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RDA AG PKT 2002-10-28 #C
AGENDA REPORT DATE: October 28, 2002 TO: Chairperson and Members of the Redevelopment Agency THRU: John B. Bahorski, Executive Director FROM: Lee Whittenberg, Director of Development Services SUBJECT: RECEIVE AND FILE - MORTGAGE ASSISTANCE PROGRAM PROCEDURES SUMMARY OF REQUEST: Receive and file the proposed "Mortgage Assistance Program Procedures for the City of Seal Beach ", establishing program procedures for the mortgage assistance program structured to assist low -to- moderate income persons and families to purchase a first -time home in the City of Seal Beach. BACKGROUND: On May 28, 2002 the Agency adopted the "Home Improvement Program Guidelines ", implementing the provisions of the 2000 -2005 AB 1290 Implementation Plan approved by the Agency on April 22, 2002. The following programs were approved and authorized for implementation by the Agency at the May 28, 2002 Agency meeting: A. Owner- Occupied Home Improvement Loan Program: These program procedures were approved by the Redevelopment Agency on September 23, 2002. B. Owner - Occupied Home Improvement Grant Program: These program procedures were approved by the Redevelopment Agency on September 23, 2002. C. Substantial Rehabilitation /Replacement Loan Program (Seal Beach Trailer Park): Recent State regulations regarding the use of Housing Set -Aside funds dictate that "substantial rehabilitation loans" be deferred and also require an affordable covenant be recorded on the property for at least 45 years. The regulations further state that the Agency must receive equity share repayment instead of an interest rate on these loans. This means that if the property sells to a non - qualified buyer Agenda Item C: \Documents and Settings \LWhittenberg \My Documents \RDA \Mortgage Assistance Program\2002 Mortgage Assistance Program Procedures.RDA Staff Report.doc\LW\I 0-22-02 Approval of Mortgage Assistance Program Procedures Redevelopment Agency Staff Report October 28, 2002 within the 45 -year covenant, the Agency will receive a percentage of the property equity as loan repayment. Several of the mobile homes in the City are in need of repair and are believed to have a variety of exterior and/or interior code violations. Utilizing the Housing Set -Aside Funds, these homes will be brought up to current Code requirements. Note: Program Procedures for implementation of this program will be presented to the Agency at a later date, upon completion of the necessary documentation by the City Attorney and the housing consultant, CivicStone. D. Mortgage Assistance Loan Program: This program is designed to assist new buyers with up to 20% down payment assistance in purchasing condominiums or mobile homes in the City of Seal Beach. The loan is funded through Set -Aside Funds with a maximum loan amount of $35,000. State regulations also require this type of funding to have a 45 -year affordable covenant placed on the property as well as an equity share repayment plan. Note: These program procedures for implementation are being presented this evening. FISCAL IMPACT: No impact to City General Fund. All program activities, including program administration, are funded through the Redevelopment Agency Housing Seat -Aside Fund, Account Number 061 - 081- 45050. • RECOMMENDATION: Receive and file the proposed "Mortgage Assistance Program Procedures for the City of Seal Beach ", establishing program procedures to assist low -to- moderate income persons and families to purchase a first -time home in the City of Seal Beach. NOTED AND APPROVED: i # e Whittenberg 6 r: ahorski, Executive Director Director of Development Services Redeye opment Agency 2 2002 Mortgage Assistance Program Procedures.RDA Staff Report Approval of Mortgage Assistance Program Procedures Redevelopment Agency Staff Report October 28, 2002 Attachments: (1) Attachment 1: "Mortgage Assistance Program Procedures" Redevelopment Agency of the City of Seal Beach, October 28, 2002 3 2002 Mortgage Assistance Program Procedures.RDA Staff Report Approval of Mortgage Assistance Program Procedures Redevelopment Agency Staff Report October 28, 2002 ATTACHMENT 1 "MORTGAGE ASSISTANCE PROGRAM PROCEDURES ", REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, OCTOBER 28, 2002 4 2002 Mortgage Assistance Program Procedures.RDA Staff Report MORTGAGE ASSISTANCE PROGRAM PROCEDURES REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH OCTOBER 28, 2002 C: \Documents and Settings \LWhittenberg\My Documents \RDA\Mortgage Assistance Program \Program Procedures Title Page.doc \LW\10 -22 -02 RECORDING REQUESTED BY ] AND WHEN RECORDED RETURN TO: 1 1 City of Seal Beach Redevelopment Agency ] 211 Eighth Street 1 Seal Beach, California 90740 1 Attention: Executive Director ] 4.-4 ] i';',-,-. ki.... APN #: . '1 : Ai City of Seal Beach Redevelopment Agen Y _.. FIRST -TIME HOMEBUYER =4: DEED OF,TRUST • �:: .`�",. , (WITH ASSIGNMENT OF' NTS) \':..i:47-':::::,,,,,ii s',...,- ' - „,, is ° . , ,,,,,.. Lo ant te: i. ,L., N'':::-7 This DEED O1 TRiJ _ $ is dated as of , 200, by 'x ` ^. • :;; -. litdividually and collectively, the "Trustor” or `Borrow,er= ), ` ' . (the "Trustee "), whose business address is ,:� ' • in favor of the City of Seal Beach Redevelopment Agency (together with its successorsand assi s;.: "Beneficiary or " "Lender ") whose address is g ... cY ( g � ��,,,. .21! ighth Street, Seal Beach, California 90740.ff .„... tfr--:;; 1. GRAN' T OF SECURITY INTEREST: BORROWER; ;:1N CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST ,HER*EIN CRE 'TED, HEREBY IRREVOCABLY GRANTS, PLEDGES, TRANSFERS AND SIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower singht, title and interest now held or hereafter acquired in and to the ° «°of following: (a) al that certain real property (the "Property") located at in the City of Seal Beach, County of Orange, State of California, which is more particularly described in Exhibit A attached hereto and incorporated herein by this reference; (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon, used in connection with or beneficial for the use and enjoyment of said Property, together with (c) all additions to, substitutions for, changes in or replacements of the whole or C: \Documents and Settings \LWhittenberg\My Documents \RDA\Mortgage Assistance Program \Deed of Trust.DOC \LW\10 -22 -02 57284 \0001 \Deed of Trust Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 any part of said articles of property, and all proceeds of the foregoing, all rents from the foregoing, and all insurance and condemnation proceeds with respect to the foregoing, and all interests in condominium or homeowners associations relating to said real property; provided, however, that furniture of Borrower now or hereafter situated on said real property is not intended to be included as part of the property encumbered hereby. 2. FOR THE PURPOSE OF SECURING: + � 5 a 2.1. Repayment of the indebtedness evidenced by that�.`certain P•ro nissory Note of the Borrower dated , 200, (the "Note of the Borro in the principal amount of Dollars ($ ), together with interest on such indebtedness according to the terms of the Note "` °.and any land " ••:=am.endments, modifications, extensions and renewals of the Note, together. all obligation : of..orrower under the Loan Agreement dated substantially concurrently herewith executed by Borrower in favor of Lender (the "Loan Agreement "), and any and all amendmentsf modifications, ext • " ions and renewals of the Loan Agreement, and all of the obligations of Borrower under that certain Unit Regulatory Agreement dated substantially concurrently herewith executed by Borrower in favor of Lender, and all amendments, modifications, extensions and renewalsihereof. �x •4 s•�S Mti •` z .�, -er.::5:t,„ b v ; 2.2. Payment of such additional sums, with interesttl (a) As may hereafter be borr•wed from Lender by the thenrecord owner of the Property and evidenced by a promissory note or notes re that rt o>r`they are so secured and all modifications, extensions, or renewals of the Note; an ,yam; , ,... .„,,,,;111' r . (b) As may be incurred ;,paid; or advanced by ender, dr as may otherwise be due to Trustee or Lender; .,,cm,. er_any = rovision of t1us.Deed of Trust and any modification, extension, or • renewal of4this rust, and, s * .pi,,., -, `: + ( c ) As may otherwise b e :,paid or advanced by Lender to protect the security or • priority of this Deed of Trust. ` ._ 3• Performance of eac obligation, covenant, and agreement of Borrower contained in any other document executed by Borrower in connection with the loan secured by this Deed of ` Trust. `. . f 3. BORROWERR'COVENANTS: C . . :, Borrower represents, w arran t s and covenants as follows: 3.1. Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Lender's interest in the Property. Deed of Trust S7284\0001 \Deed of Trust 2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 3.2. Payment of Principal and Interest. That Borrower shall promptly pay, when due, the principal and interest on the Note, and such other amounts as are provided under or secured by this Deed of Trust. 3.3. Maintenance of the Property. Borrower shall (a) keep the Property in a decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable; (c) not remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) repair, restore orrebuild• prom or improvements on the Property that may become damaged oribe destroyedwhile.subject to the lien of this Deed of Trust; (e) comply with all applicable ( aws, ordinances \regovernmental regulations affecting the Property or requiring any alteration or improvement thereof >and not to suffer or permit any violations of any such law, ordinance or ge ernmental regulation nor,,of any covenant, condition or restriction affecting the Property; (f) not initiate or acquiesce rin change in any zoning or other land use or legal classification whic affects any of the Property without the Lender's written consent; and (g) not alter the use ( `of all or an§,part of the Property without the prior written consent of the Lender. ' :• \ 3.4. Appear and Defend. Borrower ppear n and defend 'Orly' action or proceeding purporting to affect the security hereo e , f or th ghts powers 1, :the Lender or Trustee; and to pay all costs and expenses, includiiig,cost 9f,evidence of title an attorney's fees in a reasonable sum, in any such action,-or proceeding />.ri a N which L }ender or Trustee may appear, and in any suit brought by the Lenb fo c f�T lose'this Deed oriist. 3.5. Payment of Taxes, Utili � Charges and Oth Borrower shall pay, at least ten (10) days before delinquencya11 taxes and assessmen tsaffecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions` attributable . to `the Property leasehold payments or ground rents, if any, condominium and homeowners a fees and h any, arges and any interest on the Property or part thereof; all costs, fees'and expenses of'this trust. Borrower shall make such payments when due, directly to the payee tliereo£ Bor ower,shall promptly furnish to Lender all notices of Z mounts "due under this paragraph, and Borrower shall promptly furnish to Lender receipts evide i ia g all such payments made • <: N . •S� 3.6 ; =Insurance. LENDER HEREBY DISCLOSES TO BORROWER, AS REQUIRED BY CALIFORNIA //CIVIL CODE SECTION 2955.5(b), THAT LENDER MAY NOT REQUIRE'�BORROWER�AS A CONDITION OF THE LOAN, TO PROVIDE HAZARD INSURANCE COVERAGE IN AN AMOUNT EXCEDING THE REPLACEMENT VALUE OF THE IMPROVEMENTS ON THE PROPERTY. To keep the Property insured with loss payable to the Lender, against loss or damage by fire and such other hazards, casualties and contingencies and by <such companies on such forms and in the amount of the replacement cost of the improvements on the Property, and to deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium Deed of Trust S7284\0001 \Deed of Trust 3 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property. 3.7. Payments and Discharge of Liens. Borrower will°immed"ately pay, all claims of every kind and nature which might or could become a lien o ' or a n y part thereof; provided, however, that the following are excepted from this'prohibition: '(a). liens for taxes and assessments which are not delinquent although by law are given the status ofd lien (b) such of the above claims as are, and only during the time they are, being co d'by nteste Borrower in good faith and by appropriate legal proceedings, and Borrower shal po t seccurity for the payment oft these contested claims as may be requested by the Lender, (c) any Fiist Lien (as defined:i.t the ' Loan Agreement); and (d) any junior lien expressly peen fitted' byhe Unit Regulat e Agreement. Borrower shall not default in the payment or perform fance4o any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust. 4. IT IS MUTUALLY AGREED THAT: • ): , / 4.1. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the NoteandSeatio 2.1 sh "be by Lender first to fees and costs payable to Lender, then to default interest payable the-.Note , then to interest payable on the Note, and finally to the,priricipal due on the'Note. r • 4.2. Future. Advances. , ,pU on A:r Borrower � �eq uest b y � L,ender, at Lender's option, may make future ad"vances:'to Borrower. All such future advances, with interest thereon, shall be added to n beco emapart ;oftheindebtedness-secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are,securedrby this Deed of Trust. 7 41, .4.3. Disbursements to , rotect Lender's Security. All sums disbursed by Lender to otect,and preserve the Property, this'KDeed of Trust, or Lender's security for the performance of Borrower's obligations under the N ote, to cure any default of Borrower under any obligation of Borrower *Lender, shall be and• deemed to be an indebtedness of Borrower secured by • • this Deed of,T 'rust:. 4.4. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained inthis`ypeed of Trust, or if any action or proceeding is commenced which materially affects Lender'• interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure <of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearance, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorneys' fees and entry upon the Property to make repairs. Deed of Trust 57284 \0001 \Deed of Trust 4 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 Any amounts disbursed by Lender pursuant to this Section 4.4, with interest thereon, shall become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section 4.4 shall require Lender to incur any expense or take any action hereunder. 