HomeMy WebLinkAboutOrdinance 2666 N.C.S. 10/01/2018EFFECTIVE DATE ORDINANCE NO. 2666 N.C.S.
OF ORDINANCE
November 1, 2018
1 Introduced by Seconded by
2
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4 Kathy Miller Dave King
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7 AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA AUTHORIZING THE CITY
8 MANAGER TO EXECUTE ALL DOCUMENTS RELATING TO THE ASSIGNMENT AND/OR
9 EXERCISE OF OPTION AGREEMENT THE TRANSFER OF THE LAND TO THE HOUSING LAND
10 TRUST OF SONOMA COUNTY AND SALE OF THE IMPROVEMENTS TO A QUALIFIED
11 BUYER SUBJECT TO AFFORDABILITY RESTRICTIONS AND AN AFFORDABILITY
12 AGREEMENT WITH THE HOUSING LAND TRUST TO MAINTAIN THE PROPERTY
13 IN PETALUMA'S FIRST TIME HOMEBUYER PROGRAM
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15
16 WHEREAS, since 1985 the City Council has developed housing goals to address the broad
17 range of housing needs within the community, including the City's initial General Plan Housing
18 Element; and
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20 WHEREAS, the City Council adopted the 2015-2023 General Plan Housing Element on
21 December 1, 2014 pursuant to Resolution No. 2014-190 N.C.S., including several programs to
22 promote the development of affordable housing; and
23
24 WHEREAS, the City's First Time Homebuyer program was established as a silent second
25 mortgage program under which the City would subsidize approximately 30-40% of the sale of the
26 unit without re -sale restrictions on the property; and
27
28 WHEREAS, since 1988, the City, in partnership with nonprofit developers, has helped build
29 169 units of for -sale housing for first time homebuyers, and has provided homeownership to 267
30 families, including initial sales and re -sales; and
31
32 WHEREAS, in 2008, with the downturn of the real estate market, the City lost over 20 First
33 Time Homebuyer properties to foreclosure, and currently lacks funds to maintain the First Time
34 Homebuyer Program in its current form; and
35
36 WHEREAS, Policy 4.3 of the Housing Element in the City's General Plan calls for helping
37 facilitate the entry of low and moderate -income households into the housing market by
38 partnering with the Housing Land Trust; and
Ordinance No. 2666 N.C.S. Page 1
1 WHEREAS, where appropriate market conditions exist, through coordination with Burbank
2 Housing, which holds repurchase options for the City's First Time Homebuyer properties, and the
3 Housing Land Trust, it is possible to maintain properties affordable within the First Time Homebuyers
4 program through assignment of repurchase and mortgagor rights to the City, repurchase of the
5 property by the City through application of the mortgage value, grant of the land to the Housing
6 Land Trust and sale of the home to a qualified buyer subject to affordability restrictions and an
7 affordability agreement between the City and the Housing Land Trust; and
8
9 WHEREAS, Section 46 of the Petaluma City Charter provides that certain City Council
10 actions must be taken by ordinance, including certain actions for acquisition, sale or lease of real
11 property;
12
13 NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Petaluma as follows:
14
15 SECTION 1: The City Manager is hereby authorized and directed to execute all documents
16 relating to the assignment and exercise of option agreements on potential future resales of first
17 time homebuyer properties and transfer of the land to the Housing Land Trust of Sonoma County
18 and sale of the improvements to a qualified buyer subject to affordability restrictions and an
19 affordability agreement with the Housing Land Trust to maintain the Property in Petaluma's First
20 Time Homebuyer Program.
21
22 SECTION 2: The City Manager is hereby authorized and directed to execute on behalf of
23 the City documents substantially in accordance with those attached as Exhibit A to this ordinance,
24 and/or revised versions of such documents and/or additional documents as may be
25 recommended and approved by the City Attorney to accomplish the repurchase of future first
26 time homebuyer properties to maintain their affordability as part of the City's First Time Homebuyer
27 program consistent with the purposes of the City's General Plan Housing Element, the First Time
28 Homebuyer Program and this ordinance.
29
30 SECTION 3: If any part of this Ordinance is for any reason held to be unconstitutional,
31 unlawful or otherwise invalid by a court of competent jurisdiction, such decision will not affect the
32 validity of the remaining parts of this Ordinance. The City Council of the City of Petaluma hereby
33 declares that it would have passed and adopted this Ordinance and each of its provisions
34 irrespective of any part being held invalid.
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SECTION 4: The City Council finds that this Ordinance is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Section 15060(c) (2) of the CEQA Guidelines
because the activity has no potential for resulting in a direct or reasonably foreseeable indirect
physical change in the environment, and pursuant to Section 15060(c) (3) of the CEQA Guidelines
because the activity is not a project as defined in Section 15378) of the CEQA Guidelines.
Ordinance No. 2666 N.C.S. Page 2
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SECTION 5: This Ordinance will become effective thirty days after the date of its adoption
by the Petaluma City Council.
SECTION 6: The City Clerk is hereby directed to post and/or publish this Ordinance or a
synopsis for the period and in the manner required by the City Charter.
INTRODUCED, and ordered posted/published, this 17th day of September 2018.
ADOPTED this I It day of October 2018, by the following vote:
Ayes:
Albertson, Barrett, Mayor Glass, Vice Mayor Healy, Kearney, King, Miller
Noes:
None
Abstain:
None
Absent:
None
ATTEST:
f f,.
Claire Cooper, City Clerk
David Glass, Mayor
APPROVED AS TO FORM:
Ordinance No. 2666 N.C.S.
Page 3
1 Exhibit A
2
Recording requested by and when recorded
mail to:
CITY OF PETALUMA
11 English Street
Petaluma, CA 94952
Attn: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE "6103.27383
3 Space above this line for Recorder's use.
4
5
6
7 AFFORDABLE HOUSING AGREEMENT AND DECLARATION
8 OF RESTRICTIVE COVENANTS WITH OPTION TO PURCHASE
9 ("REGULATORY AGREEMENT")
10
11
12 This Affordable Housing Agreement and Declaration of Restrictive Covenants
13 with Option to Purchase (this "Agreement") is entered into effective as of
14 , 201_ ("Effective Date") by and between the City of Petaluma, a
15 California municipal corporation ("City") and the Housing Land Trust of Sonoma
16 County, a California nonprofit public benefit corporation ("HLT"). City and HLT are
17 hereafter referred to as the "Parties."
