HomeMy WebLinkAbout1999-062 Resale Restr-SinghCITY OF ASHLAND AFFORDABLE HOUSING
RESALE RESTRICTION AGREEMENT (SDCs ONLY)
Owner:
Kathryn H. Singh
Agreement dater April 27, 1999
Chautauqua
Name of development: Trace
Recording Requested by:
When Recorded Return to:
Property Add~ss:
2332 Abbott Avenue
Aqhlan~, ~r~gnn q752Q
Purchase Price: $118,808
Date of Purchase:
City of Ashland
Affordable Housing Coordinator, City of Ashland,
20 E. Main Street, Ashland, Oregon 97520
Agreement entered into on the date specified above by the City of Ashland ("City") and
the Owner (also referred to as "You") named above regarding certain improved real
property located at the property address specified above ("the home").
RECITALS:
A. The home referred to in this agreement is described more fully on the
attached Exhibit A.
B. The home is being made available for purchase by an eligible
moderate-income purchaser pursuant to the City's Affordable Housing Program
("Program"). The Owner is an eligible moderate-income purchaser under the Program
and intends to live in the home as an owner-occupant
C. The Owner recognizes that in purchasing the home, the Owner is receiving
the benefits of the City's assistance to the developer of the property upon which the
home is located, and that without such assistance the Owner would not have been able
to purchase the home. The Owner understands that signing this Agreement and
complying with its terms are necessary to permit the City to fulfill its affordable housing
goals.
City and Owner agree:
1. Occupancy Requirement. You agree and acknowledge that the City's acceptance
of your participation in the Program and purchase of the home is conditioned upon your
continuing occupancy of the home. For purposes of this agreement, continuing
occupancy includes renting of the home by the Owner to others if you have established
a temporary residence outside Jackson County, Oregon. Any such rental, however,
shall not exceed 24 months in any five year period.
2. Deferment of Systems Development Charges (SDCs). City will defer the payment
of SDCs owed by you and due on the home. You will execute a promissory note
PAGE 1-RESALE RESTRICTION AGREEMENTor7>
payable to City in a principal amount equal to the total cost of the SDCs that have been
deferred. The note and the obligations under this Agreement will be secured by a trust
deed on the home.
3. SDCs Due Upon Transfer of Home. Except as provided in paragraph 4, you agree
to pay to the City when you "transfer" the home any amount due from the promissory
note referred to in paragraph 2.
3.1. Definition of transfer. To "transfer" the home means any sale, assignment or
transfer, whether voluntary or involuntary, of any interest in the home, including, but not
limited to, a fee simple interest, a co-tenancy interest, a survivorship interest, a life
estate, a leasehold interest (except as provided in paragraph 1), any right to possession
under a rental agreement (except as provided in paragraph 1), or an interest evidenced
by a mortgage, trust deed or land sale contract in which possession of the home is
transferred and you retain title.
3.2. Assumption requirement. This agreement shall apply to and bind any
purchaser or transferee in an exempt or qualified transfer (see paragraph 4). Such
purchaser or transferee shall assume your duties and obligations under this Agreement
in writing, or sign an agreement substantially similar to this Agreement, prior to the
transfer of the home. If the purchaser or transferee fails to assume this Agreement or
execute and deliver a substantially similar agreement to the City prior to the sale or
transfer, then you shall pay any amount due from the promissory note referred to in
paragraph 2.
Recording of the assumption agreement in the official records of Jackson County,
Oregon, shall be a condition of the City's approval of the proposed transfer. You agree
to pay a reasonable assumption fee to the City and to reimburse the City for its
expenses incurred in administering its rights and obligations in connection with any
transfer under this Agreement. Upon the close of any transfer, you agree to provide the
City with copies of the recorded trust deed, final sales contract, settlement statement,
escrow instructions, and any other documents prepared or used in connection with the
transaction.
4. Exempt and Qualified Transfers. No amount shall be due under paragraph 3,
however, if the transfer is either an "exempt transfer" or a "qualified transfer" as
provided in this paragraph:
4.1. Exempt transfer. An "exempt transfer' is:
4.1.1. A transfer by gift or inheritance to your spouse or children;
4.1.2. A taking of title by a surviving joint tenant; a court-ordered transfer
of title to a spouse as part of a dissolution proceeding; or an acquisition of title,
or of any interest in the title, in conjunction with marriage.
