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HomeMy WebLinkAbout2011 CON CDC K Mohamud and L Osman - Affordable Housing Resale Restrictions, Deed of Trust, Notice of Affordability 1822 "G" AvenueRecording Recjuested by: First American Title Subdivision Sale -Out NO_CHARGE ON THIS DOCUMENT FOR THE BENEFIT OF THE CITY OF NATIONAL CITY 12ecurding And When Recorded Mail To: Community Development Commission of the City of National City 1243 National City Boulevard National City. CA 91950 D 0 C it 2011-0457417 (IIIII I III III IIIII I III IIIII III I IIIII I III IIII IIII IIII III III SEP 02, 2011 3:53 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg. Jr., COUNTY RECORDER FEES: 0.00 WAYS: 2 11142 PAGES: 16 (IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII AFFORDABLE HOUSING RESALE RESTRICTIONS, OPTION TO DESIGNATE ELIGIBLE PURCHASERS AND OPTION TO PURCHASE UPON DEFAULT (1822 G Avenue) This Affordable Housing Resale Restrictions, Option to Designate Eligible Purchasers and Option to Purchase Upon Default ("Resale Restriction") is executed this 5th day of August, 2011, by the Community Development Commission of the City of National City ("CDC"), and by Khalid M. Mohamud and Lena Osman, Husband and Wife as Joint Tenants, as owner (individually and collectively, "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 CDC to Habitat. "Owner" as hereafter used means the person(s) including co -purchasers defined as such in the first paragraph of this Resale Restriction and that person's successors and assigns with respect to this Resale Restriction and/or the Restricted Unit. B. CDC purchased the Habitat Property from the previous owner utilizing U.S. Department of Housing and Urban Development ("HUD") Home Investment Partnerships Act Funds ("HUD HOME Funds"). CDC then used funds from CDC's Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the California Health and Safety Code (the "Low -Mod Funds") to prepare the site for development. Subsequently, CDC made a loan to Habitat 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. Low -Mod Funds are to be used as authorized by the provisions of the 1 II aulecho \G Avenue Resale Restriction.doc 11143 California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.). Owner and CDC are executing this Resale Restriction and causing it to be recorded against the Restricted Unit in order to ensure compliance with (i) the HUD HOME program, including without limitation compliance with 24 Code of Federal Regulations Part 92; (ii) California Health and Safety Code Section 33000 et seq.; and (iii) the Redevelopment Plan for the National City Redevelopment Project, adopted by Community Development Commission of the City of National City on July 18, 1995, as amended. C. The purposes of this Resale Restriction include, without limitation: (i) to establish resale and occupancy restrictions for the Restricted Unit; (ii) reserve to 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 Owner of the terms of this Resale Restriction. D. Concurrently herewith Owner is executing a promissory note in favor of 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 CDC. The Deed of Trust shall he 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 CDC 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 eighty percent (80%) of the Area Median Income. "Area Median Income" means the lesser of: (i) the median income for the San Diego -Carlsbad -San Marcos 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 in the Office of the County Recorder of San Diego County against the Restricted Unit. Owner shall be considered as occupying the Restricted Unit as a principal place of residence if Owner is living in the Restricted Unit for at least ten (10) months out of each calendar year. Owner shall not sublet, lease or rent out all or any portion of the Restricted Unit during the Affordable Term, as hereafter defined, of this Resale Restriction. (c) Liquid Assets. At the time of the execution of this Resale Restriction, Owner does not hold, directly or indirectly, "liquid assets", as defined below. whose aggregate value 2 I I'.'ndecholG Avenue Resale Restrictiondoe 11144 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 Owner without Owner incurring a penalty. (d) Not a Full -Time Student. Owner is not 