18
19 RECITALS
20
21 A. On December 1, 2014, the City Council adopted Resolution No. 2014-190
22 N.C.S. approving the City's Housing Element pursuant to Housing Element law (Gov.
23 Code, 65580, et. seq.) The Housing Element provides an inclusionary policy which
24 states that fifteen percent (15%) of the units in all residential developments of five (5) or
25 more units constructed in the City contribute to the provision of below-market rate
26 housing.
27
28 B. In accordance with the Housing Element, goals, policies, and programs are
29 designed to address the existing and projected housing needs of Petaluma which are to
30 promote the development of affordable housing and preserve the City's existing
31 affordable housing and ensure the long-term affordability of both new and existing units.
32
33 C. The City has agreed to concurrently (i) convey the parcel located at 1008
34 Madison Street, Petaluma, CA and known as Sonoma County Assessor's Parcel No.
35 007-650-002 (the "Parcel") to HLT, pursuant to a Grant Deed recorded in the Official
Ordinance No. 2666 N.C.S. Page 4
1 Records of Sonoma County ("Official Records") substantially concurrently herewith,
2 and (ii) sell the home located thereon (the "Home") to an eligible Moderate -Income
3 household (the "Homebuyer"). Concurrently with the foregoing transactions, HLT will
4 lease the Parcel to the Homebuyer pursuant to a long-term ground lease in a form
5 approved by the City.
6
7 D. HLT's obligations under this Agreement are secured by a Performance Deed of
8 Trust ("Performance Deed of Trust") dated as of the date hereof, executed by HLT as
9 Trustor for the benefit of the City and recorded against HLT's interest in the Parcel and
10 the Home substantially concurrently herewith.
11
12 E. The Parties have agreed to enter into and record this Agreement in order to
13 satisfy the conditions described in the foregoing Recitals. The purpose of this
14 Agreement is to regulate and restrict the sale price of the Home and eligibility criteria for
15 prospective homebuyers consistent with the City's Inclusionary Housing policy and
16 Housing Element. The Parties intend the covenants set forth in this Agreement to run
17 with the land and to be binding upon HLT and HLT's successors and assigns.
18
19
20 NOW, THEREFORE, for good and valuable consideration, the receipt and
21 sufficiency of which are hereby acknowledged, the Parties agree as follows:
22
23 1. Definitions. As used in this Agreement, the following terms shall have the
24 meanings set forth below. Additional terms are defined in the Recitals and the text of
25 this Agreement.
26
27 (a) "Affordable Purchase Price" means a home purchase price resulting in
28 an average monthly housing payment (including mortgage loan principal and interest,
29 mortgage insurance fees, property taxes and assessments, a reasonable allowance for
30 property maintenance and repairs, homeowners insurance premiums, a reasonable
31 utility allowance, and homeowners association dues, if any) which is affordable to
32 households of Low to Moderate -Income, as determined using standard underwriting
33 criteria in common use by Fannie Mae or the California Housing Finance Agency.
34
35 (b) "Area Median Income" means the median household income, adjusted
36 for household size, applicable to Sonoma County, California as published periodically
37 by the State Department of Housing and Community Development in the California
38 Code of Regulations, Title 25, Section 6932 pursuant to California Health and Safety
39 Code Section 50093(c) (or successor provision).
40
Ordinance No. 2666 N.C.S. Page 5
1 (c) "Eligible Buyer" means a household of Low- to Moderate -Income, as
2 applicable, which the City has determined meets the eligibility requirements for
3 purchase of a Restricted Home.
4
5 (d) "Deed of Trust" means the deed of trust, dated as of the date hereof,
6 executed by HLT as Trustor for the benefit of City which secures HLT's performance
7 under this Agreement, and which will be recorded in the Official Records substantially
8 concurrently herewith.
9
10 (e) "Low -Income" means an annual income which does not exceed eighty
11 percent (80%) of the Area Median Income adjusted for household size.
12
13 (f) "Median -Income" means an annual income which does not exceed one
14 hundred percent (100%) of the Area Median Income, adjusted for household size.
15
16 (g) "Moderate -Income" means an annual income which does not exceed
17 one hundred twenty percent (120%) of the Area Median Income, adjusted for household
18 size.
19
20 (h) "Maximum Initial Sales Price" means the initial Affordable Purchase
21 Price for a Home as determined by City.
22
23 2. Satisfaction of Affordable Housing Obligation. Concurrently with the sale of the
24 Home to the Homebuyer, HLT shall require the Homebuyer to execute a Ground Lease
25 in the form approved by City (the "Ground Lease") as shown in Exhibit B. Among other
26 provisions, the Ground Lease will require the Home (i) to be used solely for residential
27 purposes (ii) to be occupied as the homebuyer's principal residence, and (iii) to be
28 permitted to be transferred only to HLT, another Eligible Buyer, or upon the death of the
29 homebuyer, to the homebuyer's heirs who qualify as Low -Income, Median -Income or
30 Moderate -Income, as applicable. HLT agrees that the intent of this Agreement and the
31 Ground Lease is that the Home shall be permanently affordable to Eligible Buyers of
32 Low -Income to Moderate -Income, as applicable, and HLT agrees that resale of the
33 Home shall be so restricted pursuant to the Ground Lease.
34
35 3. Marketing and Sale to Eligible Buyers. City shall cooperate with HLT to identify
36 Eligible Buyer; however, HLT will have primary responsibility for marketing the Home,
37 finding qualified Eligible Buyers, and screening and selecting applicants. City shall have
38 no obligation to pay costs related to marketing, sales efforts or real estate
39 commi2ssions. HLT agrees that it shall comply, with applicable fair housing laws in the
40 marketing and sale, as applicable, of the Home.
41
Ordinance No. 2666 N.C.S. Page 6
1 4. Deed of Trust and Ground Lease; City Review of Documents. Upon request,
2 HLT agrees that it shall provide the following to City: (a) the form of Purchase and Sale
3 Agreement to be used for sale of the Restricted Homes, and (b) the form of Ground
4 Lease to be executed by the homebuyers. Concurrently with the execution of this
5 Agreement, HLT shall execute and deliver the Performance Deed of Trust for the
6 benefit of City, securing HLT's obligations under this Agreement. The Performance
7 Deed of Trust will be recorded in the Official Records substantially concurrently with the
8 recordation of this Agreement.
9
10 5. Compliance Reports, Inspections, Monitoring. Upon completion of the sale of
11 the Restricted Homes, and annually thereafter by no later than June 30th of each year,
12 upon City's request HLT shall submit to City a Compliance Report verifying HLT's
13 compliance with this Agreement, and certified as correct by HLT under penalty of
14 perjury. The Compliance Report shall be in such format as City may reasonably
15 request and shall contain certifications regarding the eligibility of homebuyers and
16 evidence of the homebuyer's and HLT's execution of the Ground Lease.