PAGE 2-RESALE RESTRICTION AGREEMENT~eez>
4.1.3. A refinancing of the existing purchase money first mortgage or trust
deed encumbering the home by securing a new first mortgage or trust deed on
the home in an amount not greater than the then present balance of the first
mortgage or trust deed plus applicable loan fees and closing costs. An exempt
transfer also includes a home equity loan secured by a third mortgage or trust
deed on the home, which shall be subordinate to this note and the trust deed
securing it provided that the proceeds of such home equity loan shall only be
used for improvements to the home, including landscaping.
4.2. Qualified transfer. A "qualified transfer" is a transfer to an eligible buyer for a
sales price that does not exceed the affordable housing purchase price as determined
by Ashland City Council Resolution number 93-39 including amendments, if any. A
qualified transfer must also meet the requirements set forth in this paragraph. At least
30 days prior to the transfer, you shall provide the following information to the City:
4.2.1. The name, address and telephone number of the proposed buyer;
4.2.2. A financial statement signed by the proposed buyer and his or her
spouse, if any, in a form acceptable by the City and accompanied by such
supporting documentation as requested by the City. The financial information
shall be used by the City to determine the income eligibility of the proposed
buyer. To be an eligible buyer, a buyer shall certify that he or she will occupy the
home as his or her principal home. The buyer and all other members of the
buyer's household shall meet the income guidelines established from time to
time by the City for participation in its affordable housing program.
4.2.3. A copy of the proposed sales agreement and all related documents,
which set forth the terms of the transfer;
4.2.4. A written certification signed by the proposed buyer and you in a
form acceptable to the City stating that:
4.2.5. The transfer shall be closed in accordance with the terms of the
sales agreement and other documents submitted and approved by the City;
4.2.6. Neither the proposed buyer nor any other party has paid or will pay
to you or for your benefit, and you have not received nor will you receive from the
proposed buyer or any other party, either directly or indirectly or for your benefit,
money or any other consideration in addition to what is set forth in the sales
agreement and related documents;
4.2.7. In the event that a transfer is made in violation of the terms of this
agreement, or that false or misleading statements are made in any documents or
certifications submitted to the City, the City shall have the right to file a legal
action to force the parties to terminate or rescind the sales agreement, or to
declare the sale void notwithstanding the fact that the sale may have closed and
become final as between the buyer and you.
PAGE 3-RESALE RESTRICTION AGREEMENTi~eeT~
5. You Must Notify City of Transfer. If you desire to transfer the home, you are
required to notify City in writing to that effect. If the transfer is a qualified transfer, the
notice and information provided must comply with paragraph 4.2. For any other transfer
the notice shall state the street address of the home, your full name or names, the
address and telephone number at which you are to be contacted if not at the home. The
notice shall be given at least 30 days prior to the transfer and shall be delivered as
provided in paragraph 9.
6. Priority and Effectiveness of this Agreement. This Agreement, or a memorandum
of this agreement, shall be filed for recordation in the County Clerk deed records,
Jackson County, Oregon prior to any sale, conveyance, transfer or other disposition of
the home, or of any estate or interest in the home, by you. The Agreement shall have
priority over any subsequent sale, conveyance, transfer, lease or other disposition or
encumbrance of the home, or of any estate or interest in the home.
7. Term of Agreement. The restrictions contained in this Agreement shall continue for
a period of 20 years from the date of this Agreement.
8. Survival of Agreement Upon Transfer. The City's rights under this Agreement shall
survive any transfer of the home by you.
9. Notices. Except as otherwise specified in this Agreement, all notices required to be
sent pursuant to this Agreement shall be made by personal delivery or by deposit in the
United States mail, first class postage prepaid, and shall be deemed to have been
delivered and received on the date of personal delivery or five days after deposit in the
mail, if sent to the following addresses:
City:
Affordable Housing Coordinator
City of Ashland
20 E. Main Street
Ashland, Oregon 97520
OWNER: at the address of the home
The addresses above may be changed by notice given pursuant to this paragraph.
