entire amount demanded by your creditor. To find out the
amount you must pay, or to arrange for payment to stop the foreclosure, or if your
property is in foreclosure for any other reason, contact:
U.S. BANK N.A., AS TRUSTEE, ON BEHALF OF THE HOLDERS OF THE J.P.
MORGAN MORTGAGE ACQUISITION TRUST 2006-CH2 ASSET BACKED PASS -
THROUGH CERTIFICATES, SERIES 2006-CH2
C/O Clear Recon Corp.
4375 Jutland Drive Suite 200
San Diego, California 92117
Phone: 858-750-7600
If you have any questions, you should contact a lawyer or the governmental agency which
may have insured your loan. Notwithstanding the fact that your property is in foreclosure,
you may offer your property for sale, provided the sale is concluded prior to the zonclusion
of the foreclosure. Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO
NOT TAKE PROMPT ACTION.
NOTICE IS HEREBY GIVEN: CLEAR RECON CORP. is either the original Trustee, the
duly appointed substituted trustee or the designated agent of the holder of the beneficial
interest under a deed of trust dated 7/24/2006, executed by ANA CARRILLO, A SINGLE
WOMAN, as Trustor, to secure certain obligations in favor of the beneficiary thereunder,
recorded 8/1/2006, as Instrument No. 2006000511697, of Official Records in the Office of
the Recorder of Orange County, California, encumbering ;the land as fully dE.scribed on
said Deed of Trust
Page 2 of 3
CRC NOD 09122014
Trustee Sale No.: 050961-CA Title Order No.: 160356509-CA-VOI
That a breach of, and default in, the obligations for which such Deed of Trust is security
has occurred in that payment has not been made of:
Installment of Principal and Interest plus impounds and/or advances which became due on
6/1/2016 plus late charges, and all subsequent installments of principal, inters st, balloon
payments, plus impounds and/or advances and late charges that become payable,
That by reason thereof, U.S. BANK N.A., AS TRUSTEE, ON BEHALF OF THE
HOLDERS OF THE J.P. MORGAN MORTGAGE ACQUISITION TRUST 2006-CH2
ASSET BACKED PASS -THROUGH CERTIFICATES, SERIES 2006-CH2, the present
beneficiary under such Deed of Trust has deposited with said trustee such Deed of Trust
and all documents evidencing obligations secured thereby and has declared and does
hereby declare all sums secured thereby immediately due and payable and has olected and
does hereby elect to cause the trust property to be sold to satisfy the obligations secured
thereby.
CLEAR RECON CORP.
Date Executed: JUN 2 3 2017BY:
*41y�Authorizei Signor
1�1 `�
CLEAR RECON CORP.
4375 Jutland Drive Suite 200
San Diego, California 92117
Page 3 of 3
LACRC NOD 09122014
CALIFORNIA DECLARATION OF COMPLIANCE
(CAL.CIV.CODE § 2923.55(c))
Loan Number: 0015568629
Borrower Name: ANA CARRILLO
Address: 7861 HAPPY DR 102, HUNTINGTON, CA 92648
Beneficiary: U.S. Bank N.A., as trustee, on behalf of the holders of the J.P. Morgan Mortgage Acquisition
Trust 2006-CH2 Asset Backed Pass -Through Certificates, Series 2006-CH2
The undersigned beneficiary or authorized agent for the beneficiary hereby represents and declares under the penalty of perjury
that:
On 07/0612016 contact was made with the borrower to assess the borrower s financial situation and explore options for the
�) XI borrower to avoid foreclosure as required by California Civil Code § 2923.55(b)(2).
On the due diligence efforts were satisfied. No contact was made with the borrower despite the due diligence of
2) beneficiary or their authorized agent pursuant to California Civil Code § 2923.55(f),
The borrower has surrendered the secured property as evidenced by a letter confirming the surrender or by delivery of the keys to
3) the secured property to the beneficiary, their authorized agent or the trustee pursuant to California Civil Code §2920.5(c).
The beneficiary or their authorized agent has confirmed that the borrower(s) filed for bankruptcy and the proceedings have not
4) a been finalized to wit, there is no order on the court s docket dosing or dismissing the bankruptcy case pursuant to California Civil
Code §2920.5(c).
The provisions of Califomia Civil Code §2923.55 do not apply because the property is not owner occupied as defined by Califomia
5) F1Civil Code §2924.15.
The undersigned instructs the trustee to proceed with non -judicial foreclosure proceedings and expressly authorzes the trustee
or their authorized agent to sign the notice of default containing the declaration re: contact required pursuant to Califomia Civil
Code §2923.55.
.._ .. -Dated :................. ... .
NOU '01 2o1s
Select Portfolio Se►i Icing, Inc. as authoriie"gent of Beneficiary
Matthew Huerta
Document Control Officer
LISPS CERTIFIED MAIL
P.O. Box 17933
San Diego, CA 92177
CERTIFIED
050961-CA
CA10DAY
9207 1901 4425 8223 9154 26
Mailed On: 6/28/2017
DocID:1441347
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
2000 MAIN STREET
ATTN: AGENCY CLERK
HUNTINGTON BEACH, CA 92648
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TO Gus Duran, Housing/Redevelopment Manager
FROM Joyce DeKreek, Housing/Redevelopment Consultan
SUBJECT Research on Loan Forgiveness, I" Time Home -Buyers Program
Redevelopment Set -Aside, $400,000 and Redevelopment Set -Aside,
$750,000
I have reviewed our records regarding funding of lst Time Home -Buyers Program to
determine the names and amount of assistance which benefited the applicants from the
$400,000 in Redevelopment Set -Aside funds approved by the Redevelopment Agency
(RDA) at their November 1, 1993, meeting and from the $750,000 in Redevelopment
Set -Aside funds approved by the RDA for the Pacific Park Villas at their February 6,
1995 meeting
The Redevelopment Agency approved nine applicants from the $400,000 allocation in
conjunction with the City's CDBG lst Time Home -Buyers Program and one additional
applicant for the RDA 1st Time Home -Buyers Program only The RDA portion of these
loans are Bastou ($25,000), Dieckmeyer ($23,000), Gnffen ($25,000), Hoang ($23,000),
Lawson ($23,000), Melvin ($35,000), Otto ($23,000), Quick, S ($16,717), Quick, T
($25,000), Rivera H ($25,000) Quick, T withdrew from the CDBG loan but maintains
the RDA loan These loans total $243,717
The Redevelopment Agency approved fifteen (15) applicants from the $750,000
allocation at Pacific Park Villas (PPV) to participate in the Redevelopment Agency I"
Time Buyer Program The names and amounts are (Campo ($35,000), Forchione
($35,000), Heckethorn ($35,000), Hosseinali ($35,000) Hocker ($35,000), Lawrence
($35,000), Murch ($35,000), Osterhoudt ($35,000), Peltier ($35,000), Rivera -Burgess
($35,000), Wallace ($35,000), Weinfeld ($35,000), Wong ($35,000), Krueck ($35,000),
Margoles ($35,000) These loans total $525,000
Four loans (Melkerson/Umack, Ojeda, Rene/White, Stratton), previously approved by
RDA were not funded
G /Joyce/Intertnemo Recon rey doc
One loan (Wallace) was assumed by another qualified buyer (Stay).
Two applicants have paid their loans: Melvin, paid off his RDA loan 10/21/1997 in the
amount of $40,794.31 and Hoang, paid off his RDA loan on 12121/1999 in the amount of
$47,208.80. A check in the amount of $4,116.57 was issued to Mr. Hoang for
overpayment, reducing the loan repayment to $43,092.23.
These loans accrue simple interest at 5%, due and payable upon sale to a non qualified
buyer and has shared equity.
Cc: Connie Brockway, City Clerk
Paul D'Alessandro, Deputy City Attorney
David Biggs, Director, Economic Development
John Reekstin, Director of Administrative Services
Dan Villella, Director of Finance
Jake Rahn, Administrative Services
Hank Reveles, Sr. Accountant
Joyce de Kreek, Economic Development
Steve Holtz, Development Specialist
ofoycellntenwnw Reconvey doc
r
/ 95-01 (2-1-95)
V RDA 12-19-94
95-02 (2-1-95)
RDA 12-19-94
95-03 (2-1-95)
RDA 12-19-94
95-04 (2-1-95)
RDA 12-19-94
95-06 (4-12-95)
RDA 4-3-95
96-01 (1-24-96)
RDA 1-16-96
96-02 (3-7-96)
RDA 3-4-96
96-03 (
RDA 4-1-96
96-04 (7-17-96)
RDA 7-15-96
96-05 (8-7-96)
RDA 8-5-96
96-06 (8-7-96)
RDA 8-5-96
97-01 (1-29-97)
RDA 1-21-97
97-02 (4-30-97)
RDA
PACIFIC PARK VILLAS ($750,000 — RDA)
Canllo, Arm $ 35,000 7861 Happy Drive, #102
Lawrence, James and Jeanette
$
35,000
18051 Joyful Lane, #16
Wong, Wesley Chi
$
35,000
7681 Happy Drive, #202
Hocker, ChnstopherNandereb, Gayle$ 35,000 7681 Happy Drive, #101
Rivera, Victor/Burgess, Debra $ 35,000 18061 Joyful Lane, #104
Heckethorne, Sean & Jacquelyn $ 35,000 7871 Happy Drive, #102
Margolis, Peter
$
35,000
18051 Joyful Lane, #104
Weinfeld, Julie
$
35,000
18061 Joyful Lane, #205
Peltier, Edward
$
35,000
7871 Happy Drive, #201
Wallace, Barbara Jo
$
35,000
18051 Joyful Lane, #205
Murch, Gregory
$
35,000
18051 Joyful Lane, #102
Krueck, Deborah
$
35,000
18061 Joyful Lane, #101
Osterhoudt, Robert and Kathy
$
35,000
18061 Joyful Lane, #102
Wjoyce/Intermemo Reconvey doc
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` .�,',,�, 7F.
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97-03 (5-14-97)
Hossemali, Faroukh
$ 35,000
18061 Joyful Lane, #201
RDA
97-04 (7-23-97)
Forchine, Richard
$ 35,000
18051 Joyful Lane, #201
RDA 7-21-97
lst TIME BUYER ASSISTANCE ($400,000 RDA)
94-4 (2-11-94)
Lawson, Sally
$ 23,000
409 Utica Avenue #A-1
(RDA 1-18-94)
94-5 (2-11-94)
Quick, Shauna
$ 16,717
409 Utica Avenue #C-32
(RDA 1-18-94)
94-6 (2-11-94)
Dieckmeyer, Barbara
$ 23,000
409 Utica Avenue #B-21
(RDA 2-22-94)
94-8 (2-11-94)
Otto, T /Shorb R
$ 23,000
409 Utica Avenue #A-7
(RDA 1-18-94)
94-10 (2-11-94)
Hoang, Tam
$ 23,000
409 Utica Avenue #D-37
(RDA 2-22-94)
94-11 (5-18-94)
Bastou, Valerie
$ 25,000
409 Utica Avenue #D-43
(RDA 5-18-94
94-12 (5-18-94)
Quick La Refine, Teresa
$ 25,000
409 Utica Avenue #A-9
(RDA 5-18-94)
94-13 (6-23-94)
Melvin, Patrick
$ 35,000
409 Utica Avenue #D-39
(RDA 6-20-94)
94-14 (7-27-94)
Rivera, Hector & Iciar
$ 25,000
409 Utica Avenue #A5
(RDA 7-18-94)
94-17 (10-4-94)
Gnffen, Olga Christina
$ 25,000
409 Utica Avenue #C-23
(RDA 9-19-94)
$ 243,717
G /joyce/Intermemo Reconvey doc
•
REQUEST FOR REDEVELOPMENT AG]�NCY ACTION
APPROVED BY CITY COUNCIL
/— -3
Igk—
ED 95-02
Date: January 3,1995
SUBMITTED 10. Mbn6rable Chairman and Redevelopment Agency Members
SUBMITTED BY: Michael T. Uberuaga, Executive Director / (�^
PREPARED BY: Barbara A. Kaiser, Redevelopment Director;
Po Down Payment A�ssiss�aAt gram - Participant Approval
SUBJECT: Down
Park Villas Project, Talbert -Beach Redevelopment
Project Area -- (Loan Agreements, Amendment to Loan Documents
Proposed, Fannie Mae Provisions Re: Accrued Interest
Consistent with Council Policy? a Yes [ X ] New Policy or Exception
Statement of Issue, Recommendation. Analysis, Funding Source, Alternative Actions, Attachments:
�JareX�..2
113 � STATEMENT OF ISSUE: �
The Agency is committed by a Disposition and Development Agreement to provide
second trust deed loans to moderate income buyers in the Pacific Park Villas located in
the Talbert -Beach Redevelopment Project Area. This project is open for sales and the
first four borrowers have requested Agency approval.
RECOMMENDED AGENCY ACTION:
1a Approve the attached " sample' loan documents for the Pacific Park Villas Project as
prepared by the City Attorney and direct the City Attorney to add a provision which
forgives accrued interest if the value of the home does not appreciate at least 5%
annually (such provision is already embodied in the loan documents regarding equity
participation).