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 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 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 (3)-year period immediately preceding the date this Resale Restriction is recorded in the Office of the County Recorder of San Diego County against the Restricted Unit; (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 of receipt of this Resale Restriction and all the provisions and restrictions contained herein, on a form approved by 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 3 H'.lndechoAG Avenue Resale Restriction. doe 1114 5 Purchaser to a subsequent Purchaser shall also be subject to the provisions of this Resale Restriction until the expiration 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, resold, conveyed, transferred, alienated, leased, rented or assigned; (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. pledged, hypothecated, except as otherwise expressly permitted 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) any judicial or non judicial foreclosure, attachment, insolvency, receivership or bankruptcy proceeding against Owner or the Restricted Unit. Notwithstanding the foregoing, a refinancing of the Restricted Unit shall not be considered a Transfer, provided CDC provides written consent to Owner prior to the refinancing, which consent may be granted or withheld in the sole and absolute discretion of CDC. "Transfer" shall not include (A) a transfer by gift, devise, or inheritance to Owner's spouse or to Owner's child, provided the child would qualify as an Eligible Purchaser; (B) taking of title by a surviving joint tenant who is Owner's spouse or Owner's child, provided the child would qualify as an Eligible Purchaser; (C) transfer of title to a current or former spouse pursuant to divorce or dissolution proceedings; (D) acquisition of title or interest to the Restricted Unit in conjunction with marriage after Owner acquired title to the Restricted Unit; and (E) a transfer specifically approved in writing by CDC and Habitat. 4. Maintenance and Inspection of Restricted Unit. Owner shall maintain the Restricted Unit and the improvements thereon in good condition and repair throughout Owner'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 Owner with regard to any noted code violations and maintenance deficiencies (collectively, the "Deficiencies"), and Owner shall cure the Deficiencies in a reasonable manner acceptable to CDC within sixty (60) days of being notified in writing of the result of the inspections. Should Owner fail to cure all the Deficiencies prior to the scheduled date for the close of escrow, at the option of CDC or an Eligible Purchaser as defined in Section 7 below, escrow may be closed, title passed and money paid to Owner subject to the condition that such funds as are necessary to pay for curing the Deficiencies, based upon written estimates obtained by CDC, shall be withheld from the money due Owner and held by the escrow holder for the purpose of curing the Deficiencies. CDC and/or the Eligible Purchaser shall cause the Deficiencies to be cured and, upon certification of completion of work by CDC, the escrow holder shall utilize such funds to pay for said work. Any remaining funds shall be paid to Owner. 5. Notice of Transfer. In the event Owner intends to transfer the Restricted Unit, Owner shall sixty (60) days prior to the opening of escrow notify Habitat and CDC in writing of such intent ("Notice of Intent to Transfer"). The Notice of Intent to Transfer shall be sent by certified mail return receipt requested, to the Community Development Commission of the City of 4 H �ndecho\G Avenue Resale Restriction.doc 1114 6 National City 1243 National City Blvd., National City, California 91950, or such other address as CDC may designate. Owner 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, 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 CDC of the Notice of Intent to Transfer, CDC shall: (1) notify Owner 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 Owner regarding whether or not CDC intends to exercise its option to designate an alternate Eligible Purchaser. The notification to Owner regarding the option to designate an Eligible Purchaser shall be sent by certified mail, return receipt