10. Waiver. No condition of this agreement or of the note or trust deed shall be deemed
waived unless expressly waived in writing by City.
11. Default. A default shall occur if you fail to perform or observe any of the provisions
of this agreement, the note or trust deed. If any default occurs, City may, at its option,
declare the entire unpaid balance of principal and accrued interest on the note
immediately due and payable and enforce any of the remedies set forth in the trust
deed.
PAGE 4-RESALE RESTRICTION AGREEMENT<~7~
12. Binding Effect. Throughout this Agreement, the terms "Owner" and "you" refer
individually and collectively to all persons who sign this Agreement and all persons
signing this Agreement shall be jointly and severally liable for its obligations.
13. Attorneys' fees. If either party is required to initiate legal proceedings to enforce its
rights under this Agreement, the prevailing party in such action shall be entitled to an
award of reasonable attorneys' fees and costs in addition to any other recovery under
this Agreement.
OWNER:
CITY OF ASHLAND:
State of Oregon
County of Jackson
This instrument was acknowledged before me OnAP~:-tl 27 , 1999,
by KATHRYN SZNGH . and n/a .
: "'~"~""~" ~:~ ~"~~~~ t a P u b I f r
'.; ,~ ' ' My commission expires:
State of Oregon
County of Jackson
This instr men. n,4 was acknowled ed before me on ~ ~ ,,.,.. D- t,1999,
by "')%--{-]~,_ d4~.S- ,-,,_ L -,_/
Ashland, Oregon. '
ti fiCvEARY PUBLIC - OREGON
N . for eg
My Commission expires:
PAGE 5-RESALE RESTRICTION AGREEMENT~.7>
86564
EXHIBIT A
Lot Twenty-eight (28) in CHAUTAUQUA TRACE, PHASE 2, in the City of
Ashland, Jackson County, Oregon, according to the official plat thereof,
ncw of record.
(Code 5-1, Account #1-91707-1, Map #391EllCA, Tax Lot #2757)
99-23673
This trust deed is made on
TRUST DEED
April 27 1999, between
RETURN TO JACKSON COUNTY TITLE DIVISION
502 Wi-S1 MAIN ST., MiDFORD, OR 97501
Kathryn "~ Singh , as Grantor(s), the City of
Ashland, as Beneficiary, and Paul Nolte, an active member of the Oregon State Bar as
Trustee.
1. Conveyance by Grantor. For good and valuable consideration, receipt of which is
acknowledged, and for the purpose of securing the loan obligations described in
Section 3 below, Grantor irrevocably grants, bargains, sells, conveys, assigns, and
transfers to Trustee in trust for the benefit and security of the Beneficiary, with power of
sale and right of entry and possession, all of Grantor's right, title, and interest in and to
the real property located in Jackson County, State of Oregon, and more particularly
described in the attached Exhibit A (the "Property").
2. The Note. Beneficiary has offered to defer the systems development charges due on
the Property and to make a loan to Grantor for the amount of the charges which loan is
to be evidenced by a promissory note of the same date as this trust deed. (The
promissory note as modified, supplemented, extended, renewed, or replaced from time
to time is referred to below as the "Note".) The date of maturity of the debt secured by
this instrument is 20 years from the date of the Note. In the event the Property, or any
part of, or interest in, the Property is sold, agreed to be sold, conveyed, assigned or
alienated by the Grantor without complying with the terms of the Note or the Agreement
described below, then, at the Beneficiary's option, all obligations secured by this
instrument, irrespective of the maturity dates expressed above or in the Note, shall
immediately become due and payable.
3. Obligations Secured. This trust deed secures the following, collectively referred to
as the "loan obligations":
3.1. The payment of all indebtedness, including but not limited to principal and
interest, and the performance of all covenants and obligations of Grantor under the
Note, whether such payment and performance is now due or becomes due in the
future;
3.2. The payment and performance of all covenants and obligations in the City of
Ashland Affordable Housing Resale Restriction Agreement (SDCs Only) dated
April 27, 1999 ("the Agreement") entered into by Grantor and Beneficiary. The term
"loan obligations" as used in this trust deed shall mean all amounts payable to
Beneficiary under the terms of the Note and the Agreement.