I Subject to Fannie Mae rejection of the compromise recomendation of Ia. approve the
attached loan documents as above but direct the City Attorney to remove the
provision requiring the accrual of five percent interest on the Agency loans.
AND
2. Approve the borrowers listed on the attached by name, the amount of the loan and
the specific property subject to trust deed and the individualized Down Payment
Assistance loan documents for each.
3. Approve and Authorize Chairperson and Agency Clerk to execute the four loan
documents between the Agency and the participants (attached).
IA
RAA ED-95-02
January 3, 1995
Page 2
4. Release funds for Down Payment Assistance Program participants.
5. Waive the program requirement that borrowers not have more than $5,000 in assets
after loan closing.
ANALYSIS:
On .tune 3, 1993, the Redevelopment Agency approved a Disposition and Development
Agreement (DDA) between the Agency and Sassounian Capital Ventures Inc., calling for
the completion of 36 condominiums on a site in the Talbert -Beach Redevelopment
Project Area. Under the DDA, $750,000 of Redevelopment Housing funds are
committed to assist twenty-five moderate -income buyers in the Pacific Park Villas
Condominium project.
Fannie Mae approval of this program is important to its success because first Trust Deed
lenders will wish to sell loans to this federal agency to gain funds to make new loans.
Fannie Mae has expressed concern that any program that permits interest accrual
without periodic payments may place the borrower in the position of owing more than the
unit Is worth. Therefore, to accommodate this concern, staff has proposed an
amendment to the loan documents to forgive accrued interest if the value of the home
does not increase by at least the rate of interest accrual. However, Fannie Mae has not
approved this compromise proposal and may insist that interest not be charged if its
approval is to be granted. Because the attached borrowers are committed to the
purchase of these homes and their approval by the first lender is contingent upon Fannie
Mae approval of the Agency's program, two alternative recommendations (1 a and 1 b)
are included above. It is important to note that the prohibition on accrued interest is a
nation-wide rule change by Fannie Mae which was not a requirement in previous Agency
programs and could not be foreseen when the Pacific Park Villas program was designed.
Lastly, the project developer has requested that the normal program requirement that a
borrower not have more than $5,000 in assets after loan closing be waived. This rule
was devised to assure that low-income borrowers were using their own funds to the
extent possible. Pacific Park Villas is targeted to moderate income borrowers and it is
reasonable to expect that they would have a higher level of assets and greater post -
closing expenses.
With approval of the attached borrowers loan documents will be provided to the escrow
agent. Additional borrowers will be recommended up to the maximum level of assistance
required by the DDA.
FUNDING SOURCE:
Redevelopment Agency Housing Set -Aside Funds
Account Number E-TX-ED-751-7-75-00.
�I
RAA ED 95-02
.January 3, 1995
Page 3
ALTERNATIVE ACTIONS:
Do not approve the participants.
ATTACHMENTS:
List of Prospective Borrowers.
Program Loan Documents
MTUIBAKlSVKIdw
�I
DOWN PAYMENT
ASSISTANCE PROGRAM
Location of Property
Loan
Name
Amount
Subiect to Trust Deed
95-01
Ana Carillo
$35,000
7861 Happy Drive, #102
95-02
James/Jeanette Lawrence
$35,000
18051 Joyful Lane, #101
95-03
Wesley Chi Wong
$35,000
7681 Happy Drive, #202
95-04
Christopher Hocker &
$35,000
7681 Happy Drive, #101
Gayle Vandereb
ote: 1. Borrowers have received "conditional loan approval" from first trust deed lender.
2. Pursuant to Agency direction, overtime and bonuses are considered
indefinite sources of income and may or may not be used to qualify
borrowers on a case -bye basis.
H
kUNT NCTON BEACH
TO:
FROM:
SUBJECT:
DATE:
OFFICE OF THE CITY CLERK
CITY OF HUNTINGTON BEACH
INTER -DEPARTMENT COMMUNICATION
Future City Clerks and Deputy City Clerks
Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City
Clerk
Down Payment Assistance Forgivable Loans
September 16, 1999
The attached documents are included in this file to assist you in the future to determine
the forgiveability of the down payment assistance loans.
DOWN PAYMENT ASSISTANCE PROGRAM
Pacific PsrL Villas
Council/Agency
Loan No. Name Property Address Amount Date
r
95-01
Carillo, Ana
7861 Happy Drive #102 92648 T
35,000
113/95
95-02
Lawrence, James/Jeanette
18051 Joyful Lane #101A 92648
35,000
1/319_5
95-03
Wong, Wesley
_
7861 Happry Drive #202 92648
_
- 35,000
-� 1/3/95
95-04
95-06
96-01 t/
Hocker, Christopher & Vandereb, Gayle
Rivera, Victor & Burgess, Debra
Heckethome, SeanlJacqueiyn
7861.,Happy Drive #101 92648
18061 Joyful Lane #104 92648
7871 Happy Drive #102 92648
_ 35,000
�35,000
_ 35,000
_ 35,000
1/3/95
4/3/95
1/_16/96
r- 3/4196
96-02
Margolis, Peter
18051 Joyful Lane #104 92648
18061 Joyful Lane #205 92648
96-03
Wienfeld, Julie
i4/1196
7115/9-6
8/5196
_ 8/5/96
_ __ 1121197
96-04
96-05 ,/
96-06 _
97-ft
Peltier, Edward
Wallace, Barbara Jo
Murch, Gregory s. _ - - _
Krueck, Deborah J.
_
7871 Happy Drive #201 92648
18051 Joyful Lane #205 92648
18051 Joyful Lane #102 92648
18061 Joyful Lane #103 92648
18061 Joyful Lane #102 92648
_35,000
- - 35,000
35,000
35,000
_ _35,000
--35,000
35,000
97-02
Osterhauelt, RobeiUKathy
97-03
Hosseinali, Faroukh
_
18061 Joyful Lane #201 92648 -
97-04
Torchione, Richard
18051 Joyful Lane #201 92648
_ _ 35,000
1
_ _5/5/97
7/1/97
CS
N
CITY OF HUNTINGTON BEACH
Inter -Department Communication
TO: Gus Duran, Economic Development
FROM: Gail Hutton, City Attorney
DATE: June 1,1999
SUBJECT: Determination of Loan Forgiveness
RLS 99-359
II DEh:
BACKGROUND
You have asked far a determination of whether several loans made by the City of Community
Development Block Grant funds, for the first time home buyer down payment assistance
program, are forgivable.
ISSUE
Are the nine loans forgivable?
ANSWER
Yes, if they were funded with the first $100,000 appropriated for this program.
ANALYSIS
As part of the 1993-94 CDBG program the City Council approved $100,000 as a pilot program
to provide down payment assistance to moderate income households.
We have reviewed several RCAs submitted by your department to the City Council for
implementation of this program. The RCAs we reviewed were the originals in the City Clerk's
office. From our review of these documents, we have developed the following chronology:
10/25/93: The City Council approved sample loan documents and four participants: Diane
Culaciati, Michele Tullock, Osman Taban, and Caroline Sutherland in the total amount of
$40,475. (RCA attached hereto as Attachment 1).
44A-99.%Semos:Duran52 7
t --
11/15/93: The City Council was requested to approve and additional S100,000 in CDBG funds
for the program. The Council deferred the item to December 6,1993. (RCA attached hereto as
Attachment 2). -
1216193: The City Council approved three more participants in the original program: Michelle
Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed.[
(RCA attached hereto as Attachment 3.)
12/20/93, Item E-17: The City Council approved an additional participant in the program, David
Dixson, for the amount of S 10,000, and increased the amount for participant Nicholas Kormeluk
from S8,600 to S10,600. (RCA attached hereto as Attachment 4.)
12/20193, Item F-2: The City Council approved an additional S100,000 for the program, but
changed the program to require repayment of these additional funds. There are two important
attachments to this RCA. The first is entitled "Approved Participants," and lists the following
six participants: Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, and Kormeluk, in the total
amount of $61,952 2
The second important document attached to this RCA is the list of "Pending Participants" It
shows eight more participants in the total amount of$59,100. It is not determinable from this
RCA whether these persons were intended to be in the grant program or the Ioan program, and
we do not know when, if ever, these participants were actually approved.
1/3/94: The City Council approved three more participants in the original, non -repayment
program: Judy Young, Treva Love, and Ellen Ommondson, in the total amount of S31,000.
When added to the previously committed amount of S73,952, the total amount of funds
committed is S104,952. This exceeds the original $100,000 appropriated for the original, non -
repayment program. The analysis portion of this RCA states that "the approvals herein will be
the first funded with the new appropriation," which implies that at least a portion of the funds
used for these participants were part of the funds that were conditioned for repayment, as
opposed to the original, non -repayment funds. However, the total numbers listed are roughly
consistent with the original S 100,000 set aside for the grant program. The total amount of loan
funds used is less than S5,000. (RCA attached hereto as attachment 5).
Our review of the above documents and chronology of events indicates that the Council did not
intend to require repayment of the original $100,000 appropriation. Clearly, then, the loans
made to Culiaciati, Taban, Sutherland, Schmaderer Kanarski, Dixson and Kormeluk are
forgivable, because they were funded using S73,952 of the first S100,000 appropriation.
The problem is presented by the transactions with Young, Love, and Ommondson. We believe
that the Council's intent was to not require repayment from these participants. Unfortunately,
there was only S26,048 of the original, non -repayment funds available to these participants, and
collectively, they received S31,000. Thus, a small portion of the funds used for these
Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council
meeting of 12/6193, we believe that this list has been erroneously added to the 1216193 RCA.
2 Please note that earlier during the same meeting, the Council had also approved David Dixson for S 10,000, and an
additional $2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually $73,952.
2
41sA-99%1mms:Dur2n527
MA
participants must have come from the second S I00,000, ►►•Mich the Council appropriated with the
condition that the loans be repaid, not forgiven.
CONCLUSION
There are two conflicting Council actions. The Ccuncil's intent was to include participants
Young, Love and Ommondson in the original, forgivable loan program. However, it appears that
a portion of the funds actually used for the loans to Young, Love and Ommondson were from the
second appropriation of funds, which included a repayment condition. Therefore, we
recommend that the Council clarify this conflict by approval of an RCA that forgives the Ioans
made to Young, Love and Ommondson.
6�7�
Gail Hutton
City Attorney
3
44:4-99N1emos: Dumn527
u
u
Council/Agency Meeting Held: 5-ram,
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied
;e ,&" .,r
City Clerk's ignature C- 13�c!
Council Meeting Date: May t 7, t 999
Department ID Number: ED 99-29
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION C=
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY-
MEMBERS
SUBMITTED BY: RAY SILVER, Executive Directo
J :C
PREPARED BY: DAVID C. BIGGS, Economic Development Director
SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down
Payment Assistance Loans — Approve and Authorize Execution
of Documents
Statement of issue, Funding Source, Recommended Actlon, Alternative Action(s), Analysts, Environmental Status, Attachment(s)
Statement of Issue: Currently, the down payment assistance loans made by the
Redevelopment Agency for Pacific Park Villas must be individually approved by the City
Council. In order to facilitate transfers of these loans, staff is requesting that the
Redevelopment Agency establish procedures for administrative approval of these
transactions.
Funding Source,: None as a result of this action. t
Recommended Action: Motion to:
I. Authorize the Executive Director and the Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to transfer to new low and
moderate -income homebuyers the Down Payment Assistance Loans made by the
Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of
Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be
approved as to form by the Agency Counsel).
2. Authorize the Executive Director and Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to subordinate or to reconvey
the Agency loans (notes and deeds of trust), as these home owners refinance, sell their
homes or meet their loan obligations, as stated in their notes and deeds of trust. See
Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas."
(All documents to be approved as to form by the Agency Counsel).
6,5
REQUEST FOR REDEVELOPMENT AGENCY ACTION
MEETING DATE: May 17, 1999 DEPARTMENT 1D NUMBER: ED 99.29
Alternative Action(s): The Redevelopment Agency can retain the authority to
approve the transferability of each and every Down Payment Assistance Loan made on
this project. The number of loans originated for this project was 16 loans. This means that
each and every time, Agency staff will have to prepare a Request for Agency Action,
thereby increasing staff time and costs. It will also delay the ability the sellers and buyers
to close escrow quickly. In some cases the delays could cause undue hardship and cause
the sale of properties to fall out of escrow.
Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance
Loans to low- and moderate -income homebuyers purchasing dwellings at the Pacific Park
Villas residential project located near Talbert and Beach. The purpose of these loans were to
expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the
Redevelopment Agency's obligation to assist low and moderate income persons with 20%
Set Aside Funds, as required by Redevelopment Law.
The loans made to these homebuyers were meant to be transferable to other low and
moderate -income families. The City Attorney's Office has been requested to make a
determination of the transferability and has rendered a decision indicating that the loans are
transferable to other homebuyers that meet the income qualification of having incomes below
120% of the median income for Orange County. (See attached memorandum from the City
Attorneys Office).
