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HomeMy WebLinkAbout2017 CON (CC&R's) Carlos Ruelas Gallegos - 1213 E Avenue #A3Firm'American Title Company has recorded this instrument by request as an accom- modation only and has not examined it for regularity and sufficiency or as to its effect upon the title to any real property that may be described herein. FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE 27383 Recording Requested By And When Recorded Mail to: City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 DOC# 2017-0473016 I III 1l lllli IIIII IIIII Yil /lull I�1I IIIII IIIII IIIH lHl Hill 11111111 Oct 12, 2017 02:02 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $45.00 PAGES: 11 SPACE ABOVE THIS LINE FOR RECORDER'S USE [RECORD AFTER THE In DEED OF TRUST] DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS (HUD HOME Program 3% Deferred) City Loan No.16NC2 THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS IS BEING RECORDED ONLY TO CORRECT "Property"ADDRESS SHOWN ON THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED NOVEMBER 01, 2016ASINSTRUMENT NUMBER 2016-0592596 THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is made as of this 26th day of October, 2016 , by Carlos C. Ruelas Gallegos, A Married Man as His Sole and Separate Property (hereafter collectively and/or individually "Borrower"), in connection with that certain parcel of real property ("Property") located in the City of National City, County of San Diego, California, described in Exhibit "A" attached hereto and incorporated herein by reference. RECITALS A. Concurrently with the recordation of this Declaration, the City of National City ("Lender") is funding a loan to Borrower ("HUD HOME Loan") evidenced by a promissory note ("HOME Note"). The HUD HOME Loan is secured by a deed of trust ("Deed of Trust") made by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is malting the HUD HOME Loan to aid Borrower, who is a first-time homebuyer, in acquiring the Property. B. The Deed of Trust and HUD HOME Loan and were conditioned in part upon the CITY OF NATIONAL CITY PAGE I OFI0 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Prat American Title Company has recorded this iastrumeat by request as an accom- modation only and has not examined it for regularity and sufficiency or as to its effect upon the title to any real property that may be described herein. FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE 27383 Recording Requested By And When Recorded Mail to: City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 SPACE ABOVE THIS LINE FOR RECORDER'S USE [RECORD AFTER THE 1ST DEED OF TRUST] DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS (HUD HOME Program 3% Deferred) City Loan No, 16NC2 THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS IS BEING RECORDED ONLY TO CORRECT "Property"ADDRESS SHOWN ON THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED NOVEMBER 01, 2016 AS INSTR UMENT NUMBER 2016-0592596 THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is made as of this 26th day of October, 2016 , by Carlos C. Ruelas Gallegos, A Married Man as Ibis Sole and Separate Property (hereafter collectively and/or individually "Borrower"), in connection with that certain parcel of real property ("Property") located in the City of National City, County of San Diego, California, described in Exhibit "A" attached hereto and incorporated herein by reference. RECITALS A. Concurrently with the recordation of this Declaration, the City of National City ("Lender") is funding a loan to Borrower ("HUD HOME Loan") evidenced by a promissory note ("HOME Note"). The HUD HOME Loan is secured by a deed of trust ("Deed of Trust") made by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is making the HUD HOME Loan to aid Borrower, who is a first-time homebuyer, in acquiring the Property. B. The Deed of Trust and HUD HOME Loan and were conditioned in part upon the CITY OF NATIONAL CITY PAGE 1 OFIO HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS recordation of this Declaration against the Property. NOW, THEREFORE, Borrower hereby declares that the Property shall be subject to the covenants, conditions and restrictions set forth below: 1. Representations and Warranties of Borrower. Borrower declares, represents and warrants to the Lender and agrees as follows: (a) Income Eligibility Requirements -Annual Gross Income (02,203). Borrower's annual gross income, including the income of any co -purchasers or co -tenants, at the time of the execution of this Declaration does not exceed eighty percent (80%) of the Area Median Income for the San Diego -Carlsbad -San Marcos Metropolitan Statistical Area, as adjusted for family size, as determined by HUD. (b) Principal Place of Residence. For so long as the Deed of Trust is recorded against the Property, Borrower will reside in the Property as Borrower's principal place of residence. The Borrower shall be considered as occupying the Property as a principal place of residence if the Borrower is living in the Property for at least ten (10) months out of each calendar year. Borrower agrees not to neglect, sublet, lease or rent out all or any portion of the Property during such period. (c) Ownership Interest. The Borrower has fee simple title on the Property (24 CFR Part 92.254). (d) Liquid Assets. At the time of the execution of this Declaration, Borrower, including any co -purchasers or co -tenants and all other household members, does not hold, directly or indirectly, "liquid assets", as defined below, whose aggregate value exceeds $25,000. As used herein, the term "liquid assets" refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets" shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer without the buyer incurring a penalty. (e) Nota Full -Time Student. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, 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. (f) Not a Student Dependent. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, 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 Property. (g) Not an Owner of Real Property. Borrower does not, and none of the co -purchasers of Borrower, own any real property at the time of escrow closing for the subject Property. art OF litaIONAL. crrY PAm 2 OFIO HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS (h) First -Time Home Buyer, Displaced Homemaker or Single Parent. Borrower satisfies at least one of the following criteria: (1) Borrower is a first-time home buyer; that is, he or she has not owned a home within the three-year period immediately preceding the date of this Declaration; (2) Borrower is a displaced homemaker as defined in 24 C.F.R. §92.2; or (3) Borrower is a single parent as defined in 24 C.F.R. §92.2. (i) Homebuyer Counseling. Borrower has attended a HUD -approved Homebuyer Counseling session. 2. Due on Sale, Default, or 30-Years. (a) Borrower shall pay principal and all accrued interest (either simple interest or default interest, as the case may be) on the HOME Note, in one lump sum, to Lender upon the earliest of: (1) a Sale (as defined in Section 2(b), below); (2) a default after completion of the applicable acceleration procedures set forth in Section 3, below; or (3) thirty (30) years from the date first written above. Borrower shall make any payments at the City of National City Finance Department's office located at 1243 National City Boulevard, National City, California 91950, or such other place as designated by Lender (b) Sale Defined. The following shall all be considered transfers or sales of the Property and shall be referred to herein generally as a "Sale": (i) all or any part of the Property or any interest in the Property is sold, conveyed or transferred; (ii) if Borrower is not a natural person and a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced or further encumbered, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his, her, or their, primary residence; (v) the leasing or renting of all or any part of the Property; (vi) any material breach of this Declaration, the HOME Note or Deed of Trust; or (vii) the filing of bankruptcy by the Borrower. Notwithstanding the foregoing, a refinancing of the Property shall not be considered a default, provided the Lender provides written consent to Borrower prior to the refinancing, which consent may be granted or withheld in the sole and absolute discretion of the Lender. (c) No Assumption of Note. The HOME Note may not be assumed by any person, except as otherwise allowed by law. 3. Acceleration (Default). (a) Acceleration, Remedies. Upon Borrower's default of this Declaration, the HOME CITY OF NATIONAL CITY PAGE 3 OFIO HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Note, the Deed of Trust, or any other document secured by this Declaration, the Deed of Trust and/or the Property, Lender shall give notice to Borrower 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 Borrower, by which such breach must be cured; and (4) a statement that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by the Deed of Trust and sale of the Property. The notice shall further inform Borrower 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 Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender, at Lender'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, including, but not limited to, as provided in and pursuant to the procedure set forth in the Deed of Trust. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 3, including, but not limited to, reasonable attorneys' fees. (b) Borrower's Right to Reinstate. (1) Curable Breach. Notwithstanding Lender's acceleration of the sums secured by the Deed of Trust due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property 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) Borrower pays Lender all sums which would be then due under the HOME Note and the Deed of Trust had no acceleration occurred; (B) Borrower cures all breaches of any other covenants or agreements of Borrower contained in the Deed of Trust; (C) Borrower pays all reasonable expenses incurred by Lender and the trustee in enforcing the covenants and agreements of Borrower contained in the Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (D) Borrower takes such action as Lender may reasonably require to assure that the lien of the Deed of Trust, Lender's interest in the Property and Borrower's obligation to pay the sums secured by the Deed of Trust shall continue unimpaired. rAtiR4 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Upon such payment and cure by Borrower as set forth in this Section 3(b) (1), the Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (2) Non -Curable Breach. (A) Failure to Occupy/Renting Out the Property is a Violation of Law. Borrower hereby acknowledges that the HUD HOME Loan evidenced by the HOME Note and secured by the Deed of Trust and this Declaration was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. § 12745) and the HOME program regulations (24 C.F.R. §92.254) require Borrower to occupy the Property as Borrower's principal residence. Leasing or renting out the Property in whole or in part and/or Borrower's failure to occupy the Property as Borrower's principal residence is a violation of State of California and Federal law (in addition to being a violation of this Declaration). Lender is obligated by Federal law to enforce the provisions of the HOME program, Lender's failure to do so would jeopardize Lender's ability to obtain additional HOME funds from HUD and help other low- income families to obtain affordable housing. (B) Failure to Occupy/Renting Out the Property Materially Impairs Lender's Security. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, materially impairs Lender's security for the HUD HOME Loan and Lender's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. Borrower further acknowledges that if the Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence, then during any such period the Property will not qualify as "affordable housing" and Lender may be in breach of its obligations to HUD and therefore the Lender's security for the HUD HOME Loan will be materially impaired. (C) Failure to Occupy/Renting Out the Property is a Non -Curable Breach. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, will be a non -curable breach and Lender shall have the right to accelerate the HUD HOME Loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Declaration, Borrower agrees that in the event Borrower rents out the Property (in whole or in part) and/or fails to occupy the Property as Borrower's principal residence, Borrower shall not have the right to cure the breach and reinstate the HUD HOME Loan, the Deed of Trust or the obligations secured thereby. (D) Borrower's Waiver. Borrower hereby knowingly waives and relinquishes any and all legal and/or contractual rights Borrower may have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the event that Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence. (E) Representation of Comprehension. Borrower acknowledges and CITY OF NATIONAL CITY PAGE 5 OFIO HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS agrees that Lender has advised Borrower (and each of them if there is more than one Borrower) to retain an attorney to represent Borrower with respect to this Declaration. By executing this Declaration, Borrower (and each of them if there is more than one Borrower) represents that: (i) Borrower fully understands and accepts the terms of this Declaration, the HOME Note and Deed of Trust; (ii) Borrower has relied upon the legal advice of Borrower's attorneys or that Borrower has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents Borrower; (iv) that Borrower has had a full and ample opportunity to consult with any other professionals of Borrower's choice in connection with the rights and liabilities created by this Declaration, the HOME Note and Deed of Trust; (v) that Borrower does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Declaration, the HOME Note and Deed of Trust, or any of the foregoing documents in their entireties; and (vi) Borrower accepts the terms of this Declaration, the HOME Note and Deed of Trust as written. 4. Term. This Declaration shall expire upon the earlier of the foreclosure of any deed of trust or mortgage on the Property made in favor of or held by an institutional Iender or investor that is senior in recording priority to this Declaration or payment in full of the HOME Note. 5. Covenant Against Discrimination. Borrower covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, not to discriminate against any prospective purchaser of the Property on the basis of race, religion, sex or national origin. 6. Enforcement. Borrower expressly agrees and declares that Lender or any successor public agency is a proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity to enforce the provisions hereof and/or to recover damages for any default hereunder and/or to enforce the terms of this Declaration. Further, Lender or any successor public agency shall be the proper party to waive, relinquish, release or modify the rights, covenants, obligations or restrictions contained in or arising under this Declaration. 7. Attorneys' Fees. Upon the breach of the terms of this Declaration, the HOME Note or Deed of Trust, Borrower agrees to pay Lender any and all attorneys' fees, court costs, trustee fees, and any and all other fees and costs incurred by Lender as a result of said breach and/or default. 8. Severability. In the event that any provision or covenant of this Declaration is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Declaration and the remaining provisions shall continue in full force and effect. 9. Covenants Run With The Land. The covenants contained herein shall constitute "covenants running with the land" pursuant to Civil Code Sections 1460, 1462, 1463, 1464, 1465, 1467 and 1468, to the extent applicable, and shall bind the Property and every person having an interest therein during the term of this Declaration, including Borrower and its successors, heirs and assigns. Borrower agrees for itself and its successors that, in the event that, for any reason whatsoever, a court of competent jurisdiction determines that the foregoing covenants do not run with the land, such covenants shall be enforced as equitable servitudes against the Property. CITY OP NATIONAL CITY PAGE 6 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS 10. Recordation. This Declaration shall be recorded in the Office of County Recorder of San Diego, California. 11. Remedies Cumulative. Lender shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions at law or suit in equity or other proper proceedings to redress the breach of agreement or covenant. 12. Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration. 13. Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose. Failure to enforce any provision of this Declaration shall not constitute a waiver of the right to enforce the provision later. 14. Number: Gender. The singular shall include the plural and the plural the singular, unless the context requires the contrary; and the masculine, feminine and neuter shall include the masculine, feminine or neuter, as the context requires. 15. Exhibits. Any exhibits referenced herein and attached to this Declaration are hereby incorporated by reference. 