requested. If CDC exercises this option to designate an Eligible Purchaser, CDC shall cause an escrow to purchase the Restricted Unit to be opened within thirty (30) days following such notification to Owner, and CDC shall cause the Restricted Unit to be purchased by its designated Eligible Purchaser within the ninety (90) days following the receipt by CDC of Owner's Notice of Intent to Transfer. CDC's option to designate an Eligible Purchaser and right to cause the Property to be transferred to an Eligible Purchaser pursuant to this Section 6 shall be subject, subordinate and inferior to any right or option of Habitat to acquire the Restricted Unit in the event of a Transfer, whether such right or option now exists or is hereafter created in favor of Habitat. 7. Transfer to Eligible Purchaser. In the event CDC does not exercise its option to designate an Eligible Purchaser, the transfer of the Restricted Unit by Owner 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 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 CDC, which does not exceed the product of one twelfth (1/12) of thirty percent (30%) times eighty percent (80%) of the then Area Median Income as adjusted for household size appropriate for the unit, plus (B) the amount of the CDC Note; plus (C) the amount of any other downpayment assistance grant or a similar grant which is approved by CDC, provided that such assistance is a grant (i.e., no payments are required under such assistance and the assistance does not need to be repaid by the Purchaser); 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, CDC shall calculate the principal and 5 H:\ndecho\G Avenue Resale Res tdetion.doe 1114 7 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 a fully -amortizing thirty (30)- year, fixed-rate mortgage loan actually obtained by the Purchaser, and any loan insurance fees associated therewith (under no circumstances shall any Purchaser of the Restricted Unit obtain a mortgage loan that contains an adjustable interest rate); (ii) property taxes and assessments, including Mello Roos fees, if applicable; (iii) fire and casualty insurance covering replacement value of Restricted Unit improvements (to the extent not covered by the homeowner association governing the Restricted Unit); (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 for the pending sale of the Restricted 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, CDC shall give notice to Owner (or the Purchaser, as applicable) prior to acceleration, such notice shall include: (1) a description of the breach; (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 the acceleration of the sums secured by the Deed of Trust and the sale of the Restricted Unit. 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. 6 H:\ndecho\G Avenue Resale Kean iction.doc 11148 (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 to 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. 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/Rentin>; 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 CDC using a combination of HUD HOME Funds and Low -Mod Funds (as described in Recital A, above). Section 215 of the HOME Investment Partnerships Act (42 U.S.C. §12745), the HOME program regulations (24 C.F.R. §92.254) and the California Community Redevelopment Law 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 State of California and Federal law to enforce the provisions of the California Community Redevelopment Law and the HOME program, CDC's failure to do so would jeopardize CDC's ability to obtain additional HUD HOME Funds from HUD and help other low-income families to obtain affordable housing. 7 H:`mdecho' U Avenue Resale Restriction.doc 11149 (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 HUD 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 under the California Community Redevelopment Law and therefore 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, including, without limitation CDC's ability to approve certain transfers under Section 3(b), 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. (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 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. 