HomeMy WebLinkAbout2013 CON (Homeowner's Regulatory Agreement) Martin and Isabel Vega - 2918 East Division StRecard!ng Requegted By
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FREE RECORDING REQUESTED PURSUANT
TO GOVERNMENT CODE SECTION 27383
WHEN RECORDED PLEASE MAIL TO:
Office of the City Clerk
City of National City
1243 National City Boulevard
National City, CA 91950-4397
DOC # 2013-0705839
IIIIIIII III IIIII IIIII IIIII IIIII IIIII IIIII IIIII Ilill IIIII illll IIII IIII
DEC 04, 2013 4:09 PM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 0.00
DA: t
PAGES* 10
I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII IIII
APN: 554-082-08-00
(SPACE ABOVE FOR RECORDER'S USE ONLY)
FTHB #1330-01 NC
HOMEOWNER'S REGULATORY AGREEMENT FOR HOME PROGRAM PARTICIPATION
THIS REGULATORY AGREEMENT ("Regulatory Agreement" or "Agreement") is entered into as of this 19th day
of November, 2013 between the City of National City ("City"), and a Qualifying Household, on behalf of itself and
Martin Vega and Isabel Vega ("Owners").
PREFACE
WHEREAS, the City of National City receives a formula HOME Investment Partnerships ("HOME") Program
allocation from the Federal Department of Housing and Urban Development to carry out eligible activities in accordance with
program requirements; and
WHEREAS, the Owner is interested in participating in City's HOME -funded First -Time Homebuyer Program, and will
comply with all program regulations and requirements; and
WHEREAS, concurrently with the recordation of this Regulatory Agreement the City is funding a loan ("Loan")
secured by a deed of trust ("Deed of Trust") to aid Owner, who is a first-time homebuyer, in acquiring the Property described
below. The Trust Deed and Loan by the City was conditioned in part upon the recordation of a document setting forth certain
restrictions upon the use and sale of the Property; and
WHEREAS, Owner will use the proceeds of such Loan for the acquisition of the real property with the street address
of 2918 East Division Street, National City California 91950 more particularly described in Exhibit A attached and
incorporated by this reference ("Property"); and
WHEREAS, as further consideration for the Loan and to further the interests of City, the Owner has agreed to enter
into and record this Agreement.
The covenants in this Agreement are intended to run with the land and be binding on the Owner for the full term of this
Agreement.
NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS;
The Owner shall receive HOME Investment Partnership funds for investment in real property owned by the Owner, as
evidenced by legal title or a valid contract of sale. Acting in this capacity, the Owner will comply with all aspects of HOME
regulations 24 CFR §92.504 including the following:
A. DEFINITIONS
The following terms have the meanings and content set forth in this Section A where used in this Agreement or attached
exhibits.
1. "AREA MEDIAN INCOME" means the median income for the San Diego County Primary Metropolitan
Statistical Area (PMSA), with adjustments for household size, as adjusted from time to time by the U.S.
Dept. of Housing and Urban Development (HUD).
2. "CITY" is of the City of National City, California, a public body corporate and politic.
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Owner Initials TTU
3. "DEED OF TRUST" means any deed of trust, assignment of rents, and security agreement placed on the
Property or any part thereof as security for any Loan and other obligations with Owner as trustor and City
as beneficiary, as well as any amendments to, modification of, and restatements of said deed(s) of trust.
4. "EFFECTIVE PERIOD" means the period commencing on the date of this agreement and ending on the
repayment of the Loan from the City, including the repayment of any required Equity.
5. "EIGHTY PERCENT OF AREA MEDIAN INCOME" means annual income, which does not exceed eighty
percent (80%) of the Area Median Income.
6. "HUD" means the United States Department of Housing and Urban Development.
7. "HOME FUNDS/HOME INVESTMENT": funds received pursuant to the HOME Investment Partnership
Program under the Department of Housing and Urban Development (HUD), codified at 42 U.S.C. Section
12701, et seq., 24 CFR Part 92, to provide funds for affordable housing.
8. "HOMEOWNER INVESTMENT": homeowner's down payment and any capital improvement investment made
by the owner since purchase.