4.5. Inspection. Lender or its agent may make or causeto be made reasonable entries upon and inspections of the Property. Lender shall give Borr�ow.er notice at the time of or prior to any such inspection specifying reasonable cause for the inspection. ;,, 4.6. Awards and Damages. All judgments, awards of damages, r ,ettlements and compensation made in connection with or in lieu of (a) taking =fu r any part of oz •a1 yinterest in the Property by or under assertion of the power of eminen doth (b) any damage' to 0 -:� �. destruction of the Property or any part thereof by insured castsii:and. (c) any other inj n or damage to all or any part of the Property, are hereby assigned to and 'shali;be paid to the Len er. The Lender is authorized and empowered (but not required) to collect an rece ,,e any such sums and is authorized to apply them in whole or in part on ,any,�indebtedness o • .iligationfsecured hereby, in such order and manner as the Lender shall d"et�eri i e- at its option. `Tli ender shall be entitled to settle and adjust all claims under insurance policies. •rovided under this Deed of Trust and may deduct and retain from the proceeds of suc " nsurance ; a 4inounf of all expenses incurred by it in connection with any such •settlement or adjus erit., Y i n All or any part of the amounts so collected and recovered by, thelLender maybe releas Borrower upon such conditions as the Lender may impose elf its disposition Applicaon of all or any part of the amounts collected and received by • , der or the releas ereof shall not cure or waive any D default under this eed of Trust. If the.2roperty is abandon o,by Borrower, or if, after notice by Lender to Borrower • thatI'the-;cflndemnor ffers t o make an award or settle a claim for damages, Borrower fail to resporia49 „Lender within thirty days after the date such notice is mailed, Lender is authorized to collect andapply the i iceeds • t'Lender's option, either to restoration or repair o the Property or to the siumffsecured by tfi s Deed of Trust. *0 °• ;• ; .4 7 Prohibition on Transfers of Interest. With the exception of the transfers permitted \ a Section 4.11 below arid; transfers permitted by (and which are completed in accordance with) the Unit Regulatory Agreement executed by Borrower in favor of Lender (including without limitation thegranfing of a First Lien, as defined in the Loan Agreement), if all or any paritolliW or an interest therein is sold, transferred, encumbered or leased by Borrower, voluntarily_ or involuntarily, without Lender's prior written consent, Lender may, at Lender's option, deeliiranh,e secured by this Deed of Trust to be immediately due and payable. If Lender exercis such option to accelerate, Lender shall mail Borrower notice of acceleration in accorda with Section 6.9 hereof. Such notices shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof. Deed of Trust S7284 \0001 \Deed of Trust 5 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 4.8. Sale or Forbearance. No sale of the Property, forbearances on the part of the Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part. 4.9. The Lender's Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers =or guarantors,. _and without affecting the lien hereof upon any of the Property not release,ddipu`r" want Hereto .; '.any time and from time to time without notice: (a) the Lender may, at•its sole discretion (I) release any person now or hereafter liable for payment of any or all sucl2 indebtedness:• (IT): extend the time for or agree to alter the terms of payment of any or all of sucli .indebtedness, and (€t ;, elease or accept additional security for such indebtedness, or subordinate th; 4ien or charge hereof , , a nd (b) : , Trustee, acting pursuant to the written request of the Lender, may, r covey all or any pt Property, consent to the making of any map or plot thereof, oin >< , granting any assessment thereon, or join in any such agreement of extension or subordination. 4.10. Reconveyance. Upon payment, '7a:11,., sums secured by. this Security Instrument, Lender shall request Trustee to reconvey •the'_ Property and sha11 • surrender this Security Instrument and all notes evidencing indebtedness ecured by this Deed of Trust to Trustee. Trustee shall reconvey the Property wi .. out warranty arid•;ywithout charge to the person or persons legally entitled thereto. Such ersons'shall`p y all costs of recordation, if any. The recitals in the reconveyance o :any, matters or facts shalkebe' conclusive proof of the truthfulness thereof. "•' °ms �`��.� � ?, 4.11. Requirement of Owner ;occupancy and Permitted Transfers. Borrower shall occupy the Property< Borrower s pnncipal place of residence during the term of the Note. Notwithstandit any oth .,pro sion of the 1 i \ this Deed of Trust, the following transfers shall not be d • timed to be a default u Note o thisr£Deed of Trust: ..(a) The transfer of the. 'roperty to the surviving joint tenant by devise, descent or opei:a iori - the law, on the death of a jo tenant. (b ; :.A transfer of the Pro' erty where the spouse becomes an owner of the property; (c) 'AA transfer of the Property resulting from a decree of dissolution of marriage, legal separation or frOilincidental property settlement agreement by which the spouse becomes an owner of the Prope a �. (d) A transfer to an inter vivos trust in which the Borrower is and remains the F �. beneficiary and occupant of the property. 5. EVENTS OF DEFAULT 5.1. Events of Default. An Event of Default under the Loan Agreement shall constitute a default under this Deed of Trust. Deed of Trust S7284\0001 \Deed of Trust 6 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 5.2. Acceleration and Sale. (a) Acceleration. Upon the occurrence of a default under this Deed of Trust, Lender at Lender's option may declare all of the sums secured by this 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. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses inc�urr<edin 'pursuing the remedies provided in this paragraph, including, but not limited to, reasonalile:.attorneys'• :fees: *3,,,;.: (b) Sale. After delivery to Trustee of a Notice o efault and B e i i d for Sale and after the expiration of such time and the giving of such notic .• default'and satetas May then be required by law, and without demand on Borrower Trustee sha ire. 1, the Property at��tl,i tiime andft place of sale fixed by it in said notice of sale, at public auction to the . bidder fo c`ash in.• :- lawful money of the United States of America, payable at time f,s_ale:,s:yrustee may postpon sale of all or any portion of the Property by public announcement at `suiiiiime and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any erson including Borrowers rust - a or the Lender, may purchase at such sale. Upon such sal by°2'rustee it shall deliver to.su purchaser its deed conveying the Property so sold, but without any covenant or warran expressed or implied. The recitals in such deed of any matters.or facts's�liallie, conclusive proof of their truthfulness. Upon sale by Trustee and after deductin all costsex enses and fees of Trustee and of this Deed of Trust, Trustee shall a ,ply the proceeds" of sale t1 h eipayment of the principal indebtedness hereby secured, whether"videnced by the -.Note or` otherwise, or representing advances made or costs or expenses paid ?or incurred by thetLender der this Deed of Trust, or .$ the secured obligations or any other'instrument evidencing-o ::Ssecuring any indebtedness hereby secured and to�the = "ayment offall other sums: then secured thereby, including interest as provided in this Deed ,of'Trust, t sec bligations • o -any other such instrument, in such order as the Lenders ha 1 direct; and then\tlie,�remainder, if anshallbe paid to the person or persons legally entitled'thereto. '' $` ` • g NIL .• •.';•• • O Assignment of Rents; Appointment of Receiver; Lender in Possession. Upon accelerationunder paragraph (a) ofSeetion 5.2 hereof or abandonment of the Property, Lender (in person, by, agent or by judiciallympointed receiver) shall be entitled to enter upon, take possession '©. aidkmanage the Pro erty and to collect the rents of the Property (if any) including those past due :obtain a Receiver for the Property. All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents iiiclu'iline,,fiut not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorney VARY!. :,T and then to the sums secured by this Security Instrument. Lender and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the claims of prior lien holders. 5.3. Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy Deed of Trust S7284 \0001 \Deed of Trust 7 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. 5.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefore by filing for record in the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or trustees may be exercised as often as and whenever the advisable. The exercise of said power of appointment, no matter how often, sh 1µnot• be i deeme • an exhaustion thereof, and upon recording of such deed or deeds of appointment, the Trust a or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to ; and become fully vested with identically the same title and estate in and totlie Prope: y ereby co, v e y ed and with all the rights, powers, trusts and duties of the predecessor�in the trust hereunder;-with the like effect as if originally named as trustee or as one of the trustees. 5.5. Remedies Cumulative. No remedy herein contained o conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remed es'-afforded by law or by the terms hereof to the Lender or Trustee but each every such remedy�shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. r d 6. MISCELLANEOUS PROVISIONS �' • 6.1. Successors, Assigns; Gender, Number,: Thecovenants and agreements contained in this Deed or Trust shall b and the benefi and advantages under it shall inure to, the respective heirs executors, administrators, successors and assigns of the parties. Wherever used, the singular `number shal= include the plural, and the plural the singular, and the use of any gender shal• e` applicableo;alugenders. 6.2. Headings. The headings are inserted'only for convenience of reference and in no way: define, limit, or describe thWco a or intent of this Deed of Trust, or of any particular 0 rovis on or the proper construction thereof. 63: on Behalf cif,-the Lender. Except as otherwise specifically provided 9}a herein, whenever'l'any approval, notice, direction, consent, request or other action by the Lender is required or perm tted under this`Deed of Trust, such action shall be in writing. 6.4. Terms.. Tlie words "the Lender" means the present Lender, or any future owner or holder, including any pl 3 gee of the indebtedness secured hereby. 6.5. Obligations of Borrower. If more than one person has executed this Deed of Trust as "Borrower," the obligations of all such persons hereunder shall be joint and several. 6.6. Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. Deed of Trust S7284 \0001 \Deed of Trust 8 Redevelopment Agency of the City of Sea! Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 6.7. Indemnification. Borrower will indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted in good faith pursuant to or in connection with this Deed of Trust and not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower's expense, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, punitive or otherwise), causes of action (whether legal or equitable in natuie) ..as_sertedt by an? Person, person, firm, corporation or other entity arising out of this Deed of Trust and Borrowerrrshalltpay the Lender upon demand all claims, judgments, damages, losses or ex enses (including reasonable legal expense) incurred by the Lender as a result of any legal actiottarising out•`of this Deed of Trust. 6.8. Notice. Except for any notice required under "ap `°1'i"cable law to N ?:sb -, be gien in another manner (a) any notice to Borrower provided for in thi4Deed ofTrust shall be gienby mailing such notice by certified mail directed to the Property Address or any other addss re Borrower designates by notice to Lender as provided herein; and, (b) any'�'otice to Lender shall be given by certified mail, return receipt requested, tog rider's mailing address stated ierein or to such other address as Lender may designate by notice ,Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have . been-given to Borrower or Lender when given in the manner designated herein. , -. . f ;" ` ' , ,,, . ,,,\,..t. 6.9. Statement of Obligation: •L mays , ollect a fee not to exceed $15 for furnishing the statement of obligation as provided by... Section ,2943 of the Civil Code of California. 1 ,.; '£; 6.10. Us of Prope Borrower : shall not permit or suffer the use of any of the Property for any purpos - o i er -tlian as a sin le-family residential dwelling. r IN WITNESS WHE has executed this Deed of Trust on the day and ye s forth above. By signing below, Borrowe agrees to the terms and conditions as set forth `ab ®ve 'F \ ,, s r Deed of Trust S7284 \0001\Deed of Trust 9 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust . October 28, 2002 MAILING ADDRESS FOR NOTICES: SIGNATURE(S) OF BORROWER: (Street) Print Name:- eV:44 ,.. (City) (State) (Zip) Print Name: . , :,..... .. -,, ,,.. — . • .„, ., ..., - , ...•°. 71 . , . .. i f.''.1'a4.‘:.:•"1:`,1*, *.r , ,-, -7 •?,,'' ' , , , ( 1 ; 1 , • : • .„,., i ',, ' • . t • • ..- . • 2:, .? - •i,,.3-° , ,:- - i i ,•"•+ ,,..;• &.•1 '. • , .,"141 + "4: , ' , .: :;', '''' ,.• , , • • * ' :,. . • . 4 41 . ‘) . ,.. . a • • • .t • ''s •.: • , a . ' Ti . 40,!° „ ' ' :. •,,, , 1 .14 a., . t'" • -"y., ...n• .. ,>a ,Z. ..' Deed of Trust S7284\000I \Deed of Trust 10 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 State of California } } . County of } On , 200 before me, , a Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence , to ie the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged i `that h she /they' executed the same in his/her /their authorized capacity(ies), and that by his/her /their ignature(s) e 1 nstrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. - 43; , ,, £. {. f WITNESS my hand and official seal. •• ": '' Signature 1 a (seal) • : � �: ` 3 ,, • State of California } , ,„_ `` . 7 -, = } j � `-- County of 4) . '- }v, A. Y .f $ ..^'.cw «. am V • ..1,..,.;..7' ;.. "� 2U0 .:."before me , a Notary Public, personally appeared "' ,'_ >. �`` ` ' „, , personally known`tc me (or proved tort Cp' basis ofsatisfactory evidence) to be the person(s) whose name(s) is /are:siibscribed to the within instrument and ckn` wledged to me that he /she /they executed the same in �u� his/her /their authorized capacity(ies and that by s/her /their signature(s) on the instrument the person(s), or entity upon behalf of which 4he erson(s) acted, executed the instrument. `0 .; k f : : .x , ' WITNESS my handan official seal. • Signature ' `x• - -. " 7' =` -- silidirlik, 44, (seal) ..,: Deed of Trust S7284 \0001 \Deed of Trust 11 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Deed of Trust October 28, 2002 EXHIBIT A (Legal Description of Property) That certain real property situated in the City of Seal Beach, County of Orange, State of California, described as follows: .. ,... :. . . +,....„ Y + : 14 , ?;„ ..#, - .,-• .'. . /2.40f • . ..., ''''.:1;7;"''''',IsSit)■., '*44;:k'l.1' P .,..:,...- . ., ..,. - • . ', 1 ', $t , R- . ) ,/*1,a,,,,...._., h.,,,,, • .. „ .......„ ..._. to ...... ..,....„-„k„.„....:,....„ ........ , .........4,.. . . ... ---,& ,:,.., 00. :' ;;;'*: : .. ;''''..,-*?,,,,, C k • • : : - ,,', ' . , •;-.' - e% , ii;:a : 1.,,, ' V!' " ' • .41.1„, , s!!!. . , ..;.. , it , 9; .,........ ,...:,,, .tt.... A ti t ::• , --,:i- ° , .,...: Deed of Trust S7284\0001 \ Deed of Trust 12 LOAN AGREEMENT THIS LOAN AGREEMENT (this "Agreement ") is made and entered into as of , 200_ by and between the CITY OF SEAL BEACH REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Lender ") and (individually and collectively, the "Borrower"). • WHEREAS, the Lender sponsors a Mortgage Assistance, 'Pr•.ggraxn the 'rogram ") to loan funds to first -time income - qualified buyers of dwellings 1i the :.:.of Seal Beach, California; and WHEREAS, the Borrower has requested such a loan to • urchase the pr a erty that is described on Exhibit A attached hereto (the "Property"); and r WHEREAS, the Lender is willing to make such a loatvio the Borrower on the terms atid conditions hereafter set forth. NOW, THEREFORE, in consideration of the mutual' covenants and as eements.contained herein, the parties hereto agree as follows: ' °a s 1. THE LOAN AND COLLATERAL a. LOAN/NOTE: Subject , o the terms grid conditions o th Agreement, the keh Lender hereby agrees to lend the Borrower,--and the Borrower hereby to borrow from the Lender and repay the Lender, the' f ount of`' °N., Dollars ($ ) to be used to purchase-1 Property. The olligation-of the Borrower to repay the Loan shall bee dented b_ .a Promisso L " ote executed by'the Borrower in favor of Lender dated 4 20Q rinthe amount of the Loan (the "Note "). The Note shall be secured by a Deettli Trust (the "D: eced ,.of-Trust ") enoumbering,the Property, and proceeds thereof and • related items (the "Collateral') > r ‘ Nwjfitiot ` b. TERMS and REPA`I'MENT: ! The unpaid balance of the Loan shall bear lnterest,afithe rate of two percent (2 °10'• per annum, commencing on the closing date of the Loan. No a ens of principal or interest%:, hall be required prior to the Maturity Date (subject to PYm r p� P � q P� tY ( J accelera ion of the Loan as provide • 'herein and in the other Loan Documents, as hereinafter defined). ccr=iued ?interest shall be ed to principal on each anniversary of the Note and shall thereafter bear interest. If Borrower is in material default under the Loan Documents as of , 20 (the "Maturity' Date "), all accrued interest and all principal under the Loan shall be due on saidkMaturity i ate. Provided Borrower is not in material default under the Loan Documents and the Maturity Date, interest and principal on the Loan shall be forgiven on the Maturity Date. Except provided in the Loan Documents (as hereinafter defined), all payments shall be applied first to interest and then to principal. All payments will be made promptly to the Lender at the address specified by the Lender. Prepayment of the Loan is allowable with no prepayment penalty. c. SUBORDINATION: The Lender has found and declared that an economically feasible method of financing, refinancing or assisting first -time home buyers C: \Documents and Settings \LWhittenberg\My Documents\RDA\Mortgage Assistance Program \Loan Agreement.DOC \LW\10 -22 -02 S7284 \000 ] \Loan Agreement Redevelopment Agency of the City of Seal Beach Mortgage Assistance Proiam — Loan Agreement October 28, 2002 pursuant to the Program on substantially comparable terms and conditions wut subordination is not reasonably available. The provisions of the Deed of Trust and Unit Reatory Agreement shall be subordinate to any first lien on the Property ( "First Lien ") held by an stitutional lender or investor (the "Senior Lender ") and shall not impair the rights of the Sor Lender, or its assignees or successor in interest, to exercise its remedies under the Ft Lien, as more particularly described in and subject to the provisions of the Unit Regulatory reement. Lender agrees it shall instruct the escrow agent for the acquisition of the Property bhe Borrower that the order of recording in the escrow for the purchase of the Property by the Borrower shall occur as follows: (1) the Grant Deed for the Property, (2) the Unit Regulatory A en't; (3) the First Lien; and then (4) the Deed of Trust. - r 2. CONDITIONS ilk OF LENDING. The obligation- of the Lend9 %make the Loan shall be subject to the fulfillment of each of the following conditions (andtthe documents referred to below are hereinafter collectively referred to as the "Loan Documents '): \'. :,' •:. f ps , a. NOTE, DEED OF TRUST AND LOAN AGR , T: The Borrow shat . " have executed and delivered to the Lender this Agreement, the Note and "te Deed of Trust, all in form and substance acceptable to Lender. ` .4311b, = . b. UNIT REGULATORY AGREEIVIE °N•" ,4ND,REQUEST F®R�N®TICE: The Borrower shall have executed and delivered to Leger a U iit Regulatory Agreement in the form attached hereto as Exhibit B and a Request for iliefaukin the form of Exhibit C attached hereto. R a c. TITLE INSURANC The issuanceste Lender at the' cost of Borrower of a lender's ALTA title insurance olic, dn- the amount of the oan, inform and substance, and with p Y, 1, ,x ° Y.. '€ . t ;- - such endorsements, as may be required by Lender. -- , •M . g`i:'2^... - qty dt ` A OTHER DOCUMENTSS "The Bo shall have executed and delivered, or caused others "to execute ano c?delrv all other instruments and documents required by the Lender in connection with this transaction \i,' , A ,4 -' 4 ; '�L•Ii�' } r F s ; "3. REPRESENTATIONS' AND W OF BORROWER z q a o orrower represents and w. ants the following to and for the benefit of the Lender: � �. ; h p g :a:'. LEGAL S ; = i - S: There are no legal actions, suits, or proceedings pending, or to,the;= =knowledge of Borrower, threatened against the Borrower before any court or administrative agency, , which, 41,-determined adversely to Borrower, would have a material • adverse effect on t1 +Th racial condition of Borrower. b. NOVO'DEFAULT: Borrower is not in default of any obligation, covenant, or condition contained in any bond, debenture, note or other evidence of indebtedness or any deed of trust or collate instrument securing the same. c. TAXES ARE PAID: Borrower has paid in full all taxes and assessments levied by any federal, state or local taxing agency against Borrower or its personal or real property. Loan Agreement 2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 d. NO ADVERSE CHANGE: There has been no adverse change since the date of the Loan application in the financial condition of Borrower. e. NO LIENS: There are no liens encumbering the Property except for liens that will be paid upon the closing of Borrower's acquisition of the Property. 4. COVENANTS OF THE BORROWER a. PAYMENT OF THE LOAN: Pay punctuallytthe princi and,interest on the Note according to its terms and conditions and to pay punctually ..any ot15er:unichints that may become due and payable to the Lender pursuant to the terms of this Agreement the Note, the Deed of Trust or any other Loan Document. ; •;'; . b. PAYMENT OF OTHER INDEBTEDNESS:` •ayounctually the rincipal and, interest due on any other indebtedness now or hereafter owed by( Borrower to Lender or , t oan other lender. 'u 2:4' . c. USE OF LOAN PROCEEDS: Use the loan proceeds- =only for the uses specified in Paragraph 1(a) of this Agreement. ,-,- y d. NOTICE OF DEFAULT: Give . 'tten`notice to Lender of a event within fifteen (15) days of the event that constitutes ar Event of Default under Para 6 of this Agreement or that would, with notice or lapse of time•or bo c vent of Default. N V,I e. EXPENSES OF COLL ..0TION OR ;ENFORCEMENT: Pay to Lender, if 3 .P Borrower breaches any provision o t h i s Agreement .: o any er provision of the Loan Documents, in addition to any other am hunts that may be .due;; o- # amount equal to the costs and expenses of collectionrenforceme t "6 . correction or waiv .flie default incurred by Lender, including bu �ricgt: rnited to reasonable a torneyA' fees. , f. HAZARDOLl C„ S �_ :oi=rower shall comply with all applicable F.r laws, regulations, ordinances,`lieenses, permits;rules and other codes pertaining to hazardous materials. Borrower shall indemhi efend and4iold Lender harmless from all liability, claims, pena nes, losses, damages anexpenses of any kind, including, without limitation, clean- up ccosts , cl,reasonable attorneys' fees incurred by Lender as a result of Borrower's breach of this coveriaiit or. as a result of the prese ce of hazardous substances in, on or near the Property. \;.: _. ` i;g: , : ` COUNSELING n the event of an Event of Default, Borrower agrees to seek and receive counseluig ervices a firm or source acceptable to Lender; provided, however, that Lender makes no- warranty that such counseling will detect any or all deficiencies in Borrower's practices or-.`wrll" otherwise be beneficial; provided, further, that the business counselor's recommendations to correct any perceived deficiencies in Borrower's practices shall be only advisory. Borrower acknowledges that Borrower is solely responsible for the repayment of the Loan. h. OWNER OCCUPANCY: Borrower shall occupy the Property as its principal residence. Loan Agreement 3 • Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 i. COMPLIANCE WITH UNIT REGULATORY AGREEMENT. Borrower shall comply with the Unit Regulatory Agreement and the Deed of Trust. j. COMPLIANCE WITH LAW: Borrower shall at all times cause the Property and use thereof to comply with applicable law. k. NON - DISCRIMINATION COVENANTS. Borrower covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group o ; .perso s on account of race, color, religion, sex, marital status, familial status, disability national orig nSr•.ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the =l perty, nor shall Borrower itself or any person claiming under or through it, establish or permit: any. such practice or practices of discrimination or segregation with reference'to,.the selection, location number, use or occupancy of tenants, lessees, subtenants, sublessees, or endees in the Property: . 1 , , 1. INDEMNIFICATION. Borrower shall, t Borrower expense, defend, indemnify, save and hold Agency, the City of Seal Beach (the City")'aricl•=their officers, agent , employees and representatives harmless from any and all losses, damages, .'Liabilities, claims, fines, penalties, causes of action, judgments, settlements;court costs, reasonableAttorneys' fees, costs of evidence of title, costs of evidence of value, and•'other expenses which ey iay suffer or incur arising from Borrower's performance of its obliga ions, under the Loa '"Documents or Borrower's ownership, use, occupancy, or maintenance °of \the :Property, including without limitation, any loss, penalty, fine, liability",injiu r, damage or expense,,,including interest and attorneys' fees, in any way connected with a injury to an=y person o {`= .damage to any property or any loss to Agency and City and their officers, employees, agents and representatives occasioned in any way by the presence or clean -up,of hazardous sub ces on•the Property and third party claims for relocation assistance or beriefts may be assert`ed'pursuant to applicable laws, or any of other claim or suit whatever kind or nature 5. PROJECT ASSURANCE • $ r , Borrower hereby assur =and rcertifies t `` at`Borrower will at all times comply with all regulations, policies, guidelines ar requirements the Program. Borrower acknowledges that, as` art of�the Program, Lender may � obtain a tax.service contract and include the cost thereof in the prncipal..of the Loan. Without "liiniting the foregoing, Borrower assures and certifies to Lender tha Borrower will give the.; Lender through any authorized representative the right to examine all - recoils, books, papers or documents related to the Property or the Loan, and will insure that th ,Property is not liste on the Environmental Protection Agency's (EPA) list of Violating Facilities; an will notify the Lender of the receipt of any communication from EPA indicating that the Pro o e ,, :strider consideration for listing by the EPA. { t. 6. EVENTS OF DEFAULT The occurrence and continuance of any one or more of the following events shall consti- tute an event of default ( "Event of Default ") under this Agreement: a. DEFAULT IN COVENANTS: If Borrower shall default in the performance of or violate any term, covenant, or agreement contained in this Agreement, the Note or any other Loan Agreement 4 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 Loan Document, and such default shall continue un- remedied for thirty (30) days after written notice thereof shall have been given to Borrower by Lender, except that Borrower shall not be entitled to any written notice or any cure period for failure to pay sums due upon the maturity date in the Note. b. INCORRECT REPRESENTATION OR WARRANTY: If any representation or warranty contained in or made in connection with any Loan Document, or in any certificate furnished by or on behalf of Borrower pursuant hereto, shall prove to have been incomplete or incorrect when made in any material respect. f, c. NON - PAYMENT OF OTHER INDEBTEDNESS: If B'o •wer shall be in default of payment when due of any installment of prin pal or of iiiterest° on•. any of the Borrower's other indebtedness (including, without limitation, any permitted: iens, on the e»grace or curep Property), if such default shall remain un- remedied after any applicableriod. C., d. INSOLVENCY: If the Borrower shall becomeinwlvent or shall cease o pay its debts as they mature or shall voluntarily file a petition eekin eoanization of, or appointment of a receiver, trustee, or liquidation for, it or a substantial poi"on of its assets, or to effect a plan or other arrangement with creditors, or,h bankriipt,,or 41'611 make a voluntary assignment for the benefit of creditors;.•or -if .an insolvency petit shall be filed against the Borrower under any bankruptcy, .nsolvenc similar law r seeking the reorganization of the Borrower of the appointment of a receiver : .stee orcli for the Borrower, or for a substantial part of the property.of the Borrower, ova writ or warrant of attachment or similar process shall be issu . against a . ar=tw of the property of the Borrower, and such petition shall not be dismissed, or''such writer warrant of attachment or similar process shall not be released dr bonded, within thirty �3 (lags after filing of levy. , ,, 1, e :- -=Ji3DG TS: Ifsny.final judgment for a payment of money that is not fully covered 116yiiability n shall be egigred against the Borrower, and within thirty (30) days shall riot be discharged;` o . an appeal`xherefrom taken and execution thereon effectively stayed such appeal, and such judgment be affirmed on such appeal, the same shall not be,discharged within thirty (30)ays '' i'= r az• L . • y 4 7 : , , REMEDIES Y ,: i - .. ': a. ACCELERATIO : If any Event of Default occurs, or if the Note or Deed of Trust otherwa for acceleration, then, upon the election of Lender, the entire Loan shall immediately b`ecothe due and 4131e without presentment, demand, protest, or notice of any kind, all of which are. hereby expr =essly waived. :H ?yam b. RIGH'I'SUPON DEFAULT: Upon an Event of Default, Lender may pursue any or all of the rights, remedies available to the Lender by law or as provided in the Loan Documents, including,<!but not limited to, the following: i. Accelerate and declare the full balance immediately due on the Note; ii. Obtain a receiver for the Collateral; Loan Agreement 5 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 iii. Foreclose on any Collateral in accordance with applicable law and sell or dispose of such Collateral pursuant to applicable law; iv. Pursue any and all other remedies available under applicable law to enforce the terms of the Loan Documents. c. COSTS OF ENFORCEMENT: Any and all costs and expenses incurred by the Lender in pursuing its remedies hereunder shall be additional indebtedness of the Borrower to the Lender hereunder, and shall be secured by the Loan Documents... 8. THIRD PARTY BENEFICIARY l '; . ..7,,,,... .:. The City of Seal Beach ( "City ") is hereby made an into . e d thirdiparty beneficiary to this Loan Agreement and the covenants herein and is entitled, inter g f (a) the City h sltie ght tot enforce all of the provisions of this Loan Agreement, and (b) this - oan Agreement do es of in any way infringe on the right or duties of City to enforce any of e: pt.. visions of the City r ode;•` including, but not limited to, the abatement of dangerous buildings. Agency and its successors and assigns and City are deemed the beneficiaries of the covenants coiitairied herein, without regard to technical classification and designation and without regard to whether gency or City has been, remains or is an owner of any land or interest t x ;.� ,, Alf 9. RELOCATION ASSISTANCE WAIVER ,� := <, es� Borrower acknowledges and agr tha o orrower partidpa(ion in the Program is voluntary and Borrower may, any time p orito loan funding, witted aw from participation in the Program. Borrower further acknowledges that the purpose of the Program is to increase the availability of housing stock available • o low and moderate=ucomehouseholds in the community and that Agency, does relocation of the current occupants of the Property will dCI e E �:gitq£ad:s.:. - \s :'.. be undertaken: -. • • orrower'liereby waives::any'_ and all benefits and assistance pursuant to the ,�•A Valance �- • . Federal Uiuform Relocation angkea' roperty Acquisition Act, 42 U.S.C. § 4201, et seq. th C alifornia Relocatio ssistance Law; G ye i ient Code Section 7260, et seq., and the regul adopted pursuant theteto-.by the United..States, the State of California, and Agency (the; ' elocation Laws "). In �tla� 'event of displacement from the Property due to the implementation of this Loan Agreement, Borrower expressly acknowledges and agrees that Borro .er`•: `hall be fully liable and , for any and all costs and expenses relating to compliance with the Relocation Law , for any person occupying the Property and that Agency shall be sole1•yFresponsible for adm nistration and determination(s) of eligibility, assistance, and payments pursuant to the RelocationtLaws. 10. FURTHER INSTRUMENTS .,.�' °: The Lender may " equire and Borrower agrees to execute such other documents or instruments as may be required by the Lender in its sole discretion in order to protect the Lender's security for the Loan or to implement the provisions of this Agreement. 