8 H:\ndecho\G Avenue Resale Restriction.doc 11150 10. CDC's Option to Purchase Upon Default. In addition to the remedies provided CDC in Section 9 above, CDC has and is hereby granted the option ("Option") to purchase the Restricted Unit effective upon the declaration of a written default by CDC. CDC's option to purchase may be exercised upon a default under this Resale Restriction 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 CDC to 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 Owner for the purchase of the Restricted Unit and/or any acceptable refinancings), plus 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. 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 CDC exercises the Option, but Owner cures the default of the First Lien prior to the sale of the Restricted Unit to CDC, CDC's exercise of the Option shall be deemed revoked. The revocation of the exercise of the Option shall not terminate the Option or preclude CDC from subsequently exercising the Option upon a later event of default under the First Lien. (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 CDC. CDC shall deposit the Option Price in escrow not later than one (1) business day prior to the anticipated close of escrow date. CDC's obligation to close escrow shall be subject to 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 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 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 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 9 H9ndecho\G Avenue Resale Restrictiun.duc conduct any tests, inspections, investigations, or studies of the condition of the Restricted Unit. Owner shall permit CDC access to the Restricted Unit for such purposes. 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 attorneys' 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 CDC has exercised the Option. Until the closing, the terms of this Resale Restriction and the documents executed and recorded pursuant thereto shall remain in full force and effect. (e) Notwithstanding anything to the contrary contained herein, CDC's option to purchase the Restricted Unit pursuant to this Section 6 shall be subject, subordinate and inferior to any right or option of Habitat to acquire the Restricted Unit in the event of a Transfer or default by Owner, whether such right or option now exists or is hereafter created in favor of Habitat. 11. Non -liability of CDC. In no event shall CDC become in any way liable or obligated to Owner or to any successor -in -interest of Owner by reason of its option to purchase under either Section 6 or Section 10 herein nor shall CDC be in any way obligated or liable to the Purchaser or any successor -in -interest of the Purchaser for 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, Owner, the Purchaser, and to their respective heirs, legal representative executors, successors in interest and assigns, and to 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 position if the lender financing Owner's purchase of the Restricted Unit will not allow its deed of trust to be subordinate to this 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. 10 H lndecho\G Avenue Resale Restriction.doc 11152 16. Notices. All notices required herein shall be sent to 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 CDC may subsequently request in writing. Notices to Owner 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 eighty percent (80%) or less of the area medium income as adjusted annually and as further adjusted for household size. 18. Non -Discrimination Covenants. 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 Term, Owner and each Purchaser shall be obligated to execute the CDC Note which shall be in a form approved by 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) 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 CDC to Owner or Purchaser, but represents the subsidy constructively received by Owner or Purchaser as a result of purchasing the Restricted Unit at a price below its fair market value. (b) CDC Note Secured by Deed of Trust. 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 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 CDC: (i) a Transfer that is not approved by 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 11 H lndechoG Avenue Resale Resi nclieadoc 11153 Transfer that is approved by CDC in writing, 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 Owner and its successors in interest to the Restricted Unit remained in compliance with the terms of this Resale Restriction throughout the Affordability Term. (d) Subordination of the Deed of Trust. 