17
18 HLT shall retain all records related to compliance with this Agreement, and shall
19 make such records available to City or its designee for inspection and copying on five
20 (5) business days' written notice. HLT shall permit City and its designees to inspect the
21 Property to monitor compliance with this Agreement following two (2) business days'
22 written notice.
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24 6. Covenants Run with the Land. The covenants and conditions herein contained
25 shall apply to and bind, during their respective periods of fee ownership, HLT and its
26 heirs, executors, administrators, successors, transferees, and assignees having or
27 acquiring any right, title or interest in or to any part of the Property and shall run with
28 and burden such portions of the Property. This Agreement shall remain in effect in
29 perpetuity unless released by City pursuant to an instrument recorded in the Official
30 Records.
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32 7. Default and Remedies. Failure of HLT to cure any default in HLT's obligations
33 under this Agreement within thirty (30) days after the delivery of a notice of default from
34 the City will constitute an Event of Default under this Agreement. In addition to
35 remedies set forth in this Agreement, the City may exercise any and all remedies
36 available under law or in equity, including but not limited to the exercise of City's
37 remedies under the Deed of Trust, and the exercise of City's Option (as described in
38 Section 10 below), instituting against HLT or other applicable parties, a civil action for
39 declaratory relief, injunction or any other equitable relief, or relief at law, including
40 without limitation an action to rescind a transaction and/or to require repayment of any
41 funds received in connection with such a violation.
42
Ordinance No. 2666 N.C.S. Page 7
1 8. Option to Purchase, Enter and Possess. City shall have the right at its option to
2 purchase, enter and take possession of the Property or any portion thereof owned by
3 HLT with all improvements thereon (the "Option"), if, at or after the initial sale of the
4 Home to Eligible Buyers, the Home is sold to persons who do not qualify as Eligible
5 Buyers. In such event City shall have an option to purchase the Home at the Affordable
6 Purchase Price as determined pursuant to this Agreement, or the City may pursue any
7 remedies it may have under this Agreement, the Deed of Trust or under law or in equity.
8 To exercise the Option, City shall pay to HLT cash in an amount equal to:
9
10 (i) The fair market value of the Property at the time of exercise of the Option;
11 less
12
13 (ii) Any gains or income withdrawn or made by HLT from the applicable
14 portion of the Property; less
15
16 (iii) The value of any liens or encumbrances on the applicable portion of the
17 Property which the City assumes or takes subject to; less
18
19 (iv) Any damages to which the City is entitled under this Agreement by reason
20 of HLT's default.
21
22 In order to exercise the Option, the City shall give HLT notice of such exercise,
23 and HLT shall, within thirty (30) days after receipt of such notice, provide the City with a
24 summary of all of HLT's costs incurred as described in this Section. Within thirty (60)
25 days of the City's receipt of such summary, the City shall pay into an escrow
26 established for such purpose cash in the amount of all sums owing pursuant to this
27 Section 9, and HLT shall execute and deposit into such escrow (i) a grant deed
28 transferring to the City all of HLT's interest in the Property, or portion thereof, as
29 applicable and the improvements located thereon, and (ii) an assignment agreement in
30 form acceptable to City assigning HLT's interest in the Ground Lease to City. The City
31 shall have the right to assign the Option to another public agency, a nonprofit
32 corporation, or to an Eligible Purchaser. Notwithstanding anything to the contrary set
33 forth herein, if City or its assignee exercises the Option, HLT shall remain liable for all
34 liabilities and obligations of the lessor accruing under the Ground Lease prior to the date
35 that title to the Parcel is transferred to City or City's assignee.
36
37 9. Mortgagee Protection. The City's rights pursuant to Section 9 shall not defeat,
38 limit or render invalid any mortgage or deed of trust recorded against the Property or
39 any portion thereof, including without limitation, the Home. Any conveyance of the
40 Property to the City pursuant to Section 9 shall be subject to mortgages and deeds of
41 trust permitted by this Agreement.
42
Ordinance No. 2666 N.C.S. Page 8
1 10. Remedies Cumulative. No right, power, or remedy specified in this Agreement is
2 intended to be exclusive of any other right, power, or remedy, and each and every such
3 right, power, or remedy shall be cumulative and in addition to every other right, power,
4 or remedy available to the City under law or in equity. Neither the failure nor any delay
5 on the part of the City to exercise any such rights, powers or remedies shall operate as
6 a waiver thereof, nor shall any single or partial exercise by the City of any such right,
7 power or remedy preclude any other or further exercise of such right, power or remedy,
8 or any other right, power or remedy.
9
10 11. Attorneys' Fees and Costs. The City shall be entitled to receive from HLT or any
11 person violating the requirements of this Agreement, in addition to any remedy
12 otherwise available under this Agreement or at law or equity, whether or not litigation is
13 instituted, the costs of enforcing this Agreement, including without limitation reasonable
14 attorneys' fees and the costs of City staff time. In any dispute arising in connection with
15 this Agreement, the prevailing party shall be entitled to recover reasonable attorneys'
16 fees.
17
18 12. Appointment of Other Agencies. In its sole discretion, the City may designate,
19 appoint or contract with any other person, public agency or public or private entity to
20 perform some or all of the City's obligations under this Agreement.
21
22 13. Hold Harmless. HLT agrees to indemnify, defend (with counsel approved by the
23 City) and hold harmless City and its elected and appointed officials, officers, employees,
24 representatives and agents (all of the foregoing, collectively the "Indemnitees") from
25 and against all liability, loss, cost, claim, demand, action, suit, legal or administrative
26 proceeding, penalty, deficiency, fine, damage and expense (including, without limitation,
27 reasonable attorney's fees and costs of litigation) (all of the foregoing, collectively
28 hereinafter "Claims") arising or allegedly arising out of or relating in any manner to the
29 Project, the Property, or HLT's performance or nonperformance under this Agreement,
30 except to the extent arising from the gross negligence or willful misconduct of the City.
