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HomeMy WebLinkAbout2005-07-18 Housing PACKET Ashland Housing Commission Regular Meeting Agenda July 18, 2005 6:30 - 8:30pm Community Development & Engineering Services Building 51 Winburn Way, Ashland OR. 1. (6:30) Approval of Minutes - June 13, 2005 2. (6:35) Public Forum - items not on the agenda 3. (6:40) Other Business from Housing Commission Members - New and miscellaneous commissioner discussion items not on the agenda 4. (6:45) New Business - (6:45) Oregon Housing and Community Services State support for affordable housing Darcy Strahan, Regional Advisor to the Director - (7:00) Housing Inventory Update SOU multifamily unit counts Jeff Rueter- SOU Intern-project coordinator 5. (7:15) Old Business - (7:15) Lithia Parking Lot Proposal evaluation -Commissioner discussion and recommendation to Council th - (7:45) SDC Deferral Program Changes (to be continued on August 15) 6. (8:15) Commission Coordination rd - Subcommittee Reports (detail to be discussed at the Study Session July 23) - Land Use - Finance - Education Housing Commission Study Session July 23, 2005 (8:30 - 2:30 Community Development Building) Joint meeting of the City Council, Parks, & Ashland School Board th , 2005 (7:00pm tentative location Î ASD Superintendents offices @ 885 Siskiyou Blvd) July 28 City Council Lithia Lot proposal evaluation August 2, 2005 (7:00pm 1175 East Main) 7. (8:25) August 15, 2005 Meeting Agenda Items - SDC Deferral Program Changes 8. (8:30) Adjournment Public Participation Unless an Agenda Item already has been the subject of a public hearing which has been closed, members of the public may speak upon any item on the Agenda. If such a hearing has been held this fact will be noted on the printed agenda. The Public Forum period is provided for the public to speak on items that are not on the printed Agenda for tonight's meeting. The time allowed each speaker may be limited by the Housing Commission Chair or presiding officer. If you wish the speak either during Public Forum, or to a specific Agenda item, please complete the Speaker Request Form below, and hand the form to a staff person before the beginning of the meeting if possible, or before the agenda item is discussed. ASHLAND HOUSING COMMISSION MINUTES JUNE 13, 2005 CALL TO ORDER Chair Matt Small called the meeting to order at 6:35 p.m. at the Community Development/Engineering Services Building in the Siskiyou Room located at 51 Winburn Way. Commissioners Present: Matt Small, Chair Faye Weisler Bill Street Alice Hardesty Carol Voisin Don Mackin (arrived at 7:45 p.m.) Absent Members: Liz Peck Council Liaison: Cate Hartzell (absent) Staff Present: Brandon Goldman, Housing Specialist Carolyn Schwendener, Account Clerk APPROVAL OF MINUTES Before the minutes were approved Matt Small announced that Kim Miller is resigning from the Commission due to health concerns. Mr. Miller is interested in coming back in the future if he receives approval from his doctor. It was noted that Susan Yates and Brandon Goldman did a masterful job with last monthÓs minutes. Hardesty/Voisin m/s to approve the minutes of the May 25, 2005 meeting. PUBLIC FORUM Allan Sandler inquired if he would be able to speak on item number five the Lithia Parking Lot Proposal. Mr. Goldman explained that he had previously told respondants that the public hearing had been closed and that it would be up to the Commission to decide if they want to allow more public testimony. It was decided by Small that since the public forum was closed last month it should not be reopened. Goldman shared that all applicants or interested parties will be able to speak before the City Council on that agenda item. Aaron Benjamin spoke regarding two items he wanted to bring before the Commission. Mr. Benjamin stated that the Charter Review Committee made it very clear that it will recommend to the Council that the Park Commission remain independent and that Commissioners be elected. Benjamin requested that the Commission make a pitch to the Charter Review Committee to make a recommendation to encourage joint use of publicly owned land. BenjaminÓs second topic for discussion was that he wanted Goldman to give a progress report on the joint project that was undertaken by the University Department of Geography and the Housing Commission. Commissioner Hardesty addressed Mr. BenjaminÓs first comment. Hardesty stated that after talking with some of the Charter Review Members it was her understanding that they felt this was such an enormous change they were reluctant to do so at this time. She encouraged Mr. Benjamin to pursue the issue even though he might have felt it was roundly rejected the first time. Commissioner Street said to remember that the Parks Commissioners are elected and therefore they can make this topic an issue during the next campaign. He suggested getting Commissioners on the board that are receptive to the idea of collaboration. Mr. Goldman then gave an update to the inventory that the SOU students are working on. Eighteen students participated making maps of each of the neighborhoods that are zoned multi-family. Those eighteen students then went into those neighborhoods to count the number of units per parcel. The buildable lands inventory is structured on how many units per acre could there be but this inventory told us how many units there are on each parcel, said Goldman. The students have completed the inventory work and Goldman will be meeting with the coordinator on June 24, 2005 to go over the information. The coordinator will be imputing the information into the GIS system so that Ashland will have an accurate