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 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 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. Owner shall annually report to 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 CDC to assure compliance with the terms of this Resale Restriction on a form or forms prepared by CDC. Within 15 days of a written request from CDC to Owner, Owner shall respond with all information requested by CDC for CDC to complete its monitoring responsibilities under the terms of this Resale Restriction. Failure to completely and timely comply with requests by Owner shall be deemed a material default under the terms of this Resale Restriction. IN WITNESS WHEREOF, the parties have executed this Resale Restriction on or as of the date first written above. CDC: Community D By: lopment Commission of the City of National City Print Name: Ron Morrison Its: Chairman OWNER: 12 H,'.ndecho\G Avenue Resale Restriction duc 11154 -77.me-(i Print Name: kkq 1 col H. Mokamud Print Name: j. g © S r/(,i a-/v 13 H1ndechc\G Avenue Resale Restriction doe State of California County of San Diego ) ) ) ACKNOWLEDGMENT 11155 On A4S�51L S , 201 (, before me, D.PaCa• a-14P y personally appeared i' hQ (1 d- M 74 D h Qrn tea_ 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/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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 State of California County of San Diego ) ) lliIIIII 111 !ntlnnlyJjnllnIIII!tlIIIIIIt111111l11ln111111111111111111111111111l1111111111nn1l1111Im - D. PAZ :._,� COMM.#1845984 z Notary Public - California o San Diego County My111111111111111111Comm. Expires May 21, 2013= o n.,1111 1111I11 11111111l11111111111111111111111111ume ACKNOWLEDGMENT (Seal) On f -4f � CIO- s , 201 % , before me, V. Pa � d fay^ y Pidb 6 ' 'L personally appeared L e n a 0 5► l Q 11 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/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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 11111111111 1111111111111111111111111111111111111111111111111111111111111111111111l11!l11111� D. PAZ r ,\ COMM. #1845984 z 4' ^� Notary Public - California o San Diego County My Comm_ Expires May 21, 2013 uunumnuumiwnnllnmuuuuel:m .....unnlmme.. (Seal) 14 H \ndechotG Avenue Resale Restriction.doc ACKNOWLEDGMENT State of California County of San Diego 11156 On , 2011 , before me, 1j r ,r b. MI (ler IL)� PoJ W personally appeared 'on Th %San wllo proved me on the basis of satisfactory evidence to be the person(s) whose name(,$) is/ire subscribed to the within instrument and acknowledged to me that helslLkkey executed the same in his/4efItheir authorized capacity(ies), and that by his/.l ,LtheiL signatures) on the instrument the persorj, 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. WITNESS my hand and official seal. Signature (_,(/,/,4�y� fry 1 VIRGINIA MILLER Commission # 1874998 Notary Public - California San Diego County (Seal) 15 HAndechoG Avenue Resale Reetriction don , A.P.N.: 11157 Exhibit "A" Legal Description File Number: DTR-3752079 Real property in the City of National City, County of San Diego, State of California, described as follows: CONDOMINIUM NO. 7, AS SHOWN UPON CONDOMINIUM PLAN FOR G AVENUE CONDOMINIUMS RECORDED WITH THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 15, 2011, AS DOCUMENT NO. 2011 0416568 ("CONDOMINIUM PLAN"), BEING PORTIONS LOT 1 OF CASE FILE NO. 2008-20-PD-S, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15779, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON MARCH 12, 2010, COMPOSED OF THE FOLLOWING: PARCEL 1 (LIVING UNIT): THE LIVING UNIT WITH THE SAME NUMBER AS THE CONDOMINIUM DESCRIBED ABOVE. PARCEL 2 (COMMON AREA): AN APPURTENANT UNDIVIDED FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO THE COMMON AREA IN THE PHASE IN WHICH THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF LIVING UNITS WITHIN THAT PHASE; THE COMMON AREA IS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN. PARCEL 3 (EASEMENT OVER ASSOCIATION PROPERTY): NON-EXCLUSIVE