9. "HOUSE" means the residential dwelling unit that is located on the Property.
10. "LOAN" is any Loan of funds provided by the City to any Owner for the purchase of the Property.
11. "LOAN DOCUMENTS" are collectively the Deed of Trust, Note, Note Rider, this Regulatory Agreement
and any loan agreement, deed of trust, or promissory note entered into between City and Owner with
respect to any of the Property, as they may be amended, modified or restated from time to time, along with
all exhibits and attachments to these documents.
12. "NOTE" means the promissory note and note rider executed by Owner in favor of City evidencing any part
of a Loan, which is secured by a Deed of Trust, as well as any amendments to, modifications, or
restatements of said promissory note. The Note will be on file with the City.
13. "OWNER" or "OWNERS" is the Qualifying Household that is the purchaser of the Property.
14. "PROPERTY" means the real property located at 2918 East Division Street, National City California
91950 and described in the attached Exhibit A, which is hereby incorporated into this Agreement by this
reference, and any buildings or improvements now or hereafter situated on said real property.
15. "QUALIFYING HOUSEHOLD" means a household whose income is Eighty Percent of Area Median
Income, as determined periodically by HUD, with adjustments in accordance with 24 CFR 92.252, and who
is otherwise eligible to purchase the Property.
16. "QUALIFYING SALES PRICE" means a sales price that does not exceed 95 percent (95%) of the median
purchase price for the area, as determined by the U.S. Department of Housing and Urban Development.
B. TERM OF AGREEMENT
The term of this Agreement shall remain in full force and effect during the Effective Period regardless of any expiration of
the term of any Loan, any payment or prepayment of any Loan, any assignment of a Note, any reconveyance of a Deed of
Trust, or any sale, assignment, transfer, or conveyance of the Property, unless terminated earlier by the City in writing or
extended by the mutual consent of the parties. However, failure to record this Agreement by the City shall not relieve
Owner of any of the obligations specified herein. The covenants in this Agreement will run with the land for the benefit of
the City and its heirs, assigns and successors and be binding on Owner and Owner's heirs, assigns and successors for
the full term of this Agreement.
C. USE OF FUNDS
The Loan will be used to acquire the Property by the Owner who is a member of a Qualifying Household.
D. AFFORDABILITY
1. The House will qualify as affordable housing and will have:
(a) an initial purchase price that is a Qualifying Sales Price; and
(b) an estimated appraised value at acquisition that does not exceed Qualifying Sales Price.
2. The House must be the principal residence of the Owner at all times during the Effective Period.
3. The deferred Loan for the HOME -assisted House is $ 40,000.00.
E. RECAPTURE OF HOME FUNDS
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Owner Initials AP
Pursuant to 24 CFR 92.254(a) (ii), the City requires that HOME funds be recaptured if the housing does not continue to be
the principal residence of the family. If there is a "transfer," the principal amount of the Note, together with a share of the
"Equity" (if any), as hereafter defined, shall be immediately due and payable to the City. A "transfer" means (i) all or any
part of the Property or any interest in the Property that is sold, conveyed or transferred; (ii) Owner is not a natural person
and a beneficial interest in Owner is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except
as otherwise allowed by law; (iv) Owner does not occupy the Property as his, her, or their primary residence; (v) the
leasing of all or any part of the Property; (vi) any material breach of the Note, Deed of Trust or this Agreement; or (vii) the
filing of bankruptcy by the Owner. The Equity in the Property shall be calculated and shared between the Owner and City
on the following basis:
# Months After Date of
Agreement
Buyer's Equity Share
(Increases 5% per year)
City Equity Share
(Decreases 5% per year)
0-12
(50%)
(50%)
13-24
(55%)
(45%)
25-36
(60%)
(40%)
37-48
(65%)
(35%)
49-60
(70%)
(30%)
61-72
(75%)
(25%)
73-84
(80%)
(20%)
85-96
(85%)
(15%)
97-108
(90%)
(10%)
109-120
(95%)
(5%)
Thereafter
(100%)
(0%)
If, for examp e, the Property is sold, rented, refinanced, conveyed, or transferred in the first year of the term of the Note
secured by this Deed of Trust, Owner shall receive fifty percent (50%) of the Equity in the Property and the City shall
receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar amount that constitutes the difference between
the sales price of the Property (or in the event of a sale of the Property for an amount other than its fair market value or
where there is no price established for the Property (i.e., rental or refinancing the Property, Borrower's failure to occupy
the Property, material breach of the Note, Deed of Trust or this Agreement; or the filing of bankruptcy by the Borrower, the
fair market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion) and the sum
of the following amounts:
(a) principal on the First Note and the Deed of Trust, along with any interest and fees due
thereon; and
(b) principal on the Note and Deed of Trust, along with any interest and fees due thereon;
and
(c) all costs of sale, including costs of brokers' commissions, escrow fees, title costs and
fees, recording costs, etc.; and
(d) current year taxes, including all pro-rata real estate taxes calculated to the date of sale;
and
(e)
(f)
(9)
borrower's down payment not including the Loan from the City to the Owner; and
all principal paid down on the First Note and Deed of Trust; and
costs of any improvements to the Property, provided such improvements were approved
by the City prior to construction and provided that such improvements have been
documented to the satisfaction of the City.
