HomeMy WebLinkAbout2011 CON CDC Alberto & Margarita Moreno - Real Property Transaction DocumentsRecording Requested by:
First American Title
Subdivision Sale -Out
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4397
6401
And When Recorded Mail To:
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4397
ooc# 2077-0727453
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MAR 09, 2011 8:00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
ErnestJ. Dronenburg,Jr., COUNTY RECORDER
FEES: 0.00
DA: 1
PAGES 10
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This document is exempt from the payment of a recording fee pursuant to Government Code Section
6103.
DEED OF TRUST
THIS DEED OF TRUST is made this 22❑d day of February, 2011, between Alberto Moreno
and Margarita Moreno, Husband and Wife as Joint Tenants, whose address is 315 West 15th Street,
National City, California 91950 ("Trustor"); in favor of the Community Development Commission
of the City of National City ("Trustee"); for the benefit of the Community Development Commission
of the City of National City (`Beneficiary"), whose address is 1243 National City Boulevard,
National City, California 91950-4397;
TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with
power of sale, all that property in the City of National City, County of San Diego, State of California,
described as:
(See Legal Description - Exhibit "A")
FOR THE PURPOSE OF SECURING:
(a) Payment of the indebtedness evidenced by that certain Promissory Note Secured by Deed of
Trust, of even date herewith executed by Trustor, in the principal sum of Ninety Thousand Seven
Hundred Six Dollars and 00/Cents ($90,706.00), and any renewal, extension, or modification of the
promissory note (the "Note");
(b) Any additional sums and interest that may hereafter be loaned to the then record owner of the
Property by Beneficiary, when evidenced by another note or notes reciting that it or they are so
secured;
(c) That certain Affordable Housing Resale Restrictions, Option to Designate Eligible Purchasers
and Option to Purchase Upon Default ("Resale Restriction"); and
(d) The performance of each agreement contained in this Deed of Trust.
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A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. Maintenance and Repair. To keep the Property in good condition and repair; to pay when due
all claims for labor performed and materials furnished for the Property; to comply with all laws
affecting the Property or requiring any alterations or improvements to be made on the Property; not
to commit or permit waste of the Property; not to commit, suffer, or permit any act upon the Property
in violation of law; and to cultivate, maintain the landscaping, and do all other acts that from the
character or use of the Property may be reasonably necessary.
2. Fire Insurance. To provide, maintain, and deliver to Beneficiary fire insurance satisfactory to
and with loss payable to Beneficiary as its interest may appear. The amount collected under any fire
or other insurance policy may be applied by Beneficiary upon any indebtedness secured by this Deed
of Trust and in any order determined by Beneficiary, or at the option of Beneficiary the entire amount
so collected or any part of that amount may be released to Trustor, except that if the proceeds of the
award for any taking or injury to the Property or the amount of such proceeds plus funds provided by
Trustor is sufficient to allow for the repair and restoration of the Property and such repair and/or
restoration is physically and legally possible, then the Trustor shall use the proceeds of the award to
timely effectuate such repair and/or restoration. Upon receipt of such proceeds, Beneficiary may
hold the proceeds as further security, or apply or release them in the same manner and with the same
effect as provided in this Deed of Trust for the disposition of proceeds of fire or other insurance.
This application or release shall not cure or waive any default or notice of default under this Deed of
Trust or invalidate any act done pursuant to such a notice.
3. Defense of Security. To appear in and defend any action or proceeding purporting to affect
the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; and 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, and in any suit brought by
Beneficiary to foreclose this Deed of Trust.
4. Payment of Liens and Taxes. To pay, at least ten (10) days before delinquency, all taxes and
assessments affecting the Property, including assessments on appurtenant water stock, all
encumbrances, charges, and liens, with interest, on the Property or any part of the Property, which
appear to be prior or superior to this Deed of Trust; and all costs, fees, and expenses of this Trust. If
Trustor fails to make any payment or to do any act as provided in this Deed of Trust, then
Beneficiary or Trustee may (but is not obligated to) make the payment or do the act in the required
manner and to the extent deemed necessary by Beneficiary or Trustee to protect the security of this
Deed of Trust. The performance by Beneficiary or Trustee of such an act shall not require notice to
or demand upon Trustor and shall not release Trustor from any obligation under this Deed of Trust.
Beneficiary or Trustee shall also have the following related rights and powers: to enter upon the
Property for the foregoing purposes; to appear in and defend any action or proceeding purporting to
affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; to pay,
purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of either
appears to be prior or superior to this Deed of Trust; to employ counsel; and to pay necessary
expenses and costs, including attorneys' fees.
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5. Reimbursement of Costs. To pay immediately and without demand all sums expended by
Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at the
amount allowed by law in effect at the date of this Deed of Trust, and to pay any reasonable amount
demanded by Beneficiary (up to the maximum allowed by law at the time of the demand) for any
beneficiary statement requested by Trustor or any other beneficiary of a Deed of Trust encumbering
the Property regarding the obligation secured by this Deed of Trust.
6. Use. That Trustor will not permit or suffer the use of any of the Property for any purpose
other than the use for which the same was intended at the time this Deed of Trust was executed.
7. Incorporation of Note and Resale Restriction. That the Note and Resale Restriction are
incorporated herein by reference and made a part of this Deed of Trust.
8. Performance of Other Obligations. To perform, in a timely manner, each agreement and
covenant by and between Trustor on any and all notes, loans and deeds of trust that are senior and/or
junior to this Deed of Trust. A default in any of these obligations, beyond any applicable cure
period, shall constitute a default under this Deed of Trust.
B. THE PARTIES AGREE THAT:
9. Waiver of Late Payments. By accepting payment of any sum secured by this Deed of Trust
after its due date, Beneficiary does not waive its right either to require prompt payment when due of
all other sums so secured or to declare default for failure to pay any indebtedness secured by this
Deed of Trust.
10. Trustee's Powers. Upon written request of Beneficiary and presentation of this Deed of
Trust, Trustee may (a) reconvey all or any part of the Property; (b) consent to the making and
recording, or either, of any map or plat of all or any part of the Property; (c) join in granting any
easement on the Property; or (d) join in or consent to any extension agreement or any agreement
subordinating the lien, encumbrance, or charge of this Deed of Trust. Trustee need not provide
Trustor with notice before taking any of the foregoing actions, and shall not be liable for the proper
performance of the act. The exercise by Trustee of any of the foregoing powers shall not affect the
personal liability of any person for payment of the indebtedness secured by this Deed of Trust, or the
lien of this Deed of Trust on the remaining property as security for the repayment of the full amount
secured by this Deed of Trust.
