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Home My WebLink About2007 CON CDC Pacific View Estates - Subordination AgreementRECORDING REQUESTED BY: WIIEN R['CORDED MAIL TO: Temecula Valley Bank 301 N. Magnolia Avenue, Suite 201 El Cajon, ('a. 92020 ATTN: P. Estrada SUBORDINATION AGREEMENT NOTICE: l'HIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJPC]1'O AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT trade this 3 day of July, 2007, by Pacific View Estates, LLC, a California limited Liability Company, owner of the land hereinafter referred to as "Owner", and The Community Development Commission of the City National City present owner and holder of the deed of trust and note first hereinafter described and hereinafter refen-ed to as "Beneficiary"; Wf I'NESSETH TIIAT WHEREAS, Pacific View Estates, LLC, a California Limited Liability Company did execute a deed of trust, dated November 29, 2005, to The Community Development Commission of the City National City, as trustee, covering: LOTS 1 THROUGH 56 OF PACIFIC VIEW ESTATES CASE NO. S-2004-16, IN THE CITY OF NATIONAL CITY, COUNTY OF' SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15556, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 29, 2007 to secure a note in the sum of S810,000.00, dated November 29, 2005, in favor of Pacific View Estates, LLC, a California Limited Liability Company, which deed of trust was recorded December 29, 2005, in book 2005-1117857 page ---, Official Records of said county; and WI IERE AS, Owner has executed, or is about to execute a deed of trust and note in the sum of $9,475,000.00, dated June 19, 2007, in favor of Temecula Valley Bank, N.A., hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hercinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and f'AGF: 1 WI IEREAS, i .ender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge ofthe deed of trust first above mentioned to the lien or charge ofthe deed of trust in favor of Lender; and WiIEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary' is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not ntakc its loan above described without this suhordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the suhordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of tnust hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to, those provisions, if any contained in the deed of trust above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledge that (a) He consents to and approves (i) all provisions ofthe note and deed of tnust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) !.ender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided Ibr in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) H.c intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance PAGE : upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS TILE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTI-IER PURPOSES THAN IMPROVEMENT OF TIIE LAND. The Community Development Commission of the City of National Cite BY: ITS: Ron M.orrison, Chairman BY: 1� ITS: George II. Eiser, I11, Leal Counsel Beneficiary Pacific View Estates, LLC, A California Limited Liability Company BY: National Housu_• Fund I California Nlemher BY Phil • M. c 1 ur, Presidcn Owner (All signatures must be acknowledged) PAGE 3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Sr--Ne �{O y, � On 1 /3/ 7 before me, rtti u C U V t IV (( C L.)a II /' Name and iNe of Officer (e.g., 'Jane Doe( Notary Public") personally appeared W t, V �� (ko d Narm(s) of Signer(s) StalillA SCOW Commission 1171►1 ? Nolorp Pubic - COMA* Liwunaus Oiovo Cou.W mesoul Place Notary Seal Above Kersonally known to me I i (or proved to me on the basis of satisfactory evidence) to be the person($ whose name( ge subscribed to the Aiiiih•i instrument and acknow edged to me that WO). r executed the sa a in s,= -it authorized ca.. ityr(teej, and that by i : - : r signature,(ej on the instrument the person , or the entity upon behalf of which the persop457 acted, executed the instrument. WI rhsSS m OPTIONAL and official seal. nature of Noary Pub t Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name Individual rl Corporate Officer — Title(s): J Partner — Li Limited r`., General !_ Attorney in Fact ., Trustee 1 Guardian or Conservator i I Other: Signer Is Representing: Signer's Name: Individual 7 Corporate Officer — Title(s): _- Partner — L Limited J General Li Attorney in Fact Trustee I Guardian or Conservator I Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here t) 2006 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402 Item No. 5907 Rm'ram Call Toll -Free 1-800-876•6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of at ,17 j e o On 7/16/0 -7 before me, . Q fr C It + My f Name Dalt, Nanand Tille of Officer te�.. 'Jane Doe. Notary Pu Ilc personally appeared tRDl1 %i?c>(r 1`s0 r) Names) of Signer(s) V. M. CRCUTT Commission!? 