11. WAIVER No failure or delay on the part of the Lender in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such Loan Agreement 6 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy hereunder. No modification or waiver of any provision of this Agreement or of the Note or any other Loan Document, nor any consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances. 12. ATTORNEYS' FEES g. • If any party to this Agreement becomes a party to any litigation concerning the Loan or the security for the Loan, by reason of any act or omissiontilany other par S o ' its authorized representatives, and not by any act or omission of the party 'tVA, ecomes•party to • at.litigation or any act or omission of its authorized representatives, the par-t7that % the other party to become involved in the litigation shall be liable to that party for reasonable attorneys' &s .and, court costs incurred by it in the litigation. e% ,4, , - If either party commences an action against the other party arising €ou - -of or in connection with the Loan, the prevailing party shall be entitled tolhave and recover from` the losing .party reasonable attorneys' fees and costs of suit. `• t;, :h 13. NOTICES r r. r r ..- ' '',. j / Any notice, demand, request, consent, a pprov al o com that either party desires or is required to give to the otheriparty shall be in and,,sall be deemed given as of the time of hand delivery to the addresses stated below, br•" 48 hoursafter deposit into the United States mail, postage prepaid, by egister<ed or certified mai1l, return receipt requested. Unless notice of a different. address has been given n accordance with this paragraph, all such notices shall be addressed as follows• =:a < 4-f; o Lender, to: `' ./ , ' o , k..- ' c . . ter, r -M -. S eal Beach Redevelopment • :Agency •, :. Eighth Street r - "'S Beach, California 9074 ; '' Aftn . Executive Director If to Borrower, to the Property. This paragraphdoesono` limit other means of delivering written notice if said notices are actually received. `' �. r 14. AMEN o MENTS Any amendments or modifications to this agreement must be in writing and signed by both parties. 15. SEVERABILITY Loan Agreement 7 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 In the event that any provision of this Agreement or any other Loan Document or the application thereof to any person or circumstances shall be declared null and void, invalid, or held for any reason to be unenforceable by a Court of competent jurisdiction, the remainder of such agreement shall nevertheless remain in full force and effect, and to this end, all covenants, conditions and agreements described herein are deemed separate. 16. MISCELLANEOUS a. AMENDMENTS - WRITING REQUIRED: r Norma endment or:•modification of this Agreement shall be effective unless in writing and;'ex - cuted by the•:L rider and the Borrower. �` y b. SURVIVAL OF REPRESENTATIONS °AND cWAA D RRIES: All agreements, representations, and warranties made by Borrower her or any other document or certificate delivered to Lender in this transaction survive the delive • •of this Agreement the Note and the other Loan Documents, and shall continue in full force,arid' :effect until all obliga of the Borrower under the Loan Documents shall have been satisfied in full ,,,,,:. c. SUCCESSORS AND ASSIGNS: Thist A shall 44141 the Borrower, its successors, and assigns, except that =tlteBor = rower may not assign or,•transfer its rights without prior written consent of the Lender which consent'shall be granted; withheld in Lender's sole and absolute discretion. This Agreement shall' inur -.to the -benefit of the Lender and, except as otherwise expressly provided iii particular prov}sions,.hereof, all subsequent holders of the Note. Borrower acknowledge that Lendeontemplates: and may assign the Note and this Agreement and consents to suchassignments. ;P4 4, .. d. COUNTERPART is Ag ma y s b'- `executed in any number of counterparts, each ofvvhich ; shall be deemed � an original, but all •of which together shall constitute one and the sameinstrument: , -- !r• Y.. e. GOVERIlING LAW: This Agreement and the other Loan Documents shall be deemed contracts made under the laws of theState of California and for all purposes shall be construed in accordance with the lawsof said State: .'° .� f TIME Time is o ,:the essence of both provisions of this Loan Agreement and the otherLoan Documents. ;g:ZACTIONS. Agency shall have the right to commence, appear in, or defend any action or proceeding purporting to affect the rights, duties, or liabilities of the parties hereunder, or the disli'ursemerif.o any proceeds of the Loan. h. ENT AGREEMENT. This Loan Agreement and the other Loan Documents constitutes the entire understanding and agreement of the parties and supersedes all prior and contemporaneous oral negotiations and discussions and all prior written agreements and correspondence between Agency and Borrower concerning all or any part of the subject matter of the Loan Documents. IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be duly executed as of the date first written above. Loan Agreement 8 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 200 2 BORROWER: LENDER: CITY OF SEAL BEACH REDEVELOPMENT AGENCY 1 ... .. ,, , --,-, /6-"';,', •% • A. eg By: .41;,-":'' k Print Name: Print Name:.. , Title: - ; : • ',., • , , i -4,,,, ) 0 4,441 Ai," s';' - ' - . • , - I Print „ - Name: A., 4,1N, 1 , ,N, ....a .444* r .7- .. - - -,,,..:,- , , ,, r , --,.. ; ... ‘,.. ,t.,...„. ...„.„. .. . .. . .....i.4 , ,,..). 1-44, _.. i • : • . • " . . • . :- ,. .•+ • 4 4 4fi., 14. * 4 4 , /1".'4 1 r , ...• , ",;;, -.. , . ." ' ..r Loan Agreement 9 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY That certain real property located in the City of Seal Beach,„Cpunty of Orange, State of California, described as follows: .. - ..^:: it v , vr t . ' • a . '7 ... . , 44 , ,...t ”C '''' . ' Zki4 4 1 , ::;. . . „ , ...:0 , ,-; ,-; .. .., .... - l i b _ .. ,,,,. ... ,., .4,— .. . .... , ,,,,4 ; ',•Ap:;, , '4'; , „!q4„,.,.... •,,,.:,,- ,,,,,,, -";,---•—k• x" .-,,,,-."- —•..,,,z.,16,,,,,,,,,:,,, i ..$ 'At' 1 ,..,- - .-.:.);,:**' . • . /.r.t4 i),.. :: ' 'IVk iriT ZP:Ir ,., ,... Loan Agreement 10 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 EXHIBIT B FORM OF REGULATORY AGREEMENT (Attached.) ...‘:, ,..,..,-..,, k <' - It , „ ' : • •,• ; , -t • 7 V •rs**''' • .'$ , .0.-;-• •'" i',: ■ 4 c ..*,:,:, 4. iliA "..,',.e • , z' ..„ ..: ' ' ; ' ' . • • ....., „ .. • • • . - -' ----- - - '-::•,,,,-, ' , t' '....; , \- :,..;,, .--• .. . . ,, .. ....... , c '''....:.?..:,>•:;,• ,,,, ,..,...44,....„., .4 .. )-- Loan Agreement 11 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Loan Agreement October 28, 2002 EXHIBIT C FORM OF REOUEST FOR NOTICE (Attached.) si i( H''F. 4 , „ 0 . /..:,....,,,,,,...,,,,,,,,4?. .„ „ 4 ,- I - -4K- - .:v:-- _• .)''' '''' ...,..A: ;!: ,,,,,,,, i , M�• ; f'f � °� ^'' t. . Nhe r � � i r UM ,xtri , . S Y(Y 8-„,, 7 M . 41/4 '''s • k ," "sr • t'' .Y c iN. a ' Loan Agreement 12 PROMISSORY NOTE Principal Sum: , 200_ $ Seal Beach, California FOR VALUE RECEIVED, ( "Borrower ") hereby promises to pay to the CITY OF SEAL BEACH RED: •LOS 1VIENT AGENCY, a public body, corporate and politic ( "Agency "), or .. order ='the Y j 'pal sum of DOLLARS ($ ) Ili • nterest thereon from the date hereon at the rate of two percent (2 %) perwAannum, pays© • s`, ollows. No : payments of principal or interest shall be required prior to t 20_ (the "Maturity Date "), subject to acceleration of the loan as pr • vi 'n the Loan D©curn as` defined in the Loan Agreement. Interest shall accrue on this No e OWsha11 be added to' incipa1 on each anniversary of this Note and shall thereafter bear intere*at the rate set forth in this k ote If Borrower is in material default under the Loan Documents (as defined i"n" a Loan Agreement) as of the Maturity Date, then all principal and accrued interest under this Notes all .e on the Maturity Date. If Borrower is not in material default under.Ithe Loan Documents as of the Maturity Date, then all principal and interest shall"'be forgivei`,on: the Date. The outstanding principal balance of this`Note sha bear interes ( I on the basis of a 360 -day year, actual days elapsed) at the''ate set forth herein. Pigcipal and interest shall be payable in lawful money of the Unifed States to the Agency at 2 Eighth Street, Seal Beach, California 90740, or at such other `lac as the Agency or other, holder of this Note may from time to time deli ate :in. g P Ym ent pP ritin Each a shall be lied first toward interest and the balance credited tb p ane paLtlien due. :. ; '- Borrower shall have the ritto::p'repay the amounts rue under this Note at any time without pa 4-a‘ t of any premium or prepayment charge. <,- 6" v l Th : o te ev ide n ces a loan made I?y the Agency to Borrower pursuant to the terms of a Loan z Y g Y P Agreement; .,'the Loan ")qo1 even date herewith between Borrower and the Agency. This Note '' N�secured by that certaintDeed of Trust executed by and between Borrower in favor of the Agencyy.and as of .: ` , 200_. The Deed of Trust contains provisions for the acceleration of, all or part of the balance of principal and interest of this Note upon the occurrence of an of Die atilt as defined in the Deed of Trust. The terms and conditions of the Deed of Trust relating or acceleration as a result of a transfer of the Property or any interest therein are as follows: ;fr' "4.7 Prohibition on Transfers of Interest. With the exception of the transfers permitted in Section 4.11 below and transfers permitted by (and which are completed in accordance with) the Unit Regulatory Agreement executed by Borrower in favor of Lender (including, without limitation, the granting of a C: \Documents and Settings\LWhittenberg\My Documents \RDA\Mortgage Assistance Program\Promissory Note.DOC \LW\10 - 22-02 S7284 \0001 \710725.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Promissory Note October 28, 2002 First Lien, as defined in the Loan Agreement), if all or any part of the Property or an interest therein is sold, transferred, encumbered, or leased by Borrower without Lender's prior written consent, Lender may, at Lender's option, declare all of the sums secured by the Deed of Trust to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such notices shall provide a period of not less than 39 days from the date the notice is mailed within which Borrowe ay,_pay thessums' declared due. If Borrower fails to pay suc • sums prior i tb tithe expiration of such period, Lender may, without further notice: demand on Borrower, invoke any remedies pitted b Sectio -_. 5.2(a) hereof. _ 4.11. Requirement of Owner - occupancy and Permi"tt �` .; .A "-. Borrower shall occupy the Property as Borrower's princ p,� "place of residence during the term of the Note ,Notwithstanding' any ' • other provision of the Note or thiDee -of Trust, the following tran sfers shall not be deemed to "default under the Note or this:: Deed of Trust: belie x` Y% (a) The transfer of the4o " the surviving join ;tenant by devise, descent or operation of th eaw, on the death of a joint tenant. ;� n. ((b) ' 'transfer of the; Property where the pouse becomes an , =owner. o " t h e property; Ni:, jt. •� °hc (c) A transf of Pro re from a decree of dissolution . of •marriage, legal separation or from an a , incidental property settlement agreement by which the ''' '''..1',:::::' ;., spouse becomes an owner of the Property. :i "' d) A transfer to ;an?inter v trust in which the Borrower is ;=' '_,, and remain,' beneficiary and occupant of the property. The Agency's acceptance of partial or delinquent payment, or the failure of the Agency to exercise any right or"- einedy shall not be a waiver of any obligation of Borrower or right of the Agency, shall not be Modification of this Note or of any of Borrower's obligations under this Note, and shall not constitute a waiver of any other similar breach that occurs later. Borrower agrees to pay the following costs, expenses and attorneys' fees paid or incurred by the Agency or adjudged by a court of law ( "Court") having jurisdiction over these matters: 1 • Costs of collection, including but not limited to attorneys' fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed; Promissory Note 2 S7284 \0001 \710725.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Promissory Note October 28, 2002 2. Costs of suit and such sum as the Court may adjudge as attorneys' fees in any action to enforce payment of this Note or any part of it, or in connection with the foreclosure of the security for this Note; and 3. Costs of suit and such sum as the Court may adjudge as attorneys' fees in any other litigation or controversy connected with this Note, or security for it, including, but not limited to, actions for declaratory relief that the Agency is required<tq prosecute or defend and actions for relief based on rescission, or actions to cancel this t Note tlia the gency is required to defend. Borrower waives diligence, grace, demand, presentment fo : ; payment, hib of$h Note, protest, notice of protest, notice of dishonor, notice of demand n non a ent : ; and any and all exemption rights against the indebtedness evidenced bXhi's ote, and agree `to any and all extensions or renewals from time to time without notice and. o any partial payments of 4 ,. s : Note made before or after maturity and that no such extension; renewal' eft partial payment shall release any one or all of them from the obligation of payment of this Note, and -consent to offsets of any sums owed to any one or all of them by Agen at >a ny time. " In the event of the loss, theft or destruction of this -Note, up receiprof a reasonably n satisfactory indemnification agreement executed avor of`Bor<`r b y the party who held this Note immediately prior to its loss, theft or:.destruction, or in the event ofIthe mutilation of this Note, upon Agency's surrender to the Borrower o the mutilated NNote, B shall execute and deliver to such party or Agency,,as :the case may be a new -' romissory note in form and • content identical to this Note in helve t h e lost, stolen, destro. lied Or, utilated Note. This Note ma hot. assign by the Borrower without the prior written consent of the Agency, which congest =s all be in4he Agency's sord andrabsolute discretion. The Agency may assign all or a portion of this Note to, y ,party witliout '-••. -the consent of the Borrower. Upon such assignm by the Agency, the'Botto'iver shall execut . all documents and instruments necessary '''i. 4 p toFeffectuate such transfer. :' ,:. Th e ,.t,-- orrower agrees to do and perform, from time to time, any and all acts and to execute any and all further _instruments required° or reasonably requested by the Agency to more fully to effect the purposes.of this Note. =_` This Note is , O , of the California Civil Code, which provides that the holder of this Note shall givekwritten' notice to the trustor, or his successor in interest, of prescribed information at least 90 and not more than 150 days before any balloon payment is due. Borrower acknowledges that the amount of this Note includes certain costs incurred by Agency in making the loan evidenced by this Note, including without limitation, a fee for a tax service contract. This Note shall be governed by and construed in accordance with the laws of the State of California. Promissory Note 3 S7284 \0001 \710725.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Promissory Note October 28, 2002 BORROWER: PRINT NAME: PRINT NAME: VV 4/ s 14X -; • V.:1741, PM '444&;':,;, • ‘. + Y f;.