31 The provisions of this section shall survive the expiration or other termination of this
32 Agreement or any release of part or all of the Property from the burdens of this
33 Agreement.
34
35 14. Insurance Requirements. HLT shall obtain and maintain at HLT's expense,
36 Commercial General Liability, naming Indemnitees as additional insureds with
37 aggregate limits of not less than One Million Dollars ($1,000,000) for bodily injury and
38 death or property damage including coverage for contractual liability and premises
39 operations, purchased from an insurance company duly licensed to issue such
40 insurance in the State of California. HLT shall, upon City's request, provide City with an
41 endorsement and/or certificate evidencing compliance with the requirements of this
42 Section.
Ordinance No. 2666 N.C.S. Page 9
1
2 15. Notices. All notices required pursuant to this Agreement shall be in writing and
3 may be given by personal delivery or by registered or certified mail, return receipt
4 requested, to the party to receive such notice at the addresses set forth below:
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7 City:
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14 HLT:
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City of Petaluma
11 English Street
Petaluma, CA 94952
Attn: City Clerk
Housing Land Trust of Sonoma County
P.O. Box 5431
Petaluma, CA 94955-5431
Attn: Executive Director
Any party may change the address to which notices are to be sent by notifying the other
parties of the new address, in the manner set forth above.
23 17. Integrated Agreement; Amendments. This Agreement, together with the
24 Performance Deed of Trust constitutes the entire Agreement between the Parties with
25 respect to the subject matter hereof. No modification of or amendment to this
26 Agreement shall be binding unless reduced to writing and signed by the Parties. The
27 City Manager or his or her designee shall have authority to approve or disapprove minor
28 or technical amendments to this Agreement on behalf of the City.
29
30 18. Subordination; Execution of Riders for the Benefit of Mortgage Lenders, City
31 agrees that if required in order to assist Eligible Buyers to secure purchase money
32 financing for the acquisition of a Home, the City will enter into a subordination
33 agreement with a purchase money lender to subordinate this Agreement under such
34 terms as the City and the purchase money lender shall negotiate provided that City is
35 granted reasonable notice and cure rights under the first mortgage. The City further
36 agrees that if City succeeds to the interest of HLT under the Ground Lease applicable to
37 any one or more Restricted Homes pursuant to the exercise of City's remedies under
38 this Agreement or the Deed of Trust, the City agrees that it shall recognize the Lessee
39 under the Ground Lease and shall comply with the requirements of Fannie Mae Form
40 2100 (3/06) and Fannie Mae Announcement 06-03 or similar successor policy, as such
41 documents may be modified or amended.
42
Ordinance No. 2666 N.C.S. Page 10
1 19. Parties Not Co -Venturers. Nothing in this Agreement is intended to or shall
2 establish the Parties as partners, co -venturers, or principal and agent with one another.
3
4 20. Further Assurances; Action by the City. The Parties shall execute, acknowledge
5 and deliver to the other such other documents and instruments, and take such other
6 actions, as either shall reasonably request as may be necessary to carry out the intent
7 of this Agreement. Except as may be otherwise specifically provided herein, whenever
8 any approval, notice, direction, consent or request by the City is required or permitted
9 under this Agreement, such action shall be in writing, and such action may be given,
10 made or taken by the City Manager or by any person who shall have been designated
11 by the City Manager, without further approval by the City Council unless the City
12 Manager determines in his or her discretion that such action requires such approval.
13
14 21. Governing Law; Venue. This Agreement shall be construed and enforced in
15 accordance with the laws of the State of California without regard to principles of
16 conflicts of law. The Parties consent to the jurisdiction of any federal or state court in
17 the jurisdiction in which the Property is located (the "Property Jurisdiction"). Borrower
18 agrees that any controversy arising under or in relation to this Agreement shall be
19 litigated exclusively in courts having jurisdiction in the Property Jurisdiction, Borrower
20 irrevocably consents to service, jurisdiction, and venue of such courts for any such
21 litigation and waives any other venue to which it might be entitled by virtue of domicile,
22 habitual residence or otherwise.
23
24 22. No Waiver. Any waiver by the City of any obligation or condition in this
25 Agreement must be in writing. No waiver will be implied from any delay or failure by the
26 City to take action on any breach or default of HLT or to pursue any remedy allowed
27 under this Agreement or applicable law. Any extension of time granted to HLT to
28 perform any obligation under this Agreement shall not operate as a waiver or release
29 from any of its obligations under this Agreement. Consent by the City to any act or
30 omission by HLT shall not be construed to be a consent to any other or subsequent act
31 or omission or to waive the requirement for the City's written consent to future waivers.
32
33 23. Headings. The titles of the sections and subsections of this Agreement are
34 inserted for convenience of reference only and shall be disregarded in interpreting any
35 part of the Agreement's provisions.
36
37 24, Counterparts, This Agreement may be executed in counterparts, each of which
38 shall be an original and all of which taken together shall constitute one and the same
39 instrument.
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Ordinance No. 2666 N.C.S. Page 1 1
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25. Severability. If any provision contained in this Agreement is to be held by a court
of competent jurisdiction to be void or unenforceable the remaining portions of this
Agreement shall remain in full force and effect.
26. Exhibits. The following exhibits attached to this Agreement are hereby
incorporated herein by reference:
Exhibit A Legal Description of the Property
Exhibit B Form of Ground Lease
[SIGNATURES ON FOLLOWING PAGE; SIGNATURES MUST BE NOTARIZEDI
Ordinance No. 2666 N.C.S.
Page 12
Recording requested by and when recorded
mail to:
CITY OF PETALUMA
11 English Street
Petaluma, CA 94952
Attn: City Clerk
EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE §§6103,27383
1 Space above this line for Recorder's use.
2
3 PERFORMANCE DEED OF TRUST
4
5
6 THERE ARE RESTRICTIONS ON THE SALE OF THE PROPERTY ENCUMBERED
7 BY THIS DEED OF TRUST. EXCEPT FOR A TRANSFER TO THE CITY OF
8 PETALUMA (THE "CITY") OR CITY'S ASSIGNEE FOLLOWING CITY'S EXERCISE
9 OF ITS OPTION TO PURCHASE, THE HOMES CONSTRUCTED ON THIS
10 PROPERTY MAY ONLY BE SOLD TO "ELIGIBLE HOUSEHOLDS" AT A PRICE NOT
11 TO EXCEED AN "AFFORDABLE PURCHASE PRICE."
12
13
14 This PERFORMANCE DEED OF TRUST ("Deed of Trust") is made as of
15 201_ ("Effective Date") by The Housing Land Trust of Sonoma County,
16 a nonprofit public benefit corporation ("Trustor"), in favor of Title
17 Company ("Trustee"), for the benefit of the City of Petaluma, a California municipal
18 corporation ("City" or "Beneficiary") as Beneficiary.
19
20 RECITALS
21
22 A. Trustor is the owner of the real property identified as Lot and
23 in the Subdivision (the "Development") located in
24 , California, and more particularly
25 described in the attached Exhibit A (the "Property).