map that reflects how many units we have on each property in the multi-family zones. Commissioner Weisler wanted to make a follow up comment to the parks discussion. She feels like the real issue for the Commission is the source of funding. Weisler stated that the Commission needs to be advocating for additional tax dollars that would be dedicated for affordable housing. Mr. Goldman said that there is a potential in working with some of the institutions such as Parks and SOU by doing a transfer of density off of the remaining property. Mr. Goldman gave the example of Lincoln School to explain the transfer of density. ItÓs an opportunity that exists when a portion of the property is designed for parks and they donÓt need that density. The Commission discussed the idea of sending a liaison to the Parks Department, School Board, Planning Commission and the City Council. Commissioner Street stated the purpose would be to have a spokesperson to represent the Housing Commission. Commissioner Hardesty volunteered to be the liaison to the School Board, Street volunteered for the Parks Commission and Weisler volunteered to be the liaison for the Planning Commission. Hartzell is already the liaison for the City Council. SUBCOMMITTEE REPORTS Commissioner Voisin gave a report from the Education Sub Committee. She presented an item they would like the Housing Commission to put on the agenda for the City Council. Voicing said they would like the real estate tax to be put to a vote in 2005. Goldman explained that the City Council could not impose a real estate transfer fee except by vote of the citizens. Voisin clarified that in order to get this item on the City Council July 10, 2005 meeting she requested it be on todayÓs Housing Commission meeting agenda. Voicing/Street m/s to approve putting this item on tonightÓs agenda. Voice Vote: All AYES, Motion passed. Voisin also stated that the Commission is planning on meeting with realtors to talk about the real estate tax, both those in favor and those opposed. Commissioner Voisin recommended that the Commission have another study session and each Sub Committee come to that session with some homework done with regard to priorities and a time line for the next year. It was suggested that the study session be Saturday July 23, 2005. Goldman will keep everyone informed by email regarding the date. The next Education Sub Committee meeting will be determined at a later date. Finance Committee will be meeting next Monday June 20, 2005 and again on Monday July 11, 2005 from 7:00 p.m. to 8:30 p.m. in the Community Development/ Engineering Services Building. OTHER BUSINESS ROM HOUSING COMMISSION MEMBERS Commissioner Street asked if it was appropriate to talk about the mayorÓs appointment to the Housing Commission. Goldman confirmed it would be vital that the Commissioners touch basis with other people they know who are interested in serving on the Commission and urging them to submit an application. Weisler suggested it might be a good idea rather then individuals suggesting recommendations that the Housing Commission be supportive of a certain individual and recommending them to the Mayor. Goldman said he doubted that a Commission had ever sent a recommendation for an individual forward and that the Mayor appoints positions. He did encourage the Commissioners if they had strong feelings of support for an individual to write a letter informing the mayor. Voisin inquired about where they were with replacing the student liaison. Goldman stated that he had contacted the student government requesting a student liaison and has not heard back. He also spoke with professor Acklin and she will voice it to all her classes. Voisin stated that she had a student that would be interested. Goldman told her to have the student submit a letter of interest to the mayor. OLD BUSINESS Lithia Parking Lot Proposal Evaluation: It was decided by the commission to come back to this agenda item in hopes that they would have a quorum later in the evening. NEW BUSINESS Affordable Housing Program Changes and System Development Charges: Currently the city exempts properties that are considered affordable from paying the SDC. Goldman stated that it doesnÓt exempt them but provides them a loan with no repayment. If the property stays affordable for a period of 20 years the loan is then forgiven entirely. Whenever this is done with a rental or for ownership they have to provide income qualifications for the city to qualify that the person is affordable. That happens every time there is a change of tenancy. Goldman explained there is a deed restriction recorded on the property that requires it to be affordable though a land use or though public funds going into the project. There is not a deed restriction for those who voluntarily enter the program. Those people can voluntarily buy out of the program by paying off the SDC and 6% interest as it accrued from the time that they took out the loan until the time they left the program. Goldman used the Chautauqua Trace example. Many of those home buyers voluntarily bought out of the program because the SDC were far less then the appreciation. They then could sell the property at full market rate. When the city provides the subsidy units they want to ensure that households are not paying more then they can afford for the property, stated Goldman. Goldman reviewed the tables that he had included in the Commissioners packet that correlates the purchase price of the house and what someoneÓs ability to pay is. Whether or not to include utilities in the number would be a discussion point for the Commission. The detriment is that