APPURTENANT EASEMENTS IN AND TO THE ASSOCIATION PROPERTY NOW OR HEREAFTER OWNED BY G AVENUE CONDOMINIUMS OWNERS ASSOCIATION, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION"). "ASSOCIATION PROPERTY" IS DEFINED IN THE CONDOMINIUM PLAN AND IN THE DECLARATION OF RESTRICTIONS FOR G AVENUE CONDOMINIUMS RECORDED AUGUST 15, 2011 AS DOCUMENT NO. 2011-0416569, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). PARCEL 4 (EXCLUSIVE USE AREA - PATIO AND LANDING): THE EXCLUSIVE RIGHT TO USE ANY EXCLUSIVE USE AREA SHOWN ON THE CONDOMINIUM PLAN AS BEING APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE. PARCEL 5 (EXCLUSIVE USE AREA - PARKING SPACE): THE EXCLUSIVE RIGHT TO USE THE PARKING SPACE SHOWN ON EXHIBIT "B" TO THE DECLARATION AS BEING ASSIGNED AND APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE. Recording Requested by: First American Title Subdivision Sale -Out NO CHARGE ON THIS DOCUMENT FOR THE BENEFIT OF THE CITY OF NATIONAL CITY Recording Requested By And When Recorded Mail To: Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950 D 0 C tt 2011-0457415 1111111311111111111111111111111111111111111111101 SEP 02, 2011 3:53 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg. Jr., COUNTY RECORDER FEES: 0.00 11123 DA: 1 PAGES: 9 I IIIII IIIII IIIII IIII IIIII IIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII This document is exempt from the payment of a recording fee pursuant to Government Code Section 6103. DEED OF TRUST (1822 G Avenue) THIS DEED OF TRUST is made this 5th day of August, 2011, among Khalid M. Mohamud and Lena Osman, Husband and Wife as Joint Tenants ("Trustor"), the Community Development Commission of the City of National City ("Trustee"), and the Community Development Commission of the City of National City ("Beneficiary"), whose address is 1243 National City Boulevard, National City, California 91950; 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 One Hundred Four Thousand Three Hundred Seventy Five and No/100 Dollars ($104,375.00), 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. 1 N:\Shayna\National City-G\201 I Closings \Mohamud\City Deed of Trust.doc III 11124 A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: l . 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. 2 N:\Shayna\National City-G12011 Closings\Mohamud\City Deed ofTrust.doc 11125 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 of the Property; sue for or otherwise collect all rents. issues, and profits, including those past due and 3 N:\Shayna\National City-G\201 I Closings\Mohamud\City Deed of Trust.doc 11.126 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. 4 N:\Shayna\National City-G\20I I Closings\Mohamud\City Deed of Trust.doc 1112 7 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. I Iazardous 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. 5 N:\Shayna\National City-G\201 I Closings\Mohamud\City Deed of Trust.doc 11128 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, 6 N:\Shayna\National City-G\2011 Closings \Mohamud\City Deed of Trust.doc 11129 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: Print Name: VI a (;cl I'1. tlol-tambd Print Name: L� Ai 4 Q s M wvt/ 7 N:\Shayna\National City-02011 Closings\Mohamud\City Deed of Trust.doc 11130 ACKNOWLEDGMENT State of California County of San Diego On 15KS1- .s ,201/ ,beforeme,DP ,Jtthv P.t6(?c personally appeared /<A aid_ H A Q, i vet_ 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/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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 AV Dp 5uunnm (Seal) ACKNOWLEDGMENT 1,,num,wu,°uumm,Du°PAZ mnnuunnnuunnc COMM. #1845984 Notary Public - California San Diego County My Comm. Expires May 21, 20135 unnuun,uu„nnuuumm�, nnuumumt unu,ununuums State of California ) County of San Diego ) On ov cu 5* 5— , 201 / , before me, a./�o-z (L) 7&;7 personally appeared Lern A 0v501.0h 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/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. l 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 A`J1e DP a„ttntt� y„yet„1tt,,,,,ttt,,,,,,tt,,,,,,tttt„1,,,ttt,,,,,,,,t,,,,,,,,:tt,,,,,,,tt,,,,,,ttt1-: (Seal) D. PAZ COMM. #1845984 a Notary Public - California o San Diego County = My Comm. Expires May 21, 2013,1 