11. Assignment of Rents. As additional security, Trustor hereby gives to and confers upon
Beneficiary the right, power, and authority during the continuance of these Trusts, to collect the
rents, issues, and profits of the Property, but reserves the right, prior to any default by Trustor in
payment of any indebtedness secured by this Deed of Trust or in the performance of any agreement
under this Deed of Trust, to collect and retain these rents, issues, and profits as they become due and
payable. Upon any such default, Beneficiary may, without notice and without regard to the adequacy
of the security for the indebtedness secured by this Deed of Trust, either personally or by agent or
court -appointed receiver, do the following: enter upon and take possession of the Property or any part
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of the Property; sue for or otherwise collect all rents, issues, and profits, including those past due and
unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and collection
(including reasonable attorneys' fees), upon any indebtedness secured by this Deed of Trust, in any
order determined by Beneficiary. The exercise of the foregoing rights by Beneficiary shall not cure
or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant
to such a notice.
12. Default and Foreclosure. Upon default by Trustor in the payment of any indebtedness
secured by this Deed of Trust or in the performance of any obligation under this Deed of Trust, the
Resale Restriction and/or the Note, Beneficiary may declare all sums secured by this Deed of Trust
immediately due and payable by delivering to Trustee a written declaration of default and demand for
sale and a written notice of default and election to sell the Property. Trustee shall cause the notice of
default and election to sell to be recorded. Beneficiary also shall deposit with Trustee this Deed of
Trust, a copy of the Agreement, and all other documents evidencing obligations secured by this Deed
of Trust. After the required time period has lapsed following the recordation of the notice of default,
and after notice of sale has been given as required by law, Trustee, without demand on Trustor, shall
sell the Property at the time and place specified in the notice of sale, either as a whole or in separate
parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash in
lawful money of the United States, payable at the time of sale. Trustee may postpone sale of all or
any portion of the Property by public announcement at the time and place of sale, and from time to
time thereafter may postpone the sale by public announcement at the time fixed by the preceding
postponement. Trustee shall deliver to the purchaser at the auction its deed conveying the Property
sold, but without any covenant or warranty, express or implied. Absent manifest error, the recital in
the deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any person,
including Trustor, Trustee, or Beneficiary, may purchase at the sale. After deducting all costs, fees,
and expenses of Trustee and Beneficiary under this paragraph, including costs of procuring evidence
of title incurred in connection with sale, Trustee shall apply the proceeds of sale to payment of: all
sums expended under the terms of this Deed of Trust, not then repaid, with accrued interest at the
amount allowed by law in effect at the date of this Deed of Trust; all other sums then secured by this
Deed of Trust; and the remainder, if any, to the person or persons legally entitled to the remaining
proceeds.
13. Further Encumbrances. Should the undersigned agree to or actually sell, convey, Transfer (as
defined in the Resale Restriction), dispose of, or further encumber the Property, or any part of it,
without first obtaining the written consent of the Beneficiary, then all obligations secured by this
Deed of Trust may be declared due and payable, at the option of the Beneficiary. Consent to one
transaction of this type will not constitute a waiver of the right to acquire consent to future or
successive transactions.
14. General Provisions. This Deed of Trust applies to, inures to the benefit of, and binds all
parties to this Deed of Trust and their heirs, legatees, devisees, administrators, executors, successors,
and assigns. The term "Beneficiary" shall mean the Community Development Commission of the
City of National City, and the heirs, legatees, devisees, administrators, executors, and assigns of any
such person. In this Deed, whenever the context so requires, the masculine gender includes the
feminine and/or neuter, and the singular number includes the plural.
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15. Substitution of Trustees. Beneficiary, or any successor in ownership of any indebtedness
secured by this Deed of Trust, may from time to time, by written instrument, substitute a successor or
successors to any Trustee named in or acting under this Deed of Trust. When executed by
Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or
counties where the Property is situated, the substitution instrument shall be conclusive proof of
proper substitution of the successor Trustee or Trustees. Any successor Trustee or Trustees shall,
without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers, and
duties.
16. Cumulative Powers and Remedies. The powers and remedies conferred in this Deed of Trust
are concurrent and cumulative to all other rights and remedies provided in this Deed of Trust or
given by law. These powers and remedies may be exercised singly, successively, or together, and as
often as deemed necessary.
17. Conclusiveness of Recitals. The recitals contained in any reconveyance, trustee's deed, or
any other instrument executed by the Trustee from time to time under the authority of this Deed of
Trust or in the exercise of its powers or the performance of its duties under this Deed of Trust, shall
be conclusive evidence of their truth, whether stated as specific and particular facts, or in general
statements or conclusions absent manifest error. Further, the recitals shall be binding and conclusive
upon the Trustor, its heirs, executors, administrators, successors, and assigns, and all other persons.
18. Attorneys' Fees. If any action is brought for the foreclosure of this Deed of Trust or for the
enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor agrees to
pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys' and experts'
fees; and these sums shall be secured by this Deed of Trust.
19. Inspections. Trustor shall permit Beneficiary and its agents or representatives, to inspect the
Property at any and all reasonable times, with at least 24 hours advance notice. Inspections shall be
conducted so as not to interfere with the tenants' use and enjoyment of the Property.
20. Hazardous Materials Defined. For purposes of this Deed of Trust, "Hazardous Materials"
mean and include any hazardous, toxic or dangerous waste, substance or material including, without
limitation, flammable explosives, radioactive materials, asbestos, hazardous wastes, toxic substances
and any materials or substances defined as hazardous materials, hazardous substances or toxic
substances in (or for purposes of) the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 ("CERCLA"), as amended (42 U.S.C. §9601, et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act (42
U.S.C. §6901, et seq.), and those substances defined as hazardous wastes in §25117 of the California
Health and Safety Code or as hazardous substances in §25316 of the California Health and Safety
Code or in any regulations promulgated under either such law, any so-called "Superfund" or
"Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation,
order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any
hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect.