26
27 B. Trustor shall cause the Property to be leased to Eligible Buyers pursuant
28 to a ninety-nine (99) -year renewable Ground Lease, and the terms of that certain
29 Affordable Housing Agreement and Declaration of Restrictive Covenants with Option to
30 Purchase (the "Affordable Housing Agreement") dated as of 1201_
31 and executed by the Parties and recorded substantially concurrently herewith in the
32 Official Records of Sonoma County (the "Official Records"). Capitalized terms not
33 defined herein shall have the meaning ascribed to them in the Affordable Housing
34 Agreement.
35
Ordinance No. 2666 N.C.S. Page 13
1
2 C. Pursuant to the Affordable Housing Agreement, Trustor is obligated,
3 among other requirements, to enter into a ground lease with the owner of each of the
4 Restricted Homes constructed on the Property to ensure that the Restricted Home is
5 purchased only by Eligible Buyers at a price not in excess of the Affordable Purchase
6 Price.
7
8 D. The Affordable Housing Agreement also provides (among other
9 provisions) that Beneficiary has an option to purchase the Property or part thereof if
10 Trustor defaults under the Affordable Housing Agreement.
11
12 NOW, THEREFORE, to secure the full and timely performance by Trustor of the
13 Secured Obligations (defined below), it is agreed as follows:
14
15 1. Grant in Trust. Trustor, in consideration of the promises herein recited and the
16 trust herein created, hereby irrevocably and unconditionally grants, transfers, conveys
17 and assigns to Trustee, in trust for the benefit of Beneficiary, with power of sale, all
18 estate, right title and interest which Trustor now has or may later acquire in and to that
19 certain real property located in the City of Petaluma, County of Sonoma, State of
20 California, described in the attached Exhibit A (the "Property") together with all of the
21 following:
22
23 (i) all improvements now or hereafter located or constructed on the Property,
24 and all replacements and additions thereto ("Improvements");
25
26 (ii) all easements, rights of way, appurtenances and other rights used in
27 connection with the Property or as a means of access thereto ("Appurtenances");
28
29 (iii) all fixtures now or hereafter attached to or used in and about the Property
30 or the improvements located thereon or hereafter located or constructed on the
31 Property, and all renewals or replacements thereof or articles in substitution therefor,
32 whether or not the same are, or shall be attached to the improvements in any manner
33 ("Fixtures and Equipment"); and
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35 (iv) all leases, subleases, licenses and other agreements relating to use or
36 occupancy of the Property ("Leases") and all rents or other payments which may now or
37 hereafter accrue or otherwise become payable to or for the benefit of Trustor ("Rents")
38 (whether or not such Leases and Rents are permitted by the Affordable Housing
39 Agreement).
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41 All of the above -referenced Property, Improvements, Appurtenance, Fixtures and
42 Equipment, Leases and Rents are herein referred to collectively as the "Property".
Ordinance No. 2666 N.C,S. Page 14
1
2 2, Obligations Secured. This Deed of Trust is given for the purpose of securing
3 payment and performance of the following (the "Secured Obligations"): (i) all present
4 and future obligations of Trustor set forth in this Deed of Trust or in the Affordable
5 Housing Agreement (including without limitation, Trustor's obligation to ensure that the
6 Restricted Homes are conveyed only to Eligible Buyers at no more than the Affordable
7 Purchase Price); (ii) all additional present and future obligations of Trustor to Beneficiary
8 under any other agreement or instrument acknowledged by Trustor (whether existing
9 now or in the future) which states that it is or such obligations are, secured by this Deed
10 of Trust; (iii) all modifications, supplements, amendments, renewals, and extensions of
11 any of the foregoing, whether evidenced by new or additional documents; and (iv)
12 reimbursement of all amounts advanced by or on behalf of Beneficiary to protect
13 Beneficiary's interests under this Deed of Trust.
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15 3. Assignment of Rents, Issues, and Profits. Trustor hereby irrevocably, absolutely,
16 presently and unconditionally assigns to Beneficiary the rents, royalties, issues, profits,
17 revenue, income and proceeds of the Property. This is an absolute assignment and not
18 an assignment for security only. Beneficiary hereby confers upon Trustor a license to
19 collect and retain such rents, royalties, issues, profits, revenue, income and proceeds
20 as they become due and payable prior to any Event of Default hereunder. Upon the
21 occurrence of any such Event of Default, Beneficiary may terminate such license
22 without notice to or demand upon Trustor and without regard to the adequacy of any
23 security for the indebtedness hereby secured, and may either in person, by agent, or by
24 a receiver to be appointed by a court, enter upon and take possession of the Property or
25 any part thereof, and sue for or otherwise collect such rents, issues, and profits,
26 including those past due and unpaid, and apply the same, less costs and expenses of
27 operation and collection, including reasonable attorneys' fees, to any indebtedness
28 secured hereby, and in such order as Beneficiary may determine. Beneficiary's right to
29 the rents, royalties, issues, profits, revenue, income and proceeds of the Property does
30 not depend upon whether or not Beneficiary takes possession of the Property. The
31 entering upon and taking possession of the Property, the collection of such rents,
32 issues, and profits, and the application thereof as aforesaid, shall not cure or waive any
33 default or notice of default hereunder or invalidate any act done pursuant to such notice.
34 If an Event of Default occurs while Beneficiary is in possession of all or part of the
35 Property and/or is collecting and applying Rents as permitted under this Deed of Trust,
36 Beneficiary, Trustee and any receiver shall nevertheless be entitled to exercise and
37 invoke every right and remedy afforded any of them under this Deed of Trust and at law
38 or in equity, including the right to exercise the power of sale granted hereunder.
39 Regardless of whether or not Beneficiary, in person or by agent, takes actual
40 possession of the Land and Improvements, Beneficiary shall not be deemed to be a
41 "mortgagee in possession," shall not be responsible for performing any obligation of the
42 lessor under any Lease, shall not be liable in any manner for the Property, or the use,
Ordinance No. 2666 N.C.S. Page 15
1 occupancy, enjoyment or operation of any part of it , and unless due solely to the willful
2 misconduct or gross negligence of Beneficiary, shall not be responsible for any
3 dangerous or defective condition of the Property or any negligence in the management,
4 repair or control of the Property.