4. Possession. Grantor agrees to pay the Note and the Agreement in accordance with
their terms. Until default occurs, Grantor shall remain in possession and control of the
property and subject to the terms of the Agreement, Grantor shall be free to operate
and manage the property and receive the proceeds of operation.
PAGE l-TRUST DEED
99-236'73
5. Warranty of title. Grantor warrants that Grantor holds merchantable title to the
property in fee simple or that Grantor holds a vendee's interest in the property under a
conditional sales contract. Grantor warrants and will defend Grantor's title against the
lawful claims of all persons. In the event any action or proceeding is commenced that
questions Grantor's title or the interest of Beneficiary or Trustee under this deed,
Grantor shall defend the action at Grantor's expense.
6. Powers of Trustee. In addition to all powers of Trustee arising as a matter of law,
Trustee shall have the power to take the following action with respect to the property on
the request of Beneficiary and Grantor: (a) joining in the dedication of roads or other
rights in the public; (b) joining in granting any easement or creating any restriction on
the property; (c) joining in any subordination or other agreement affecting this deed or
the interest of Beneficiary under this deed; or (d) selling the property or any part
thereof. Trustee shall not be obligated to notify any other party of a pending sale under
any other deed or trust or lien, or of any action or proceeding in which Grantor,
Beneficiary, or Trustee shall be a party, unless the action or proceeding is brought by
Trustee.
7. Deed of Reconveyance. If Grantor pays all of the loan obligations when due and
otherwise performs all of the obligations imposed on Grantor under this instrument, the
Note and the Agreement, Beneficiary shall execute and deliver to Trustee a request for
full reconveyance.
8. Default. Grantor shall be deemed to be in default if Grantor fails to perform any of
the obligations imposed by this deed, the Note or the Agreement.
9. Remedies. On the occurrence of any event of default and at any time thereafter,
Beneficiary may exercise any one or more of the following rights and remedies:
9.1. The right to declare all sums secured by this trust deed immediately due and
payable.
9.2. The right to foreclose by notice and sale by Trustee or by judicial
foreclosure, in either case in accordance with applicable law.
9.3. The right in connection with any legal proceedings to have a receiver
appointed to take possession of any or all of the property, with the power to
protect and preserve the property and to use the property preceding foreclosure
or sale and apply the proceeds, over and above costs of the receivership,
against the loan obligations. The receiver may serve without bond if permitted by
law. Beneficiary's right to the appointment of a receiver shall exist whether or not
apparent value of the property exceeds the loan obligations by a substantial
amount.
9.4. Any other right or remedy provided in this deed, the Note or the Agreement.
PAGE 2-TRUST DEED
99-23673
10. Application of proceeds. In the event the Trustee exercises the power of sale
conferred by this trust deed, the Trustee shall apply the proceeds of the sale in the
following order:
10.1. To the expense of the sale, including reasonable attorney fees,
10.2. To the loan obligations secured by this trust deed, and
10.3. The surplus, if any, to the persons entitled thereto.
11. Waiver. A waiver by either party of a breach of a provision of this agreement shall
not constitute a waiver of or prejudice the party's right otherwise to demand strict
compliance with that provision or any other provision. Election by Beneficiary to pursue
any remedy shall not exclude pursuit of any other remedy, and an election to make
expenditures or take action to perform an obligation of Grantor under this deed after
failure of the Grantor to perform shall not affect Beneficiary's right to declare a default
and exercise its remedies under this trust deed or the Contract.
12. Trust Deed Binding on Successors and Assigns. Subject to the limitations
stated in this deed on transfer of Grantor's interest, and subject to the provisions of
applicable law with respect to successor trustees, this deed shall be binding on and
inure to the benefit of the parties, their successors and assigns.
STATE OF OREGON
COUNTY OF JACKSON
This instrument was acknowledged before me onAprll 27, 1999 by
KATHRYN SINGH .