Some of these homebuyers are now ready to move on with their lives and are desirous to sell
their properties. To facilitate the closing of escrows without significant delays to sellers and
buyers, the Economic Development Department is requesting that the Redevelopment
Agency Board authorize the Executive Director and the City Clerk to administratively manage
the transferability of these loans. This will permit the Executive Director to execute
documents without having to come the Agency Board on each and every loan, especially
since these loans were prepared with the identical notes, deeds of trust and Covenants,
Conditions and Restrictions (CC&R's). The City Attorneys Office has provided an opinion on
the loans' transferability.
Environmental Status: NIA
Attachment[sl:
1. 1 City Attorney's Office Memorandum.
2. Sample Loan Documents.
3. 1 List of Down Payment Assistance Borrowers at Pacific Park Villas.
RCA Authar: Gus Duran X1529
RCAPPV.DOC -2. 05105199 9.34 AM
Citv Attornev's Office Memorandum
ATTACHMENT #1
CITY Or IIUNTINGTON BEACII
Inter -Department Communication
TO: David Biggs, Director of Economic Development
FROM: Gail Hutton, City Attorney
DATE: April 26, 1999
SUBJECT: «'allace Loan Documents
You have asked several questions concerning the Wallace loan documents.
1. Is the loan transferable?
A. Yes, with the Agency's prior written consent. See Section 18 of the Loan
Agreement.
2. What are the income limits for purchasers?
A. No greater than 120% of median income (moderate income) pursuant to Section 9
of the Loan Agreement.
3. Does the new buyer need to meet the income requirements of the CCRRs?
A. Yes.
4. Is the Equity Share payable if the buyer qualifies under the CC&Rs?
A. Yes.
5. Can the interest be forgiven if the property's fair market value does not exceed 5% per
year?
A. No, unless the Agency approves forgiving the interest.
6. Should the Equity be calculated minus the selling expenses?
A. No.
Please contact me if you have any further questions.
C � -
Gail Hutton
City Attorney
4.'s:4.99Mcmos: MSS026
IN
CITY OF HUNTINGTON BEACH
Inter -Office Communication
Economic Development Department
TO: Gail Hutton, City Attorney
Paul D'Alessandro, Deputy City Attorney
FROti1: David C. Biggs, Director of Economic Development
DATE: April 20,1999
SUBJECT: First Time Home Buyer Loan for Barbara Jo Wallace
Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment
Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property
owners of the Pacific Park Villas project to discuss their.concerns regarding First Time
Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a
previous City Council meeting, Mr. Bob Osterhoudt made a plea to the City Council
requesting assistance for the property owners of this complex. In addition, Ms. Wallace
has written to the Mayor and the City Attorney (April 2, 1999) requesting the
Redevelopment Agency's assistance in resolving her needs to sell her property with the
Agency's assistance.
The Economic Development Department is ready and willing to help Ms. Wallace and
the other property owners sell their homes, as they need to move on with their lives when
they desire, but we are in need of a legal opinion regarding the following issues:
1. Is the loan made to Ms. Wallace, which is similar to those made to the
other buyers of Pacific Park Villas, transferable?
2. What are the income limit requirements for the purchasers of these homes
when a property o►tiner sells his/her home? (See attached 1999 Orange
County Affordable Housing Worksheet issued ' by the law firm of
Stradling, Yocca, Carlson & Rauth.) _
... % . -.
3. Does a new buyer need to meet thi 'income requirements established in the
CC & Ws?
4/20M:Gus Duran:f{oudmWALLACE
4. Is the "Equity" payable if the sellers sell their home to a buyer that meets
the income requirements established in the Note and the CCRR's?
5. Can the interest be forgiven if the property's "fair market value" does not
exceed 5% per year?
6. Should the "Equity" be calculated minus the selling expenses (See
Section 4A of Loan Agreement)?
We are requesting an immediate opinion on these issues, as Ms. Wallace has already
purchased a home in the State of Washington and has a pending sale of her property in
Huntington Beach in the works, subject to the Agency's determination on these issues. At
the moment, her pending sale is being held up because neither the seller, nor the buyer
knows what to do with the information on the note and deed of trust, or the CC&R's.
Attached are copies of Ms. Wallace's documentation. These are the following:
1. Loan Agreement to Ms. Wallace from the Redevelopment Agency.
2. Promissory Note
3. Deed of Trust with Assignment of Rents
4. Lending Instructions
5. Certificate of Proposed Transferee
6. Declaration of Conditions, Covenants and Restrictions for Property
4.12099.Gus Duran:Houdev:WALLACE
Sample Loan Documents
ATTACHMENT-#2
LOAD' AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this 5-6r_ day of
193(Q_ by and between BARBARA JO WALLACE ("Participant") and the
RED VELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body
corporate and politic (the "Agency").
RECITALS
A. Participant has entered into an agreement (the "Purchase Agreement") to purchase
that certain real property commonly known as 18051 Jo fill Lane 9205 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 the Agency that Participant and Participant's
immediate family intend to reside in the Property at all times throughout the term of this
Agreement.
D. The Agency desires 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 (the "City").
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:
I . Agency Loan. The Agency shall loan to Participant (the "Agency Loan") the
amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions
set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the
Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the
Agency through deposit of the Agency Loan proceeds into escrow with
TMIPO ESCROW, INC., A CALIFORNIA OORPMATICN (the "Escrow Agent") (Escrow
No. 9442- ). The Agency sha?I direct the Escrow Agent to apply the proceeds
of the Agency 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
Loan Agreement
Page I of 8
4`s\G:4.96-Agree:wallace:loan3gec
RIS 96-523
717606
r
promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple
interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale,
refinancing or transfer of the Property, substantially in the form of the "Promissory Note"
attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to
the Agency a second deed of trust encumbering the Property which shall secure the Promissory
Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated
herein.
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 homeowpees association or other regulatory entity recognized by area property owners and
comply with all applicable federal, state and local laws.
3. Due on Sale Transfer or Refinancing. 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 Agency Deed of Trust or any lien to which the lien of the Agency
Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest.accrued
thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an amortization
period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an
occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any
other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its
sale discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan.
4. Equity Sharins. In the event that the Agency Loan becomes due and payable
prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency
concurrently with such sale, transfer or refinancing, 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
of the Agency Deed of Trust:
2. After fifth anniversary but
prior to sixth anniversary:
After sixth anniversary but
prior to seventh anniversary
4. After seventh anniversary but
prior to eighth anniversary:
Loan Agreement
Page 2 of 8
fifty percent (50%)
forty-eight percent (48%)
forty-six percent (46%)
forty-four percent (44%)
4141ii:4-96-Agrcc:%Vallacc:loanagee
Rl.S 96-523
MGM
N
5. After eighth anniversary but
prior to ninth anniversary:
forty two percent (42%)
6.
After ninth anniversary but
prior to tenth anniversary:
forty percent (40%)
7.
After tenth anniversary but
prior to eleventh anniversary:
thirty-eight percent (38%)
8.
After eleventh anniversary but
prior to twelfth anniversary:
thirty-six percent (36%)
9.
After twelfth anniversary but
prior to thirteenth anniversary:
thirty-four percent (34%)
10.
After thirteenth anniversary but
prior to fourteenth anniversary:
thirty-two percent (32%)
11.
After fourteenth anniversary but
prior to fifteenth anniversary:
thirty percent (30%)
I2.
After fifteenth anniversary but
prior to sixteenth anniversary:
twenty-eight percent (28%)
13.
After sixteenth anniversary but
prior to seventeenth anniversary:
twenty-six percent (26%)
14.
After seventeenth anniversary but
prior to eighteenth anniversary:
twenty-four percent (24%)
15.
After eighteenth anniversary but
prior to nineteenth anniversary:
twenty-two percent (22%)
16.
After nineteenth anniversary but
prior to twentieth anniversary:
twenty percent (20%)
17.
After twentieth anniversary but
prior to twenty-first anniversary:
eighteen percent (18%)
18.
After twenty-first anniversary but
prior to twenty-second anniversary:
sixteen percent (16%)
19.
After twenty-second anniversary but
prior to twenty-third anniversary:
fourteen percent (14%)
Loan Agreement
Page 3 of 8
4`slG:4-96-Agrce:W allace:loanagrce
RU 96-523
7/206
r-
20. Auer twenty-third anniversary but
prior to twenty-fourth anniversary: twelve percent (12%)
21. After twenty-fourth anniversary but
prior to twenty-fifth anniversary: ten percent (10%)
22. After twenty-fifth anniversary but
prior to twenty-sixth anniversary: eight percent (8%)
23. After twenty-sixth anniversary but
prior to twenty-seventh anniversary: six percent (6%)
24. ' After twenty-seventh anniversary but
prior to twenty-eighth anniversary: four, percent (4%)
25. Auer twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (I%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, brokers commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars'
($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (H) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property 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.
Loan Agreement
Page 4 of 8
41sX]-.4-96.Ar;ce: W allacc:losnagree
R S 96-323
7126196
0,
A. Equity Share -Upon Sale or Transfer. The Equity Share Amount shall be
payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer")
whose income exceeds 120% of the current annual median income for the Orange County area. If
the Buyer does not submit an income verification statement to the Agency, the Buyer shall be
deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the
Equity Share Amount shall not become payable.
B. Equity Share Uponn_ancing or Failure to Occupy. The Equity
Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property
or material breach of any other provision of this Agreement which causes the Agency Loan to
become due and payable. The Sales Price for purposes of determining the Equity Share Amount
shall be determined by an appraisal of the Property. The Attienc�shall appoint a certif ed,
independent,'appraiser to conduct an appraisal of the Property, at Participant's expense and
Parrid'ipant agtdes t at in such event the Equity Share Amount shall be the Applicable Factor
multiplied by the difference between the Purchase Price and the appraised value of the Property as
of the time of such refinancing. This Agreement shall be terminated upon the Participant's
repayment of the Agency Loan and payment of th_ Equity Share Amount as provided in this
Agreement.
C. Expiration of Equity Share Migation. In the event the Participant
does riot sell or transfer the Property, does not fail to occupy the Property, does not refinance, or
is not in material breach of any other provision of this Agreement before the Thirtieth anniversary
of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share
Amount to Agency upon any later sale, transfer or refinancing.
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.
G. Income Inf rrmmation. 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. 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. _Loan Servicing. The Agency may contract with a private lender to originate
and service the Agency Loan.
8. Participant Financing. Participant shall obtain financing for the purchase of the
Property from the Southern California Home Financing Authority or a reputable institutional
lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust
Loan Agreement
Page 5 of 8
41s1Ci:4.96-Agrcc:Wallacc:loana"
RIs 96-323
7126196
r
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 Ioan.
9. Covenants. Participant and the Agency shall execute and have recorded in the
Official Records of Orange County, California, a "Declaration of Conditions, Covenants and
Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated
herein, in which 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 California Health & Safety Code Sections 50093 and 50052.5, 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. Such covenants shall run with the
land, in favor of the Agency and the City.
10. 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.
11. Indemnification. The Participant shall defend, indemnify and hold harmless
the Agency and the City of Huntington Beach and their respective officers, agents, employees,
representatives and volunteers from and against any loss, liability, claim or judgment relating in
any manner to the Property or 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 or the City to make such
payments, by virtue of the Agency Loan.
12. 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 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 diligencd.
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 go 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.
13. Documents. Participant is aware that the Agency has prepared certain
documents to implement the Program and secure repayment of the Agency Loan. Participant has
reviewed and agrees to execute the following documents prior to receiving the Agency Loan:
Loan Agreement
Page b of 8
4\5\0:4-96-Agrec: W allacc:louiagrce
R1S 9G-323
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(a) . Disclosure Statement;
(b) Promissory Note;
(c) Agency Deed of Trust; and
(d) Declaration of Conditions, Covenants and Restrictions of Property.
Participant agrees and acknowledges that the Agency Deed of Trust and the
Declaration of Conditions, Covenants and Restrictions of Property 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.
14. 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 Agency Loan.
15. Governing Law. This Agreement shall be governed by the laws of the State
of California. Any iegal action brought under this Agreement must 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.
16. Amendment of Agreement. No modification, rescission, waiver, release or
amendment of any provision of this Agreement shall be made except by a written agreement
executed by the Participant and Agency.
17. Agency May Assigun. Agency may, at its option, assign its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
18. Participant 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. No assumption of the
Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
19. 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
Loan Agreement
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L V I r
agreements between the Agency and the Participant concerning all or any part of the subject
matter of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written below.
"PARTICIPANT"�
Date: AUGUST I3, I996 , i9 By; 1 2t Laav fl (L-,
Date: - 19
Date: , 19
ATTEST:
Agency Clerk
REVIEWED AND APPROVED:
T- 4
i a C
Executi a Director
Printed Name:
Printed Name:
By:
Printed Name:
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH,
a public body corporate and politic
By: �'C'
Chairman
APPROVED AS TO FORM:
Agency Counsel
,tic �f
'INITIATED AND APPROVED:
. -A�� C.