u, iI,,,,,,„t„t,,,,u,,,,,,tnm, ,„t,,;,,,,,,,,,,,,;,,,,,,;i„g«: 8 N:1Shayna\National City-G\2011 Closings\Mohamud\City Deed of Trust.doc Exhibit "A" Legal Description A.P.N.: File Number: DTR-3752079 Real property in the City of National City, County of San Diego, State of California, described as follows: CONDOMINIUM NO. 7, AS SHOWN UPON CONDOMINIUM PLAN FOR G AVENUE CONDOMINIUMS RECORDED WITH THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 15, 2011, AS DOCUMENT NO. 2011 0416568 ("CONDOMINIUM PLAN"), BEING PORTIONS LOT 1 OF CASE FILE NO. 2008-20-PD-S, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15779, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON MARCH 12, 2010, COMPOSED OF THE FOLLOWING: PARCEL 1 (LIVING UNIT): THE LIVING UNIT WITH THE SAME NUMBER AS THE CONDOMINIUM DESCRIBED ABOVE. PARCEL 2 (COMMON AREA): AN APPURTENANT UNDIVIDED FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO THE COMMON AREA IN THE PHASE IN WHICH THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF LIVING UNITS WITHIN THAT PHASE; THE COMMON AREA IS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN. PARCEL 3 (EASEMENT OVER ASSOCIATION PROPERTY): NON-EXCLUSIVE APPURTENANT EASEMENTS IN AND TO THE ASSOCIATION PROPERTY NOW OR HEREAFTER OWNED BY G AVENUE CONDOMINIUMS OWNERS ASSOCIATION, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION"). "ASSOCIATION PROPERTY" IS DEFINED IN THE CONDOMINIUM PLAN AND IN THE DECLARATION OF RESTRICTIONS FOR G AVENUE CONDOMINIUMS RECORDED AUGUST 15, 2011 AS DOCUMENT NO. 2011-0416569, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). PARCEL 4 (EXCLUSIVE USE AREA - PATIO AND LANDING): THE EXCLUSIVE RIGHT TO USE ANY EXCLUSIVE USE AREA SHOWN ON THE CONDOMINIUM PLAN AS BEING APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE. PARCEL 5 (EXCLUSIVE USE AREA - PARKING SPACE): THE EXCLUSIVE RIGHT TO USE THE PARKING SPACE SHOWN ON EXHIBIT "B" TO THE DECLARATION AS BEING ASSIGNED AND APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE. Recording Requested by: First American Title Subdivision Sale -Out NO CHARGE ON THIS DOCUMENT FOR THE BENEFIT OF THE CITY OF NATIONAL CITY Recording Requested By And When Recorded Mail To: Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950 D 0 C it 2011-0504285 IIIIII I III �IIf IIIII IIIII III IIIII IIIII IIIII IIIII IIII IIIII I II �II� SEP 28, 2011 8:00 AM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr., COUNTY RECORDER FEES: 0.00 6975 PAGES: 5 Hill IIIII IIIII IIIII IIIII IIIII IIIII Hill IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (HEALTH AND SAFETY CODE §33334.3(f)(3)(B)) (1822 G Avenue) NOTICE IS HEREBY PROVIDED AS FOLLOWS: KVKM\ k kil0A+ 4' d ten 050111 1.I ("Owner"), is/are the owner of that certain real property located in the City of National City, California, more particularly described in the attached Exhibit "A" ("Property"). 2. The Community Development Commission of the City of National City ("CDC") is providing partial financing for the Property with moneys from its Low and Moderate Income Housing Fund. 3. Concurrently herewith Owner and the CDC are causing the Property to be encumbered by that certain AFFORDABLE HOUSING RESALE RESTRICTIONS, OPTION TO DESIGNATE ELIGIBLE PURCHASERS AND OPTION TO PURCHASE UPON DEFAULT ("Notice"), which generally restricts the rent and occupancy of Property to persons at or below eighty percent (80%) of AMI, as set forth in more detail in the CC&R's. 4. This Notice expires forty-five (45) years from recordation thereof (except as otherwise provided therein). 1 E:\CLIENTS\National City\Low Mod Rehab Loans\Notice of Affordability Restrictions.doc 6976 5. The Property is generally located at 1822 G Avenue, National City, California. 6. The Property assessor's parcel number is mod - 233 — b 7. In the event of any conflict between one or more provisions of this document and one or more provisions of the Notice, the provisions of the Notice shall apply. 8. This Notice of Affordability Restrictions on Transfer of Real Property may not be amended, terminated, or revised without the written consent of the CDC. Dated this 5th day of August, 2011. Date:O$)o512ot1 Date: 5g•f e5/ 20a Declarant: Khalid M. Mohamud t cS Declarant: Lena Osman 2 F:\CLIENTS\National City \Low Mod Rehab Loans\Notice of Affordability Restrictions.doc 6977 ACKNOWLEDGMENT State of California ) County of San Diego ) On Of 6-- , 201 / , before me, D. Pa' , notary public personally appeared, khe? CM- M fl oh*ro yd. 