PATRICIA G ~Y
~ otary ublic for Oreg
NOTARY PUBUC-O EGO
My co
COMMISSION NO. 05454lJ 0
PAGE 3-TRUST DEED
99-23673
86564
EXHIBIT A
Lot Twenty-eight (28) in CHAUTAUQUA TRACE, PHASE 2, in the City of
Ashland, Jackson County, Oregon, according to the official plat thereof,
now of record.
(Code 5-1, Account #1-91707-1, Map #391EllCA, Tax Lot #2757)
Jack:on County, Oregon
Recorded
OFFICIAL RECORDS
1999
PROMISSORY NOTE
SECURED BY DEED OF TRUST
$ 5, 991.16 Ashland, Oregon, April 27 , 1999
For value received, I promise to pay to the order of the City of Ashland, Oregon,
("City"), at City Hall or such other place as the City may designate, the principal sum of
five thousand nine hundred ninety one ($5,991.16 ), plUS
accrued interest, upon the terms and conditions set forth below.
1. AFFORDABLE HOUSING AGREEMENT. This obligation is secured by a Trust Deed
and is subject to all the terms and conditions of such Trust Deed. This obligation is
given pursuant to a "CITY OF ASHLAND AFFORDABLE HOUSING RESALE
RESTRICTION AGREEMENT (SDCs ONLY)" and is subject to all the terms and
conditions of such agreement (further referred to in this note as "the Agreement"). The
promisor shall have the right to prepay all or any portion of the unpaid principal of this
note without penalty. However, any payments shall be applied first to accumulated
interest and then to principal.
2. INTEREST. The unpaid principal balance of this note shall bear simple interest at the
rate of six percent (6.0%) per year from the date of this note until paid.
3. REPAYMENT.
3.1. During the first 20 years after this note is executed, no payments of either
principal or interest shall be due or payable so long as I continue to own and occupy the
home as my primary residence, and so long as I am not in violation of any of the terms
of this note or the trust deed securing it. As set forth in the Agreement, I may also make
a qualified transfer of the home to an eligible buyer who shall assume this note without
violating the terms of this note.
3.2. During the first 20 years after this note is executed, the total amount of the
principal and accrued interest shall become immediately due and payable in full upon
my transfer of the home to any person or entity other than an eligible buyer as defined
in the Agreement or to an otherwise eligible buyer who does not assume this note and
the trust deed securing it and agree to comply with all of its terms, or whenever I cease
to occupy the home as my primary residence, or whenever I am in default for failure to
comply with any of the terms of this note or the trust deed. At the end of 20 years
following the date of execution of this note, if I am at that time the owner and occupier
of the home and am not in default under any terms of this note or the trust deed, this
note and my obligation to pay the principal and accrued interest shall be cancelled and
forgiven by the City.
4. BINDING EFFECT; JOINT AND SEVERAL OBLIGATIONS. This note and its terms
shall be binding upon my heirs, executors, administrators, personal representatives,
PAGE 1 of 2-Promissory Note
successors, and assigns. Throughout this note, the terms "1," "me," and "my" refer
individually and collectively to all persons who sign this note, and all persons signing
this note shall be jointly and severally liable for its obligations.
5. A'I'I'ORNEY FEES AND COSTS. If either party is required to initiate legal
proceedings to enforce its rights under this Agreement, the prevailing party in such
action shall be entitled to an award of reasonable attorneys' fees and costs in addition
to any other recovery under this Agreement.
11. SEVERABILITY: GOVERNING LAW. If any provision of this note is or becomes
inconsistent with any applicable present or future law, rule or regulation, such provision
will be deemed rescinded or modified in order to comply with the relevant law rule or
regulation, and all other provisions of this note shall continue in full force and effect.
This note shall be governed by and interpreted under the laws of the State of Oregon.
14. NO WAIVER. Failure by the City to require strict performance of any term of this
note, including the extension of any payment or acceptance of any part of a payment,
shall not affect the City's rights or be considered a waiver by the City of the strict
performance of all conditions of this note. No waiver by the City of any default shall be
considered a waiver of any subsequent default or a waiver of this paragraph.
EXECUTED this 27th day of
999.
NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING
RESALES AND ASSUMPTIONS.
Signature
Signature
Printed Name
Printed Name
PAGE 2 of 2-Promissory Note IRev'd 81971