16. Notices to Mortgagees of Record. On any loss to the Property, if such loss exceeds One Thousand Dollars ($1,000.00), notice in writing of such loss shill be given to each mortgagee of record. 17. Fire and Extended Coverage Insurance. Borrower shall obtain and maintain a policy of fire insurance for the full insurable value of all the improvements within the Property. The form, content and term of the policy, its endorsements and the issuing company must be satisfactory to all mortgagees. If more than one mortgagee has a loan of record against the Property, or any part thereof; the policy and endorsement shall meet the maximum standards of the various mortgagees represented in the Property. The policy shall contain an agreed amount endorsement or its equivalent, an increased cost of construction endorsement, vandalism and malicious mischief coverage, a special form endorsement and a determinable cash adjustment clause or a similar clause to permit cash settlements covering the full value of the improvements in case of partial destruction and a decision not to rebuild. The policy shall name as insureds the owners, Borrower and the mortgagees, as long as their respective interests may appear. "Mortgagees", as used herein, includes beneficiaries under a deed of trust. 18. Binding Effect. This Declaration shall inure to the benefit of and be binding upon the successors and assigns of Borrower and the heirs, personal representatives, grantees, tenants, successors -in -interest or assigns of the owners. 19. Certifications by Borrower. Not less frequently than once a year Borrower shall certify to Lender that Borrower: (a) Complies with all the terms and conditions of this Declaration and the Deed of Trust; and CITY OF NATIONAL CITY PAGE 7 OFI 0 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS (b) Has obtained and does maintain fire and casualty insurance on the Property satisfactory to Lender, including a certificate of insurance, of which Lender shall be a holder, from the insurance company providing coverage satisfactory to Lender which may not be cancelled by the insurance company without thirty (30) days advance notice of cancellation. 20. Declaration Subordinate. This Declaration is subordinate to any deed of trust or mortgage on the Property, which deed of trust is senior in recording priority to this Declaration. Any party, and its successors and assigns, receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure of such senior deed of trust or mortgage, and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of this Declaration. 21. Refinancing. Neither the Property, nor any portion thereof, shall be refinanced without the written consent the Lender, except as otherwise allowed by law. The Lender may withhold any such consent in its sole and absolute discretion, nothing contained herein shall obligate Lender to agree to Borrower's request to refinance the Property or any portion thereof. 22. Waiver by Lender. Any provision hereof, including without limitation, the requirement that Borrower occupy the Property, may be waived only with the advance written approval of the Lender and HUD for good cause shown. 23. HOME Period. The HUD HOME Loan was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds_ The HOME program regulations (24 C.F.R. Part 92), apply for a period of 15 years, from the date of recordation of the Deed of Trust. Beginning 15 years after the date of recordation of the Deed of Trust, and for the remainder of the term of this Declaration, the Property will continue to be subject to the restrictions set forth in this Declaration, but shall no longer be subject to the HOME program regulations. 24. Declaration Independent of HOME Note. The obligations of Borrower under this Declaration shall be independent of, and in. addition to, Borrower's obligations under the HOME Note, and repayment of the HOME Note shall not terminate or otherwise affect this Declaration. Date: i U 2CA 9— Date: Borrower: CARLOS C. iELAS GALLEGOS Borrower: CITY OF NATIONAL CITY PAGE 8 (RI 0 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On ()L 03L2 bca 20 before me, &Art two notary public personally appeared s c p.4 t who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/ar subscribed to the within instrument and acknowledged to me that he/sheithey executed the same in his/herAlaeit. authorized capacity(ies), and that by his/herltheir 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 ic (Seal) CRAIG NEWMAN COMM. #2055207 x Notary Public • California O San Diego County 1 MY Comm. Expires Feb_ 12, 2018 t CITY OF NATIONAL CITY EXHIBIT "B" DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Signature: CERTIFICATION Pursuant to the provisions of Government Code 27361.7, I certify under penalty of perjury that the following is a true copy of illegible wording found in the attached documents: (Print or type the page number(s) and wording below): CY-AA %! 2W ►M a ✓l C OS C. • p�Ai1\a-S (nal l VS Place of Execution: Redlands, CA Date: ti l `l } t'i 1 R. Kellogg EXHIBIT "A" Legal Description of the Property Property Address: 1213 E Avenue # A3, Natignal City, California 91950 A Condominium Comprised of Parcel 1: An undivided 1f32nd fractional interest in and to Lot 1 of Petit Village, in the City of National City, County of San Diego, State of California, according to Map thereofNo. 9199, filed in the Office of the County recorder of San Diego County, April 30, 1979. Excepting therefrom the following: All units as shown upon the First Superseding Condominium Plan of Petit Village, recorded November 1,1979 as Instrument No. 79- 161740 of Official Records of San Diego County. Parcel 2: Unit 3 as shown upon the Condominium Plan referred to above. Assessor's Parcel Number : 560-410-22-03 CITY OP NA'MNAL CITY DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS SIT "A,.