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21. Trustor's Hazardous Materials Representations and Warranties and Indemnity. In addition to
the general and specific representations, covenants and warranties set forth in this Deed of Trust or
otherwise, Trustor represents, covenants and warrants, with respect to Hazardous Materials, as
follows:
(a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever
caused or permitted any Hazardous Materials to be manufactured, placed, held, located or disposed
of on, under or at the Property or any part thereof, and neither the Property nor any part thereof, or
any property adjacent thereto, has ever been used (whether by the Trustor or, to the best knowledge
of the Trustor, by any other person) as a manufacturing site, dump site or storage site (whether
permanent or temporary) for any Hazardous Materials;
(b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees, contractors
and agents, and hold Beneficiary, its officers, employees, contractors and agents harmless from and
against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every
kind whatsoever paid, incurred or suffered by, or asserted against Beneficiary, its officers,
employees, contractors or agents for, with respect to, or as a direct or indirect result of, the presence
or use, generation, storage, release, threatened release or disposal of Hazardous Materials on or under
the Property or the escape, seepage, leakage, spillage, discharge, emission or release of any
Hazardous Materials from the Property (including, without limitation, any losses, liabilities,
damages, injuries, costs, expenses or claims asserted or arising under CERCLA, any so-called
"Superfund" or "Superlien" law, or any other federal, state or local statute, law, ordinance, code,
rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct
concerning any Hazardous Materials) regardless of whether or not caused by or within the control of
Trustor. Notwithstanding the foregoing, Trustor's obligations under this section shall not apply to
any losses, liabilities, damages, injuries, costs, expenses, or claims which arise out of or relate to
Hazardous Materials which (i) were present, generated, released, or stored on the Property on or
before the date that Trustor acquired title to the Property or (ii) are generated, released or stored on
the Property after the date that Beneficiary takes possession thereof
(c) Trustor has not received any notice of (i) the happening of any event involving the
use, spillage, discharge, or cleanup of any Hazardous Materials ("Hazardous Discharge") affecting
Trustor or the Property or (ii) any complaint, order, citation or notice with regard to air emissions,
water discharges, noise emissions or any other environmental, health or safety matter affecting
Trustor or the Property ("Environmental Complaint") from any person or entity, including, without
limitation, the United States Environmental Protection Agency ("EPA"). If Trustor receives any
such notice after the date hereof, then Trustor will give, within seven (7) business days thereafter,
oral and written notice of same to Beneficiary.
(d) Without limitation of Beneficiary's rights under this Deed of Trust, Beneficiary shall
have the right, but not the obligation, to enter onto the Property or to take such other actions as it
deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or otherwise
deal with, any such Hazardous Materials or Environmental Complaint upon its receipt of any notice
from any person or entity, including without limitation, the EPA, asserting the existence of any
Hazardous Materials or an Environmental Complaint on or pertaining to the Property which, if true,
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could result in an order, suit or other action against Trustor affecting any part of the Property by any
governmental agency or otherwise which, in the sole opinion of Beneficiary, could jeopardize its
security under this Deed of Trust. All reasonable costs and expenses incurred by Beneficiary in the
exercise of any such rights shall be secured by this Deed of Trust and shall be payable by Trustor
upon demand together with interest thereon at a rate equal to the highest rate payable under the note
secured hereby.
(e) The foregoing representation, covenants, indemnities and warranties shall be
continuing and shall be true and correct for the period from the date hereof to the release of this Deed
of Trust (whether by payment of the indebtedness secured hereby or foreclosure or action in lieu
thereof), and these representations, covenants, indemnities and warranties shall survive such release.
22 Authority to Sign. All individuals signing this Deed of Trust for a party which is a
corporation, limited liability company, partnership or other legal entity, or signing under a power of
attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the
Beneficiary that they have the necessary capacity and authority to act for, sign and bind the
respective entity or principal on whose behalf they are signing.
TRUSTOR:
(I F� as k' i\.\Ov e no
Print Name:- &er ofict ceed Print Name: c, ccrA cn cnc e
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ACKNOWLEDGMENT
State of California )
County of San Diego )
On a , 2011, before me, I \T .\Retwrk., \i•, 4 "'`�
personally appeared A\ ON 0/'‘,0 who 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/SJ °cey executed the same in his/hertlheir authorized
capacity(ies), and that by his/1 heirsignature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) 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.
S ignature f\\ ]�
V\4
(Seal)
MARCIA J. NELSON
Commission # 1747197
Notary Public - California
San Diego County
11Comm.ExzlresJun23.2011,E
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ACKNOWLEDGMENT
State of California
County of San Diego
On
personally appeared 'i's\4n),o who proved to me on the
basis of satisfactory evidence 16 be the person(s) whose name(s) is subscribed to the within
instrument and acknowledged to me that Ike/she/they-executed the same in hiaWher/tlerauthorized
capacity(ies), and that by bielher/theirsignature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
2011 before me, I V16,t0..--s- AQ,Lah,
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.
(Seal)
MARCIA J. NELSON
Commission # 1747197
Notary Public - California
San Diego County
11Camm. E> hm23, 2011 t
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Exhibit "A"
Legal Description
Real property situated in the City of National City, County of San Diego, State of California,
described as follows:
PARCEL 2 OF CASE FILE NO. 2008-38 LS, ACCORDING TO PARCEL MAP THEREOF
NO. 20679, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY, CALIFORNIA, ON JULY 14, 2009.
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Recording Requested by:
First American Title
Subdivision Sale -Out
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4397
And When Recorded Mail To:
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4397
6378
D O C # 2011-0 12745 I
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MAR 09, 2011 8:00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 0.00 WAYS: 2
PAGES 15
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AFFORDABLE HOUSING RESALE RESTRICTIONS,
OPTION TO DESIGNATE ELIGIBLE PURCHASERS AND
OPTION TO PURCHASE UPON DEFAULT
(315 West 151h Street, National City, CA 91950)
This Affordable Housing Resale Restrictions, Option to Designate Eligible Purchasers
and Option to Purchase Upon Default ("Resale Restriction") is executed this 22nd day of
February, 2011, by the Community Development Commission of the City of National City
("CDC"), and by Alberto Moreno and Margarita Moreno, husband and wife as joint tenants, as
owner ("Owner") of the real property located in the City of National City, County of San Diego,
State of California, more particularly described on Exhibit "A" attached hereto (the "Restricted
Unit").