Director of Economic evelopment
Loan Agreement
Page 8 of 8
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
PARCEL 1
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to
all of the Common Area defined in Declaration referred to below and described in ttte
Condominium Plan ( Plan ) for Lot 1 of Tract No 14828, which Plan was recorded on August
25, 1994 as Instrument No 94-0525335 of Official Records of Orange County, over Lot 1 of
Tract No 14828, in the City of Huntington Beach, county of orange, state of California,
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous !laps, in the office of the
County Recorder of said county
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record
PARCEL 2
Unit No 22 consisting of certain airspace and surface elements, as shown and described in I
the Condominium Plan referred to in Parcel 1 above
Parcel 3
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of covenants, Conditions and Restrictions and Reservation of
Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No 94-0525336
of official Records
Parcel 4
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan
Exhibit A to Loan Agreement
Page 1 of 1
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V
3 5 000.00
EXHIBIT B
PROMISSORY NOTE
AUGUST 5TH ,19 96
Huntington Beach, California
FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The
Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O.
Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct
from time to time in writing, Thirty-five Thousand Dollars ($35,000.00) (the "Note Amount")
together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in
lawful money of the United States of America and all sums shall be credited first to interest then
due and the balance to principal.
1. Interest Rate
Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per
annum. If the fair market value of the Property does not increase at least five percent (5.00%) per
annum, the accrued interest on the Note Amount shall be forgiven by the Holder.
2. Maturity Date
The balance of all un aid principal and accrued interest shall be due and payable on
AUGUST 5Tii1 , 20 6 (thirtieth (30th) anniversary date of this Promissory Note).
3. Acceleration
The whole of the Note Amount plus accrued interest and all other payments due
hereunder shall become due and be immediately payable to the Holder by the Maker upon the
occurrence of any one of the following events:
(a) Maker sells or otherwise transfers title to the Property; or
(b) Maker refinances any lien or encumbrance to which the Agency Deed of
Trust is subordinate for a loan amount which is in excess of the then current loan balance
of such prior lien or extends the amortization period of the loan secured by such prior lien;
or
(c) Maker fails to occupy the Property or to perform any obligation under the
Agreement (as hereinafter defined).
"Exhibit B" to Loan Agreement
Pagel of 3
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4. Security for Note
This Promissory Note shall be secured by a second deed of trust encumbering the Property
(tile "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee.
5. Prepayment of Note Amount
Maker may prepay to Holder the full Note Amount, together with simple interest thereon
at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note
Amount.
6. Loan Agreement
This Promissory Note is made and delivered pursuant to and in implementation of Loan
Agreement entered by and between the Holder and the Maker dated AUGUST 5,
19 96 (the "Agreement"), a copy of which is on file as a public record with the Holder and is
incorporated herein by reference. The Maker acknowledges that but for the execution of this
Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein, each term shall
have the same definition as set forth in the Agreement.
7. Holder Mav Assign
Holder may, at its option, assign its right to receive payment under this Promissory Note
without necessity of obtaining the consent of the Maker.
S. Maker Assignment Prohibited
In no event shall Maker assign or transfer any portion of this Agreement without the prior
express written consent of the Holder, which consent may be given or withheld in the Holder's
sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This
Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan
proceeds hereunder.
9. Attorne'Fees and Cost
In the event that any action is instituted to enforce payment under this Promissory Note,
the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys'
fees.
10. Non -Waiver
Failure or delay in giving any notice required hereunder shall not constitute a waiver of
any default or late payment, nor shall it change the time for any default or payment.
"Exhibit B" to Loan Agreement
Page 2 of 3
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I i. Successors Bound -
This Promissory Note shall be binding upon the Parties hereto and their respective heirs,
successors and assigns.
"MAKER"
►
By:
Printed Name: BAMAM JO WALLA'
By:
Printed Name:
By:
Printed Name:
"Exhibit B" to Loan Agreement
Page 3 of 3
4V%4•96AgreeM%IIacc xhibitB
RLS 96.523
V206
RECORDING REQUESTED BY
}
AND WHEN RECORDED RETURN TO:
)
}
Redevelopment Agency of the City of
)
Huntington Beach
}
2000 Main Street
)
Huntington Beach, California 92648
}
Attn: Agency Clerk
)
f 5,pace Above This Line For Recorder Use.]
This document is exempt from
recording fees pursuant to
Govet-nnieirl Code Section 6103.
DEED OF TRUST WITH A SIGNNENTS OF RENTS
THIS DEED OF TRUST is made this 5TEi day of AUG., 19 96 by and among
BARBARA JO WALLACE, whose address is 18051 Joyful Lane, a 205, Huntington Beach,
California (the "Trustor") and TIM 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.
"Exhibit C" to Loan Agreement
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v
A. FOR THE PURPOSE OF SECURING:
l . Payment of the sum of Thirty-five Thousand Dollars (S35,000.00) 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
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
AUGUST 5 lg 96 , 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;
"Exhibit C" to Loan Agreement
Page 2 of 15
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(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 (1S) 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; (0 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 separate contracts and subcontracts for said construction
which shall pertain to the said property only and sha'I 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 Veneficiary 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 showng 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
"Exhibit C" to Loan Agreement
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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 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 (0 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
"Exhibit C" to Loan Agreement
Page 4 of 15
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expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like
rate of interest. "
S. 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 alienate
said property, or any party thercof, 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.
4. 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
"Exhibit C" to Loan Agreement
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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 Beneficiary 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 Beneficiary any duty to
produce rents from the property affected by this Trust Deed, or cause Beneficiary 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 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
Beneficiary 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 Beneficiary 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 Beneficiary or Trustee the right to possession, except as
otherwise provided herein, and neither said right, nor termination of the License, shall impose
upon Beneficiary 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,
ether personally or by attorney or agent without bringing any action or proceeding, or by receiver
"Exhibit C" to Loan Agreement
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to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said
property, make cancel, driforce 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
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. If the
security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of
"Exhibit C" to Loan Agreement
Page 7 of 15
4`eG:4-96agree-.Walracc:I:xhibitC
RI.S 96-523
712&R)6
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.
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
"Exhibit C" to Loan Agreement
Page 8 of 15
4190:4-96agree: W allaa:T.xliibitC
RLS 9G-523
7/26M
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 la%v.
18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties
hereto, their heirs, legatees, devisees, administrato-s, executors, successors and assigns. The term
"Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby,
whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so
requires, the masculine gender includes the femin:re 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, annually on
January 1, a written operational report. Such operational report shall contain a brief but complete
statement of the year'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 la>,v 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 ofpending; sale under any other DceJ of''rust or ofany actiolz or proceeding ill
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
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
"Exhibit C" to Loan Agreement
Page 9 of 15
4Ws 0:496agrecMallace:CxhiLilC
RCS 9G-S23
W26196
. . I I J'A 7
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. IS 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 herein before set forth.
TRUSTOR:
By:k'4411(dAel- -/00 �IICIIL <-1—
=zBARA JO WhLum
By:
APPROVED AS TO FORM:
Agency Counsel ; e,N
4
7..Z�j!16 .
"Exhibit C" to Loan Agreement
Page 10 of 15
4tt%C;:4.96agr":UlaHace:Cxhibi[C
RLS 96.523
7/2"6
RIDER TO DEED OF TRUST
FIRST TIME HONmBUYER DOWN PAYMENT ASSISTANCE PROGRAM
This Deed of Trust is subject to the terms aid conditions of that certain Loan Agreement
dated AUGUST 5TH , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan
Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the
meanings as defined in the Loan Agreement.
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 such
sale, transfer or refinancing, 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:
Prior to fifth anniversary
of the Agency Deed of Trust: fifty percent (50%)
2. After fifth anniversary but)
prior to sixth anniversary: forty-eight percent (48%)
3. After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4. Auer seventh anniversary but
prior to eighth anniversary: forty-four percent (44%)
5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
"Exhibit C" to Loan Agreement
Page 11 of 15
4'41G:4.96agcc: Wallacc:ExliibitC
R[S 9G•323
712CM
10.
After thirteenth anniversary but
prior to fourteenth anniversary:
thirty-two percent (32%)
I I .
After fourteenth anniversary but
prior to fifteenth anniversary:
thirty percent (30%)
12,
After fifteenth anniversary but
prior to sixteenth anniversary:
twenty-eight percent (28%)
13.
After sixteenth anniversary but
prior to seventeenth anniversary:
twenty-six percent (26%)
14.
After seventeenth anniversary but
f
- prior to eighteenth anniversary:
twenty-four percent (24%)
15.
After eighteenth anniversary but
prior to nineteenth anniversary:
twenty-two percent (22%)
16.
After nineteenth anniversary but
prior to twentieth anniversary:
twenty percent (20%)
17.
After twentieth anniversary but
prior to twenty-first anniversary:
eighteen percent (18%)
18.
After twenty-first anniversary but
prior to twenty-second anniversary:
sixteen percent (16%)
19.
After twenty-second anniversary but
prior to twenty-third anniversary:
fourteen percent (14%)
20.
After twenty-third anniversary but
prior to twenty-fourth anniversary:
twelve percent (12%)
21.
After twenty-fourth anniversary but
prior to twenty-fifth anniversary:
ten percent (10%)
22.
After twenty-fifth anniversary but
prior to twenty-sixth anniversary:
eight percent (8%)
.23.
,After tiveniy-sixth anniversary but
prior to twenty-seventh anniversary:
six percent (6%)
24.
After twenty-seventh anniversary but
prior to twenty-eighth anniversary:
four percent (4%)
"Exhibit C" to Loan Agreement
Page 12 of 15
4'a1C:4-96a�ce:Wallsee:r
zl�ihiiC
Rrs �6-sza
i T/26M6
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary:
26. After twenty-ninth anniversary but
prior to thirtieth anniversary:
27. After thirtieth anniversary:
two percent (2%)
one percent (1%)
zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's
interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
The percentage factor so determined is the "Applicable Factor." if the Property is sold, an
amount equal to the Applicable Factor multiplied by the difference between (i) the original
Property purchase price and (ii) the amount received by Trustor as the Property sale price (as
reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the
Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is
subordinate is refinanced for a loan amount which is in excess of the then current loan balance or
extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a
certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in
such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference
between (i) the original Property purchase price and (ii) the appraised value of the
"Exhibit C" to Loan Agreement
Page 13 of 15
4`en:4.96agrcc: W&11aca:CxhibRC
RLS 94.523
9I26/96
Property as of the time of such transfer or refinancing.
Dated: AUGUST 13, 1996 TRUSTOR
ell
l ��c �tltZe 'cl Ll �c'ere?-r C
BARB= a6 WALLACE
APPROVED AS TO FORM:
Agency Attorney 7- .Z !j _ 1 (,
Ak P-
i
"Exhibit C" to Loan Agreement
Page 14 of 15
4 kW :4.9 G a vcc: W a! l acc XxMbke
RU 96-323
W26196
RIDER TQ DEED OF TRUST
SUPERIORITY OF FIRST LENDER DOCMIENTS
(if required by the First Lender)
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated AUGUST 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan
Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the
meanings as defined in the Loan Agreement.
Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the
rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender
as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter
recorded against the property described herein.
Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions
of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of
one of the following events:
l) Title is acquired by the First Lender or another party upon foreclosure of a deed of
trust by the First Lender.
2) Title is acquired by the First Lender or another party by a deed in lieu of
foreclosure of the First Lender deed of trust.
Dated: AUGU= 13, 1996
APPROVED AS TO FORM:
Ac�r���
Agency Attorney
TRUSTOR:
BMMM JO LACE
"Exhibit C" to Loan Agreement
Page 15 of 15
4'4k0A-9Gagrcc: Waliacc:rxliibhC
RI S 96-52 ]
712W96
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFf, MIA
COUNTY OF CRAM= _ 5S.
On AUGUST 13► 1996 before me, [lie undersigned, personally appeared
BARBARA JO WALLACE
personally known to me (or proved to rite on the basis of satisfactory evidence) [o be the person(s)
whose name(s) Is/are subscribed Jo (he witfilrl instrument arid acknowledged to rrle lltal lie/she/they
executed (lie sable in his/her/their authorized capacily(ies), and (fiat by his/her/their signalule(s) on
the instrument the person(s) or the entity upon 1 behalf of wI tici t me person(s) acted, exec:uled the
Instrument.
WITNESS my hand arid official seal.
Sigl�alur � L! ' � _C f
LINDA J. C MP13ELL
((fits area for offrclat no(arlar seat)
LINDA J. CA'APSELL _
COMM. 9 1045344
Z n ORANCQ COMM
My Comm. Expires DEC. 20. IWS
OPTION L IIIfflifi[Iff(iffff(ffl (f[(f(lfflIII
Though [lie data below are not required by law, they may prove valuable to persons relying on the
document and could prevent the fraudulent reallachmenl of ll lis form.
Capacity Claimed By Slgller
(individual
L] Corporate Officer
'l ltfes(s)
IJ i'artner(s)
[J Attorney -in -Fact
Ll Truslee(s)
0 GuardianlConservator
L7 Other:
Signer Is Representing:
t-rarr;e or Person(s) or Ei lly(les)
lJ Limited
[]. General
Ueseriptloll of Attached DOCU111031t
A�y,*-o or w-w6"r
1 HI0 os '1 ype or UOCtimeld
Humber or Pages
Uale or Document
5lgrtet(s) Other 1 hart Names! /Above
EXHIBIT A
TO
AGENCY DEED Or TRUST
LEGAL DESCRIPTION
PARCEL is
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to 4
all of the common Area defined in Declaration referred to below and described in the '
Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August ;
25, 1994 as instrument tlo. 94-0525335 of official Records of Orange County, over Lot 1 of
Tract flo. 14828, in the City of Huntington Beach, county of orange, State of California,
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous flaps, in the office of the
County Recorder of said Ccunty.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
Unit tio. 22 consisting of certain airspace and surface elements, as shown and described in 1'
the Condominium Plan referred to in Parcel 1 above.