• 47, , akis 9 • • Promissory Note 4 S7284\0001\710725.2 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City of Seal Beach Redevelopment Agency 211 Eighth Street Seal Beach, California 90740 Attention: Executive Director Exempt from recording fees pursuan Gov.Code plc • UNIT REGULATORY AG ' < EMENT ` r s , THIS UNIT REGULATORY AGREEMENT ( { tb Agreement) is entered;into on this day of , 200_, by and between the OF SEAL BEA REDEVELOPMENT AGENCY, a public body, corporate and poll i clthe "Agency "), and ( individually .or- _collect'vely, the "Owner"). • RECITALS' s A. Concurrently herewith, a Owner acquinng that•certain real property (the "Unit ") located in the City of Seal BeatelCounty of Orange, Sta e o California, described in Exhibit "A" attached hereto and incorporated herein by =re eren„ , the address of which is set forth in Section 1(b) of this Agreement, which the Owner-'shalll occupy as the Owner's principal residence. B ,'"° ado The Agencyhas' pted a Mo gage Assistance Loan Program to assist first time home.buyers in purchasing dwellings in the C it ie SeafBeach. '`•s C. The Owner has represented to / the Agency that the Owner and the Owner's ousel old qualifies as a Person orF"amily of Very Low, Low or Moderate Income. r = Concurrently herewitIt D the Owner is executing a promissory note in the amount, if any, set ojaan Section 1(c), representing a loan by the Agency to the Owner to assist in the Owner's acquisiti®niof the Unit. ,"r NOW, THEREFORE; the parties agree as follows: 1. Fundamental Provisions. The following shall serve as the basic terms of this Agreement: (a) Name of Owner: The name of the Owner is C:\Documents and Settings \LWhittenberg\My Documents \RDA\Mortgage Assistance Program \Unit Regulatory Agreement.DOC\LW\10 -22 -02 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 (b) Address of the Unit: The address of the Unit is , Seal Beach, California. (c) Amount of the Loan: The principal amount of the Loan is the sum of Dollars ($ ). The Loan is evidenced by a promissory note (the "Note ") and secured by a deed oftrust(the " eed of Trust ") executed by Owner concurrently with this Agreement. } f•; A y Mk 2. Definitions. For purposes of this Agreement, the terms ed below shall have the meanings thereinafter specified. ` •- (a) AMI. As used herein and throughout, this Agreem t, "AM means the median family income of the Orange County SMVI4A,casritetermined and p •1•ish annually by the United States Department of Housing and Urban De elopment ( "HUD "), pursuant to California Health and Safety Code Section 50093, and the re - E ations promulgated thereunder. The AMI shall be adjusted for famil, siie`in accordance with" scat, regulations adopted pursuant to California Health and Safe- CodeikSection 50052.5 fot " the number of persons in the family occupying the Unit. ' (b) Affordable m " Hous :•Costs`" For the (purposes hereof, the term "Affordable Housing Cost" means a hO cost whick_does not•exceed the limits set forth in California Health and Safety Code; Section 50052.5, as ainended •from time to time (excluding any optional requirements set forth• °therein) and the applicable °regulations for such statute, and for the purposes hereof, the term "housing- cost" shall haveAti m eaning ascribed to such term in such statute "d re gulation= ar4d in Title25•" of the California Code of Regulations Section 6920, as such regula io iiiaysbe°�azri tided from " i to time, and the term "Gross Income" shall have the a'�nin m g ascribed to hk e • ' in Tit1ee 25' of the'California Code of Regulations Section 691 •r, as such regulations may be- amended from`tim t o time, or other applicable regulations. 1. 4` 1 (c) Person or Family of Very Low, Low, or Moderate Income, or Very-- w.A,Income Household, aL =ow- Income Household, or -a Moderate - Income Household means a• :person, family or household meeting the income qualification limits set forth in Californiaea'lth and Safety Code• Sections 50093, 50105, 50052.5, and 50053, and Title 25 of 37Cp� the California eOde Regulati ns�'Section 6910, et seq., as the case or context may require, as such statutes aiiddr <e 3lations may be amended from time to time, and any successor statutes thereto. (d) Qualified Person means a person or family of Very Low, Low or Moderate Income. Unless the Agency, in its sole discretion determines otherwise, in the case of a studio unit, Qualified Person means a household of one person, in the case of a one - bedroom unit, Qualified Person means a household of two persons, in the case of a two - bedroom unit, Qualified Person means a household of three persons, in the case of a three - bedroom unit, Unit Regulatory Agreement 2 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 Qualified Person means a household of four persons, and in the case of a five - bedroom unit, Qualified Person means a household of five persons. (e) Escrow Costs means only those fees charged by an escrow agent or title insurance company solely for the closing of escrow and does of include loan fees, refinancing fees, broker commissions, or other fees, commission`s_o ,cost of directly related to the transfer of ownership of the Unit. 4 ' " ' f =s ' (f) Unit means the real property described in attar ed Ekhibit "A" and may include condominiums and single - family dwellings. (g) Owner means both the party identified n - as "Owner "i e_ ; first• paragraph of this Declaration, and any successor in interest sucli; Owner with .respec , to. Je Property. 3. Restriction on Transfer. Nvete (a) The Owner shall not sell, voluntarily or involuntarily, in whole or in part, convey, transfer, lease, sublease, assign, s encumber, mortgage or hypothecate the Unit, or enter into agreements to sell, convey, t>aansfei;: :lease, sublease;�'•assi'gn, ; encumber, mortgage, t°u�. refinance or hypothecate the Unit, excep co p it ance with the ei s of this Agreement and with the prior written approval of the Agency. Failure to : obtain theprior written approval of the Agency will be deemed a breach of : thhis Agreement. Y (b) violation or breach of the provisions of Section 3(a) hereof is prohibited. and--any - such:sale`or:other transfer, interest enumerated in Section 3(a) above, in whole o i n part, shall be null; oid-and unenforceable4and at the Agency's option, result in the acquisition of the Unit by the geriey and/or an of the Note requiring the Owner to iiiittdiately repay the Note in fui ffsuch trans is made prior to the expiration of the Term. .07 (c) In th f event of the death of the Owner with no qualified surviving joint tenants e Agency will wor`kL;with the heirs, probate court, or other responsible party to either ex fcise its option to reacqu e'the Unit in accordance with Section 8 hereof or identify a Qualified Pefsoii fo.purchase the Unit. 4. , Term,of A greement. This Agreement shall become effective on the date it is recorded in the Official °' ecords of Orange County, California, and shall terminate 45 years after the date of recordation hereof (the "Term "). The Owner's repayment of the Loan shall not terminate this Agreement. 5. Covenant to Maintain Affordability. The Unit is being sold to Owner and the Loan is being given by the Agency to the Owner to increase and improve the community's Unit Regulatory Agreement 3 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 supply of low and moderate income housing available at an Affordable Housing Cost in accordance with the affordable housing requirements of the Community Redevelopment Law (California Health and Safety Code, Section 33000, et seq). Subject to the provisions of Section 3 hereof, the Owner shall sell, convey, assign, or transfer ownership or occupancy of the Unit only to Qualified Persons who cannot obtain comparable housin• at,an Affordable Housing Cost on the open market as provided in Health and Safety Code Sectio0 as amended. To this end, the Owner agrees that during the Term the Unit, hall, except as �rovided in Sections 6, 9.(c) and 11 hereof, remain available only at an Affordable Housing Co'st, and shall only be occupied by Qualified Persons. In addition, if, without the Agency's coOei fails to occupy the Unit as the Owner's sole principal residence for a, period of 90 'ca1'endar days, cumulatively, in any calendar year, then the Owner shall be in breacff of this Agreement 6. Permitted Transfers and Mortgages. ,,'� (a) Conveyances to Qualified Persons. Subject to ;the option rights of the Agency herein, the Owner may convey the Unit,t6 ualified Persons on the that (i) the Owner complies with the requirements o : ections„•8 : and 9 hereof, (�i)..,the purchaser covenants to occupy the Unit as such party's soleeprincipal residence, and (iii) the purchase price ale does not exceed the maximum permitted res •rice set for th:. i S ection 11 hereof. Any permitted transferee, at Agency's optio,.. the ni , =:subject to the terms and conditions hereof or a new unit regulatory agreement. Any permitted shall execute in recordable form an assumption agreement in form and conte t satisfactory to the Agency's Executive Director. (b) F -, fIntra- Family Conveyances. The following transfers of title shall not be breaches of this Ag transfer4by gift, devise, or inheritance to the Owner's spouse; taking of title by surviving point tenant that ilf e..()wner's spouse; transfer of title to a spouse as .4c� part of a divorce or dissolutio proceeding; acj � i' ition of title in conjunction with marriage; transfers of title to children when the: children are Qualified Persons at the time of transfer. A ''transfer to children of the Owner •wiiti ••. are not Qualified Persons shall give rise to the option in favor o£ the ,Agency to acquire the l7 • it described in Section 8 hereof; provided, however, such option ire shall be exercised 1?3 the Agency within 60 days after receipt by the Agency of written notice of uch transfer, aril the purchase price shall be the amount set forth in Section 8(e). w » . ci ;,e First Trust Deed - Purchase. The Owner may encumber the Unit with a first position deed'oltrust securing a purchase money loan subject to Section 7 hereof. ..s *Id) Refinancing of First Trust Deed. Subject to compliance with the provisions of Section 10 hereof, the Owner may refinance a first deed of trust encumbering the Unit provided that the Agency's Executive Director has previously reviewed and approved the terms and conditions thereof including, but not limited to, the principal amount of the proposed Unit Regulatory Agreement 4 S7284\0001\710671.2 • Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 loan, the interest rate, the terms of repayment, the identity of the maker of the proposed loan, any documentation pertaining to the subordination or enforcement of the Agency's loan and related security documents, the costs and fees associated with the making of the proposed loan, and the Owner shall have received the written approval of the proposed loan by the Agency's Executive Director prior to the date of its closing. Any refinancing of a fitst deed of trust which has not been previously approved by the Agency's Executive Director ash ereir above sdescribed shall constitute a default under this Agreement and shall, at the option of the:4geney, result in the acquisition of the unit by the Agency and/or in an acceleration of the Note requiring the Owner to immediately repay the Note in full. kAkt. ,` (e) Junior Trust Deeds. Subject to 'compliance with the 'i:=:,::'!:-''';';,,.. ro sions ofx Section 10 hereof, the Owner may enter into a loan secured by asileed4of trust or mortgage junior and subordinate to the Deed of Trust provided that (i) the proceeds: H of each loan shall beatsed solely to pay for repairs or the construction of improvements to the tjnit;• and (ii) the Agency's Executive Director has previously reviewed and app oved the terms arid;; "conditions• thereof, including, but not limited to, the principal amount of..th roposed loan, the,.in rest rate, the terms of repayment, the identity of the maker of,tlie proposed loan, the costs and•,fees associated with the making of the proposed loan, and the ` ature and costs of the roposed repairs or the construction of improvements, to be paid withgthe„ procs thereof�,an (iii) the Owner shall have received the written approval of the p o • osed loan by Agen y'§ .x ecutive Director prior to the date of its closing. Without limiting the foregoing the proceecls`ofithe proposed loan shall not be used to pay for the construction of improvement of aJu_xurynature such as ground pools, spas, or interior or exterior decorative:tems, or improvements with an unreasonable useful life. The failure of theeOWner, =to comply full, with the provisio s of this Section 6(e) when entering into a lo. bich is�se ure b a deed of taw mortgage junior and subordinate to the Deed of Trust shall - constitute a d'efault`uncier this Agreement anj, shall, at the option of the Agency, result in the``a quisition of the Unit•by•�thelAgency an acceleration of the Note requiring the Owner to repay the Note in full: ff 4' - 4:%1'7, _ : 7. Subord i to; F Trust Deed Encumbrances. • - (a) The A • ency recognizes that Owner may be entering into a purchase money ,loan to acquireJh Unit and also recognizes that immediately prior to the recordation liereo the Owner i or may be recording a deed of trust in connection with such financing that shallWsu. erior this Agreement and the Deed of Trust, and the Agency agrees that, in such event; n ,chit ed of trust recorded prior hereto shall be superior to this Agreement and the Deed of Trust: ,u erefore, in the event of the foreclosure of such deed of trust, or the conveyance by deed iii lieu of foreclosure of the Unit to a bank, savings and loan, or other institutional lender that is the beneficiary of such deed of trust, the provisions hereof shall terminate and be of no force or effect; provided, however, if the senior lien holder acquires title to the Unit pursuant to a deed in lieu of foreclosure, then the terms hereof shall terminate only if (i) the Agency has been given written notice of a default under the senior deed of trust and (ii) Unit Regulatory Agreement 5 S7284\0001\710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 the Agency shall not have cured the default under the senior deed of trust, or diligently pursued the curing of the default, within 60 days after the date the notice is received by the Agency. (b) The Agency further agrees that, in the event of refinancing of a deed of trust that was superior to the lien of the Deed of Trust, and which such refinancing complied in all respects to the requirements of Section 6(d) hereo ; 3, e Agency agrees to execute a subordination agreement, in form and substance acceptable" fo - the Ageriey subordinating this Agreement and the Deed of Trust to any first deed of trus •' in favor of any i ank, savings and loan association, or other institutional lender which makes loan to refinance ti Loan for the purchase of the Unit and which secures the obligations under•�s ich loan; subject to tWfollowing terms and conditions: >� t (i) The Owner shall deliver to the•.,Agency true and accurate copies of the loan agreement, proposed promissory note, deed of trust, an "• a written statement from the Owner certifying that such documents are true and accurate copies of the loan documents which the Owner intends to execute in connection with the loan; and ie (ii) The Agency may couchthon such subordination upon I its receipt of a title policy or endorsement fro " a eputable tit1e� company, at the Owner's sole cost and expense, assuring that this Agreerifent and the Deed of Trust; are not being subordinated to any liens or encumbrances other than fthose imposed bythe deedOf trust or mortgage securing such new loan as the result of such subord • ' If the Agency, at its sole election as advanced anyis s`to any senior lien holders such : ; inrlm amounts shallediately be due and. payable by the Owner to the Agency, together with interest accrued thereon atlitherilaximumitiatrate permitted under California usury laws, upon the closing of any refinancing `-, -, _ - ,.,.. 