The amount of the Owner's share in the Equity of the Property shall increase by five percent (5%) per year, measured on
the anniversary of the date of the Deed of Trust is recorded against the Property. Correspondingly, the City's share in the
equity of the Property shall decrease by five percent (5%) per annum. For the sake of example, if the Property is sold
more than five (5) but less than six (6) years after the date of the Deed of Trust is recorded against the Property, the City
would have a twenty five percent (25%) share in the Equity and the Owner would have a seventy five percent (75%) share
in the Equity of the Property.
In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item E.1.b above) will be due and
payable as provided herein. In the event that a negative Equity situation exists, i.e., the proceeds from the sale of the
Property are less than the balance of the Note, all net proceeds from the transfer or sale shall be paid to Beneficiary in full
satisfaction of the Note. When the HOME recapture requirement is triggered by a sale (voluntary or involuntary) of the
Page 3 of 7
Owner Initials 444
housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the home investment due, the
participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior
Loan repayment (other than HOME funds) and any closing costs.
F. PROPERTY MAINTENANCE AND SECURITY
During the Effective Period, Owner shall at his or her own expense maintain the Property in good condition, in good
repair, and in decent, safe, sanitary and habitable living conditions for the benefit of that Owner's household. Owner shall
maintain the Property in conformance with all applicable state, federal and local laws, ordinances, codes and regulations.
In the event that Owner fails to maintain the Property in accordance with these standards and after at least thirty (30)
business days prior notice to Owner, the City or the City's contractor or agent may, but shall be under no obligation to,
enter upon the Property, make such repairs or replacements as are deemed necessary in the City's discretion, and
provide for payment thereof. Any amount advanced by the City to make such repairs, together with interest thereon from
the date of such advance at the rate of seven percent (7%) per annum (unless payment of such an interest rate would be
contrary to applicable law, in which event such sums shall bear interest at the highest rate then allowable by applicable
law), shall become an additional obligation of the Owner to the City and shall be secured by any Deed of Trust, if not
previously reconveyed.
G. REPAYMENTS
HOME Funds that are loaned to the Owner are to be remitted (principal and interest, as warranted) to the City to be retained
and used as program income to originate additional Loans to First -Time Homebuyers or used toward other HOME -eligible
activities.
H. PROPERTY REQUIREMENTS
Compliance with the following requirements is required as follows:
1. Maximum per -unit subsidy amount. The amount of HOME funds that a participating jurisdiction may invest
on a per -unit basis in affordable housing will not exceed the per -unit dollar limits established by HUD.
2. Property Standards. Housing that is assisted with HOME funds, at a minimum, must meet Section 8
Housing Quality Standards.
3. Property Cost Limits. The value of acquisition and development of the housing unit, located in the City of
National City must not exceed 95 percent (95%) of the median price for the area, as determined by the U.S.
Department of Housing and Urban Development.