Parcel 3:
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336
of official Records.
Parcel 4%
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas:defined, depicted and assigned an the Plat%.
"Exhibit A" to Agency Deed of Trust
Page 1 of i
4`s%G:Agrcc: Nlsrgolis: CxhCDcc&-07rl6/96
RI S 96-127
EXHIBIT D
DECLARATION OF CONDITIONS COVENANTS
AND RESTRICTIONS FOR PROPERTY
RECORDING REQUESTED BY }
AND WHEN RECORDED MAIL TO: )
}
}
}
(Space above for Recorder's use.)
THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR
PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the
"Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set
forth below.
RECITALS
A. Covenantor and the Agency have entered into a certain Loan Agreement dated
AUGUST 6 19_96 , (the "Agreement," a copy of which is on file with the Agency
at its offices and is a public record) pursuant to which the Covenantor has agreed to subject
certain real property (referred to in the Agreement and referred to herein as the "Property")
described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and
incorporated herein by this reference) to certain covenants, conditions and restrictions.
B. The Community Redevelopment Law (Califorizia Health and Safely Code
§ 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the
land in furtherance of redevelopment plans.
NOW, THEREFORE, the parties hereto agree and covenant as follows:
"Exhibit D" to Loan Agreement
Page 1 of 9
4V%G:4.9GAgree:W z11ace:ExhibhD
RLS 96-S23 7/29/96
I . Affordability Covenants. Covenantor agrees for itself, and its successors and
assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for
thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding
the Property (the "Expiration Date"):
(a) The Property shall only be owned and occupied by Convenantor or by
other persons or families of"Moderate Income." "Moderate Income" shall mean persons or
families earning One Hundred Twenty Percent (120%) or less of Orange County median income,
adjusted for appropriate family size.
(b) The Property shall be kept available at Affordable Housing Cost (as defined
below) to the Covenantor or other persons or families of moderate income. Affordable Housing
Cost shall mean, as to each person or family of low or moderate income, that purchase price
which would result in monthly housing payments which do not exceed an amount under any
currently prevailing conventional home mortgage lending rates applied by any reputable
institutional home mortgage lender, or the lending rates of any government -subsidized or special
mortgage program for which such person or family qualifies and has obtained a first trust deed
loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (l 10%) of the
Orange County monthly median income for those persons and families of moderate income (as
determined by the United States Department of Housing and Urban Development) earning
between Eighty Percent (80%) and One Hundred Ten Percent (110%) of the Orange County
monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any
person or family of moderate income which earns more than One Hundred Ten Percent (110%)
and not more than One Hundred Twenty Percent (120%) of the Orange County median income.
(c) The covenant contained in this Section I shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
2. Transfer of Pro ert . No transfer of the Property shall occur until the Agency
determines (a) that the proposed purchaser intends to occupy the Property as the proposed
purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate
income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency
shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted
to the Agency such information and completed such forms as the Agency shall request to certify
the proposed purchaser's intent with respect to its residency of the Property and its gross income,
and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the
proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which certifies that the purchaser is aware
that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate
income person or family, that the maximum permitted sales price may be less than fair market
value and that the unit must be owner -occupied at all times and cannot be rented or leased.
Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and
in assisting proposed purchasers to prepare such forms and to provide any required information to
the Agency in connection with the Covenantoes original sale of the Affordable Unit, provided that
"Exhibit D" to Loan Agreement
Page 2 of
4'%VJ:4-96Agree: wal lace: ExliibitD
RLS 96.523 7129/96
NA
the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith,
other than employee time dedicated to providing such assistance.
THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE
HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER,
TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED
TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE
TRANSFER PRICE PER UTTED HEREUNDER MAY BE LESS THAN THE FAIR
MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN
THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT
ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR,
HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL
TIMES IN SETTING THE TRANSFER PRICE THE -PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST.
� ttJ
• ' Covenantor initials
The covenant contained in this Section 2 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
3. on -Discrimination Covenants. Covenantor covenants by and for itself, its
successors and assigns, and all persons claiming under or through them that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the Property.
Covenantor and its successors and assigns, shall refrain from restricting the rental
or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion,
sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts
shall contain or be subject to substantially the following nondiscrimination or non segregation
clauses:
(a) In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or groin of
persons on account of race, color, religion, sex, marital status, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed,
"Exhibit D" to Loan Agreement
Page 3 of 9
4�&\G:4-96Agrcc: W allace:CxliibilD
RLS 96.523 7129/96
nor shall the grantee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or
vendees in the land herein conveyed. The foregoing convenants shall run with the land."
(b) In leases: "The lessee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assigns, and all persons claiming under or through
him or her, and this lease is made and accepted upon and subject to the following conditions:
"There shalt be no discrimination against or segregation of any person or
group of persons on account of race, color, religion, sex, marital status, ancestry or national
origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees,
subtenants or vendees in the premises herein leased."
(c) In contracts: "There shall be no discrimination against or segregation of,
any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessee or vendees of the premises."
Nothing in this Section 3 shall be construed to authorize the rental or lease
of the Property if such rental or lease is not otherwise permitted. The convenants in this
paragraph 3 shall run with the land in perpetuity.
4.Covenants Do Not impair Lien. No violation or breach of the covenants,
conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or
render invalid or in any way impair the lien or chzrge of any mortgage or deed of trust or security
interest.
5. Covenants For Benefit of City and Agency. All covenants without regard to
technical classification or designation shall be binding for the benefit of the Covenantee and the
City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee
and the City for the entire period during which such covenants shall be in force and effect, without
regard to whether the Covenantee or the City is or remains an owner of any land or interest
therein to which such covenants relate. The Covenantee and the City, in the event of any breach
of any such covenants, shall have the right to exercise all the rights and remedies and to maintain
any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such
"Exhibit D" to Loan Agreement
Page 4 of 9
41s16.96A&r":Wa11acc:ixhMtD
RL5 96-523 7129,"7G
V
breach to which it or any other beneficiaries of these covenants may be entitled during the term
specified for such covenants, except the covenants against discrimination which may be enforced
at law or in equity at any time in perpetuity.
IN WITNESS NVHEREOF, the Covenantee and Covenantor have caused this instrument
to beAUe g-d on their behalf by9theiirr respective officers hereunto duly authorized, this 13 day
of
COVENANTOR
�&� IV Gtia&-Zug._
BARN= JO WALLACE
APPROVED AS TO FORM:
'4::k -,- -
Agency Counse ;y� hc&
"Exhibit D" to Loan Agreement
Page 5 of 9
4`s10:4-96Agree: W allace:ExhibitD
RS.S 96-523 7129/96
STATE OF CALIFORNIA )
ss
COUNTY OFF
On AUGUST 11, 1996 , before me LUM J. CAMPBELL
(name, title; e.g., "Jane Doe, Notary Public"),
WAI.
personally appeared MRMM JO LACE
(name(s) of signer(s)),
personally knovm to be -- OR --
proved to me on the basis of satisfactory evidence
to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that
hUshe/they executed the same in his/her/their authorized capacity(ies), and that by his/licrAlicir signature(s)
on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the
instrument.
Witness my hand and official seat.
`I LINDU CAMPBELL 2
m
� = COWA. A t a.15344 W
T t ;�• NOTAAY PUBLIC • CALIFORNIA �]
ORANGECOUM . a
W Comm. I VIM DEC. 20.1 PW
CAPACITY LAIMED BY SIGNER:
XX Individual
Corporate Officer(s):
Title(s)
Partncr(s): Limited Gcneral
Attorney -in -Fact
Trustce(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Persons) or Entity(ies)
a
(Signat c of Notary-)
LIMA J. CAMPBELL
ATTENTION NOTARY: Although the information roqucstcd below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document DEaMATICN OC CONDITICNS, C0=MS
MUST BE ATTACHED wD ItE:=Crl= FM PROPEM
TO THE DOCUMENT Number of Pages
DESCRIBED Date of Document A'JWST 5, 1996
AT RIGHT: Signer(s) Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 6 of 9
414%G:4-96Agrec: W all ace:Exhibit0
PL S 96-323 7l29M
STATE OF CALIFORNIA )
ss
COUNTY OF
On before me,
(name, title, e.g., "Jane Doc, Notary Public"),
personally appeared
(namc(s) of signer(s)),
personally kno%%m to be -- OR --
proved to me on the basis of satisfactory evidence
to be the person(s) whose namc(s) is/arc subscribed to Vic within instrument and acknowledged to me that
helshe/they executed the same in his/her/their authorized capacity(ics), and that by his/her/their signatures)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Titic(s)
Partner(s): Limited General
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Persons) or Elitity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT RIGHT:
Title or Type of Document
Number of Pages
Date of Document
Signers) Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 7 of 9
4U1G:4.96 Agree: W &11xce:Exh ibhD
ILLS 96-523 7129/96
STATE OF CALIFORNIA )
} ss
COUNTY OF _ )
On _ _ before n e,
(name, title, e.g., "Jane Doe, Notary Public"),
personally appeared
(name(s) of signe:(s)),
personally known to be -- OR --
proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that
helshclthey executed the same in his/licr/their authorized eapacity(ics), and that by hisllicr/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY aIGNER:
Individual
Corporate Officcr(s):
TitIe(s)
Partner(s): Limited General
Attorney -in -Fact
Trustee(s)
G uardian/Conscrvator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT_RIGHT
:
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Othcr Than Named Above:
"Exhibit D" to Loan Agreement
Page 8 of 4
4's10:4-96Agree:Willtcc:ExllibitD
RLS 96-523 7/29/96
EXHIBIT A
LEGAL DESCRIPTION OF PRQPERTY
[To Be Inserted]
LEGA DESCRIPTION
EXHIBIT "A"
PARCEL 1:
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to
all of the Common Area defined in Declaration referred to below and described in the
Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August
25, 1994 as instrument No. 94-0525335 of official Records of orange County, over Lot 1 of
Tract No. 14828, in the -city of Huntington Beach, County of Orange, State of California,'
as per map filed in Book M, Pages 27 to 29 of Miscellaneous claps, In the office of the
County Recorder of said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
'Unit No. 22 consisting of certain airspace and surface elements, as shown and described in
the Condominium Plan referred to in Parcel I above.
Parcel 3:
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of Covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument 14o. 94-0525336
of official Records. I
Parcel 4:
Exclusive easements appurtenant to parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areaslldefined, depicted and assigned on the Plan.
4
"Exhibit W to'Loan Agreement
Page 9 of 9
4'skG:4-96Agree:W;llace:ExhihitD
RLS 96-523 7129%
LIE
List of Down Payment Assistance Borrowers
at Pacific Park Villas
ATTACHMENT #3
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Economic Development
SUBJECT:
Transferability of Pacific Park Villas Down Payment
Assistance Loans
COUNCIL MEETING DATE:
May 17, 1999 _
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Not Applicable
Resolution (w/exhibits & legislative draft if a licable
Not Applicable
Tract Map, Location Map and/or other Exhibits
Not Applicable
Contract/Agreement (wlexhibits if applicable)
Si ned in full 4y the Cit Attorne
Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by Cif Atfome
Not Applicable
Certificates of Insurance (Approved by the Cit Attorne
Not Applicable
Financial Impact Statement Unbud et, over $5,000
Not A2plicable
Bonds If applicable)
Not Applicable
Staff Report If applicable
Not Applicable
Commission, Board or Committee Report if applicable)
Not Applicable
Find in s/Conditions for A roval and/or Denial
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED
RETURNED
FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
,
CUM Clerk
EXPLANATION FOR RETURN OF ITEM:
RCAAuthor: Duran atextenslon1529
L„ J
C4���//A
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this A'h day of
193by and between ANA L. CARRILLO ("Participant") and the
REDEVELO MENT AGENCY OF THE CITY OF HLNTINGTON BEACH, a public body
corporate and politic (the "Agency").
RECITALS
A. Participant has entered into an a7861
s eemept (the "Purchase Agreement") to purchase
that certain real property commonly known as VW Happy Dr., # 102, 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 1200.0 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 the Agency that Participant and Participant's
immediate family intend to reside in the Property at all times throughout the term of this
Agreement.
D. The Agency desires 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 (the "City").
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. A en Loan. The Agency shall loan to Participant (the "Agency Loan") the
amount of Thirty-five Thousand Dollars ($35,000) subject to the conditions and restrictions set
forth herein and those set forth in the Promissory Note and the Disclosure Statement for the
Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the
Agency through deposit of the Agency Loan proceeds into escrow with Tiempo Escrow (the
"Escrow Agent") (Escrow No. 7836-L). The Agency shall direct the Escrow Agent to apply the
proceeds of the Agency 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 Agency Loan, with simple
interest at five percent (S%) per annum, due in thirty (30) years and payable upon the earlier sale,
Loan Agreement
Page 1 of 8
,V,zV4 m:Carrillo\!2r2a9a
V
refinancing or transfer of the Property, substantially in the form of the "Promissory Note"
attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to
the Agency a second deed of trust encumbering the Property which shall secure the Promissory
Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated
herein.