'sS s " wli 8. Agency Option to Purchase' QM (a) O ption. Atik >- n order to maintain and insure that the Unit shall remain affordable to and only occupied by Qualified Persons, the Agency is hereby granted an option, throughoixt .lie ; erm hereof, to purchase the Unit if the Owner desires to transfer the Unit, or to find another Quan Person to purchase the Unit. The option shall be exercised in writing by the Agency, if'a ,all within 60. be after the Agency's receipt of the written notice (the "Notice of Proposed Sale ") of the Owns desire to transfer the Unit (as more fully described in Section 9(a) hereof). During such - i60 day period Owner may also concurrently attempt to market the Unit to sell it to a Qualified Person, as provided in Section 9 hereof. The Owner may enter into an agreement to sell the Unit to a Qualified Person (previously approved by the Executive Director of the Agency) at a price that does not exceed the maximum price set forth in Section 11 hereof. In such event, the Agency shall not then exercise the option to purchase the Unit or find another Qualified Person to purchase the Unit. If the Agency exercises the option to purchase Unit Regulatory Agreement 6 S7284\0001\710671.2 • Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 the Unit, then the Agency shall promptly open escrow therefor and shall close escrow for the purchase of the Unit prior to the date that is 60 days after the Agency opens escrow. Title to the Unit shall be delivered to the Agency at the close of escrow free and clear of monetary liens and encumbrances, and closing costs shall be allocated in the fashion as is customary for buyers and sellers in Orange County. }'f (b) Agency's Failure to Close Followmg'Exerdisvcif the Option to Purchase the Unit. If the Agency exercises the option to ,purchase the •• : iit ►but, due to the Agency's sole fault, the Agency does not close escrow within 60 days after the date the Agency opens escrow, then the Owner shall be entitled to sell the Untt o a person or fat :that is not a Qualified Person; provided, however, (i) if the Unit is sold to =�" er or family that is not a °, Qualified Person, or (ii) if the Unit is sold at a price that exceeds,, r e maximum resale once seta forth in Section 11 hereof, then the Owner shall repay the Lsgan (including all accrued ingest thereon) to the Agency as provided in Section 9(c), below, plus an amount qual to 20% of the amount by which the net sale proceeds received by the. ( "net sale' oceeds "being the gross sale proceeds minus customary and reasonabl costs of sale incurred. by the Owner, including brokerage commissions, and adjusted" for 'rea pro - rations exceeds the maximum resale price set forth in Section 11 hereof. (c) Terms of Pii has Agency exerci : the option to purchase the Unit, the purchase price to be aiddb the A enc sh all be a in cash at the close of escrow. The Owner may require a : " eposit to open e in ah. amount not to exceed three percent (3 %) of the purchase price. " to the Unit shall be.del vered to the Agency at the close of escrow free and clear of monetai iens'and encumbrances: Closing costs shall be allocated between the bu: er= and "s eller aecording°to,the .customary practices in Orange County in effect at the tim t�Y.ie option is exercised Y .,, M" (d) Cond to Clo of Escrow. The escrow instructions may royide for conditions or conting of the ty nature customarily included in residential • / urscrows (including but It' t'ot1imited to inspection by the Agency and elimination of pests, and` preliminary title report approvals), provided that any such conditions or contingencies (other tliari the status of title to the0►it at the time of conveyance and other conditions which by their natur .cannot be satisfied prior to closing) must be satisfied or waived on or before the close of escrow:.° ='The proceeds of the sale shall be used to pay off all monetary liens and encumbrances upon the" close; of escrow. Escrow shall close within 60 days after the opening of escrow. .,, " z (e) Purchase Price. The purchase price of the Unit to be paid by the Agency pursuant to the Agency's exercise of the option shall be the lesser of: (i) The actual purchase price paid by the Owner for the Unit plus reasonable and customary escrow closing and title costs (described in Section 2(e) hereof) Unit Regulatory Agreement 7 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 actually incurred by the Owner in purchasing such Unit, times a fraction, the numerator of which is the AMI for the year in which the sale takes place, and the denominator of which is AMI in which the Owner purchased the Unit (and subtracting therefrom the amount of the Loan, which the Agency shall assume from the Owner); or (ii) the maximum resale pric jdetermin ; pursuant to Section 11(a) hereof, assuming that the Agency, as purchaser, is of the saine incgme=:level as was the Owner at the time the Owner purchased the Unit; or q , (iii) the fair market value • of, the Un as determined by an appraiser approved by the Agency. �� g 9. Resale Price Controls and Procedures (a) If the Owner elects at any time to sell the Uiut, then the Owner shall, prior to signing a listing agreement or other authorization to sell with :a eal estate broker, first provide to the Agency the Notice of Proposed... ting a set forth the Ow e"r;'sr'ntention to sell a• the Unit and a property information form to "be prepare Agency. Such Notice of Proposed Sale shall contain information about th ed` °by th e•:Owne0 ongin urchase price of the Unit and such other information as the Agencyshall require. Agency•o designee shall have sixty (60) days from the time following thei by the Agency or ; of the Notice of Proposed Sale to find a new buyer° forthe Unit beingi sold, or sixty (60) days to exercise the Agency's option to purchase des bed, u . Section 8 hereof provided, however, the Agency or its designee may shorten such time periodarupon a showing of'harc1ship by the Owner. The Owner agrees to corisider' purcchasers those49ualified Persons identified on a list that may be maintainedby the Agency. `"Nothing contained herein shall be construed as imposing on the Agencyany obligation to find "a purchaser of the Unit Owner has elected to sell the Unit. roLZ: (b) If tine Owner resells- he Unit to a Qualified Person at a price that diies,nofi xceed the price set fort1i Section 11 hereof, then the provisions hereof shall continue to eneumber the Unit, and the A ency, if necessary, shall subordinate its interest in this Agreement. and the Deed of Trust as provided in Section 7 hereof Each successor in interest to Owner that "is Qualified Person -.shall acquire the Unit subject to the continuation of the restrictions onjsucfi" roperty provided in this Agreement and the Deed of Trust; and if Agency purchases such' property and resells the Unit, such acquisition shall not operate to merge this Agreement and the -Deed of Trust into Agency's fee interest. :- Cc) If, after expiration of the sixty (60) day period, Agency or its designee has failed 4t6 procure an acceptable and qualified buyer and the Agency has not exercised its option to purchase the Unit, then the Owner shall then be free to seek a buyer for the Unit without any limitation on resale price or income level of the purchaser; provided, however, (i) if the purchaser is not a Qualified Person, or (ii) if the resale price exceeds the Unit Regulatory Agreement 8 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 maximum resale price set forth in Section 11(a) hereof, then the Owner shall repay the Loan (and all accrued interest thereon) to the Agency, plus an amount equal to 20% of the amount by which the net sale proceeds received by the Owner exceed the maximum resale price set forth in Section 11(a) hereof . (d) The escrow instructions may = provide. ,for conditions or contingencies of the type and nature customarily included in residents =p chase escrows (including but not limited to financing contingencies, in • ction rights s and= preliminary title • pf report approvals), provided that any such conditions or contingencies (ot a status of title to the Unit at the time of conveyance and other conditi'oris`whieh`by their n : r cannot be satisfied prior to closing) must be satisfied or waived on or • eforethe close of escrow Th4 proceeds of the sale shall be used to pay off all monetary liens and encumbrances upon'the .close`= of escrow. Escrow shall close within a reasonable time after openingti a eof. (e) The Owner shall notify anyproposed purchaser in writing prior to such person's execution of escrow instructions, deposit recei t, purchase and .sale agreement or similar agreement, whichever is earliest, that the title to the• nit.will be restrictedias provided in this Agreement. 6 • 't (f) Th Ownemay require a deposit to•94enescrow in an amount not to exceed three percent (3 %) of the purchase price. Title to the Uni sha11 be delivered to the purchaser at the close of escrow f free and clear of mon liens . d encumbrances, except as provided for in this Agreement. Closuig costs shall be -allocated between the buyer and seller according to the customary ractices'in ®range County in effectaf the time the escrow is opened. ,i y � ' � g) :A � -F the purpose v of confirming with the Agency that a proposed ser purcha a Qualified Peisoii•,. • at will be paying, a urchase price that is in compliance with th erms hereof, the Owner s aii n e tify the Ag ncy in writing of any offer from a prospective purchaser which the Owner intends, to accept disclosing the identity of such prospective p urchaser. and providing the Agency :with such - financial, credit, and other information on such prospective'purchaser as required by4 Agency, including the following: ` (i) Name and address of the purchaser. '` ii; Number of persons comprising the purchaser's household and their names and age: ti - (iii) Proposed purchase price of the Unit, and any other consideration for the purchase of the Unit. (iv) Amount of down payment. Unit Regulatory Agreement 9 57284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 (v) Terms of any loan that will be used by the purchaser to finance the purchase of the Unit, including, but not limited to, principal, interest rate, term, and loan fees. (vi) Closing date. (vii) Aggregate annual income•d as ithe•purc er.'s`household. (viii) Most recent federal and state inco a • fax:;r"eturns of the purchaser and all other members of the purchaser's househo d £, p p for the preceding � o •(s2) calendar years, and verification of the proposed purchaser's salary or ; ages from the purchaser's employer or from current pay stubs showing year to date avuell •:"as period pay`ro l.•®r e • preceding two calendar ears. p g 2 () Y (ix) Copy of any proposed purchase and Csale:'agreement, escrow instructions, loan application, or other agreements bet v i $he Owner and •the purchaser of the Unit or relating to the sale of the Unit including closing documents or any other documentation that the Agency deems appropriate to implement` is Agreement' =• (x) A j'ttensfat purchaser that the Unit will be occupied by the purchaser and usectas hisor her soleresidence. t :�c In lieu of providing the foregoing information, these requir•.ements•shall be deemed to have been satisfied by delivery to the Agen y of a°written certification_ of: the foregoing information from the purchaser e nder ,the hold's" first position trust deed encumbering the Unit, which certificatioii�sliall b =fiirnishedto Agency at�'1°east 20 days prior to the close of escrow for the Unit. ti 2 " . The Agency shall have 30•days from thejate of its receipt by the Agency to review the information (unless the Agency received the certification from prospective purchaser's lender, in whieh base the Agency shall have? 5 days to review the information). If the Agency fails to approve'the purchaser within such' ° eriod of time, then the purchaser shall be deemed approved by the Agency `•• The Agency may , �equire the purchaser to submit other written documentation reasonablyre'tduested by the Agency to verify the information set forth herein and to determine that the Afford "a•ble t o xsing Costorestrictions of this Agreement shall be satisfied. If the Agency receives all such prospe e :iurchaser information requested by the Agency, the Agency shall determine whether the _' pjospective purchaser is a Qualified Person, and shall thereafter immediately notify theOwner in writing that the prospective sale is authorized and approved, or that the prospective purchaser does not qualify to purchase the Unit as a Qualified Purchaser. The Agency hereby designates the Executive Director of the Agency to make the evaluations, reviews and determinations set forth in this Section 9(g). If the Agency notifies the Owner that Unit Regulatory Agreement 10 S7284\0001\710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 the sale is authorized and approved, the Owner shall proceed to complete the sale of the Unit within 75 days of the date of such approval from the Agency. 10. Notification Prior to Mortgage, Encumbrance or Hypothecation. If Owner desires to refinance any loan secured by a first trust deed encumbering the Unit, pursuant to Section 6(d) hereof, or to borrow funds for a new loan to ,be .secured by a juitrior trust deed encumbering the Unit the proceeds of which are to be used to-pay °for repays or he construction of improvements to the Unit, pursuant to Section 6(e) hereof, prior wx ttet .approval of the Agency is required. The Owner must request such approval in writing a leasVdays prior to the recordation of a deed of trust or mortgage securing any suchi,.refinncing or loan,the Owner v � shall submit to the Agency in writing the following information ,„ „.,' (a) Name and address of lender. ,::; ' '' ,,,, , . .., (b) Terms of the loan, including, but not limited too rincipal, interest rate, term, and loan fees. , (c) Closing date of the• ban. effi �; r=:- y, = :e, (d) Copy of any proposed escrow instrn : r uctions, loan application, or other agreements between the Owner and�the ; lender. : -,1. , may; x � (e) Writt �• ocumentation Aeon w the conditions for Agency approval as set forth in Se ction 6(d or Section hereof, as applicable. : �* " ' ' • =Other written- documentation reasonabl re uested b the Agency • The Agency sha have 15 Nil' rl�in la s a fter "its 1:ecei "t of all of such information to a rove or , Y g._ Y P rr disapprove the proposed refinancing;or loan. Thesubject refinancing or loan shall be deemed appea by the Executive Director of the Agency if it is not disapproved within such 15 t working day period. -;:i' ,':- 11. Restriction on. Resale Price. Except as permitted by Sections 8 and 9(c) hereof, the Owner.. not resell tle'Unit at a price higher than the lesser of the following: .,. ,i ( a , n Affordable Housing Cost (as defined in Section 2(b) hereof) for the prospective purch °a (i) a reasonable down payment, and (ii) a 30 year fixed rate mortgage at prevailinginterest rates. The sum of: Unit Regulatory Agreement 11 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 (i) the selling Owner's original purchase price of the Unit times a fraction, the numerator of which is the AMI for the year in which the sale takes place, and the denominator of which is AMI in which the Owner purchased the Unit; plus (ii) escrow costs, title insurance premiums paid, and other customary closing costs and fees as described in Section 2(e) hereof p lus (iii) if the Owner sells the nit after a default under a mortgage or deed of trust, but prior to a trustee's sale or foreclosure sale, all expenses actually incurred by the holder of such mortgage or beneficiary under such deed of ';trust due to the Qwn 's default including, but not limited to, trustee's fees, attorney's fees, casts of s .. a and debt service on the: debt secured by such mortgage or deed of trust will be paid from Own 's proceeds. "'�' 12. Repayment of the Loan. Upon any resale of the .' nit, the Loan shall be due and payable, except as follows: Is\ ,-: r If the resale of the Unit is to another Qualified Person and a option of the Agency, such purchaser either executes an assumption agreement;(and such otYier documents as the Agency may require) evidencing the assumption of, this'�Agreement, the Note and the r �- Owner's obligations thereunder, or executes and:lelivers a new' Jnit- Regulatory Agreement, siic Note and Deed of Trust (subject only to h-prior liens k asthe Agency "s"liall approve), then (i) all interest accrued from the date of th acquisitioriof the U through the closing date of the resale to the new Qualified Person°shall be paid at c los e - of =.es,ow of such resale, (ii) interest shall then accrue,frorn and after the`clositig date of the resale. (with such accrued interest again to be subject to- payment:upo anther resa e- o yet another Qualified Person), and (iii) the principal amount of the oan shall due ue only to th'e extent that the purchase price paid by the purchaser exceeds the amount that would have been th maxirnur i resale price to another purchaser at the same iiicome level as was the ;Owner's at themvof the Owner's original acquisition of the e I. ;--, (Thus, if the seller and 'the ,purchaser areh of the same income level, then none of the �¢.