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6 4. Fixture Filing. This Deed of Trust is intended to be and constitutes a fixture filing
7 pursuant to the provisions of the California Uniform Commercial Code ( the "UCC") with
8 respect to all of the Property constituting fixtures, is being recorded as a fixture
9 financing statement and filing under the UCC, and covers property, goods and
10 equipment which are or are to become fixtures related to the Land and the
11 Improvements. Trustor covenants and agrees that this Deed of Trust is to be filed in the
12 real estate records of Sonoma County and shall also operate from the date of such filing
13 as a fixture filing in accordance with Section 9502 and other applicable provisions of the
14 UCC. This Deed of Trust shall also be effective as a financing statement covering
15 minerals or the like (including oil and gas) and accounts subject to the UCC, as
16 amended. Trustor shall be deemed to be the "debtor" and Beneficiary shall be deemed
17 to be the "secured party" for all purposes under the UCC.
18
19 5. Trustor's Representations, Warranties and Covenants.
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21 5.1 Trustor's Estate. Trustor represents and warrants that Trustor is lawfully
22 seized of the estate hereby conveyed and has the right to grant and convey the
23 Security, that other than this Deed of Trust, the Security is encumbered only by the
24 Affordable Housing Agreement and such other instruments as Trustor has disclosed to
25 Beneficiary in writing. Trustor agrees to warrant and defend generally the title to the
26 Security against all claims and demands, subject to any declarations, easements or
27 restrictions of record as of the date hereof.
28 5.2 Affordable Housing Agreement. Trustor will observe and perform all of
29 Trustor's covenants and agreements set forth in the Affordable Housing Agreement.
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31 5.3 Senior Loans. Trustor will observe and perform all of the covenants and
32 agreements of any loan documents evidencing or securing loans secured by the
33 Property and any other instruments that are senior in priority to this Deed of Trust.
34
35 5.4 Charges; Liens. Trustor will pay prior to delinquency, all taxes,
36 assessments and other charges, fines and impositions affecting the Security directly to
37 the payee thereof. Upon request by the City, Trustor will promptly furnish to the City all
38 notices of such amounts due. Trustor shall pay when due each obligation secured by
39 or reducible to a lien, charge or encumbrance which now does or later may encumber or
40 appear to encumber all or part of the Property or any interest in it, whether or not such
41 lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust.
42 Trustor shall not be required to pay any tax, levy, charge or assessment so long as its
Ordinance No. 2666 N.C.S. Page 16
1 validity is being actively contested in good faith and by appropriate actions and/or
2 proceedings which will operate to prevent the enforcement of the lien or forfeiture of the
3 Security or any part thereof.
4
5 5.5 Hazard Insurance. Trustor will keep the Security insured by a standard
6 all risk property insurance policy equal to the replacement value of the Security
7 (adjusted every five (5) years by appraisal, if requested by the City). If the Security is
8 located in a flood plain, Trustor shall also obtain flood insurance. In no event shall the
9 amount of insurance be less than the amount necessary to prevent Trustor from
10 becoming a co-insurer under the terms of the policy.
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12 The insurance carrier providing this insurance shall be licensed to do business in
13 the State of California and be chosen by Trustor subject to approval by the City.
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15 All insurance policies and renewals thereof will be in a form acceptable to the
16 City, and will include a standard mortgagee clause with standard lender's endorsement
17 in favor of City as its interests may appear and in a form acceptable to the City. The
18 City shall have the right to hold, or cause its designated agent to hold, the policies and
19 renewals thereof, and Trustor shall promptly furnish to the City, or its designated agent,
20 the original insurance policies or certificates of insurance, all renewal notices and all
21 receipts of paid premiums. In the event of loss, Trustor will give prompt notice to the
22 insurance carrier and the City or its designated agent. The City, or its designated agent,
23 may make proof of loss if not made promptly by Trustor. The City shall receive thirty
24 (30) days advance notice of cancellation of any insurance policies required under this
25 section.
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27 Unless otherwise permitted by the City in writing, insurance proceeds, subject to
28 the rights of any senior lienholder, will be applied to restoration or repair of the Security
29 damaged. If permitted by City, and subject to the rights of any senior lienholder, the
30 insurance proceeds shall be used to repay any amounts due under the Affordable
31 Housing Agreement, with the excess, if any, paid to Trustor. If the Security is
32 abandoned by Trustor, or if Trustor fails to respond to the City, or its designated agent,
33 within thirty (30) days from the date notice is mailed by either of them to Trustor that the
34 insurance carrier offers to settle a claim for insurance benefits, the City, or its
35 designated agent, is authorized to collect and apply the insurance proceeds at the City's
36 option either to restoration or repair of the Security or to pay amounts due under the
37 Affordable Housing Agreement.
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39 Notwithstanding anything to the contrary set forth herein, during such time that
40 Trustor is not the owner in fee of the Improvements, Trustor may satisfy the
41 requirements of this Section by ensuring that Beneficiary is named as additional
Ordinance No. 2666 N.C.S. Page 17
1 insured/loss payee as Beneficiary's interests may appear under the policies of
2 insurance Trustor requires the fee owner(s) of such Improvements to maintain.
3
4 If the Security is acquired by the City, all right, title and interest of Trustor in and
5 to any insurance policy and in and to the proceeds thereof resulting from damage to the
6 Security prior to the sale or acquisition will pass to the City to the extent of the sums
7 secured by this Deed of Trust immediately prior to such sale or acquisition, subject to
8 the rights of any senior lienholder.
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10 During the course of any construction on the Property, Trustor shall hire only
11 licensed contractors who maintain the following forms of insurance:
12
13 Liability Insurance. Comprehensive general liability insurance against liability for
14 bodily injury to or death of any person or property damage arising out of an occurrence
15 on or about the Property. The limits of such insurance shall be not less than One Million
16 Dollars ($1,000,000) combined single limit for bodily injury and property damage.
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18 Workers' Compensation Insurance. Workers' compensation insurance covering
19 all persons employed in connection with any work on the Property.
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21 5.6 Preservation and Maintenance of Security. Trustor will keep the Security
22 in good repair and in a neat, clean, and orderly condition and will not commit waste or
23 permit impairment or deterioration of the Security. If there arises a condition in
24 contravention of this Section, and if the Trustor has not cured such condition within thirty
25 (30) days after receiving a City notice of such a condition, then in addition to any other
26 rights available to the City, the City shall have the right (but not the obligation) to
27 perform all acts necessary to cure such condition, and to establish or enforce a lien or
28 other encumbrance against the Security to recover its cost of curing.