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. Due on Sale. Transfer or Refinancing. 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 Agency Deed of Trust or any lien to which the Iien of the Agency
Deed of Trust is subordinate (the "First Mortgage")_ The Agency Loan and all interest accrued
thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an amortization
period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an
occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any
other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its
sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan.
4. Equity Sharing. In the event that the Agency Loan becomes due and payable
prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency
concurrently with such sale, transfer or refinancing, 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:
Prior to fifth anniversary
of the Agency Deed of Trust:
2. After fifth anniversary but
prior to sixth anniversary:
3. After sixth anniversary but
prior to seventh anniversary
4. After seventh anniversary but
prior to eighth anniversary:
Loan Agreement
Page 2 of 8
fifty percent (50%)
forty-eight percent (48%)
forty-six percent (46%)
forty-four percent (44° o)
44\Ag=:c,rr;11d\12,2 Asa
5. After eighth anniversary but
prior to ninth anniversary:
forty two percent (42%)
6.
After ninth anniversary but
prior to tenth anniversary:
forty percent (40%)
7.
After tenth anniversary but
prior to eleventh anniversary:
thirty-eight percent (38%)
8.
After eleventh anniversary but
prior to twelfth anniversary:
thirty-six percent (36%)
9.
After twelfth anniversary but
prior to thirteenth anniversary:
thirty-four percent (3401/0)
10.
After thirteenth anniversary but
prior to fourteenth anniversary:
thirty-two percent (32%)
11.
After fourteenth anniversary but
prior to fifteenth anniversary:
thirty percent (30%)
12.
After fifteenth anniversary but
prior to sixteenth anniversary:
twenty-eight percent (28%)
13.
After sixteenth anniversary but
prior to seventeenth anniversary:
twenty-six percent (260%)
14.
After seventeenth anniversary but
prior to eighteenth anniversary:
twenty-four percent (24%)
15.
After eighteenth anniversary but
prior to nineteenth anniversary:
twenty-two percent (22%)
16.
Alter nineteenth anniversary but
prior to twentieth anniversary:
twenty percent (201/o)
17.
After twentieth anniversary but
prior to twenty-first anniversary:
eighteen percent (18%)
18.
After twenty-first anniversary but
prior to twenty-second anniversary:
sixteen percent (I6%)
19.
After twenty-second anniversary but
prior to twenty-third anniversary:
fourteen percent (14%)
Loan Agreement
Page 3 of 8
4',sv4m:c4r,;uokI2/2&'94
20. After twenty-third anniversary but
prior to twenty-fourth anniversary: twelve percent (12%)
21. After twenty-fourth anniversary but
prior to twenty-fifth anniversary: ten percent (10%)
22. After twenty-fifth anniversary but
prior to twenty-sixth anniversary: eight percent (8%)
23. After twenty-sixth anniversary but
prior to twenty-seventh anniversary: six percent (6%)
24. After twenty-seventh anniversary but
prior to twenty-eighth anniversary: four percent (4%)
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Sellees interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property 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.
Loan Agreement
Page 4 of 8
-'sVkVw:CarriIIol= 2.'2& h4
A. Equity Share Upon Sale -or Transfer. The Equity Share Amount shall be
payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer")
whose income exceeds 120% of the current annual median income for the Orange County area. If
the Buyer does not submit an income verification statement to the Agency, the Buyer shall be
deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the
Equity Share Amount shall not become payable.
B. Eguity Share Upon Refinancing or Failure -to Occupy. The Equity
Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property
or material breach of any other provision of this Agreement which causes the Agency Loan to
become due and payable. The Sales Price for purposes of determining the Equity Share Amount
shall be determined by an appraisal of the Property. The Agency shall appoint a certified,
independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and
Participant agrees that in such event the Equity Share Amount shall be the Applicable Factor
multiplied by the difference between the Purchase Price and the appraised value of the Property as
of the time of such refinancing. This Agreement shall be terminated upon the Participant's
repayment of the Agency Loan and payment of the Equity Share Amount as provided in this
Agreement.
C. Expiration of Equity Share Obligation. In the event the Participant
does not sell or transfer the Property,does not fail to occupy the Property, does not refinance, or
is not in material breach of any other provision of this Agreement before the Thirtieth anniversary
of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share
Amount to Agency upon any later sale, transfer or refinancing.
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. 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. Loan Servicing. The Agency may contract with a private lender to originate
and service the Agency Loan.
8. Participant Financing. Participant shall obtain financing for the purchase of the
Property from the Southern California Home Financing Authority or a reputable institutional
lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust
shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns.
Loan Agreement
Page 5 of 8
4`AAgft.Curi11o%12128 94
In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in
cash from Participant's oven resources and not from the proceeds of a loan.
9. Covenants. Participant and the Agency shall execute and have recorded in the
Official Records of Orange County, California, a "Declaration of Conditions, Covenants and
Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated
herein, in which 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 California Health &. Safety Code Sections 50093 and 50052.5, 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. Such convenants shall run with the
land, in favor of the Agency and the City.
10. Nan -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.
11. Indemnification. The Participant shall defend, indemnify and hold harmless
the Agency and the City of Huntington Beach and their respective officers, agents, employees,
representatives and volunteers from and against any loss, liability, claim or judgment relating in
any manner to the Property or 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 or the City to make such
payments, by virtue of the Agency Loan.
12, 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 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 go 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.
13. Documents. Participant is aware that the Agency has prepared certain
documents to implement the Program and secure repayment of the Agency Loan. Participant has
reviewed and agrees to execute the following documents prior to receiving the Agency Loan:
Loan Agreement
Page 6 of 8
44\Ag w-..Carri11611212M4
u
(a) Disclosure Statement;
(b) Promissory Note;
(c) Agency Deed of Trust; and
(d) Declaration of Conditions, Covenants and Restrictions of Property.
Participant agrees and acknowledges that the Agency Deed of Trust and the
Declaration of Conditions, Covenants and Restrictions of Property 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.
14. 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 Agency Loan.
15. Governing Law. This Agreement shall be governed by the laws of the State
of California. Any legal action brought under this Agreement must 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.
16. Amendment of Agreement. No modification, rescission, waiver, release or
amendment of any provision of this Agreement shall be made except by a written agreement
executed by the Participant and Agency.
17. Agency May Assign. Agency may, at its option, assign its right to receive
repayment of the loan proceeds Athout obtaining the consent of the Participant.
18. Participant 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. No assumption of the
Agency Loan shall be permitted at any time. This section shalt not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
19. 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
Loan Agreement
Page 7 of 8
4'sWga:Carri11o11 Z'2&'94
agreements between the Agency and the Participant concerning all or any part of the subject
matter of this Agreement
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written below
Date January 26 , 19 95
Date
19
Date , 19
Date DECEMBER 28 1994
ATTEST
Agency Clerk
REVIEWED AND APPROVED
"PARTICIPANT"
6By j
/�
Printed Name AWA ( �/-
By
Printed Name
By
Printed Name
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH,
a public body corporate and politic
By ri7
Chairman
APPROVED AS TO FORM
cK�
I,, ency Counsel ?X
r
INITIATED AND APPROVED
DirectaAflconomic Development
Loan Agreement
Page 8 of 8
4\AAgree Camllo\12/28/94
b,G,1H
Cat NO 9402203-04
A cwxraN1irI, as defined in Section 783 of the California Civil Code, in fee
Title to said estate or interest at the date hereof is vested in
Sassounian Capital Ventures, Inc , a California Corporation
Zhe land referred to in this report is situated in the State of California,
County of orange, and is described as follows
A Condominium comprised of
PARCEL 1
An undivided one twenty second (1/22) fee simple interest as a tenant in cocmcn
in and to all of the Cannon Area defined in Declaration io[n referred to below and
described in the Condominium Plan ("Plan") for Lot 1 of Tract No 14828, which
Plan was reoorded on August 25, 1994 as Instrument No 94-0525335 of Official
F4eeorrds of Orange County, over Lot 1 of Tract No 14828, in the City of
Huatingtcn Beach, County of Orange, State of California, as per map filed in
Book 706, Pages 27 thrcuxgh 29 of Misoellaneouzs Maps, in the office of the County
R xxDrder of said County
,II
•:$w 9• 0 • a ./ •C it
ExcEPTINr, n97EFRCMoil, petroleum,w gas, minerals and othar hydrocarbon
•s •: ra+ as reserved in •ss• reo=ided PiVust 16, 1921 In Book 401, Page. of fat•
PA-9, is Nzn*_Kis other deeds of record.
PAMEL 2:
Unit NO. of certain airspace and surface elements, as shown and de_scxibed in
the Oondaninium Plan referred to in Parcel 1 above.
PARE, 3:
Nan -exclusive eanPnts for access, inks, egress, use, en<joyrnent, drainage,
encroactmmt, support, maintenance, r%nirs, and for otkiear p .s, all as described in
that certain Declaration of Covenants, Conxditions and Restrictions and reservation of
Easements for Pacific Park Villas, recoxided August 25, 1994 as Instrument No. 94-052-9336
of official Records.
PARCEL 4:
III III
• ••mar • • - • _• •a• •:• c • ti •• :• • •
EXHIBIT B
PROMISSORY NOTE.
35.00 Huntington Beach, California
. �wAw y, , 19_q5—
FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The
Redevelopment Agency of the City of Huntington Beach ("holder") at 2000 Main Street, P.O.
Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct
from time to time in writing, Thirty-five Thousand ($35,000) (the "Note Amount") together with
interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money
of the United States of America and all sums shall be credited first to interest then due and the
balance to principal.
Interest Rate
Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per
annum. If the fair market value of the Property does not increase at least five percent (5.001/0) per
annum, the accrued interest on the Note Amount shall be forgiven by the Holder.
2. Maturity Date
The balance of all unpaid principal and accrued interest shall be due and payable on
Q V 20 LS (thirtieth (30th) anniversary date of this Promissory Note).
3. Acceleration
The whole of the Note Amount plus accrued interest and all other payments due
hereunder shall become due and be immediately payable to the Holder by the Maker upon the
occurrence of any one of the following events:
(a) Maker sells or otherwise transfers title to the Property; or
(b) Maker refinances any lien or encumbrance to which the Agency Deed of
Trust is subordinate for a loan amount which is in excess of the then current loan balance
of such prior lien or extends the amortization period of the loan secured by such prior lien;
or
(c) Maker fails to occupy the Property or to perform any obligation under the
Agreement (as hereinafter defined).
"Exhibit B" to Loan Agreement
Page] of 3
4WAgree: CarrillolromissM A'ote101112.93
�r
4. Security for Note
This Promissory Note shall be secured by a second deed of trust encumbering the Property
(the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee.
5. Prepayment of Note Amount
Maker may prepay to Holder the full Note Amount, together with simple interest thereon
at a rate of five percent (5.001/o) per annum, at any time prior to the due date of the Note
Amount.
6. Loan Agreement
This Promissory Note is made and delivered pursuant to and in implementation of Loan
Agreement entered by and between the Holder and the Maker dated
19� (the "Agreement"), a copy of which is on file as a public reco with the Holder and is
incorporated herein by reference. The Maker acknowledges that but for the execution of this
Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein, each term shall
have the same definition as set forth in the Agreement.
7. Holder May Assi n
Holder may, at its option, assign its right to receive payment under this Promissory Note
without necessity of obtaining the consent of the Maker.
8. Maker Assignment Prohibited
In no event shall Maker assign or transfer any portion of this Agreement without the prior
express written consent of the Holder, which consent may be given or withheld in the Holdees
sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This
Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan
proceeds hereunder.
9. Attorneys' Fees and Costs
In the event that any action is instituted to enforce payment under this Promissory Note,
the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys'
fees.
10. Non-«raivcr
Failure or delay in giving any notice required hereunder shall not constitute a waiver of
any default or late payment, nor shall it change the time for any default or payment.
"Exhibit B" to Loan Agreement
Page 2 e f 3
,CzVkjr :Carrillo:Pran4soryNotel0l11Z'95
11. Successors Bound
This Promissory Note shall be binding upon the parties hereto and their respective heirs,
successors and assigns.
"MAKER"
By:
Printed Name: Ana Carillo
7861-_Happy Drive, #102 Aff
1474-6
By:
Printed Name:
By:
Printed Name:
"Exhibit B" to Loan Agreement
Page 3 of 3
-CAAgree: Carrillo:Prominory NW01112'95
O
EXHIBIT E
DISCLOSURE STATEMENT
I\We ANA L. CARRILLO ("Applicant") understand and agree that the provision of financial
assistance from The Redevelopment Agency of the City of Huntington Beach ("Agency") is
conditional on a number of factors, including, but not limited to:
• IAVe must qualify for a home loan from an institutional lender acceptable to the Agency.
• JAVe must pay at least 5° o of the home purchase price from our own funds.
• UtiVe must qualify for assistance under the guidelines of the Agency's Program.
• UAVe as owners of the unit must occupy it for the entire term of the loan. If IAVe rent the
unit to others, IAVe will be in default of the Loan Agreement.
