HomeMy WebLinkAbout2009 CON CDC Homeowner's Regulatory Agreement HOME Program - Antonio Tan1
Recording Requested By
Lawyers rfti f
FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
WHEN RECORDED PLEASE MAIL TO:
City of National City
Housing and Grants Division
1243 National City Boulevard
National City, CA 91950-4397 /
1 / 317h4v5"
DOC # 2077-0457607
11111111111101111111111111111111111111111111111111101111111111111
SEP 02, 2011 4:18 PM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 0.00
11889 PAGES: 10
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(SPACE ABOVE FOR RECORDER'S USE ONLY)
APN: 560-281-09-00 FTHB #1134-H03-NC
HOMEOWNER'S REGULATORY AGREEMENT FOR HOME PROGRAM PARTICIPATION
THIS REGULATORY AGREEMENT (Regulatory Agreement" or "Agreement") is entered into as of this 10th
day of August, 2011 between the City of National City ("City"), and a Qualifying Household, on behalf if itself and
Antonio Tan and Cristina Tan ("Owners").
PREFACE
WHEREAS, the City of National City receives a formula HOME Investment Partnerships ("HOME") Program
allocation from the Federal Department of Housing and Urban Development to carry out eligible activities in accordance with
program requirements; and
WHEREAS, the Owner is interested in participating in City 's HOME -funded First -Time Homebuyer Program, and
will comply with all program regulations and requirements; and
WHEREAS, concurrently with the recordation of this Regulatory Agreement the City is funding a loan ("Loan")
secured by a deed of trust ("Deed of Trust") to aid Owner, who is a first-time homebuyer, in acquiring the Property described
below. The Trust Deed and Loan by the City was conditioned in part upon the recordation of a document setting forth
certain restrictions upon the use and sale of the Property; and
WHEREAS, Owner will use the proceeds of such Loan for the acquisition of the real property with the street address
of 2131 B Avenue, National City, California, 91950 more particularly described in Exhibit A attached and incorporated by
this reference ("Property"); and
WHEREAS, as further consideration for the Loan and to further the interests of City, the Owner has agreed to enter
into and record this Agreement.
The covenants in this Agreement are intended to run with the land and be binding on the Owner for the full term of this
Agreement.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS;
The Owner shall receive HOME Investment Partnership funds for investment in real property owned by the Owner, as
evidenced by legal title or a valid contract of sale. Acting in this capacity, the Owner will comply with all aspects of HOME
regulations 24 CFR §92.504 including the following:
A. DEFINITIONS
The following terms have the meanings and content set forth in this Section A where used in this Agreement or attached
exhibits.
1. "AREA MEDIAN INCOME" means the median income for the San Diego County Primary Metropolitan
Statistical Area (PMSA), with adjustments for household size, as adjusted from time to time by the U.S.
Dept. of Housing and Urban Development (HUD).
2. "CITY" is of the City of National City, California, a public body corporate and politic.
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3. "DEED OF TRUST" means any deed of trust, assignment of rents, and security agreement placed on the
Property or any part thereof as security for any Loan and other obligations with Owner as trustor and City
as beneficiary, as well as any amendments to, modification of, and restatements of said deed (s) of trust.
4. "EFFECTIVE PERIOD" means the period commencing on the date of this agreement and ending on the
repayment of the Loan from the City, including the repayment of any required Equity.
5. "EIGHTY PERCENT OF AREA MEDIAN INCOME" means annual income, which does not exceed eighty
percent (80%) of the Area Median Income.
6. "HUD" means the United States Department of Housing and Urban Development.
7. "HOME FUNDS/HOME INVESTMENT": funds received pursuant to the HOME Investment Partnership
Program under the Department of Housing and Urban Development (HUD), codified at 42 U.S.C. Section
12701, et seq., 24 CFR Part 92, to provide funds for affordable housing.
8. "HOMEOWNER INVESTMENT": homeowner's down payment and any capital improvement investment
made by the owner since purchase.
9. "HOUSE" means the residential dwelling unit that is located on the Property.
10. "LOAN" is any Loan of funds provided by the City to any Owner for the purchase of the Property.
11. "LOAN DOCUMENTS" are collectively the Deed of Trust, Note, Note Rider, this Regulatory Agreement
and any loan agreement, deed of trust, or promissory note entered into between City and Owner with
respect to any of the Property, as they may be amended, modified or restated from time to time, along
with all exhibits and attachments to these documents.
12. "NOTE" means the promissory note and note rider executed by Owner in favor of City evidencing any
part of a Loan, which is secured by a Deed of Trust, as well as any amendments to, modifications or, or
restatements of said promissory note. The Note will be on file with the City.