16S1N2 Way Public • Gallows San C o County MtfCa Uft r lt0a02I Place Notary Seal Almve l ��ersonally known to me 1 (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted. executed the instrument. WITNESS my hand and official seal. Om c Signature of Notary PuL,1 e OPTIONAL Though the information below is not squired by law. it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form 10 another document. Description of Attached Document Title or Type of Document: Sf..j) nrci 111G+icfl' ag t`-o Document Date: �j tr 3r a Ott "7 Number of Pages: __ 1 Signer(s) Other Than Named Above: C bod(Lr- anal G- r9.e_(-( Eise/,� Capacity(ies) Slaimed by Signer(s) Signer's Name: IaV /3to r r i so n i Individual i Corporate Officer — Title(s): "1 Partner — _I Limited 17 General Attorney in Fact Trustee E Guardian or Conservator ✓Other: CDC Chair mail RIGHT THUMBPRINT OF SIGNER Too of thumb here Signer Is Representing: De..u.¢.424261Cafti Calm m isS NJievi �r .� vi 2006 National Notary Atnociabon • 9350 De Soto Ave Signer's Name: i Individual Corporate Officer — Title(s): 1- Partner — U Limited 1 General Attorney in Fact !- Trustee I Guardian or Conservator L_ Other: Signer Is Representing: P.O. Flux 2402 -Chatsworth. CA 91313-2402 RIGHT THUMBPRINT OF SIGNER Too cf thumb hem Item No. b907 He nior Call Toil Free 1-8004376-682r RESOLUTION NO. 2007 — 157 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT WITH PACIFIC VIEW ESTATES, LLC FOR A 49 UNIT SINGLE FAMILY PROJECT LOCATED 1125, 1251, AND 1311 EAST DIVISION STREET WHEREAS, in November 2005, Pacific View Estates, LLC and the Community Development Commission of the City of National City (CDC) entered into a Disposition and Development Agreement (DDA) for the development of 49 single family units at 1125, 1251, and 1311 East Division Street; and WHEREAS, the transaction included the sale of the CDC -owned parcel located at 1125 East Division Street to Pacific View Estates in exchange for the development of five affordable units for low income households, and a note in the amount of $810,000 in favor of the CDC; and WHEREAS, the note, which is secured by a deed of trust, shall convert to first time home loans upon completion of the affordable units; and WHEREAS, pursuant to the DDA, the CDC note and deed of trust shall be subordinated to any construction deed of trust in the form acceptable to the CDC. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Subordination Agreement with Pacific View Estates, LLC for a 49-unit single family project located at 1125, 1251, and 1311 East Division Street. PASSED AND ADOPTED this 3rd day of Jul Ron Morrison, Chairman ATTEST: • Brad Secretary APPROVED AS TO FORM: George H. iser, III Legal Counsel Passed and adopted by the Community Development Commission of the City of National City, Califomia, on July 3, 2007, by the following vote, to -wit: Ayes: Commissioners Morrison, Natividad, Parra, Ungab. Nays: None. Absent: Commissioner Zarate. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Development Commission Secreta •rnrnuevelopment Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-157 of the Community Development Commission of the City of National City, Califomia, passed and adopted on July 3, 2007. Secretary, Community Development Commission By: Deputy City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT 14 MEETING DATE iuly 3 2007 AGENDA ITEM NO. ITEM TITLE Approve a Subordination Agreement with Pacific View Estates, LLC for a 49-unit single family project located at 1125, 1251, and 1311 East Division Street in National City, CA, and authorizing the Chairman to execute said Agreement PREPARED BY DEPARTMENT kic Xavier Del Valle, x4279 Community Development Commission Senior Project Manager EXPLANATION In November 2005, Pacific View Estates, LLC and the Community Development Commission of National City (CDC) entered into Disposition and Development Agreement (DDA) for the development of 49 single family homes at 1125, 1251, and 1311 East Division Street. The transaction included the sale of the CDC -owned parcel located at 1125 East Division Street to the developer in exchange for the development of 5 affordable units for low income households (80% AMI), and a note in the amount of $810,000 in favor of the CDC. The note, which is secured by a deed of trust, shall convert to first time home loans upon completion of the affordable units. The first time home buyer loans shall be made available to the buyers of the affordable units. Pursuant to the DDA, the CDC note and deed of trust shall he subordinated to any construction deed of trust in the form acceptable to the CDC in its reasonable discretion. Tonight's action is to consider the subordination of the CDC note and deed of trust to the note and deed of trust in favor of Temecula Valley Bank, N.A., the developer's construction lender. Environmental Review CEQA is not applicable Financial Statement The transaction for the above referenced project required the developer to execute a note in the amount of S810,000 in favor of the CDC. The note, which is secured by a deed of trust, shall convert to first time home loans upon completion of the affordable units. STAFF RECOMMENDATION CDC approve a Subordination Agreement with Pacific View Estates, LLC for a 49-unit single family project located at 1125, 1251, and 1311 East Division Street in National City, CA, and authorizing the Chairman to execute said Agreement. rATTACHMENTS 1.Resolution 2.Subordination Agreement Resolution No. 1 A-200 (9/80)