RECITALS
A. Owner is purchasing the Restricted Unit from San Diego Habitat for Humanity,
Inc. ("Habitat") concurrently with the execution and delivery of this Resale Restriction. The
Restricted Unit is part of a larger parcel of real property (the "Habitat Property") that was
previously sold by the CDC to Habitat.
B. The CDC purchased the Habitat Property from the previous owner utilizing HUD
HOME funds. HUD HOME funds are to be used solely for the construction, use and occupancy
of affordable housing in accordance with 24 Code of Federal Regulations Part 92. Owner and
the CDC are executing this Resale Restriction and causing it to be recorded against the
Restricted Unit in order to ensure compliance with the HUD HOME program, including without
limitation compliance with 24 Code of Federal Regulations Part 92.
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C. The purpose of this Resale Restriction include, without limitation, to: (i) establish
resale and occupancy restrictions for the Restricted Unit; (ii) reserve to the CDC an option to
designate eligible purchasers, as hereafter defined, to acquire the Restricted Unit; (iii) to restrict
the Restricted Unit with this Resale Restriction for a period of forty-five (45) years, and (iv) to
grant to CDC an option to acquire the Restricted Unit in the event of a default by the Owner of
the terms of this Resale Restriction.
D. Concurrently herewith Owner is executing a promissory note in favor of the CDC
("CDC Note"). The CDC Note and the Resale Restriction shall be secured by a deed of trust
("Deed of Trust") executed by Owner in favor of the CDC. The Deed of Trust shall be recorded
in the Office of the County Recorder of San Diego County against the Restricted Unit,
concurrently with recordation of this Resale Restriction.
NOW, THEREFORE, CDC and Owner hereby declare and restrict the Restricted Unit as
follows:
1. Representations and Warranties of Owner. Owner declares, represents and warrants to
the Commission and agrees as follows:
(a) Annual Gross Income. Owner's annual gross income, including the income of
any co -purchasers, at the time of the execution of this Resale Restriction does not exceed sixty
percent (60%) of the Area Median Income. "Area Median Income" means the lesser of: (i) the
median income for the San Diego metropolitan area, as adjusted for family size, as said median
income is determined by HUD; or (ii) the median income for the San Diego metropolitan area, as
adjusted for family size, as said median income is determined by the California Department of
Housing and Community Development.
(b) Principal Place of Residence. Owner will reside in the Restricted Unit as Owner's
principal place of residence until the earlier of: (i) the sale of the Restricted Unit in accordance
with the terms of this Resale Restriction; or (ii) forty-five (45) years from the date this Resale
Restriction is recorded against the Restricted Unit. Owner shall be considered as occupying the
Restricted Unit as a principal place of residence if the Owner is living in the Restricted Unit for
at least ten (10) months out of each calendar year. Owner shall not to sublet, lease or rent out all
or any portion of the Restricted Unit during the term of this Resale Restriction.
(c) Liquid Assets. At the time of the execution of this Resale Restriction, Owner,
including any co -purchasers, does not hold, directly or indirectly, "liquid assets", as defined
below, whose aggregate value exceeds one hundred percent (100%) of the then -current annual
Area Median Income. As used herein, the term "liquid assets" refers to cash and assets which
are readily convertible to cash within a reasonable period, including but not limited to savings
and checking accounts, certificates of deposit of any term, marketable securities, money market
and similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid
assets" shall not include retirement funds which are not readily accessible or which cannot be
accessed by the buyer without the buyer incurring a penalty.
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(d) Not a Full -Time Student. Owner is not, and none of the co -purchasers of Owner
is, a full-time student, or a household comprised exclusively of persons who are full-time
students, unless such persons are married and eligible to file a joint federal income tax return.
The term "full-time student" shall be defined as any person who will be or has been a full-time
student during five calendar months of the calendar year in question at an educational institution
(other than a correspondence school) with regular faculty and students.
(e) Not a Student Dependent. Owner is not, and none of the co -purchasers or co-
tenants of Owner is, a student dependent as defined in the U.S. Internal Revenue Code, unless
the taxpayer (upon whom the student in question is dependent) resides in the Restricted Unit.
(f) Not an Owner of Real Property. Owner does not, and none of the co -purchasers
of Owner, own any real property at the time of escrow closing for the Restricted Unit.
(g) First -Time Home Buyer, Displaced Homemaker or Single Parent. Owner satisfies
at least one of the following criteria:
(1) Owner is a first-time home buyer; that is, he or she has not owned a home
within the three-year period immediately preceding the date of this Resale Restriction;
(2) Owner is a displaced homemaker; or
(3) Owner is a single parent.
2. Acknowledgment and Certification. Any purchaser of the Restricted Unit from Owner
and any subsequent purchaser from such purchaser or successors (hereinafter each is referred to
as "Purchaser") shall certify his/her acknowledgment receipt of this Resale Restriction and all
the provisions and restrictions contained herein, on a form approved by the CDC in its sole
discretion.
3. Restrictions on Transfer.
(a) Forty -Five Year Affordable Term. For a period of forty-five (45) years commencing
on the date this Resale Restriction is recorded in the Office of the County Recorder of San Diego
County against the Restricted Unit (the "Affordable Term"), any transfer of the Restricted Unit
shall be subject to the provisions of this Resale Restriction. Any subsequent transfer by a
Purchaser to a subsequent Purchaser shall also be subject to the provisions of this Resale
Restriction until the end of the Affordable Term.
(b) Transfer Defined. "Transfer" shall mean: (i) all or any part of the Restricted Unit or
any interest in the Restricted Unit is sold, conveyed or transferred; (ii) if Owner is not a natural
person and a beneficial interest in Owner is sold, conveyed or transferred; (iii) all or any part of
the Restricted Unit is refinanced or further encumbered, except as otherwise allowed by law; (iv)
Owner does not occupy the Restricted Unit as his, her, or their, primary residence; (v) the leasing
of all or any part of the Restricted Unit; (vi) any material breach of this Resale Restriction; or
(vii) the filing of bankruptcy by Owner. Notwithstanding the foregoing, a refinancing of the
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Restricted Unit shall not be considered a Transfer, provided the CDC provides written consent to
Owner prior to the refinancing, which consent may be granted or withheld in the sole and
absolute discretion of the CDC. Transfer shall not include transfer to a spouse in a dissolution
proceeding, to a spouse who marries the Purchaser after the Purchaser has acquired title to the
Restricted Unit, or to a Purchaser who originally acquired title to the Restricted Unit as a co-
owner with a spouse, who acquires the deceased spouse's interest in the Restricted Unit, upon a
death of that spouse.