4. Occupancy Requirements. The HOME Program requires that occupancy standards must be maintained
for the Effective Period for each of the assisted Houses as follows:
(a) The prospective purchaser must be low income; that is, the purchaser must have an annual (gross)
income that does not exceed Eighty Percent (80%) of Area Median Income, which will be determined at
either the time the household initially occupies the property or at the time the HOME funds are invested;
whichever is later.
(b) Each Owner must occupy the property as a principal residence. Only Loan default and subsequent
foreclosure negates the principal residence limitation.
5. Ownership Interest. The Owner must have fee simple title or cooperative ownership interest upon the purchase
of the HOME -assisted unit.
6. Refinance. The City will subordinate to the following refinance situations only, subject to City approval and
additional documentation required:
(a) FHA streamline refinance, with a reduction in total PITI and no cash out.
(b) VA rate reduction refinance, with a reduction in total PITI and no cash out.
(c) Conventional rate and term refinance, with a reduction in total PITI and no cash out.
I. REVERSION OF ASSETS.
Owner must transfer to the City any HOME funds remaining in the Property after the time of expiration of the Effective Period
when there is a change to title on the Property or any sale, rental, refinance, conveyance or transfer of Property. Any funds
received as a result of this reversion of assets shall be used for additional HOME -eligible activities.
J. DEFAULTS AND REMEDIES.
Page 4 of 7
Owner Initials"
In the event of any breach or violation of any agreement or obligation under this Agreement, the City may proceed with any or
all of the remedies as described in paragraph 18 of the Deed of Trust.
K. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS.
No officer, official, director, employee, agent or representative of the City shall be personally liable to Owner for any obligation
created under the terms of this Agreement except in the case of actual fraud or willful misconduct by such person.
L. INDEMNITY.
Notwithstanding the insurance coverage required herein, Owner shall indemnify and hold City and its officers, officials,
directors, employees, agents and authorized representatives (each, an "Indemnified Party," and collectively, "Indemnified
Parties"), free and harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and
legal or other expenses (including attorney's fees) which any Indemnified Party may incur as a direct or indirect consequence
of (1) Owner's failure to perform any obligations as and when required by this Agreement (2) any failure of any of Owner's
representations or warranties to be true and complete; or (3) any act or omission by Owner or any contractor, subcontractor,
management agent, or supplier with respect to the Property, except where such losses are caused by the sole negligence or
willful misconduct of Indemnified Parties. Owner shall pay immediately upon the City's demand any amounts owing under this
indemnity. The duty of the Owner to indemnify includes the duty to defend Indemnified Parties in any court action,
administrative action, or other proceeding brought by any third party arising from the Property. Owner's duty to indemnify
Indemnified Parties shall survive the term of this Agreement.
M. SUBORDINATION.
This Agreement shall be subordinated in priority only to the liens and encumbrances approved in writing by the City in its
sole and absolute discretion.
N. GENERAL PROVISIONS
1. Governing Law. This Agreement shall be interpreted under and be governed by the laws of the State of
California, except for those provisions relating to choice of law and those provisions preempted by federal
law.
2. This Agreement Controls. in the event that any provisions of this Agreement and any Loan Documents
conflict, the terms of this Agreement shall control.
3. Time. Time is of the essence in this Agreement.
4. Consents and Approvals. For those provisions of this agreement which are expressly subject to consent or
approval of the City, said consent or approval shall not be unreasonably withheld. Any approval must be in
writing and executed by an authorized representative of the City.
5. Notices, Demands and Communications. Formal notices, demands and communications between Owner
and the City shall be sufficiently given and shall not be deemed given unless dispatched by mailing it first
class mail or by certified mail, return receipt requested, to the principal offices of Owner and City as
follows:
City of National City
Attn: Housing Programs
1243 National City Boulevard
National City, CA 91950-4397
New Owner: Martin Vega and Isabel Vega
Address: 2918 East Division Street
National City, CA 91950
Any such written communications by mail shall be conclusively deemed to have been received by the
addressee five days after the deposit thereof in the United States Mail, postage prepaid and properly
addressed as noted above.
