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Home My WebLink About2008 CON CDC Pacific View Estates - Subordination AgreementSUBORDINATION The undersigned, as Beneficiary of the beneficial interest in and under that certain Deed of Trust dated November 29, 2005, and recorded on December 29, 2005, as Document No. 2005-1117857 in the Official Records (the "Deed of Trust") which Deed of Trust is by and between Pacific View Estates, LLC, a California limited liability company, as Trustor, Chicago Title Company, as Trustee and The Community Development Commission of the City of National City, as Beneficiary, hereby expressly subordinates said Deed of Trust and its beneficial interest thereunder to the foregoing Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for PACIFIC VIEW ESTATES ("Declaration"). By executing this Subordination the undersigned agrees that should the undersigned acquire title to all or any portion of the Property by foreclosure or any other remedy in or relating to the Deed of Trust, the undersigned will acquire title subject to the provisions of the Declaration and any amendments thereto, which shall remain in full force and effect. Dated: June 3, 2008. By: 4/4/Jo ti Ron Morrison, Chairman Community Development Commission of the City of National City 82 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of SOJ) Djecn On before me, (f , rn . %rC, personally appeared 'i?r,n (Y)n rr .scs n , who proved to me on the basis of satisfactory evidence to be the personcei whose name( is/awe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/lax/t}ae±r authorized capacity, ( sj , and that by his/t�sr/fir 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. Signature of Notary Public Place Notary Scal Above RESOLUTION NO. 2008 — 100 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT WITH PACIFIC VIEW ESTATES, LLC, AS REQUIRED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE, FOR A 49 UNIT SINGLE-FAMILY PROJECT LOCATED AT 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 housing 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 housing units; and WHEREAS, pursuant to the State of California Department of Real Estate, the CDC Note and Deed of Trust must be subordinated to any Covenants, Conditions, and Restrictions (CC & Rs) on each of the five affordable single-family lots. 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. Said Subordination Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 3rd day of Jun ATTEST: Brad cretary APPROVED AS TO FORM: George H. Eiser, 111 Legal Counsel Ron Morrison, Chairm Passed and adopted by the Community Development Commission of the City of National City, California, on June 3, 2008, by the following vote, to -wit: Ayes: Commissioners Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Community Development Commission Secretary, ."' r y Development Commission By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2008-100 of the Community Development Commission of the City of National City, California, passed and adopted on June 3, 2008. Secretary, Community Development Commission By: Deputy CGprl-?,O City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE June 3, 2008 ITEM TITLE AGENDA ITEM NO. 24 Approve a Subordination Agreement with Pacific View Estates, LLC for a 49-unit single family project located at Fig Court and East Division Street in National City, CA, and authorize the Chairman to execute said Agreement as required by the State of California, Department of Real Estate PREPARED BY DEPARTMENT Alfredo Ybarra (Ext. 4279)i 4 ' housing and Grants Division 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 Last Division Street to the developer in exchange for the development of 5 affordable units for low income households (80% AM1), and a note in the amount of $810,000 in favor of the CDC..fhe note, which is secured by a deed of trust, shall convert to first time hone 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 State of California, Department of Real Estate, lenders must subordinate to Covenants, Conditions, and Restrictions (CCR's) for projects of five (5) or more units. If approved, the CDC promissory note and deed of trust shall be subordinated to the CCR's on each of the 5 affordable single family lots. Tonight's action is to consider the subordination of the CDC note and deed of trust to the CCR's imposed on the project's single family lots. Environmental Review Ni NIA Financial Statement There is no fiscal impact associated with this request. Approved By: Account No. finance Director STAFF RECOMMENDATION 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 authorize the Chairman to execute said Agreement. BOARD I COMMISSION RECOMMENDATION ATTACHMENTS ( Listed Below) Resolution No. a o 0 % - \ o O 1. Resolution 2. Subordination Agreement A-200 (9/99) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 June 5, 2008 Mr. Chris Warburton National Housing Fund, Inc. 4538 Cass Street San Diego, CA 92109 Dear Mr. Warburton, On June 3rd, 2008, Resolution No. 2008-100 was Community Development Commission of the City execution of a subordination agreement with Pacific We are forwarding for your records a certified copy a fully executed copy of the agreement. Sincerely, Michael R. City Clerk Enclosure alla, CMC cc: Community Development Commission passed and adopted by the of National City, authorizing View Estates, LLC. of the above Resolution and 0 Recycled Paper