4. Maintenance and Inspection of Restricted Unit. Purchaser shall maintain the Restricted
Unit and the improvements thereon in good condition and repair throughout the Purchaser's
period of ownership of the Restricted Unit. In addition, upon CDC's receipt of a notice of intent
to transfer as detailed in Section 5 below, CDC shall be given the right to enter and to inspect the
Restricted Unit to determine whether any violations of applicable building, plumbing, electric,
fire, housing or other applicable codes exist and whether the Restricted Unit has been maintained
in good condition, upon reasonable written notice of not less than ten (10) days. CDC shall
notify Purchaser with regard to any noted code violations and maintenance deficiencies
(collectively, the "Deficiencies"), and Purchaser shall cure the Deficiencies in a reasonable
manner acceptable to the CDC within sixty (60) days of being notified in writing of the result of
the inspections. Should the Purchaser fail to cure all the Deficiencies prior to the scheduled date
for the close of escrow, at the option of the CDC or an Eligible Purchaser as defined in Section 7
below, escrow may be closed, title passed and money paid to the Purchaser subject to the
condition that such funds as are necessary to pay for curing the Deficiencies, based upon written
estimates obtained by the CDC, shall be withheld from the money due the Purchaser and held by
the escrow holder for the purpose of curing the Deficiencies. The CDC and/or the Eligible
Purchaser shall cause the Deficiencies to be cured and, upon certification of completion of work
by the CDC, the escrow holder shall utilize such funds to pay for said work. Any remaining
funds shall be paid to the Purchaser.
5. Notice of Transfer. In the event the Purchaser intends to transfer the Restricted Unit, the
Purchaser shall promptly notify the CDC in writing of such intent (`'Notice of Intent to
Transfer"), by certified mail return receipt requested, to the Community Development
Commission of the City of National City 1243 National City Blvd., National City, California
91950, or such other address as the CDC may designate. The Purchaser has the right to
withdraw the Notice of Intent to Transfer prior to the opening of escrow to purchase the
Restricted Unit.
6. CDC's Option to Designate an Eligible Purchaser. Upon receipt of the Notice of the
Intent to Transfer, the CDC shall have the option, but not the duty, to designate an Eligible
Purchaser to purchase the Restricted Unit in the manner set forth hereunder, if the proposed
transferee is not approved for any reason. Within thirty (30) days of receipt by the CDC of the
Notice of Intent to Transfer, the CDC shall: (1) notify the Purchaser of the Maximum Sales
Price, as defined in Section 8 herein, to be paid for the Restricted Unit; (2) inspect the Restricted
Unit as described in Section 4, above; and (3) notify the Purchaser regarding whether or not the
CDC intends to exercise its option to designate an alternate Eligible Purchaser. The notification
to the Purchaser regarding the option to designate an eligible Purchaser shall be sent by certified
mail return receipt requested. If the CDC exercises this option to designate a Purchaser, it shall
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6382
cause an escrow to purchase the Restricted Unit to be opened within thirty (30) days following
such notification to the Purchaser, and it shall cause the Restricted Unit to be purchased by its
designated Eligible Purchaser within the ninety (90) days following the receipt by the CDC of
the Purchaser's Notice of the Intent To Transfer.
7. Transfer to Eligible Purchaser. In the event the CDC does not exercise its option to
designate an Eligible Purchaser, the transfer of the Restricted Unit by the Purchaser must be to
an Eligible Purchaser. An Eligible Purchaser shall be any household meeting the criteria set
forth in Section 1(a)-(g), above.
8. Determination of Maximum Sales Price.
(a) Calculation of Maximum Sales Price. The maximum amount of money and/or
other consideration, of any kind whatsoever, that the Owner (or any subsequent Purchaser selling
the Restricted Unit) may receive for any transfer of the Restricted Unit shall be called the
"Maximum Sales Price." Maximum Sales Price" shall mean the lesser of: (i) the sum of (A) the
purchase price which would result in a Monthly Housing Cost, as determined by the CDC, which
does not exceed the product of one twelfth (1/12) of thirty percent (30%) times sixty percent
(60%) of the then Area Median Income as adjusted for household size appropriate for the unit,
plus (B) the amount of the CDC Note; or (ii) the Single Family Mortgage Limit for the County of
San Diego under Section 203(b) of the National Housing Act (12 U.S.C. §1709(b)) or any other
limitation then provided by Code of Federal Regulations §92.254(a) or any successor law or
regulation. In the case where there is no Purchaser of the Restricted Unit, the CDC shall
calculate the principal and interest payments assuming a five (5%) percent down payment and
that the annual interest rate is the then Fannie Mae 90-day delivery rate.
(b) Monthly Housing Cost. "Monthly Housing Cost" shall mean all of the following
associated with the Restricted Unit, estimated or known as of the date of the close of escrow of
the sale of the Restricted Unit: (i) principal and interest payments on the 30 year, fixed-rate
mortgage loan actually obtained by the Purchaser, and any loan insurance fees associated
therewith; (ii) property taxes, assessments, including Mello Roos fees, if applicable; (iii) fire and
casualty insurance covering replacement value of property improvements (to the extent not
covered by the homeowner association encompassing the Site); (iv) any homeowner association
fees; (v) private mortgage insurance, if applicable; and (vi) reasonable costs of utilities. Monthly
Housing Cost shall be an average of estimated costs for the next twelve (12) month period as of
the date of the close of escrow of the sale of the Affordable Unit.
9. Defaults and Remedies.
(a) Acceleration, Remedies. Upon Owner (or any Purchaser's) breach of this Resale
Restriction, the CDC Note, the Deed of Trust or any other obligation or document secured by the
Restricted Unit, the CDC shall give notice to Owner (or the Purchaser, as applicable) prior to
acceleration, such notice shall include:
(1) a description of the breach;
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6383
(2) the action required to cure such breach (if any);
(3) a date, not less than ten (10) days from the date the notice is mailed to
Owner, by which such breach must be cured; and
(4) a statement that failure to cure such breach on or before the date specified
in the notice may result in acceleration of the sums secured by the Deed of Trust and sale of the
Restricted.