13. "OWNER" or "OWNERS" is the Qualifying Household that is the purchaser of the Property.
14. "PROPERTY" means the real property located at: 2131 B Avenue, National City, California, 91950
and described in the attached Exhibit A, which is hereby incorporated into this Agreement by this
reference, and any buildings or improvements now or hereafter situated on said real property.
15. "QUALIFYING HOUSEHOLD" means a household whose income is Eighty Percent of Area Median
Income, as determined periodically by HUD, with adjustments in accordance with 24 CFR 92.252, and
who is otherwise eligible to purchase the Property.
16. "QUALIFYING SALES PRICE" means a sales price that does not exceed 95 percent (95%) of the
median purchase price for the area, as determined by the U.S. Department of Housing and Urban
Development.
B. TERM OF AGREEMENT
The term of this Agreement shall remain in full force and effect during the Effective Period regardless of any expiration of
the term of any Loan, any payment or prepayment of any Loan, any assignment of a Note, any reconveyance of a Deed
of Trust, or any sale, assignment, transfer, or conveyance of the Property, unless terminated earlier by the City in writing
or extended by the mutual consent of the parties. However, failure to record this Agreement by the City shall not relieve
Owner of any of the obligations specified herein. The covenants in this Agreement will run with the land for the benefit of
the City and its heirs, assigns and successors and be binding on Owner and Owner's heirs, assigns and successors for
the full term of this Agreement.
C. USE OF FUNDS
The Loan will be used to acquire the Property by the Owner who is a member of a Qualifying Household.
D. AFFORDABILITY
1. The House will qualify as affordable housing and will have:
(a) an initial purchase price that is a Qualifying Sales Price; and
(b) an estimated appraised value at acquisition that does not exceed Qualifying Sales Price.
2. The House must be the principal residence of the Owner at all times during the Effective Period.
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3. The deferred Loan for the HOME -assisted House is $ 40,000.00.
E. RECAPTURE OF HOME FUNDS
Pursuant to 24 CFR 92.254(a) (ii), the City requires that HOME funds be recaptured if the housing does not continue to
be the principal residence of the family. If there is a "transfer," the principal amount of the Note, together with a share of
the "Equity" (if any), as hereafter defined, shall be immediately due and payable to the City. A "transfer" means (1) all or
any part of the Property or any interest in the Property that is sold, conveyed or transferred; (ii) Owner is not a natural
person and a beneficial interest in Owner is sold, conveyed or transferred; (iii) all or any part of the Property is
refinanced, except as otherwise allowed by law; (iv) Owner does not occupy the Property as his, her, or their, primary
residence; (v) the leasing of all or any part of the Property; (vi) any material breach of the Note, Deed of Trust or this
Agreement; or (vii) the filing of bankruptcy by the Owner. The Equity in the Property shall be calculated and shared
between the Owner and City on the following basis:
# Months After Date of
Agreement
Buyer's Equity Share
(Increases 5% per year)
City Equity Share
(Decreases 5% per year)
0-12
(50%)
(50%)
13-24
(55%)
(45%)
25-36
(60%)
(40%)
37-48
(65%)
(35%)
49-60
(70%)
(30%)
61-72
(75%)
(25%)
73-84
(80%)
(20%)
85-96
(85%)
(15%)
97-108
(90%)
(10%)
109-120
(95%)
(5%)
Thereafter
(100%)
(0%)
If, for example, the Property is sold, rented, refinanced, conveyed, or transferred in the first year of the term of the Note
secured by this Deed of Trust, Owner shall receive fifty percent (50%) of the Equity in the Property and the City shall
receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar amount that constitutes the difference between
the sales price of the Property (or in the event of a sale of the Property for an amount other than its fair market value or
where there is no price established for the Property (i.e., rental or refinancing the Property, Borrower's failure to occupy
the Property, material breach of the Note, Deed of Trust or this Agreement; or the filing of bankruptcy by the Borrower,
the fair market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion) and the
sum of the following amounts:
(a) principal on the First Note and the Deed of Trust, along with any interest and fees due
thereon; and
(b) principal on the Note and Deed of Trust, along with any interest and fees due thereon;
(c)
and
all costs of sale, including costs of brokers' commissions, escrow fees, title costs and
fees, recording costs, etc.; and
(d) current year taxes, including all pro-rata real estate taxes calculated to the date of sale;
and
(e) borrower's down payment not including the Loan from the City to the Owner; and
(f) all principal paid down on the First Note and Deed of Trust; and
(g) costs of any improvements to the Property, provided such improvements were
approved by the City prior to construction and provided that such improvements have
been documented to the satisfaction of the City.