29
30 5.7 Protection of the City's Security. If Trustor fails to perform the covenants
31 and agreements contained in this Deed of Trust or if any action or proceeding is
32 commenced which materially affects the City's interest in the Security, including, but not
33 limited to, default under any senior lienholder document, eminent domain, insolvency,
34 code enforcement, or arrangements or proceedings involving a bankrupt or decedent,
35 then the City, at the City's option, without releasing Trustor from any obligation
36 hereunder, may make such appearances, disburse such sums and take such action as
37 it determines necessary to protect the City's interest, including but not limited to,
38 disbursement of reasonable attorneys' fees and entry upon the Security to make
39 repairs. Any amounts disbursed by the City pursuant to this paragraph, with interest
40 thereon, will become an indebtedness of Trustor secured by this Deed of Trust. Unless
41 Trustor and City agree to other terms of payment, such amount will be payable upon
42 notice from the City to Trustor requesting payment thereof, and will bear interest from
Ordinance No. 2666 N.C.S. Page 18
1 the date of disbursement at the lesser of (i) ten percent (10%); or (ii) the highest rate
2 permissible under applicable law. Nothing contained in this paragraph will require the
3 City to incur any expense or take any action hereunder.
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5 5.8 Inspection. The City may make or cause to be made reasonable entries
6 upon and inspections of the Security; provided that the City will give Trustor reasonable
7 notice of inspection.
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9 5.9 Hazardous Substances. Trustor shall not cause or permit the presence,
10 use, disposal, storage, or release of any Hazardous Substances in, on, under, about, or
11 from the Property. Trustor shall not do, nor allow anyone else to do, anything affecting
12 the Property that is in violation of any Environmental Law. The preceding two
13 sentences shall not apply to the presence, use, or storage on the Property of small
14 quantities of Hazardous Substances that are generally recognized to be appropriate to
15 normal residential uses and to maintenance of the Property when used and disposed of
16 in accordance with Environmental Law.
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18 "Hazardous Substances" means any substance defined as toxic or as a
19 hazardous substance or hazardous waste, or regulated under any Environmental Law,
20 and the following substances: gasoline, kerosene, other flammable or toxic petroleum
21 products, toxic pesticides and herbicides, volatile solvents, materials containing
22 asbestos or formaldehyde, and radioactive materials.
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24 "Environmental Law" means all federal, state or local statutes, ordinances,
25 regulations, orders, decrees and judgments that relate to health, safety or
26 environmental protection including without limitation the regulation of the use, disposal,
27 manufacture, or release of Hazardous Substances.
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29 Trustor shall promptly give City written notice of any investigation, claim,
30 demand, lawsuit or other action by any governmental or regulatory agency or private
31 party involving the Property and any Hazardous Substance or Environmental Law of
32 which Trustor has actual knowledge. If Trustor learns, or is notified by any
33 governmental or regulatory authority, that any removal or other remediation of any
34 Hazardous Substance affecting the Property is necessary, Trustor shall promptly take
35 all necessary remedial actions in accordance with Environmental Law.
36
37 6. Nonliability for Negligence, Loss, or Damage; No Joint Venture. Trustor
38 acknowledges, understands and agrees that City does not undertake or assume any
39 responsibility for or duty to Trustor to select, review, inspect, supervise, pass judgment
40 on, or inform Trustor of the quality, adequacy or suitability of the Security or any other
41 matter. The City owes no duty of care to protect Trustor against negligent, faulty,
42 inadequate or defective building or construction or any condition of the Security, and
Ordinance No. 2666 N.C.S. Page 19
1 Trustor agrees that neither Trustor, nor Trustor's heirs, successors or assigns shall ever
2 claim, have or assert any right or action against the City for any loss, damage or other
3 matter arising out of or resulting from any condition of the Security, and Trustor will hold
4 City harmless from any liability, loss or damage for these things. Nothing contained
5 herein or in the Affordable Housing Agreement shall be deemed to create or construed
6 to create a partnership, joint venture or any relationship other than that of a borrower
7 and lender.
8
9 7. Indemnity. Trustor agrees to defend, indemnify, and hold the City of Petaluma
10 and its elected and appointed officials, officers, employees, and agents ("Indemnitees")
11 harmless from and against all losses, damages, liabilities, claims, actions, judgments,
12 costs, and reasonable attorneys' fees that the Indemnitees may incur as a direct or
13 indirect consequence of Trustor's failure to perform any obligations as and when
14 required by the Affordable Housing Agreement and this Deed of Trust.
15
16 8. Acceleration; Remedies. Upon Trustor's breach of any covenant or agreement
17 of Trustor in the Affordable Housing Agreement or this Deed of Trust, including, but not
18 limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the
19 City, prior to the exercise of its remedies hereunder, will mail by express delivery with
20 delivery receipt, notice to Trustor specifying: (1) the breach; (2) the action required to
21 cure such breach; (3) a date, not less than thirty (30) days from the date the notice is
22 received by Trustor as shown on the return receipt, by which such breach is to be
23 cured; and (4) if the breach is curable, that failure to cure such breach on or before the
24 date specified in the notice may result in City's exercise of remedies and the sale of the
25 Security. The notice will also inform Trustor of Trustor's right to reinstate and the right
26 to bring a court action to assert the nonexistence of default or any other defense of
27 Trustor to the exercise of such remedies. If the breach is not cured on or before the
28 date specified in the notice, the City, at the City's option, may:
29
30 (a) declare all of the sums secured by this Deed of Trust to be immediately due
31 and payable without further demand and may invoke the power of sale and any other
32 remedies permitted by California law;
33
34 (b) either in person or by agent, with or without bringing any action or proceeding,
35 or by a receiver appointed by a court, and without regard to the adequacy of its security,
36 enter upon the Security and take possession thereof (or any part thereof) and of any of
37 the Security, in its own name or in the name of Trustee, and do any acts which it deems
38 necessary or desirable to preserve the value or marketability of the Property, or part
39 thereof or interest therein, increase the income therefrom or protect the security thereof.
40 The entering upon and taking possession of the Security shall not cure or waive any
41 breach hereunder or invalidate any act done in response to such breach and,
42 notwithstanding the continuance in possession of the Security, the City shall be entitled
Ordinance No. 2666 N.C.S. Page 20
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to exercise every right provided for in this Deed of Trust, or by law upon occurrence of
any uncured breach, including the right to exercise the power of sale;
(c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a
receiver, or specifically enforce any of the covenants hereof;
(d) deliver to Trustee a written declaration of default and demand for sale,
pursuant to the provisions for notice of sale found at California Civil Code Sections 2924
et seq., as amended from time to time; or
(e) exercise all other rights and remedies provided herein, in the instruments by
which the Trustor acquires title to any Security, or in any other document or agreement
now or hereafter evidencing, creating or securing all or any portion of the obligations
secured hereby, or provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in
pursuing the remedies provided in this paragraph, including, but not limited to,
reasonable attorneys' fees.