The notice shall further inform Owner (or the Purchaser, as applicable) of the right to
reinstate after acceleration and the right to bring a court action to assert the nonexistence of a
default or any other defense of Owner to acceleration and sale. If the breach is not cured on or
before the date specified in the notice, CDC, at CDC's option, may declare all of the sums
secured by the Deed of Trust to be immediately due and payable without further demand and
may invoke the power of sale and any other remedies permitted by applicable law, as provided in
and pursuant to the procedure set forth in the Deed of Trust. CDC shall be entitled to collect all
reasonable costs and expenses incurred in pursuing the remedies provided in this Section 9,
including, but not limited to, reasonable attorneys' fees.
(b) Owner's Right to Reinstate.
(1) Curable Breach. Notwithstanding CDC's acceleration of the sums secured
by the Deed of Trust due to Owner or a Purchaser's breach, Owner or any Purchaser shall have
the right to have any proceedings begun by CDC to enforce the Deed of Trust discontinued at
any time prior to five (5) days before the sale of the Restricted Unit pursuant to the power of sale
contained in the Deed of Trust or at any time prior to entry of a judgment enforcing the Deed of
Trust if:
(A) Owner or Purchaser pays CDC all sums which would be then due
under the CDC Note and the Deed of Trust had no acceleration occurred;
(B) Owner or Purchaser cures all breaches of any other covenants or
agreements of Owner or Purchaser under this Resale Restriction and the Deed of Trust;
(C) Owner or Purchaser pays all reasonable expenses incurred by CDC
and the trustee in enforcing the covenants and agreements of Owner or Purchaser contained in
this Resale Restriction or the Deed of Trust, including, but not limited to, reasonable attorneys'
fees; and
(D) Owner or Purchaser takes such action as CDC may reasonably
require to assure that the lien of the Deed of Trust, CDC's interest in the Restricted Unit and
Owner's or Purchaser's obligation to pay the sums secured by the Deed of Trust shall continue
unimpaired.
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Upon such payment and cure by Owner or Purchaser as set forth in this Section 9(b)(1),
this Resale Restriction, the Deed of Trust and the obligations secured hereby shall remain in full
force and effect as if no acceleration had occurred.
(2) Non -Curable Breach.
(A) Failure to Occupy/Renting Out the Restricted Unit is a Violation of
Law. Owner and each Purchaser hereby acknowledges that the loan evidenced by the CDC Note
and secured by the Deed of Trust was funded by the CDC using U.S. Department of Housing and
Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. Section
215 of the HOME Investment Partnerships Act (42 U.S.C. §12745) and the HOME program
regulations (24 C.F.R. §92.254) require Owner and each Purchaser to occupy the Restricted Unit
as their principal residence. Renting out the Restricted Unit and/or Owner or any Purchaser's
failure to occupy the Restricted Unit as their principal residence is a violation of State of
California and Federal law (in addition to being a violation of this Resale Restriction). CDC is
obligated by Federal law to enforce the provisions of the HOME program, CDC's failure to do
so would jeopardize CDC's ability to obtain additional HOME funds from HUD and help other
low-income families to obtain affordable housing.
(B) Failure to Occupy/Renting Out the Restricted Unit Materially
Impairs CDC's Security. Owner and each Purchaser hereby acknowledges and agrees that
renting out the Restricted Unit and/or Owner or any Purchaser's failure to occupy the Restricted
Unit as their principal residence, materially impairs CDC's security for the CDC Note and
CDC's ability to obtain additional HOME funds from HUD and help other low-income families
to obtain affordable housing. Owner and each Purchaser further acknowledges that if the
Restricted Unit is rented out and/or Owner or any Purchaser fails to occupy the Restricted Unit
as their principal residence, then during any such period the Restricted Unit will not qualify as
"affordable housing" and CDC may be in breach of its obligations to HUD and therefore the
CDC's security for the loan will be materially impaired.
(C) Failure to Occupy/Renting Out the Restricted Unit is a Non -
Curable Breach. Owner and each Purchaser hereby acknowledges and agrees that renting out the
Restricted Unit and/or Owner or any Purchaser's failure to occupy the Restricted Unit as their
principal residence, will be a non -curable breach and CDC shall have the right to accelerate the
loan and foreclose on the Restricted Unit as provided herein. Notwithstanding anything to the
contrary set forth in this Resale Restriction, Owner and each Purchaser agrees that in the
event Owner or any Purchaser rents out the Restricted Unit and/or fails to occupy the
Restricted Unit as their principal residence, neither Owner or any Purchaser shall have the
right to cure the breach and reinstate this Resale Restriction, the loan, the Deed of Trust or
the obligations secured thereby.
(D) Owner's Waiver. Owner and each Purchaser hereby knowingly
waives and relinquishes any and all legal and/or contractual rights Owner and any Purchaser may
have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the
event the Restricted Unit is rented out and/or Owner or any Purchaser fails to occupy the
Restricted Unit as their principal residence.
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6385
(E) Representation of Comprehension. Owner and each Purchaser
hereby acknowledges and agrees that CDC has advised Owner and each Purchaser (and each of
them if there is more than one Owner or Purchaser) to retain an attorney to represent them with
respect to this Resale Restriction. By executing this Resale Restriction, Owner and each
Purchaser (and each of them if there is more than one Owner or Purchaser) represents that: (i)
each of them fully understands and accepts the terms of this Resale Restriction, the CDC Note
and Deed of Trust; (ii) each of them has relied upon the legal advice of their attorneys or they
have freely and independently chosen not to seek the advice of an attorney; (iii) that neither the
CDC nor its attorneys represents them; (iv) each of them has had a full and ample opportunity to
consult with any other professionals of their choice in connection with the rights and liabilities
created by this Resale Restriction, the CDC Note and Deed of Trust; (v) that none of them has
any questions with regard to the legal import of any term, word, phrase, or portion of this Resale
Restriction, the CDC Note and Deed of Trust, or any of the foregoing documents in their
entireties; and (vi) each of them accepts the terms of this Resale Restriction, the CDC Note and
Deed of Trust as written.