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/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 on 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. Signature/11,�/! (Seal) sDpQ State of California ) 11111111111111 Illllll111111111111llllll111111llllllllllllllllllllllllill 111111ll lllI111111llll: D. PAZ COMM. #1845984 Notary Public - California San Diego County My Comm. Expires May 21, 2013E 5111 lllllll�tf�Pi lllllllllll IIIllllllllllll llllilllllllllllllllllllllllllllllllllllllllllllll I, ACKNOWLEDGMENT ) County of San Diego ) On-, 201 (, before me, 1). / &- , notary public personally appeared, 1— q Oc3rta 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/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 on behalf of which the person(s) acted, executed the instrument. 1 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 (Seal) �aulluua l 1IIIIIIII111IIIIIIIIIIIIIIOIIIIIIll111101111111111111111111111111111111111111- D. PAZ COMM. #1845984 A Notary Public- California o San Diego County My Comm. Expires May 21, 2013. nllllulpu Illlllllpa 111111uul1111111111111111111111111OIIIIIIIIIIIIIll1111111111C—: 3 E:\CLIENTS\National City\Low Mod Rehab Loans\Notice of Affordability Restrictions.doc 6978 ACCEPTANCE The Community Development Commission of the City of National City ("CDC") hereby accepts, acknowledges and certifies the foregoing Notice of Affordability Restrictions on Real Property. CDC: Community velopment Commission of the City of National City By: Ron Morrison, Chairman ACKNOWLEDGMENT State of California County of San Diego On / , 2011, before me, V i ry i n la_ M 11L & publi9 personally appeared, aTr-i5cN 1 who proved to me on the basis of satisfactory evi ence) to be the person whose name('ise subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/het,th it authorized capacityEies), and that by his/her/thoir signature'on the instrument the person s), or the entity on behalf of which the person acted, acted, executed the instrument. I certify under penalty of perjury under the laws l State_pf tb Jthe foregoing paragraph is true and correct. WITNESS my hand and official seal. VIRGINIA MILLER Commission • 1874998 kfi Notary Public - California -,% San Diego Cowry _ 1 _ � Signature: l'J I j %�� j��1am( (Seal) Exhibit "A" Legal Description A.P.N.: 6979 File Number: DTR-3752079 Real property in the City of National City, County of San Diego, State of California, described as follows: CONDOMINIUM NO. 7, AS SHOWN UPON CONDOMINIUM PLAN FOR G AVENUE CONDOMINIUMS RECORDED WITH THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 15, 2011, AS DOCUMENT NO. 2011 0416568 ("CONDOMINIUM PLAN"), BEING PORTIONS LOT 1 OF CASE FILE NO. 2008-20-PD-S, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 15779, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON MARCH 12, 2010, COMPOSED OF THE FOLLOWING: PARCEL 1 (LIVING UNIT): THE LIVING UNIT WITH THE SAME NUMBER AS THE CONDOMINIUM DESCRIBED ABOVE. PARCEL 2 (COMMON AREA): AN APPURTENANT UNDIVIDED FRACTIONAL INTEREST AS TENANT IN COMMON IN AND TO THE COMMON AREA IN THE PHASE IN WHICH THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF LIVING UNITS WITHIN THAT PHASE; THE COMMON AREA IS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN. PARCEL 3 (EASEMENT OVER ASSOCIATION PROPERTY): NON-EXCLUSIVE APPURTENANT EASEMENTS IN AND TO THE ASSOCIATION PROPERTY NOW OR HEREAFTER OWNED BY G AVENUE CONDOMINIUMS OWNERS ASSOCIATION, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION"). "ASSOCIATION PROPERTY" IS DEFINED IN THE CONDOMINIUM PLAN AND IN THE DECLARATION OF RESTRICTIONS FOR G AVENUE CONDOMINIUMS RECORDED AUGUST 15, 2011 AS DOCUMENT NO. 2011-0416569, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). PARCEL 4 (EXCLUSIVE USE AREA - PATIO AND LANDING): THE EXCLUSIVE RIGHT TO USE ANY EXCLUSIVE USE AREA SHOWN ON THE CONDOMINIUM PLAN AS BEING APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE. PARCEL 5 (EXCLUSIVE USE AREA - PARKING SPACE): THE EXCLUSIVE RIGHT TO USE THE PARKING SPACE SHOWN ON EXHIBIT "B" TO THE DECLARATION AS BEING ASSIGNED AND APPURTENANT TO THE LIVING UNIT DESCRIBED IN PARCEL 1 ABOVE.