I/We further understand and agree that:
• IAVe will be responsible for repaying the loan with five percent (5%) simple interest per
year at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach
any part of the Loan Agreement. The Annual Percentage Rate for this loan is five percent
(5%). The simple interest shall accrue each year, but is not required to be paid except as
described in the Loan Agreement.
If within thirty (30) years from the date Uwe receive the Agency financial assistance, Uwe
sell or transfer the home Uwe purchased under this Program to persons who are not
persons of low or moderate income or refinance the lien of the deed of trust held by my/ur
lender, Uwe wiII be obligated to pay the Agency a percentage share of the difference
between the price Uwe paid for the home and its value at the time of such sale,
transfer or refinancing. The Agency Loan is due upon sale, transfer or refinancing of the
unit.
• IAVe 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
The Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
P.O. Box 190
Huntington Beach, California 92648
"Exhibit E" to Loan Agreement
Page I of 2
44\Agree:Carri11o:Disc1osure stalmwnf.1212MM
• 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 when
the term of the loan expires. 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
mylour house.
• The Agency shall not be held responsible for any costs associated with 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. Uwe assume all responsibility for determining whether Uwe
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.
• 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: January 2� 19 95
4t_�22ZZ
Signature of applicant
Dated: 19
Signature of applicant
Dated: 19
Signature of applicant
"Exhibit E" to Loan Agreement
Page 2 of 2
S-s1Agme:Curilio:Disdmre slalcmcntX17.'2"4
EXIIIRIT F
NOTICEOF RIGHT_Or_RESCISSION
Participant(s): ANA L. rARRILLQ
Loan Amount:___$35,000 tom`'
Address of Residence: 23fit Happy Dr.. # 102. Huntington Beach. CA
7661
Notice to Participant Required by Federal Law:
You have entered into a transaction on _7anuary 26,1995 T'[Date] 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 do 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 the transaction,
any lien, mortgage, or other security interest on your home arising for 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:
The Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
P.O. Box 190
Huntington Beach, California 92648
by mail or telegram sent not later than midnight of _ January 30,1995
(Date)
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.
I hereby cancel this transaction,
(Date) (Participant's Signature)
"Exhibit F" to Loan Agreement
Pagel of 2
4`MereeCerrilb Nolice of Righ1k12,19/94
EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph
(a) of this section, he is not liable for any finance or other charge, and any security interest
becomes void upon such a rescission. Within 10 days after receipt of a notice of rescission, the
creditor shall return to the participant 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 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 10 days after tender
by the customer, ownership of the property vests in the customer without obligation on his part to
pay for it.
ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE
Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice.
1--26-95
Participant's Signature Date Participant's Signature Date
Participant's Signature Date Participant's Signature
"Exhibit F" to Loan Agreement
Page 2 of 2
Date
4`s1Age:carciiio:Notice orRigh1l12•7"4
EXHIBIT G
EXPIRATION OF RESCISSION PERIODS
(Truth in Lending - Real Estate and home Improvement Loans)
Participant(s): ANA L. CARRILLO
Loan Amount: $_ 35M0 1}p
Address of Residence: 'X IC Haappy Dr.. #102, Iiuntingion Beach, A 92648
7861
In connection with the agreement of The Redevelopment Agency of the City of Huntington Beach
to make the Loan, 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 Expiration of Rescission Periods
Agreement and its attachments.
2. The Redevelopment Agency of the City of Huntington Beach has agreed, subject only to
the occurrence of certain conditions, to make the Loan and has delivered to each
undersigned a Disclosure Statement setting forth the terms of the 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 has executed this document.
3. Prior to the date shown above, no proceeds of the Loan have been disbursed to or for the
benefit of any of the undersigned.
4. None of the undersigned have canceled or res--inded the Loan nor have any of the
undersigned notified The Redevelopment Agency of the City of Huntington Beach of any
intention to cancel or rescind the Loan.
The undersigned request the Redevelopment Agency of the City of Huntington Beach to proceed
with the Loan in reli upon the foregoing representations.
x 1-26-95
Participant's Signature Date Participant's Signature Date
Participant's Signature
Date Participant's Signature Date
"Exhibit G" to Loan Agreement
Page 1 of 1
4's%Agree:tswmice:Expiralionll Z'28°'94
RECo n- DR45 REMED Si
CONTINENTAL LAWYERS TiZE CO.
'v88 # 95-0063875
15—FEB-1995 03:59 PIS
RECORDING REQUESTED BY } Recorded in Official Records
AND WHEN RECORDED RETURN TO: ) of bran3e County, California
Gary L. Granville, Clerk -Recorder
Redevelopment Agency of the City of } Page 1 of 23 FEes: S 0.0
Huntington Beach , } Ta S 0.0
2000 Main Street )
Huntington Beach, California 92648 )
Attn: Agency Clerk )
[space Above This Lim For Recorder. Use.]
This document is exempt from
recording fees pursuant to
Government Code -Section 6103.
J—
DEED OF TRUST WITH ASSIGNMENTS OF RENTS
ct1
7861
THIS DEED OF TRLT is made this day o 19��, by and amongri 2
A L. LL whose address is 6A Ha Dr. 441102, Hu Ingo Beach, CA the � AN . CARRI O, a � Happy � h, ( �
"Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") 2�
? and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public a r
U' 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, HONVEVER, to the right, power and
authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents,
issues and profits, and ail sums of money payable on the purchase price of said property secured
by a lien thereon or payable under any agreement.
Sac- CC2(L_%b;4 J" ) i,
Page 1 of 15
a,:wgw:arri11o:nce&a 2ns.4)4
A. FOR THE PURPOSE OF SECURING:
I . Payment of the sum of Thirty-five Thousand Dollars ($35,000) 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
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
Z 9_qS71nsofar as the terms and conditions of that agreement may apply to
rustor.
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:
I. 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
Page 2 of 15
41sV47=:Carri11o:Dca 12,'2V94
S
Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation;
(c) to replace any work or materials unsatisfactory to Beneficiarywithin 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; (0 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 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 v~ith 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 «ithout 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 Trupr for the cost of rebuilding or restoring the buildings
Page 3 of 1 :)
4'slAgm:Csn illo:nrcd,l2,2&94
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 (14) 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 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, (0 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.
Page 4 of 15
4's%Agee:Csrri11o:D &1212V94
S. 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 attorneys 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.
5. 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 alienate
said property, or any party thereof, or any interest th-crein, 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.
Page 5 of 15
41&%AVtc:Canillo:Dced%12:&94
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 Beneficiary 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 Beneficiary any duty to
produce rents from the property affected by this Trust Deed, or cause Beneficiary 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 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.
Beneficiary confers upon Trustor a license (" [.icense") 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 Beneficiary 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 Beneficiary or Tnlstee the right to possession, except as
otherwise provided herein; and neither said right, nor termination of the License, shall impose
upon Beneficiary 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, Trustoes 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
Page fi of 15
",AgmCarrillo:Dea 1712W94
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' tees, 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
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 rot 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. If 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
Page 7 of 15
W,s1Agee: Cori 11 o: peed. l 2."I &'94
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 d:posit 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.
15. 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, devisces, administrators, executors, successors and assigns. The term
"Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby,
Page 8 of 15
4'4%Agree:CanitIo:D &12.'2&94
whether or not named 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.
I9. 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, annually on
January 1, a written operational report. Such operational report shall contain a brief but complete
statement of the year'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
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 shov%7ng 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.
Page 9 of 15
4'sVkg=:Carri11o:Dce&.12n V94
LP M
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 herein before set forth.
TRUSTOR:
By:
APPROVED AS TO FOW
A gnc,,,ounsel
� S
r
Page 14 of IS
41:IAgrec: Cam 11 o: Deed`.12/2 &94
�) k,4moor
STATE OF CALIFORNIA )
ss
COUNTY OF Orange )
On January 26,1995 , before me, Djive E. Lunt
(name, title, e.g., "Jane Doc, Notary Public"),
personally appeared Ana Carrillo
(namc(s) of signer(s)),
personally known to be — OR —
X proved to me on the basis of satisfactory evidence
to be the person(s) whose n..une(s) is/are subscribed to the %%ithin instrument and acknowledged to me that
hc/shc/they executed the same in his/her/their authorize' capacity(ics), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument. t*-�
cal.
r rDim f. LUNT 'O
Cmm. 0 9767G4
•• 111 ARY PUBM • C LFOW
----'(§igUturc of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate OfEccr(s):
Title(s)
Partncr(s): Limited General
Attorney -in -Fact
Trustce(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s) or Entity(ics)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCMIENT
DESCRIBED
AT_RIGIM
Title or Type of Document
Number of Pages
Date of Document
Signcr(s) Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 7 of 8
4'slAgree:Carri]]o:Dcdaration of Conditiow%12128194
ZL*iar$lops
• • s•e
ewttoq
-U,
A MmaMmm, as defired in Section 7B3 of the California Civil Code, in fee
Title to said estate or interest at the date hexwf is vested in:
Sa_ssounian Capital Ventures, Inc., a California Corporation
The lard referred to in this report is situated in the State of Califa mia,
Canty of Orange, and is described as follaww:
A CbrAcm niun m%irised of:
PAF4=M l:
An undivided one twenty second (1/22) fee sinple interest as a tenant in amnm
in and to all of the ern Area defined 1n Declsratiat referred to belt7w and
des=-lbed in the Condaniniun Plan ( "Plan") for Lot 1 of Tract No. 14M, which
Plan was recorded on August 25, 1994 as Imtrunent: No. 94-0525335 of Official
Records of Orals County, over Lct 1 of Tract No. 14828, in the City of
HLintington Heath, County of Orange, State of California, as per map filed in
Hook 706, Pages 27 through 29 of Miscellaneoms Imps, in the offloe of the County
Pn==dar of said County.
tea./
*• 1- i *4 TIVIFFa�
EXCEFUM TtMF<EFM4 all oil - petroleum, asphalttxn, gas, minerals and other hydrocarbon
substwces, as reserved in •az• recorded August 16, .1921 Jn Book 401, Page• of Esc•-
a- 1 varlais other •sa• of a.a•
PARCEL 2:
Unit No. of certain airspace and surfam elements, as shown end described in
the ininiun Plan referred to in Parcel 1 BbOF e.
PARCEL 3:
Non-eja=lusive easements for access,kUress, egress, use, m j q.:r mt, drainage,
support, maintm-ma ce, repairs, and for other purposes, all as described in
that certain Declaration of Covenants, Cor ditions and fictions and Fleservation of
Ease -rants for Pacific Paris Villas, recorded August 25, 1994 as Instrument No. 94-0525336
of Official Records.
PARCEL 4:
DEED CERTIFICATION
(Redevelopment Agency)
This is to certify that the interest in real property conveyed by the Deed
dated January 26, 1995, from Ana L Carrillo to the Redevelopment
Agency of the City of Huntington Beach, a public body, corporate and
politic is hereby accepted by the undersigned officer or agent on behalf
of the Redevelopment Agency of the City of Huntington Beach, pursuant
to the authority conferred by Resolution No 76 of the Redevelopment
Agency of the City of Huntington Beach, and the grantee consents to the
recordation thereof by its duly authorized officer
Dated February 15, 1995
Redevelopment Agency of the
City of Huntington Beach
Connie Brocxway
Agencv Clerk
BY - 't � -
- --------- --- ---- -- ----
Agency Clerk
(den i se/report/deedcert)
RTDER TO DEED OF TRUST
FIRST THE HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated January 26 , 19 95 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000) (the "Loan Amount").
All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings
as defined in the Loan Agreement.
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 such
sale, transfer or refinancing, 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
of the Agency Deed of Trust: fifty percent (50%)
2. After fifth anniversary but)
prior to sixth anniversary: forty-eight percent (480"o)
3. After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4. After seventh anniversary but
prior to eighth anniversary: forty-four percent (44%)
5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (360/*)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
"Exhibit C" to Loan Agreement
Page 11 of I5
41svgee:c,ff;11o:no& 1 vz19a
10. Auer thirteenth anniversary but
prior to fourteenth anniversary:
thirty-two percent (32%)
11.
After fourteenth anniversary but
prior to fifteenth anniversary:
thirty percent (30%)
12.
After fifteenth anniversary but
prior to sixteenth anniversary:
twenty-eight percent (28%)
13.
After sixteenth anniversary but
prior to seventeenth anniversary:
twenty-six percent (26° o)
14.
After seventeenth anniversary but
prior to eighteenth anniversary:
twenty-four percent (24%)
15.
After eighteenth anniversary but
prior to nineteenth anniversary:
twenty-two percent (22%)
16.
After nineteenth anniversary but
prior to twentieth anniversary:
twenty percent (20%)
17.
After twentieth anniversary but
prior to twenty-first anniversary:
eighteen percent (18%)
18.
After twenty-first anniversary but
prior to twenty-second anniversary:
sixteen percent (16%)
19.
After twenty-second anniversary but
prior to twenty-third anniversary:
fourteen percent (14%)
20.
After twenty-third anniversary but
prior to twenty-fourth anniversary:
twelve percent (125/o)
21.
After twenty-fourth anniversary but
prior to twenty-fifth anniversary:
ten percent (10%)
22.