� principal, be due, but if theypurchaser is of a higher income level, then it is possible that some of theprincipal may be due ;because the maximum resale price calculated pursuant to Section 111.0 ereof, may be higher ' the purchaser is of a higher income level than was the Owner at the e of the Owner's ac of the Unit.) 114:g:.'1, . nnual Report. The Agency shall have the option of requiring that the Owner pro o • an , a nn ua`l b asis, such information as the Agency deems necessary to implement this Agreement. 14. ,g nondiscrimination Covenants. By the Owner's acceptance hereof, the Owner agrees, for itself, its successors and assigns, to refrain from restricting the transfer of the Unit on the basis of race, color, creed, religion, ancestry, sex, marital status, national origin or Unit Regulatory Agreement 12 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 age of any person. All such deeds entered into with respect to the Unit shall contain-or be subject to substantially the following nondiscrimination or nonsegregation clauses: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming .under or through them, that there shall be no discrimination against or segregation of,,any person \or group / of persons on account of race, color, creed, religion, sex, marital status, national origin, 'ik anCe§try in the sale, K, lease sublease, transfer, use, occupancy, tenure, or en o ent of the remises herein conveyed, nor shall the grantee or any person claiming under or thr gh him or her, Lestablisla permit any such practice or practices of discrimination or segregation . with reference to• the•,selection location, number, use or occupancy of tenants, lessees, subtenants :sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the : land." i. + The foregoing shall be a covenant running with the land for the benefit_o f , and as a burden upon the Unit, and shall remain in effect in perpetuity. Nothing contained herein shall be construed as permitting the Owner to transfer the Unit without / / t /h/ g prior written •consent 15. Maintenance of the Unit/Prohibition A gainst Waste. The .Owner shall not commit waste upon the Unit. The Owner shall not remove or demolish the improvements on the Unit. The Owner shall, throughout the — Term hereof,!keep and maintain the Unit and the improvements thereon in good conditio andxepair. If t1ie Owner sany time fails to so keep and maintain the Unit in good condition a at nd repair, after 30•, days notice from the Agency, the Agency shall have a right to enter the Unit and perform. such'deferred maintenance, and the Owner shall p roxnptly- reimburseithe�Agency for all costs incurred by the Agency in performing such maintenance': ( c, r ,"- ---- ----.<g , ;,,k ,. 16. Default. • If either party'defaults -with regard to any of the provisions of this Agreement, the nondefaultin pai serve writte notice of such default upon the defaulting 1- i `arty.\ If the default is not cured the defaulting p g party within thirty (30) days after service of the ofice default, or if the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly within a reasonable period of time after commencement, the defaulting party shall be liable to the other party for damages caused by such default. , °•. 17 N otices. Ail notices to be delivered to the parties pursuant to the terms hereof shall be in'writing -and shall be delivered in person or by U.S. Mail or other delivery service to the addres listed below. Any of the following addresses may be changed by written notice. If notice is given it shall be deemed effective upon 3 business days after deposit of same, postage prepaid, in the U.S. Mail, or the date of actual receipt as evidenced by personal acknowledgment, return receipt or other comparable means. Unit Regulatory Agreement 13 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 If to Owner: At the address for the Unit set forth in Section 1(b). If to the Agency: City of Seal Beach Redevelopment Agency 211 Eighth Street Seal Beach, California 90740 Attn: Executive Director 18. Covenants to Run With the Land. Except as otherwise` provided in this Agreement, the covenants established in this Agreement sgell bindin td Ehe Owner and any successor in interest of the Owner to the Unit, and shall be :for,-,the benefit and in . favvor of the Agency, its successors and assigns, and the City of Seal Beah, and the covenants sliall run witli\ the land in favor of the Agency and shall be a burden upon th ` Jnit d shall be for the. ► benef ,% of the land owned by the Agency and land owned by the City�of ann S'ea1 Beach in Orange C$uu.nty, California. The covenants established in this Agreement shall be inc by reference in all deeds conveying all or any portion of the Unit. The Owner (and each suece`ssor.in interest, as the case may be) shall furnish a copy of this instrument t any'�successors in intergt ,,,< 1 e Agency shall have the right, in the event of any breachVby the Owner., of any covenantor agreement herein, to exercise all the rights and reinedies,tand to mainfainany actions ,atlaw or suits in equity or other proper proceedings to enforce thhe curing o ,suc breach of covenant or agreement. Notwithstanding the foregoing, however, the Owner and the successors in interest to the Owner named herein shall be liable -:for performance hereof ,lonLyAuring their respective period of ownership of the Unit, provided that the "tra Owner has in writing assumed and agreed to perform the "transfe or'z O obligati litre rider. 2I97rA :No�Speculative I'nvestinent. the Owner hereby represents to the Agency that the acquisition of the .Unit by the Ow manner described herein is not intended as a speculative financial invest r ent: " 20. Administration) The Agency may administer the terms hereof or may, .- -from time to time assign its rights.heeeunder or designate another entity, person, licensed real • estate,broker or organization to administer the terms hereof. .g Y e 2i' Independent and Severable Provisions. If any provision of this instrument is held by a court,offcompetent jurisdiction to be unenforceable or invalid, such holding shall not render unenforceableany oth r rovision hereof, each provision hereof being expressly severable and independently the fullest extent permitted by law. 22. Further Assurances and Recordations. The Owner covenants that upon request of the Agency; . the Owner, or its heirs, successors or assigns, will execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such further instruments and agreements and do such further acts as may be necessary, desirable or proper to carry out more effectively the purpose of this instrument. At the expiration of the Term, the Agency agrees to Unit Regulatory Agreement 14 S7284\0001\710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulator- Agreement October 22, 2002 provide to the Owner an instrument in recordable form that has the effect of confirming the termination of the affordable housing requirements of this instrument. Concurrently with the recordation of any deed of trust or mortgage which is senior or subordinate to the Deed of Trust, the Owner, at its sole cost and expense, shall cause to be recorded in the official records of the Office of the Orange Co t corder a written request for a special notice of default in favor of the Agency. ,,,,_z_..„ 23. Captions and Section Headings. Captions and sectioneadings used herein are for convenience only and shall not be used in construing this ,, instrum { 24. No Waiver. No waiver by the Agency oils rights hereunder,lgr,of .any breach by the Owner of any covenant, restriction, or condition. herein contained, shall 1 be effective unless such waiver is in writing, signed by the Agency and delivered to the Owner. Any waiver by the Agency of its power to terminate the Owner's estate herein or of any covenant, restriction, or condition herein contained ' l ,o� ¢ r t� e failure by the Agenc to_exercise any right or remedy with respect to any breach orybreacles;-'shall not constitutes 'a waiver or relinquishment for the future of any rights regarding subsequent sales, or of any)such covenant or condition nor bar any right or remedy of the Agency in respect of a y'subsequent breach. 25. Entire Agreements instrumentconstitutes the • .entire agreement of the parties hereto, and the provisions hereof may be modified or -=' amended only by a written instrument signed by the party to be charged. ar - - ",, ti v - - 1.9 . m Attorneys' Fees�In. any action brought to declare the rights granted herein or to enforce •or 5: o interpret any:of the 'ierms.of this Agreement, the prevailing party shall be entitled t an award of reason ble fees in ount determined by the court. 27. Amendments. $ On1y the A gency, its successors and assigns, and the O and the successors and assignsof the Owner in and to all or any part of the fee title to the Unit shall`have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, oil oilier restrictions contained in this Agreement. \. 28\ Successors /.and Assigns. This Declaration shall be binding upon and inure to the benefit of the Agency and the Owner, and their respective successors, owners and assigns. The terms and pioyisions, hereof shall run with the land and shall be a burden upon the land, including the Unit and each Unit, and shall be binding upon the Owner's successors in interest as purchasers of the Unit) fo "r° the benefit of the Agency. Unit Regulatory Agreement 15 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. AGENCY: OWNER: CITY OF SEAL BEACH ,-,•-• '''''. REDEVELOPMENT AGENCY, / 7.---,......,....., 1 i '7 a public body, corporate and politic P Name: 1.,, • • ., IN— , „. : , ■1;:. \ V \ \\ At ,: , ,, eel By: ,,,'• , \ .. •• , .„. - 14,./ v..... Print Name: Print Name: A':: • , ...**, \,,_ 4.. ...• ,• r N,,, 47 ... .0 • Attest : '.-: 4,,,A ./ , : • ,. 1 k ,,, ,„,..;....... Print Name: . . , v. .'""?• -1 ' , :. . • . \ ..„ ... ,„ \ cif :" 4 \ ' • ", • *, .4\ . „I ._ , ) • ' '• i 's; \ ' .: N - .s> ' • P 1 ., . ,,,,,,,, • :yr/ ) ..., ,,,-...,./ Unit Regulatory Agreement 16 S7284\0001\710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 State of California } } County of } On , 200 before me, , a Notary Public, / , personally appeared ' s ! ` . - ' % ' personally known to me (or 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 ac, owledged O A "that. he /she /they executed the same in his/her /their authorized capacity(ies) and that by his/her%their signature(s) o n the instrument the person(s), or the entity upon behalf of w hiehlthe person(s) acte e xectit the instrument. ' \'' K.. WITNESS my hand and official seal. Z2..\ \,,,...,.". Signature \ Y j\ \< : :\ - (seal) �' t A . ED t i \ \ ' h '" s State of California } ° ° • County ofX--. , ; t ~ }\ . } • t .�.. ; , 200_, before ,me, , a Notary Public, , personally appeared 14r , personally known to me � or'roved.to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subs nbed 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 beh alf of which the person(s) acted, executed the instrument. WITNESS, y' hand and official seal. Signature (seal) Unit Regulatory Agreement 17 S7284 \0001 \710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 State of California } } County of } On , 200 before me, , , a Notary Public, , ; . personally appeared ' ' -' personally known to me (or proved to me on the basis of satisfactory! evidence) to le.;the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged tome that he /she /they executed the same in his/her /their authorized capacity(ies), and b his /her / ; s gnature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed` the instrument. �� - ,.Dff WITNESS my hand and official seal. Y ' !,/ Signature . - - < , , ti `� \ ,, ..10 ,,,,,,,,. ,;\ (seal) � �� n � % � { • .1 • State of California Al ` } Q V i } `� , County of..., • ; } �r Y 4 On - . , 200 before.me , a Notary Pu �_ � personally appeared '\ • " <./ personally known to me u l (or 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), ' title entity upon b of which the person(s) acted, executed the instrument. WITNESS My hand and official seal. ),.., Signature (seal) Unit Regulatory Agreement 18 S7284\0001\710671.2 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Unit Regulatory Agreement October 22, 2002 EXHIBIT A LEGAL DESCRIPTION That certain real property situated in the City of Seal Beach; ° ounty,, of Orange, State of California, described as follows: ,\ <,,,,, t \ . X � 1\ / y • F . � �y t y 4 i ,li;' • • ,? .".., / :. ,..„,, : ' ..' \ „ ''. \*:,,,, .. :4t ' ' 4 ,P 31 / : \ ) `, r s• \,-; "\ y tt ". s e):17/:, . Unit Regulatory Agreement 19 S7284 \0001 \710671.2 RECORDING REQUESTED BY, AND WHEN RECORDED MAIL TO: CITY OF SEAL BEACH REDEVELOPMENT AGENCY 211 Eighth Street Seal Beach, California 90470 ATTN: Executive Director = r : ., REQUEST FOR NOTICE ./, • UNDER SECTION 2924b OF CALIFORNI IVIL CODE Y APN # .: k IN ACCORDANCE with Section 2924b of the Califortua Civil c ode, request i `s.he f e . y-made that a copy of any Notice of Default and a copy of any'Notice gf"Sale under that c airi Deed of Trust recorded as Instrument No. / on ':: \ \ } , 200_, Official Records of Orange County, California en benng following real property: Address/Unit: F ).i:;j: Legal Description: V O," a ;'' i t executed by : ' , as trust in which is named as`1eneficiary, and ` A is named as trustee, be mailed to the City of Seal Beach Redevelopment Agency at 211 Eighth Street,`Seal Beach, California 90740, Attn: Executive Director.. . •.j NOTICE: A \copy :of, any notice ofrdefault and of any notice of sale will be sent only to the address contained in this,recorded requestIf your address changes, a new request must be recorded. r sr , r . N) r Dated , 200 Print Name: Print Name: C: \Documents and Settings \LWhittenberg\My Documents RDA 'Mortgage Assistance Program \Request for Notice.DOC LW\10 -22 -02 Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Request for Notice October 28, 2002 State of California } } County of } On , 200 before me, , a Notary Public, personally appeared • , personally known to me (or proved to me on the basis of satisfactory,evidence) to be the person(s) /j° \ whose name(s) is /are subscribed to the within instrument and ackriowled'ged "tome that he /she /they executed the same in his/her /their authorized capacity(ies), and thafbyhis /her /thei�r:signature(s) on sa the instrument the person(s), or the entity upon behalf of which the personacted, executed the instrument. ,� \- WITNESS my hand and official seal. � ' C , A eti ::",. Nctli i; Signature \ _ 1 , x , (seal) . ft\\j State of California } 7 :1' , -, , , , , y.:- • :i ' . " . `, } '' i 1.1 County of /(.1\„. + On -- 200•`\ before me, ` !y~ , a Notary Public, person . appeareii5 ' �4 '� , personally'l ow ow to m -(oi proved to me o " the basis of satisfactory evidence) to be the person(s) whosame(s) is /are subscnbedto the within instrament°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 nstrument the person(s), or the entity upon behalf of which the person(s) acted, executed the • /.n G WITNESS my hand and official seal. Signature < A ; \ 7,/,1 (seal) Request for Notice 2 57284 \0001 \Request for Notice NOTICE OF PROPOSED REFINANCING OF JUNIOR OR SENIOR LOAN This NOTICE OF PROPOSED REFINANCING OF JUNIOR OR SENIOR LOAN is given by (collectively, "Borrower ") to the SEAL BEACH REDEVELOPMENT AGENCY ( "Agency ") pursuant to Section 10 of that certain UNIT REGULATORY AGREEMENT dated , 200_ executed by Borrower and Agency. it‘:-"ii: , 1. Notice and Certain Required Information. Borrower hereby notifies: .gency that Borrower intends to refinance a loan secure by the eal- property at in the City of Seal Beach, Orange,Couniy, California on the following terms: \ t \ • = ,....) a. Lender's name and address: ,✓\• :•.._,�. b. Loan terms (principal, interest rate, term ,,,loan / F `•` ` rr ,J F c. Closing date: d. Loan to be refinanced (describe by name of lender, ;initial loan amount, and date of deed of trust): V ' "" ' 2. . of 'Transaction Documents.. Copies of the following transaction documents are attached hereto (des 'be bylifle, date and parties): y _, ,•4.4, c a. Loan Documents: r / \ b. Escrow Instructions: • - ..t. )7 C: \Documents and Settings \LWhittenberg\My Documents \RDA \Mortgage Assistance Program\Notice of Proposed Refinancing. DOC \LW\10 -22 -02 S7284\0001 \Notice of Proposed Refinancing Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Notice of Proposed Refinancing October 28, 2002 c. Other transaction documents: y BORROWER: s ' j) \4 , 7 , s,. \ . , • •d 4 j:s '.