6. Severability. Every provision of this Agreement is intended to be severable. If any provision of this
Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
7. Attorney's Fees. In the event of any litigation over the performance of this Agreement, the prevailing party
shall be entitled to attorney's fees and costs incurred during the course of litigation.
Page 5 of 7
Owner Initials 144
IN WITNESS HEREOF, the City and the Owners have executed this Agreement as of the date first hereinafter set forth.
City of National City
Leslie Deese
City Manager
OWNER: Q /
Name: E..4f
Isa el Vega
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ANGELITA MARCHANTE
y COMM. # 2046693 c'>
re . JC7E NOTA; YPUBLIC•CALIFORNIA Z
SAN DIEGO COUNTY
My Comm, Exp. October25. 2017
Page 6 of 7
Owner Initials
10/
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TRUE COPY CERTIFICATION
(Govemment Code 27361.7)
San Diego
Place of Execution
I certify under penalty of perjury that this material is a true copy of the original
material contained in this document.
Date : ignature of Declarant
Type or Print Name
Rec. Form t1R9.1 (6-11-03)
ALL PURPOSE ACKNOWLEDGEMENT
STATE OF CALIFORNIA }
COUNTY OF San 0 LcCi0
On i1129
personally appeared
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.
}
before me,
RaeIiau 'Ya ie
(Inert name and title of the officer)
�e51 %f2, /
Se
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
Rec.Form #R11 (12/05107)
(This area for official notarial seal)
FTHB # 1330-01 NC
APN: 554-082-08-00
Legal Description
EXHIBIT "A"
THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
AND IS DESCRIBED AS FOLLOWS:
LOT 7 OF PARK VIEW TERRACE, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO THE MAP THEREOF NO. 2730, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, NOVEMBER 30, 1950.
ASSESSOR'S PARCEL NUMBER: 554-082-08-00
Page 7 of 7
Owner Initials
personally appeared
CALIFORNIA ALL-PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
State of California
County of Stio „Ogee)
On 2 aq o/3 before me, t • 00''1
(Here insert name a4-
tileofficer)
%?t7v Ya g�/
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.
WITN
Signature of Notary Public
icial seal
to
(Notary Seal)
M. ORLANDO
COMM. #1903273 m
Notary Public -California SAM DiE N
OCT 5, 2014
ADDITIONAL OPTIONAL INFORMATION
DESCRIPTION OF THE ATTACHED DOCUMENT
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages Document Date
(Additional information)
CAPACITY CLAIMED BY THE SIGNER
❑ Individual (s)
❑ Corporate Officer
(Title)
❑ Partner(s)
❑ Attorney -in -Fact
❑ Trustee(s)
O Other
INSTRUCTIONS FOR COMPLETING THIS FORM
Any acknowledgment completed in California must contain verbiage exactly as
appears above in the notary section or a separate acknowledgment form must be
properly completed and attached to that document. The only exception is if a
document is to be recorded outside of California. In such instances, any alternative
acknowledgment verbiage as may be printed on such a document so long as the
verbiage does not require the notary to do something that is illegal for a notary in
California (i.e. certiing the authorized capacity of the signer). Please check the
document carefully for proper notarial wording and attach this form f required.
• State and County information must be the State and County where the document
signer(s) personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s) personally appeared which
must also be the same date the acknowledgment is completed.
• The notary public must print his or her name as it appears within his or her
commission followed by a comma and then your title (notary public).
• Print the name(s) of document signcr(s) who personally appear at the time of
notarization.
• Indicate the correct singular or plural forms by crossing off incorrect forms (i.e.
he/she/they- is /are) or circling the correct forms. Failure to correctly indicate this
information may lead to rejection of document recording.
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Impression must not cover text or lines. If seal impression smudges, re -seal if a
sufficient area permits, otherwise complete a different acknowledgment form.
• Signature of the notary public must match the signature on file with the office of
the county clerk.
• Additional information is not required but could help to ensure this
acknowledgment is not misused or attached to a different document.
Indicate title or type of attached document, number of pages and date.
• Indicate the capacity claimed by the signer. If the claimed capacity is a
corporate officer, indicate the title (i.e. CEO, CFO, Secretary).
• Securely attach this document to the signed document