The amount of the Owner's share in the Equity of the Property shall increase by five percent (5%) per year, measured
on the anniversary of the date of the Deed of Trust is recorded against the Property. Correspondingly, the City's share in
the equity of the Property shall decrease by five percent (5%) per annum. For the sake of example, if the Property is
sold more than five (5) but less than six (6) years after the date of the Deed of Trust is recorded against the Property,
the City would have a twenty five percent (25%) share in the Equity and the Owner would have a seventy five percent
(75%) share in the Equity of the Property.
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In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item E.1.b above) will be due
and payable as provided herein. In the event that a negative Equity situation exists, i.e., the proceeds from the sale of
the Property are less than the balance of the Note, all net proceeds from the transfer or sale shall be paid to Beneficiary
in full satisfaction of the Note. When the HOME recapture requirement is triggered by a sale (voluntary or involuntary) of
the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the home investment due,
the participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price minus
superior Loan repayment (other that HOME funds) and any closing costs.
F. PROPERTY MAINTENANCE AND SECURITY
During the Effective Period, Owner shall at his or her own expense maintain the Property in good condition, in good
repair, and in decent, safe, sanitary and habitable living conditions for the benefit of that Owner's household. Owner
shall maintain the Property in conformance with all applicable state, federal and local laws, ordinances, codes and
regulations.
In the event that Owner fails to maintain the Property in accordance with these standards and after at least thirty (30)
business days prior notice to Owner, the City or the City's contractor or agent may, but shall be under no obligation to,
enter upon the Property, make such repairs or replacements as are deemed necessary in the City's discretion, and
provide for payment thereof. Any amount advanced by the City to make such repairs, together with interest thereon from
the date of such advance at the rate of seven percent (7%) per annum (unless payment of such an interest rate would
be contrary to applicable law, in which event such sums shall bear interest at the highest rate then allowable by
applicable law), shall become an additional obligation of the Owner to the City and shall be secured by any Deed of
Trust, if not previously reconveyed.
G. REPAYMENTS
HOME Funds that are loaned to the Owner are to be remitted (principal and interest, as warranted) to the City to be retained
and used as program income to originate additional Loans to First -Time Homebuyers.
H. PROPERTY REQUIREMENTS
Compliance with the following requirements is required as follows:
1. Maximum per -unit subsidy amount. The amount of HOME funds that a participating jurisdiction may
invest on a per -unit basis in affordable housing will not exceed the per -unit dollar limits established by HUD.
2. Property Standards. Housing that is assisted with HOME funds, at a minimum, must meet Section 8
Housing Quality Standards.
3. Property Cost Limits. The value of acquisition and development of the housing unit, located in the City of
National City must not exceed 95 percent (95%) of the median price for the area, as determined by the U.S.
Department of Housing and Urban Development.
4. Occupancy Requirements. The HOME Program requires that occupancy standards must be maintained
for the Effective Period for each of the assisted Houses as follows:
(a) The prospective purchaser must be low income; that is, the purchaser must have an annual (gross)
income that does not exceed Eighty Percent (80%) of Area Median Income, which will be determined at
either the time the household initially occupies the property or at the time the HOME funds are invested;
whichever is later.
(b) Each Owner must occupy the property as a principal residence. Only Loan default and subsequent
foreclosure negates the principal residence limitation.
5. Ownership Interest. The purchaser must have fee simple title upon sale of a HOME -assisted unit or
cooperative ownership interest upon sale of a HOME -assisted unit.
6. Refinance. The City will subordinate to the following refinance situations only, subject to City approval and
additional documentation is required:
(a) FHA streamline refinance, with a reduction in total PITI and no cash out.
(b) VA rate reduction refinance, with a reduction in total PITI and no cash out.
(c) Conventional rate and term refinance, with a reduction in total PITI and no cash out.
I. REVERSION OF ASSETS.
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' Owner must transfer to the City any HOME funds remaining in the Property after the time of expiration of the Effective Period
when there is a change to title on the Property or any sale, rental, refinance, conveyance or transfer of Property. Any funds
received as a result of this reversion of assets shall be used for additional HOME -eligible activities.
J. DEFAULTS AND REMEDIES.
In the event of any breach or violation of any agreement or obligation under this Agreement, the City may proceed with any
or all of the remedies as described in paragraph 18 of the Deed of Trust.
K. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS.
No officer, official, director, employee, agent or representative of the City shall be personally liable to Owner for any
obligation created under the terms of this Agreement except in the case of actual fraud or willful misconduct by such person.