10. CDC's Option to Purchase Upon Default. In addition to the remedies provided the CDC
in Section 9 above, the CDC has and is hereby granted the option ("Option") to purchase the
Restricted Unit effective upon the declaration of a written default by the CDC. The CDC's
option to purchase may be exercised upon a default under this Resale Restriction decision to
exercise its option to purchase the Restricted Unit on the following terms and conditions:
(a) Grant of Option. Owner and all subsequent Purchasers hereby grant to CDC an
option (the "Option") to purchase the Restricted Unit on the terms and conditions set forth
herein. The purchase price payable by the CDC to the Owner for the Restricted Unit (the
"Option Price") shall be the greater of (a) the Maximum Sales Price, as defined in Section 8
hereof, or (b) the sum of the current balance of the First Lien ("First Lien" means the lien of the
institution making the purchase money loan to the Owner for the purchase of the Restricted Unit
and/or any acceptable refinancings), plus the Owner's share of escrow, title and other closing
costs as set forth in Section 4 hereof. The Option created hereby shall be irrevocable by Owner
and shall be binding upon the successors and assigns of Owner. The CDC shall have the right of
specific performance to enforce the terms of this Option.
(b) Term and Consideration for Option. The term of the Option ("Option Term")
shall commence on the date of this Resale Restriction, and shall expire upon the expiration or
termination of the Affordable Term.
(c) Exercise of Option. The Option may be exercised by CDC's delivery to Owner of
written notice of such exercise (the "Exercise Notice") only upon the occurrence of an event of
default under the First Lien. In the event that the CDC exercises the Option, but the Owner cures
the default of the First Lien prior to the sale of the Restricted Unit to the CDC, the CDC's
exercise of the Option shall be deemed revoked. The revocation of the exercise of the Option
shall not terminate this Option Agreement or preclude the CDC from subsequently exercising the
Option upon a later event of default under the First Lien.
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(d) Escrow and Completion of Sale. Within five (5) days after CDC has exercised
the Option, or as soon thereafter as reasonably practicable, an escrow shall be opened with an
escrow company mutually acceptable to CDC and Owner for the conveyance of the Restricted
Unit to the CDC. The CDC shall deposit the Option Price in escrow not later than one (1)
business day prior to the anticipated close of escrow date. The CDC's obligation to close escrow
shall be subject to the CDC's approval of a then -current preliminary title report and, at CDC's
option, environmental and other site testing. Any exceptions shown on such preliminary title
report created on or after the Owner's acquisition of the Restricted Unit shall be removed by
Owner at its sole expense prior to the close of escrow pursuant to this Section 10(d) unless such
exception(s) is(are) accepted by CDC in its reasonable discretion; provided, however, that CDC
shall accept the following exceptions to title: (i) current taxes not yet delinquent, (ii) matters
affecting title existing on the date of Owner's acquisition of the Restricted Unit, (iii) liens and
encumbrances in favor of the City of National City, (iv) the First Lien (if the CDC is taking
subject to the First Lien), (v) this Resale Restriction, and (vi) matters shown as printed
exceptions in the standard form CLTA owner's policy of title insurance. The parties shall each
be responsible for one-half of the escrow fees, documentary transfer taxes, recording fees and
any other costs and expenses of the escrow, and the Owner shall be responsible for the cost of a
CLTA owner's policy of title insurance. CDC shall have thirty (30) days after exercise of the
Option to enter upon the Restricted Unit to conduct any tests, inspections, investigations, or
studies of the condition of the Restricted Unit. Owner shall permit the CDC access to the
Restricted Unit for such purposes. The CDC shall indemnify, defend, and hold harmless Owner
and its officers, directors, shareholders, partners, employees, agents, and representatives from
and against all claims, liabilities, or damages, and including expert witness fees and reasonable
attorney's fees and costs, caused by CDC's activities with respect to or arising out of such
testing, inspection, or investigatory activity on the Restricted Unit. Escrow shall close promptly
after acceptance by CDC of the condition of title and the physical and environmental condition
of the Restricted Unit, and in no event later than ninety (90) days after the date that the CDC has
exercised the Option. Until the Closing, the terms of the Restriction and the documents executed
and recorded pursuant thereto shall remain in full force and effect.
11. Non -liability of the CDC. In no event shall the CDC become in any way liable or
obligated to the Purchaser or to any successor -in -interest of the Purchaser by reason of its option
to purchase under either Section 6 or Section 10 herein nor shall the CDC be in any way
obligated or liable to the Purchaser or any successor -in -interest of the Purchaser for the CDC's
failure to exercise such option to purchase or to designate an Eligible Purchaser.
12. Binding on Successor and Assigns. This Resale Restriction shall bind, and the benefit
hereof shall inure to, the Owner, the Purchaser, and to their respective heirs, legal representative
executors, successors in interest and assigns, and to the CDC and its successors except as
provided in Section 3. Provided, however, upon a release of this Resale Restriction, either
through a foreclosure or the receipt of a deed in lieu of foreclosure by the holder of the First
Lien, this Resale Restriction, shall not thereafter reattach.
13. Subordination. This Resale Restriction is to be recorded in first lien priority position.
Notwithstanding the foregoing, this Resale Restriction may be recorded in second lien priority
9
6387
position if the lender financing the Owner's purchase of the Restricted Unit will not allow its
deed of trust to be subordinate to the Resale Restriction.
14. Invalid Provisions. If any one or more of the provisions contained in this Resale
Restriction shall for any reason be held to be invalid, illegal or unenforceable in any respect then
such provision or provisions shall be deemed severable from the remaining provisions contained
in this Resale Restriction, and this Resale Restriction shall be construed as if such invalid, illegal
or unenforceable provision had never been contained herein.
15. Controlling Law. The terms of this Resale Restriction shall be interpreted under the laws
of the State of California.
16. Notices. All notices required herein shall be sent to the CDC by certified mail return
receipt requested, as follows:
Community Development Commission of the City of National City
1243 National City Blvd.
National City, CA 91950
or such other address that the CDC may subsequently request in writing. Notices to the
Purchaser shall be sent by certified mail return receipt requested to the Restricted Unit address.