After twenty-fifth anniversary but
prior to twenty-sixth anniversary:
eight percent (8%)
23.
After twenty-sixth anniversary but
prior to twenty-seventh anniversary:
six percent (6%)
24.
After twenty-seventh anniversary but
prior to twenty-eighth anniversary:
four percent (4%)
"Exhibit C" to Loan Agreement
Page 12 of 15
4 al Um:Carrillo:Dcc& 12128.94
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (01/o)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, Ioan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's
interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
The percentage factor so determined is the "Applicable Factor." If the Property is sold, an
amount equal to the Applicable Factor multiplied by the difference between (i) the original
Property purchase price and (ii) the amount received by Trustor as the Property sale price (as
reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the
Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is
subordinate is refinanced for a loan amount which is in excess of the then current Ioan balance or
Wends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a
certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in
such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference
between (i) the original Property purchase price and (ii) the appraised value of the
"Exhibit U to Loan Agreement
Page 13 of 15
4`s\Agree:Carritio:Dea,1212&94
Property as of the time of such transfer or refinancing,.
Dated: January 26,1995 TRUSTOR
APPROVED AS TO FORM:
14
Ag Attorney P—K- 4 -�Iz8 j1q
"Exhibit C" to Loan Agreement
Page 14 of 15
N
4's1Agree:Grrillo:Dft&l212&'J4
STATE OF CALIFORNIA )
ss
COUNTY OF Orange
On January 26,1995 , before me, Djive E. Lunt
(name, title, e.g., "Jane Doc, Notary Public"),
personally appeared Ana Carrillo
(namc(s) of signcr(s)),
personally kno«n to be -- OR --
x proved to me on the basis of satisfactory evidence
to be the person(s) whose na..-ne(s) is/arc subscribed to the ,%%ithin instrument and acknowledged to me that
he/she/they executed the same in his/hcr/their authorized capacity(ies), and that by his/hcr/their sigmture(s)
on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officcr(s):
Titic(s)
Partner(s): Limited General
Attorney -in -Fact
Trustcc(s)
Gua rdian/Conscrvator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s) or Entity(ics)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACIi4tENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE
MUST BE ATTACI'IED
TO THE DOCUMENT
DESCRIBED
AT RIGHT:
Title or T)pc of Document
Number of Pages
Date of Document
Signcr(s) Other Than Named Above:
"Exhibit D" to Loar. Agreement
Page 8of8
441Agrce:Carri11o:Doc1aration of Condi:ionslt 2/28'94
RIDER TO DEED OF TRUST
SUPERIORITY OF FIRST LENDER DOCUMENTS
(if required by the First Lender)
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated January 26 , 19 95 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000) (the "Loan Amount").
All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings
as defined in the Loan Agreement.
Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the
rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender
as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter
recorded against the property described herein.
Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions
of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of
one of the following events:
1) Title is acquired by the First Lender or another party upon foreclosure of a deed of
trust by the First Lender.
2) Title is acquired by the First Lender or another party by a deed in lieu of
foreclosure of the First Lender deed of trust.
Dated: January 26,1995
APPROVED AS TO FORM:
zl=_z
cTttorney
TRUSTOR:
"Exhibit C" to Loar. Agreement
Page 15 of 15
,Vz\A&-.CaniIIo:Dced,12,I&'94
STATE OF CALIFORNIA )
Ss
COUNTY OF Orange )
On January 26 ,1995 , before mc, p] ive E. Lunt:
(name, title, e.g., "Sane Doc, Notary Public"),
personally appeared Ana Carrillo
(namc(s) of signer(s)),
personally kro«m to be -- OR --
x proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) Ware subscribed to the within instrument and acknowledged to me that
he/she/thcy executed the same in his/her/their authorized capacity(ics), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of Bch' c person(s) acted, executed the
instrument.
Witness my hand and official seal.
N E E. (UN7 t
Co m. 8 978764
FX)WY PUBLIC . CALM=
OrNge Cocr+ty
Icy Ceram (uxas NN. 22.1995
Individual
Corporate Officer(s)-
Tide(s)
Partner(s): Limited General
Attorney -in -Fact
Trustcc(s)
Guardian/Conscrvator
Other
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ics)
of Notary)
ATTENTION NOTARY: Although the infonnation requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT RIGIIT:
Title or Type of Document
Number of Pages
Date of Document
Signcr(s) Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 6 of 8
A`slAgrrc:Carri11o: Dcclaration of Condition\] 212&94
EXHIBIT D
DECLARATION OF CONDITIONSCOVENANTS
AND RESTRICTIONS FOR PROPERTY
RECORDING REQUESTED BY }
AND «'HEN RECORDED MAIL TO: }
Redevelopment Agency of the City of )
Huntington Beach }
2000 Main Street )
Huntington Beach, CA 92648 )
Attn: Agency CLerk
(Space above for Recorder's use.)
THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR
PROPERTY (the "Declaration") is made by and between ANA L. CARRILLO (the
"Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set
forth below.
RECITALS
A. Covenantor and the Agency have entered into a certain Loan Agreement dated
January 26 " 19_ 95, (the "Agreement," a copy of which is on file with the Agency
at its offices and is a public record) pursuant to which the Covenantor has agreed to subject
certain real property (referred to in the Agreement and referred to herein as the "Property")
described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and
incorporated herein by this reference) to certain covenants, conditions and restrictions.
II_ The Community Redevelopment Law (California Health and Safety Code
§ 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the
land in furtherance of redevelopment plans.
NOW, THEREFORE, the parties hereto agree and covenant as follows:
"Exhibit D" to Loan Agreement
Page I of 8
4's\Agoe:C& r 11o:Dcc1w& ion or Condit ions11178t94
1. Affordability Covenants. Covenantor agrees for itself, and its successors and
assigns, and every successor to Covenantoes interest in the Property, or any part thereof that for
thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding
the Property (the "Expiration Date"):
(a) The Property shall only be owned and occupied by Convenantor or by
other persons or families of "Moderate Income." "Moderate Income" shall mean persons or
families earning One Hundred Twenty Percent (120%) or less of Orange County median income,
adjusted for appropriate family size.
(b) The Property shall be kept available at Affordable Housing Cost (as defined
below) to the Covenantor or other persons or families of moderate income. Affordable Housing
Cost shall mean, as to each person or family of low or moderate income, that purchase price
which would result in monthly housing payments which do not exceed an amount under any
currently prevailing conventional home mortgage leading rates applied by any reputable
institutional home mortgage lender, or the lending rates of any government -subsidized or special
mortgage program for which such person or family qualifies and has obtained a first trust deed
loan, which do not exceed thirty-five percent (351/6) of One Hundred Ten Percent (1101/6) of the
Orange County monthly median income for those persons and families of moderate income (as
determined by the United States Department of housing and Urban Development) earning
between Eighty Percent (80%) and One Hundred Ten Percent (110%) of the Orange County
monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any
person or family of moderate income which earns more than One Hundred Ten Percent (110%)
and not more than One hundred Twenty Percent (120%) of the Orange County median income.
(c) The covenant contained in this Section 1 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date,
2. Transfer of Property. No transfer of the Property shall occur until the Agency
determines (a) that the proposed purchaser intends to occupy the Property as the proposed
purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate
income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency
shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted
to the Agency such information and completed such forms as the Agency shall request to certify
the proposed purchaser's intent with respect to its residency of the Property and its gross income,
and the proposed purchaser has submitted an affida%i, disclosing and certifying the amount of the
proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which certifies that the purchaser is aware
that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate
income person or family, that the maximum permitted sales price may be less than fair market
value and that the unit must be owner -occupied at all times and cannot be rented or leased.
Covenantor shall cooperate -with the Agency in providing such forms to proposed purchasers and
in assisting proposed purchasers to prepare such forms and to provide any required information to
the Agency in connection with the Covenantor's original sale of the Affordable Unit, provided that
"Exhibit D" to Loan Agreement
Page 2 of 8
WaNA ree:CarrMo:DeclarationofConditions%l2.'I&'9a
the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith,
other than employee time dedicated to providing such assistance.
THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE
HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER,
TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED
TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE
TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR
MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN
THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT
ENCUMBERED BY THIS RESTRICTION. COVENA11%70R AND EACH SUCCESSOR,
HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL
TIDIES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAINIE .IES AT AN AFFORDABLE HOUSING COST.
Covenantor Initials
The covenant contained in this Section 2 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
3. Non -Discrimination Covenants. Covenantor covenants by and for itself its
successors and assigns, and all persons claiming under or through them that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, locatioe, number, use or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the Property.
Covenantor and its successors and assigns, shall refrain from restricting the rental
or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion,
sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts
shall contain or be subject to substantially the following nondiscrimination or non segregation
clauses:
(a) In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or group of
persons on account of race, color, religion, sex, marital status, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed,
"Exhibit D" to Loan Agreement
Page 3 of 8
41&\AVec:C&M11o:bcd&n1ion orconditk=X117V)4
nor shall the grantee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or
vendees in the land herein conveyed. The foregoing convenants shall run with the land."
(b) In leases: "The lessee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assigns, and aII persons claiming under or through
him or her, and this lease is made and accepted upon and subject to the following conditions:
"There shall be no discrimination against or segregation of any person or
group of persons on account of race, color, religion, sex, marital status, ancestry or national
origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises
herein leased nor shall the lessee himself or herself, o- any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees,
subtenants or vendees in the premises herein leased."
(c) In contracts: "There shall be co discrimination against or segregation of, ,
any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessee or vendees of the premises."
Nothing in this Section 3 shall be construed to authorize the rental or lease
of the Property if such rental or lease is not otherwise permitted. The convenants in this
paragraph 3 shall run with the land in perpetuity.
4. Covenants Do Not Impair Lien. No violation or breach of the covenants,
conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or
render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security
interest.
5. Covenants For Benefit of City and nd A&cM. All covenants without regard to
technical classification or designation shall be binding for the benefit of the Covenantee and the
City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee
and the City for the entire period during which such covenants shall be in force and effect, without
regard to whether the Covenantee or the City is or remains an owner of any land or interest
therein to which such covenants relate. The Covenantee and the City, in the event of any breach
of any such covenants, sha?1 have the right to exercise all the rights and remedies and to maintain
any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such
"Exhibit D" to Loan Agreement
Page 4 of 8
*"Vroe:Ca rilto:AcdarationofConditicm\i=8.94
breach to which it or any other beneficiaries of these covenants may be entitled during the term
specified for such covenants, except the covenants against discrimination which may be enforced
at law or in equity at any time in perpetuity.
IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument
to be executed on their behalf by their respective officers hereunto duly authorized, this _2ftAay
Of Januacy . I9--K.
COVENANTOR
APPROVED AS TO FORM:
T _qf" envy Counsel L Z
"Exhibit D" to Loan Agreement
Page 5 of 8
4`Mgrec:Carri1to:Dedaration of CmWi:ionskl 128.94
Z2 a estate or in#reaet in the land hereinafter described or referred to Covered
by this repor-t is:
A CaNDUqUULH, as defined in Section 783 of the California Civil Gode, in fee
Title to said estate or interest at the date hereof is vested in:
Sasssoanian Capital Ventures, Inc., a California Corporation
The land referred to in this report is situated in the State of California,
County of Orange, and is described'as follows:
A CLmdaminiun ocz, sed of:
MUM 1:
An undivided one twenty saaond (1/22) fee simple interest as a tenant in armrn
in and to all of the C1Wr non Area defined in Declaration referred to below and
described in the C ondominiun Plan (",Plan") far lot 1 Of Tract No. 14828, which
Plan was reo=ded on August 25, 1994 as Instrummt M. 94-0525335 of Official
P oozds of Orange County, over Lot 1 of Tract No. 14828, in the City of
Huntington Beach, Ctxmty of Orange, State of California, as per map filed in
Bode 706, Pages 27 through 29 of MiscellareDus Maps, in the office of the County
P corder of said County.
MOM No.: 9402203-N
i 0Ooao
Exj== noEmmi all oil, Petroleum, asphaltum, gas, minerals and other -
subGtwx�es, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
Unit M. of certain airspace and surface efts, as shown and desczibed in
the ConddRinium Plan referred to in Parcel 1 above.
PARS 3:
Non-exclusive easements for access, inr� , egress, use, erjoyrwnt, drainage,
t, suppox•t, mainbenance, repairs, and for other purposes, all as d9=1bed in
that certain Declaration of Covenants, CordLtions and Restrictions and Resexvaticn of
Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336
of Official records.
PARCEL
re� CITY OF HuN-nNGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNE BROCKWAY
CRY CLERK
TRANSMITTAL OF DOCUMENTS - 0-- -'y-us�—
Date:
TITLE COMPANY
SUBJECT: DOCUMENTS RELATED TO ANA A. CARRILLO (Participant) and REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH - 7861 Happy Drive #IO2
ESCROW C014PANY Tt er4
ESCROW NUMBER 94— 6 �'2"D �tr7
N �� *�- to (�
Signature of representative from
Messenger Service
If
ixu�4re-7ff3?
)y" 38 pl-� .
{Telephone: 714-53 "2271