L. INDEMNITY.
Notwithstanding the insurance coverage required herein, Owner shall indemnify and hold City and its officers, officials,
directors, employees, agents and authorized representatives (each, an "Indemnified Party," and collectively, "Indemnified
Parties"), free and harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and
legal or other expenses (including attorney's fees) which any Indemnified Party may incur as a direct or indirect
consequence of (1) Owner's failure to perform any obligations as and when required by this Agreement; (2) any failure of
any of Owner's representations or warranties to be true and complete; or (3) any act or omission by Owner or any contractor,
subcontractor, management agent, or supplier with respect the Property, except where such losses are caused by the sole
negligence or willful misconduct of Indemnified Parties. Owner shall pay immediately upon the City's demand any amounts
owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend Indemnified Parties in any court
action, administrative action, or other proceeding brought by any third party arising from the Property. Owner's duty to
indemnify Indemnified Parties shall survive the term of this Agreement.
M. SUBORDINATION.
This Agreement shall be subordinated in priority only to the liens and encumbrances approved in writing by the City in its
sole and absolute discretion.
N. GENERAL PROVISIONS
1. Governing Law. This Agreement shall be interpreted under and be governed by the laws of the State of
California, except for those provisions relating to choice of law and those provisions preempted by federal
law.
This Agreement Controls. In the event that any provisions of this Agreement and any Loan Documents
conflict, the terms of this Agreement shall control.
Time. Time is of the essence in this Agreement.
Consents and Approvals. For those provisions of this agreement which are expressly subject to consent
or approval of the City, said consent or approval shall not be unreasonably withheld. Any approval must be
in writing and executed by an authorized representative of the City.
Notices, Demands and Communications. Formal notices, demands and communications between
Owner and the City shall be sufficiently given and shall not be deemed given unless dispatched by mailing
it first class mail or by certified mail, return receipt requested, to the principal offices of Owner and City
as follows:
Community Development Department
City of National City
1243 National City Boulevard
National City, CA 91950-4397
New Owner: Antonio Tan and Cristina Tan
Address: 2131 B Avenue
National City, CA 91950
Any such written communications by mail shall be conclusively deemed to have been received by the
addressee five days after the deposit thereof in the United States Mail, postage prepaid and properly
addressed as noted above.
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Severability. Every provision of this Agreement is intended to be severable. If any provision of this
Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
Attorney's Fees. In the event of any litigation over the performance of this Agreement, the prevailing party
shall be entitled to attorney's fees and costs incurred during the course of litigation.
IN WITNESS HEREOF, the City and the Owner have executed this Agreement as of the date first hereinafter set forth.
City of Naity
By:
OWNER:
Name
OWNER:
Name
on Morrison, Mayor
Cristina Tan
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ACKNOWLEDGMENT
State of California )
County of San Diego )
On �,G(%Gl`7 � ZW /before me,
appeared ll.• i /v
!/L/Z , a Notary Public, personally
/G., who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) 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 persons 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.
th
A. RAMIREZ
CC tiwNi #19We 1 0
;U'AFVRNIA
'ANN 01E00 COUNTYx
My OcirirnIsslo'o
WIT and official seal.
Signature
Page 7 of 9
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11896
NOTARY SEAL CERTIFICATION
(Government Code 27361.7)
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE
DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS:
Name of the Notary:
/ 5 3z(
Commission Number: Date Commission Expires:
A,,, c Z4 2,IS
County Where Bond is Filed: S„ ('t p
Manufacturer or Vendor Number: Cs 1
Signature:
(Located on both sides of the notary seal border)
irm Name (if applicable)
Place of Execution: San Diego Date: / / "L)fl
ReC. Form 4R10.1 (Rev 6/11/03)
11897
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of San Diego )
On August 17, 2011, before me, Virginia Miller, Notary Public, personally appeared Ron
Morrison 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 he executed the same in his
authorized capacity, and that by his 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 Califomia that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signafe of Notary Public
VIRGINIA MILLER
Commission * 1874998
Notary Public - Calitoraia
San Dia90 County
Comm. 'aft 26 2013
Place Notary Seal Above
11898
EXHIBIT "A"
File No: 311317453
All that certain real property situated in the County of San Diego, State of California, described as
follows:
The Northwesterly half lot of Lot 4 in Block 3 of L.A. Weisser's subdivision of ten acre lot six in
quarter section 153 of the Rancho de La Nacion, in the City of National City, County of San Diego,
State of California, as per map thereof No. 1672, filed in the Office of the County Recorder of San
Diego County, August 24, 1915.
Assessor's Parcel Number: 560-281-09-00
CLTA Preliminary Report Form - Modified (11-17-06)
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