17. Interpretation of Restriction Covenants. The terms of this Resale Restriction shall be
interpreted to encourage to the extent possible that the Maximum Sales Price of and mortgage
payments for the Restricted Unit remain affordable to households earning sixty percent (60%) or
less of the area medium income as adjusted annually and as further adjusted for household size.
18. Non -Discrimination Covenants. The Owner covenants by and for itself and any
successors in interest that there shall be no discrimination against or segregation of any person or
group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status,
national origin, ancestry, familial status, source of income or disability in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the Restricted Unit. The foregoing
covenants shall run with the land.
19. Promissory Note in Favor of CDC.
(a) Execution by Owner and Calculation of Principal Amount. During the
Affordability Period, Owner and each Purchaser shall be obligated to execute the CDC Note
which shall be in a form approved by the CDC in its sole discretion, to ensure the continued
affordability of the Restricted Unit. The principal of the CDC Note shall be an amount equal to
the difference between (i) (i) the Single Family Mortgage Limit for the County of San Diego
under Section 203(b) of the National Housing Act (12 U.S.C. §1709(b)) or any other limitation
then provided by Code of Federal Regulations §92.254(a) or any successor law or regulation;
less (ii) the Maximum Purchase Price. Such amount will not actually be paid by the CDC to the
Owner or Purchaser, but represents the subsidy constructively received by the Owner or
Purchaser as a result of purchasing the Restricted Unit at a price below its fair market value.
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6388
(b) CDC Note Secured by Deed of Trust. The Owner's payment obligations pursuant
to the CDC Note shall be secured by the Deed of Trust which shall be in a form approved by the
CDC in its sole discretion (the "Deed of Trust"), and which shall encumber the Restricted Unit in
second lien priority position.
(c) Repayment of the CDC Note. No repayment of the CDC Note shall be due until
the earliest to occur of the following events, at which time the entire principal balance of the
CDC Note and unpaid and default interest thereon shall be due and payable, at the option of the
CDC: (i) a Transfer that is not approved by the CDC in writing; (ii) Owner or any Purchaser's
uncured default under the terms of this Resale Restriction, the CDC Note or the Deed of Trust; or
(iii) any Owner or any Purchaser's default under the terms of the First Lien. In the event of a
Transfer that is approved by the CDC in writing, the Owner's obligation to repay the CDC Note
shall be assumed by the subsequent purchasers of the Restricted Unit. The CDC Note shall be
deemed satisfied on the forty-fifth (45`h) anniversary of the date this Resale Restriction is
recorded against the Restricted Unit, provided that the Owner and its successors in interest to the
Restricted Unit remained in compliance with the terms of this Resale Restriction throughout the
Affordability Period.
(d) Subordination of the Deed of Trust. The CDC shall execute such subordination
agreements subordinating the Deed of Trust securing the CDC Note as may be reasonably
requested by the holder of a First Lien. Any such subordination agreements shall be in a form
approved by the CDC in its reasonable discretion. This Resale Restriction will not be
subordinated.
20. Written Consent of CDC Required Before Transfer. During the Affordability Period, the
Restricted Unit, and any interest therein, shall not be conveyed by any Transfer or refinancing,
except as expressly provided in this Resale Restriction, except with the express written consent
of the CDC.
21. Attorneys' Fees. The parties agree that the prevailing party in litigation for the breach
and/or interpretation and/or enforcement of the terms of this Resale Restriction shall be entitled
to their expert witness fees, if any, as part of their costs of suit, and reasonable attorneys' fees as
may be awarded by the court, pursuant to California Code of Civil Procedure ("CCP") Section
1033.5 and any other applicable provisions of California law, including, without limitation, the
provisions of CCP Section 998.
22. Monitoring. The Owner shall annually report to the CDC, in writing, confirming that
they continue to reside in the Restricted Unit, have not leased or rented the Restricted Unit for
more than the allowed, period of time, providing evidence of insurance, evidence of the payment
of taxes, if not impounded, and any and all other information reasonably needed by the CDC to
assure compliance with the terms of the Restriction on a form or forms prepared by the CDC.
Within 15 days of a written request from the CDC to the Owner, Owner shall respond with all
information requested to all the CDC complete its monitoring responsibilities under the terms of
the Restriction. Failure to completely and timely comply with requests shall be deemed a
material default under the terms of the Restriction.
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IN WITNESS WHEREOF, the parties have executed this Resale Restriction on or as of
the date first written above.
CDC:
Community Development Commission of the City of National City
By:
Print Name:
Ron Morrison
Its: Chairman
OWNER:
--71//cr 0 ( act 1-(
Print Name:¢/4 cM' c
12
ACKNOWLEDGMENT
State of California
County of San Diego
6390
On , 2011, before me, �\Ilkeltgt...:5—. i •� ug"
personally appeare (\j\p),piw ANNA al:tiAokakolko who proved to m on
the basis of satisfactory evidence to be the person ) whose name(s) Ware subscribed to the
within instrument and acknowledged to me that I to/they executed the same in b siher/their
authorized capacity(ies), and that by hisA er/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) 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.
(Seal)
MARCIA J. NELSON
Commission # 1747197
Notary Public - California
San Diego County '!
MXComm. Expires Jun 23, 2011
13
ACKNOWLEDGMENT
State of California
County of San Diego
6391
On Q /uet / , 2011, before me, in r. ert_ *47 it/ 6/ ]
personally appeared % }1 O r 1'15c r7 who proved to on
the basis of satisfactory evidence to be the person(s). whose name(s)- is/ate-subscribed to the
within instrument and acknowledged to me that heillaeitlay executed the same in hislhcr/thcir
authorized capacity(-ies), and that by hisilteir signatures) on the instrument the person(s}, or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under penalty of perjury under the laws of th
paragraph is true and correct.
WITNESS my hand and official seal.
Signature
t California that theforegoing
Commission • 1874998
AMA Wan
Notary P tMc • California
Son Diego Camay
(Seal)
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6392
Exhibit "A"
Legal Description
Real property situated in the City of National City, County of San Diego, State of California,
described as follows:
PARCEL 2 OF CASE FILE NO. 2008-38 LS, ACCORDING TO PARCEL MAP THEREOF
NO. 20679, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY, CALIFORNIA, ON JULY 14, 2009.
15