9. Trustor's Right to Reinstate. Notwithstanding the City's acceleration of the sums
secured by this Deed of Trust or City's pursuit of other remedies hereunder, Trustor will
have the right to have any proceedings begun by the City to enforce this Deed of Trust
discontinued at any time prior to five (5) days before sale of the Security pursuant to the
power of sale contained in this Deed of Trust or at any time prior to entry of a judgment
enforcing this Deed of Trust if: (a) Trustor pays City all sums which would be then due
under this Deed of Trust if there were no acceleration under this Deed of Trust or the
Affordable Housing Agreement; (b) Trustor cures all breaches of any other covenants or
agreements of Trustor contained in the Affordable Housing Agreement or this Deed of
Trust; (c) Trustor pays all reasonable expenses incurred by City and Trustee in
enforcing the covenants and agreements of Trustor contained in the Affordable Housing
Agreement or this Deed of Trust, and in enforcing the City's and Trustee's remedies,
including, but not limited to, reasonable attorney's fees; and (d) Trustor takes such
action as City may reasonably require to assure that the lien of this Deed of Trust, City's
interest in the Security and Trustor's obligation to pay the sums and perform the
obligations secured by this Deed of Trust shall continue unimpaired. Upon such
payment and cure by Trustor, this Deed of Trust and the obligations secured hereby will
remain in full force and effect as if no acceleration had occurred.
10. Reconveyance. Upon the expiration or termination of the Affordable Housing
Agreement if the Trustor is not in violation of any provisions of this Deed of Trust or the
Affordable Housing Agreement, the City will request Trustee to reconvey the Security
and will surrender this Deed of Trust and the Affordable Housing Agreement to Trustee.
Ordinance No. 2666 N.C.S. Page 21
1 Trustee will reconvey the Security without warranty and without charge to the person or
2 persons legally entitled thereto. Such person or persons will pay all costs of
3 recordation, if any.
4
5 11. Substitute Trustee. The City, at the City's option, may from time to time remove
6 Trustee and appoint a successor trustee to any Trustee appointed hereunder. The
7 successor trustee will succeed to all the title, power and duties conferred upon the
8 Trustee herein and by applicable law.
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10 12. Subordination. City agrees that if required in order to assist Eligible Buyers to
11 secure purchase money financing for the acquisition of a Home, the City will enter into a
12 subordination agreement with a purchase money lender to subordinate this Deed of
13 Trust under such terms as the City and the purchase money lender shall negotiate
14 provided that City is granted reasonable notice and cure rights under the first mortgage.
15 The City further agrees that if City succeeds to the interest of Trustor under any ground
16 lease applicable to any one or more home constructed on the Property pursuant to the
17 exercise of City's remedies under the Affordable Housing Agreement or this Deed of
18 Trust, the City agrees that it shall recognize the Lessee under such ground lease and
19 shall comply with the requirements of Fannie Mae Form 2100 (3/06) and Fannie Mae
20 Announcement 06-03 or similar successor policy, as such documents may be modified
21 or amended.
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23 13. Request for Notice. City requests that copies of the notice of default and notice
24 of sale be sent to City at the address set forth in Section 15.5.
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26 14. Miscellaneous.
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28 14.1 Forbearance by the City Not a Waiver. Any forbearance by the City in
29 exercising any right or remedy will not be a waiver of the exercise of any such right or
30 remedy. The procurement of insurance or the payment of taxes or other liens or
31 charges by the City will not be a waiver of the City's right to require satisfaction of any
32 obligations secured by this Deed of Trust.
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34 14.2 Remedies Cumulative. All remedies provided in this Deed of Trust are
35 distinct and cumulative to any other right or remedy under this Deed of Trust or any
36 other document, or afforded by law or equity, and may be exercised concurrently,
37 independently or successively.
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39 14.3 Successors and Assigns Bound. The covenants and agreements herein
40 contained shall bind, and the rights hereunder shall inure to, the respective successors
41 and assigns of the City and Trustor subject to the provisions of this Deed of Trust.
42
Ordinance No. 2666 N.C.S. Page 22
1 14.4 Joint and Several Liability. If this Deed of Trust is executed by more than
2 one person as Trustor, the obligations of each shall be joint and several.
3
4 14.5 Notices. Except for any notice required under applicable law to be given
5 in another manner, any notice to Trustor or to City pursuant to this Deed of Trust will be
6 given by certified mail, return receipt requested, express delivery with delivery receipt or
7 personal delivery with delivery receipt, addressed to the applicable party at the address
8 shown below, or such other address as such party may designate by notice to the other
9 party as provided herein. Notice shall be effective as of the date received by City as
10 shown on the return receipt.
11
12 City:
13 City of Petaluma
14 1 English Street
15 Petaluma, CA 94952
16 Attn: City Manager
17
18 Trustor:
19 Housing Land Trust of Sonoma County
20 P.O. Box 5431
21 Petaluma, CA 94955-5431
22 Attn: Executive Director
23
24 Trustee:
25
26 Title Company
27 Address
28 , CA
Ie
30 14.6 Governing Law. This Deed of Trust shall be governed by the laws of the
31 State of California.
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33 14.7 Severability. In the event that any provision or clause of this Deed of Trust
34 or the Affordable Housing Agreement conflicts with applicable law, such conflict will not
35 affect other provisions of this Deed of Trust or the Affordable Housing Agreement which
36 can be given effect without the conflicting provision, and to this end the provisions of the
37 Deed of Trust and the Affordable Housing Agreement are declared to be severable.
38
39 14.8 Captions. The captions and headings in this Deed of Trust are for
40 convenience only and are not to be used to interpret or define the provisions hereof.
41
Ordinance No. 2666 N.C.S. Page 23
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14.9 Nondiscrimination. Trustor covenants by and for itself and its successors
and assigns that there shall be no discrimination against or segregation of a person or
of a group of persons on account of race, color, religion, creed, age, disability, sex,
sexual orientation, marital status, ancestry or national origin in the sale, transfer, use,
occupancy, tenure or enjoyment of the Property, nor shall Trustor or any person
claiming under or through Trustor establish or permit any such practice or practices of
discrimination or segregation with reference to the use, occupancy, or transfer of the
Property. The foregoing covenant shall run with the land.
[SIGNATURE ON FOLLOWING PAGE; SIGNATURE MUST BE NOTARIZED.]
Ordinance No. 2666 N.C.S.
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