$ Print Name: ,.4 7 P rint Name. \ \ N eM ff r) 4 /-.1 :,,..,-, ) CY t. 4' N'.;ss i b 4\ ` if l Notice of Proposed Refinancing 2 S7284 \0001 \Notice of Proposed Refinancing NOTICE OF PROPOSED SALE This NOTICE OF PROPOSED SALE is given by (collectively, "Seller ") to the SEAL BEACH REDEVELOPMENT AGENCY ( "Agency ") pursuant to Section 9 of that certain UNIT REGULATORY AGREEMENT dated , 200 executed by Borrower and Agency. 1. Notice and Certain Required Information. Seller er be y ; notifies Agency that Seller intends to transfer the real property at -'' `' dui the City of Seal Beach, Orange County, California on the following terms: 4.1,, • a. Buyer(s) name and address: \ ,./"> i' \ ''''7. ..\ \-- -, </\, ,, ', 7 , . .\'''!----, b. Purchase price: $ Other consideration: c. Down payment: $ �. )/ ;,!; i / \' . d. Purchaser's financing terms (principal, in Brest rate, term, loan fees): /\ -1; 1 Y e. Closing -date: `"� "& 4 ,f : Aggregate annual`income \ ofpurchaser's household: $ *1/4 \ : •#. ' fili . \ ‘4 , ; :' ,>■trtd 1' g. Number of person's comprising purc household and their names and ages: if 4 c; e >.A Number: and ages: 1 1 \Names '• 2. Copies of Transacti Documents. Copies of the following transaction documents are at`ached hereto (describe by title, date and parties): a. Purchase Agreement: e' b. Escrow Instructions: C: \Documents and Settings \LWhittenberg\My Documents \RDA\Mortgage Assistance Program\Notice of Proposed SaIe.DOC \LW\l0- 22-02 S7284 \0001\Notice of Proposed Sale Redevelopment Agency of the City of Seal Beach Mortgage Assistance Program — Notice of Proposed Sale October 28, 2002 c. Other transaction documents (describe): 3. Purchaser Representations. By the purchaser's execution of this Notice, the purchaser confirms to the Agency that the foregoing is true and correct and that the Property will be occupied by the purchaser and wi11,:71?e-•used,as his or her sole residence. "AO NOTE: IN LIEU OF THIS NOTICE AND THE FOREGOING ilNFO-RMATION, SELLER MAY PROVIDE TO AGENCY A WRITTEN 'CERTIFICATION�``F-ROM THE •2, \ fib "r \ •, PURCHASER'S LENDER COVERING ALL OF THE F ®REG 3TNG INFORMATION ci NO LATER THAN 20 DAYS PRIOR TO THE CLOSING :O ::THE SALE OF 'THE. PROPERTY. A, ,t; ,,,',.=,: . SELL • • T. - ' ; / /4 -4 ) Pent Name: 1 �. " ..* : r\..,.4,2„ 4c,,,,. .x • .: ..: ,.. \::,:-:.1, , ,, ,..,........... . f'e,i.,, . .#:,:,: /7 4 M .. ., ..\ _ „.,„.-)4;,„------i:,-------;,---- ,. -i: • ' `Pnnt N , &PURCHASER: if � N J " n,p` Print Name: _. \ 7 - .,Y r t 4, :i < e); Print Name: Notice of Proposed Sale 2 S7284 \0001 \Notice of Proposed Sale 2002 - STEP 1 Document 1 of 3 CITY OF SEAL BEACH REDEVELOPMENT AGENCY Mortgage Assistance Program (MAP) _ Verification For Applicant Eli • ibilit APPLICANT INFORMATION: Name of Applicant Phone Number Current Address Household Size Property Address to be Purchased # of Minor Children City/State Seal Beach, Califomia _ Zip Code 90740 / _ _, - \ ., ,v,/ LENDER /BROKER INFORMATION: Name of Lender \ .:k; \ Contact Person \. ,i A, /, '\ . ) (. Loan Number Phone Number , .. Number- _ 4 / /\=i \ MAP 2002 INCOME LIMITS In order to qualify for the MAP your income MAY NOT EXCEED the following, subject to funding availabilit : Please Circle One Income Fi • ure \,., Family of: 1 - $63,480 2 - $72,600 3 - $81,600 w 4 - $90,720,} \_____ 5 - $97,920 6 - $105,240 7 - $112, 0 - ` 8 - $119,760 - A INCOME AND DEBT INFORMATION: ,. *Annual & Monthly Income (Per Applicant Application) $ : \ 1 \_- %Year ` $ /Month Income used by the lender to qualify for the loan, 7 \,.r if different than annual income of a • • lication. Ex. lain / ' ' / $ '2 1 . /Ye ar • $ /Month LOAN AND PROPERTY SALES INFORMATION: Max 1 Mort. Loan Amount $ / \a ;4 \.*kx , j & Interest $ /Month Buyer Required Down Payment ..$ --,. //—\,',„.... `, ,,_°Est. Taxes $ /Month MAP Amount. ' $ u '..' ..."--,, \ • \ Est. Insurance $ /Month Sa`'les'Price $"' **" "N ,;,\ Mort. Ins (If Applicable) $ /Month 151 Mortgage Interest Rate % 'a, 'Fined • • \) Total P IT I �( Des ired Front End: 33% /Housing Cost $ % /Month 151 Mo gage: No. Years 030 ❑ 20 1=1;15 ® - / Other \ Other Consumer Debt $ /Month TYPE OF'LOAN1 \ ❑FNMA ❑ FHA ❑ Other \ 41 Total Debt (Desired Back End: 38 %) $ % /Month OTHER ASSISTANCE CATEGORIES (Please check as many as appropriate.) ❑ Sr. Citizen(s) - 62xor =Older ❑ Female HeadjoflHousehold ❑ Disabled One or More PLEASE CHECK THE FOLLOWING (Optional): ❑ Black ❑ Hispanic \ ❑,American Indian j ,❑ White ❑ Asian or Pacific Islander ❑ Other \ / ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR THE CITY OF SEAL BEACH'S MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. SHOULD YOU HAVE ANY QUESTIONS CALL (909) 364 -0575. ),,,, Signature of Applicant Lender Representative — Signature Signature of Applicant 1 of 3 2002 - STEP 1 Document 2 of 3 , 4' h APPLICATION AFFIDAVIT KY . NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORTANT LEGAL CONSEQUENCES TO THIS AFFIDAVIT; READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for the Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of Seal Beach, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we) certify that the number of persons who will be residing in the house will be and are named below as follows (additional names may be included on separate sheet of paper): Name /Social Security # ,f' Relationship Age ! •L v J V - \f10 '‘,/ ,,,/ i \ �. 2. The Unit (the "Residence ") being purchased is a single - family home located°in.the City of SealfB at the following address: ' \ 4".\ 3. I (we) certify that my (our) current gross annual household including in�come•of� I adult persons intending to occupy the Residence, is $ : I(we) understand.that;l (we) am (are) not eligible for a MAP unless my (our) gross annual household income does notexceed 120 % as applicable, of the median income for Seal Beach, and as specifically set forth in the Verification-of Applicant Eligibility form. \ R 11 . z, 4. I (we) certify that the Residence will be occupied and as my (our) pr place of residence within thirty (30) days after the date the MAP loan has closed. I (we) certify that the' Residence will not be used as an investment property, vacation home, or recreational home and that not. more4han fifteen percent (15) of the area of the Residence will be used in a trade or business, I (we) certify that) .(we) Vwill notify the Agency in writing if the Residence ceases to be my- (our) principal) Residence. Failure to occupy Residence will result in the Agency accelerating the repayment of•the Agency MAP Loan 5. If the loan application i o a- loan ro n'•a newly c nstructedlhome, I (we) certify that the Residence has not and will not be•occupied prior to loan commitment from the Agency. \•: 6. I -(we) understand that I (we) am (are) not'eligible for from the Agency under the MA P program if I we individually orto ether had a present ownership interest in a principal residence within three years ( ) � ll � ,Y 9 P P (3) P P ()Y prior to P date of application.,:) :(we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing.:: ,.For this purpose, a principal residence includes a single family residence, condominium share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law or occupancrinla multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by means, whether outright or partial, including property subject to mortgage or other security•interest,An. ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy41y th entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three -year period from date of application. 7. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 8. The Agency cannot ensure that information provided by or on my /our behalf will be confidential. 2 of 2 2002 - STEP'I .. „, Document 3 of 3 9. I (we) understand and agree that if a MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 10. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the MAP guidelines. 11. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan and I (we) cannot close my (our) loan prior to receiving an MAP loan approval. 12. I (we) acknowledge and understand that this Application Affidavit -4:1tl;be relied upon for the purpose of determining my (our) eligibility for a MAP: (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me(us) in connection with an application for a MAP may constitute a federal violation punishable by a'fine and /or denial of•my.(our) application for a MAP loan. If a MAP loan commitment has been issued prior to discovery of the false'staternent, immediate cancellation of the MAP will occur which will be in addition to any criminal imposed bylaw ;h 13. An appraisal fee may be payable to the Agency upon the following a ndsatthe Agency's discretion A(i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I (we) no tonger'o the Property, or (iv) I (we) are /am in default of any provision of the Loan Agreement. 14. The Agency shall not be held responsible for any costs.associated en with the Residce'I (we) purchase with such assistance including, but not limited to, any loan fees or'charges 04charges for appraisals, or any escrow costs or other costs relating to the transfer of the property. 15. The Agency shall not be responsible for the selectioniof a Residence,; ttie.- selection of a lender providing funds assisting in the purchase of the home, provideeinformationcbncerning -other public or private sources of loans, or the competitiveness of the terms of=the MAP. I (we) assume all responsibility for determining whether I (we) will inform myself /ourselves as to the availability and terms of:othei� public or private loans. r , 5 L H 16. The Agency shall-not""� be charged with the`knowledge of the contents of the documents of the lender. Dated: "�° — �•4 Signature of'Applicant(s) ,. -1 4 s a ,D4ted ` . S i gnature ''zs t 3 of 3 r x 2001 - STEP •1 .. - :-_: -• r . • ATTACH A. ,..,— , r 4 iik,'''‘'.':,....,,:.:'---„::,:,, i PRELIMINARY ESCROW INSI RUCTION'S , CERTIFIEDtS - s F x s,. 4 ice Iy x Mi .' • r f' \, ,e. F - e � , 4 Av... ,.. , RP* ,......„ „, i,..„ . . YR LV'�l t ''t 2 4 r,. .....,..3„ ! r r C �' k. ,, t . J• ^fi i'kj1 { ..„. . " %:: * -i:.V.'■;,:,;71,`,;, VP% P /S r r '1 • C:\DOCUMENTS AND SETTINGSLLWHITTENBERG \MY DOCUMENTS\RDA\MORTGAGE ASSISTANCE PROGRAM \STEP I.DOC 2001 - STEP ,1 ATTACH COPIES OF ,, � yy MOST RECENT THREE -(3) Y EAARS FEDERAL TAX R_ TURNS ,, n' *; i',',5';'=: p ig x z (All Persons Over • SIGNED , >1 : +.: ti,;r yam Y Z 4 'C 4 .. t..� J 4-,.- t di lot, ‘,4,...,, , yam ° ^f S ; v � _.. ' Y y y. 3:'• v \'''''',,-. e N 5 C:\DOCUMENTS AND SETTINGS \LWHITTENBERG MY DOCUMENTS\RDA\MORTGAGE ASSISTANCE PROGRAM\STEP I.DOC 2002 - STEP 11 REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH • MORTGAGE ASSISTANCE PROGRAM ; r �,,P , ` ' - ' FUNDING REQUEST ,' = ' ' COVER LETTER - , x _ ' The information contained in this form will be used to prepare all Agency loan documents. Complete this form accurately. ( "LENDER ") hereby states the following: Name of First Mortgage Lender 1. The Lender has accepted and reviewed the Mortgage Assistance Application for: Names(s): ;T ;i (Full Name of Applicants as it will show on the vestinn including initials) ppti f Vesting (Check One): ❑ H & W as joint tenants ❑ Single an/Woman " m Unmarried Man/Woman ❑ Other: 4ii` , " 2. Lender certifies the household consists of persons and has •an annual gross income of $. . 3. The Mortgage Assistance Application was made in conjunction with'' =antapplication for a first mortgag for the purchase of a single - family residence (the "Residence ") located at: '' _'. Seal Beach, " 490740 Street Address sk; 'C > ry•-w' Zip 4. The purchase price for the Residence is $ (Not -to- Exceed j ' ) t r ., { 5. Amount of Applicant Down Payment: $ s: : � 6. The Lender is considering a first mortgageJoan to the Applicant equal to41' and Lender certifies this is the maximum loan amount for which the Applicants) can qualify. 7. The total monthly payment (PITI plus "MI premium plus Utilities)-wiH be $ (Not -to- Exceed Affordable Housing Cost 4a defined bj+ Health and Safety CodeSection 50052.5, if applicable) 8. Amount of, ?Ag requ ested for :down payment: $ (Not- to:�Exceed 20% of the P Price and a maximum of '$35,000 9. T name and location of the Escrow/Title Compaio• which Agency funds shall be disbursed is as follows: AGENCYfCH BE MA PAY ABLE TO , 3,: � i < x ,.„,-,:::,'+,i4 ♦ ' 2 ? •' `' l';', `' i , i a ' �� ;,. .' v s 11 Y 3 s f , �� a" , , s +*,. y N ame ; ,,. ' A - 4; , ; < i .' - ` ; 'r » W' � � '�; ,j:u.: ;-.. ..r a. ••` s,r. 3r 3 % . Address ! - 0-. r r . ' s," 1w A r ° ,� 3 'r' t I • aStreetAMI ; f s ■ YL k t - ' *tymikrimp:: . M a ; i State. �.: `Zp"" s , ' i c + a , w A x s " Escrow /Order# ' r xr • :.. K ^ ¢E lose' vv , Contact Person x ":." • " = ‘!,..hone Telep Number ( .. ) " . :. I UNDERWRITER APPROVAL Underwriter Signature Date Date: Lender Address City, State, Zip RE: Mortgage Assistance Program (MAP) — Reservation of Funds Dear Lender •R r • A/t J � Please consider this a formal MAP Reservation of Fundscas follows: Air Buyer: ■ • MAP Amount: Property Address: ;•,. Seal Beach, California 9 0740 :.A., ' Reservation Date Expiration: This Reservation Letter is for the exclusive use of d t ie Buyer`and• property, and your company. If a MAP is not issuedb -y the expirationdate, thisReservation Letter will be null and void. Also, actual MAP `nderwriting is thesole4 espons of the mortgage company. If fohatever, reason"the•,Buyer is at anytime unable to secure financing through yourco It �s pa,your responsibility to formally notify CivicStone, thereby releasingthis Reservatlon;of Funds. ` `, f Finally, a Demand for Funds••Letter and 'pie loan documents, such as the loan agreement, conditions and restrictions, deed of trust and promissory note must be recekred1by our office at least tenp(10) working days beginning on a Monday in order to have a'MAP check for deposit byre Friday of the following week. If you have any questions or require any additional information, please contact (909) 364 - 0575. r W Sincerely, Adam Eliason CivicStone \ \Celina \civicstone \City of Seal Beach \2000 -2005 Home Improvement Program \Reservation of Funds.doc C: \Documents and Settings \LWhittenberg \My Documents \RDA \Mortgage Assistance Program \Reservation of Funds.doc\LW\10-22- 02 City of Seal Beach Mortgage Assistance Program (MAP) Request for Reservation of Funds Fax: (909) 628-6052 Attn: Adam Eliason Applicant Name: Property Address: di tiP Purchase Price: $ .., , V ., : ::: N.': • , Borrower Down Payment: $ •‘. = 4 City of Seal Beach (Participation Amount): $ • . .... Loan Amount $ Lender t46,7.-...-....Advii.f,71,.., : " Ir: . ..._ Contact Person: rItk Telephone Number: AN ‘ Fax Numbetik .4 -. , ... • -:.-,--,,, Anticipated Clositg7p /**-", The City;-,of Beach ilct follci wing documents to process the loan: , ■ . , , • MAP Application • Certificate of Completion of Hotnebuyer Education Class •-: 4. '.... Pre-Qualification Lett \\:•,_„.-. redit Report pip ..:: , apy of Appraisal kV; • 14 /1 1 6YEdiase Agreement • det (1003) • Income rifitation Worksheet For City Use: Confirmed By: Date: \\Celina \civicstone\City of Seal Beach\2000-2005 Home Improvement Program\Request for Reservation of Funds.doc C:\Documents and Settings\LWhittenberg\My Documents\RDA\Mortgage Assistance Program\Request for Reservation of Funds.doc\LW\10-22-02