they are highly variable. What it aims to do is establish instead of a maximum purchase price a maximum ability to pay. After the Committee has time to review it and discuss it Goldman would like the Commissioners to present either a modification or an elimination of the existing resolution and then a new resolution would be adopted by City Council that establishes what an affordable housing unit is and what the city will grant a SDC for. Weisler asked what the downside is. Goldman stated that the concerns might be how a maximum monthly cost would effect there ability to get SDC deferrals. Weisler inquired about the success in Ashland with our climate of solar panels. She felt that for affordability it would make since to try and get energy efficient units rather then just an energy refrigerator for example. Goldman talked with Larry Giardina, City Conservation Analyst, who felt that the repayment of the solar panel is 30 years at a $30,000 cost. Weisler felt it would be worth looking into programs that might help with that cost so it doesnÓt add to the cost of the unit for those needing affordable housing. Hardesty inquired what determines what people can pay. ItÓs an established process. The applicant submits an application to the city and Mr. Goldman screens the buyer. He reviews their W-2 and income earning statements to determine what their income level is and then contacts the seller to let them know if they are an eligible buyer. At this time Mr. Goldman reviews about 18 to 20 changes in occupancy a year. Hardesty asked if they should be making a decision regarding this today. Brandon said he has it on next monthÓs agenda. His hope was to begin the conversation but conclude it at next months meeting. Weisler asked Goldman why have a voluntary exit. Goldman explained if they inter the program voluntarily the idea was that it might encourage people to offer an affordable unit that might not otherwise have to. Weisler commented that they probably enter the program originally because they get the SDC waived. Should we allow them to get out asked Weisler? Goldman commented that any SDC are mandated under state law that any proceeds for those have to go to provide for city wide systems such as transportation and sewer. Goldman stated that in recent yearÓs non profitÓs have used it more often then private developers though in the coming years he anticipates a shift to more private developers. Weisler would like to have this item placed back on next months agenda. The topic for discussion would be what kind of penalty should be implemented. Street suggested that instead of assessing a penalty we require that they donate to the Housing Trust Fund. Frame it more positively. Street suggested that perhaps there could be a financial incentive over a period of time. Hardesty asked about paying the SDC up front and them getting rebates back throughout the years. It was agreed by the Commission that the waived SDC up front really helps the home owner and they might not like the idea of having to pay it at all. Small asked Goldman about the for profit developers. Does he see any problem with the whole set up with developers and their inability to make ends meet. Brandon offered to talk with non profit large developers in town who are currently proposing annexations and give them the opportunity to come back with an analysis regarding how it is going to work for them. They will be best to tell the commission how it will affect them adversely stated Goldman Commissioner Street asked someone to call Don and Cate so that they could discuss the Lithia parking lot proposal. They cannot forward a recommendation to the City Council without a quorum. Don Mackin arrived shortly after but no one was able to get a hold of Cate Hartzell. COMMISSION COORDINATION City Council Lithia Lot proposal evaluation. It was the legal departments position that it should to go before the City Council at the soonest opportunity to limit any kind of suite on behalf of the respondent saying we werenÓt meeting the provisions of the advertisement. Hardesty suggested that the Commission meet again since they do not have a quorum. Street asked Goldman if he could remind the commissioners of the meeting on the day of it. JULY 18, 2005 MEETING AGENDA ITEMS. Oregon Housing and Community Services Darcy Strahan will be here on July 18, 2005 for the meeting. She will have a 10 minute presentation and then be available for general questions about those programs. SDC deferral program changes: Goldman will talk to the legal department about the penalty provisions of that and provide a copy back of a common deed restriction that will be recorded on the property. Goldman will also request developers and non profits to attend. Small mentioned with the SDC discussion next month we will need to include regarding whether to include utilities in that and PITI and to include that too. Weisler asked if there were state incentives currently and local for solar panels. An programs that might also offset the cost to the home owner. Goldman stated there was an article in the sneak preview by Don Laws talking about the city engaging in an aggressive way of helping fund solar panels. ADJOURNMENT: The Meeting adjourned at 8:00 p.m. SDC Deferral Existing Documents Recorded on covered properties Ashland Housing Commission Packet July 18, 2005 When Recorded Return Original to: Barbara Christensen, City Recorder 20 East Main Street, Ashland, Oregon 97520 CITY OF ASHLAND AFFORDABLE HOUSING RESALE RESTRICTION AGREEMENT (SDC Deferral) Owner: Property Address: Assessors Map: Agreement date: _____________ Purchase Price: $ Name of development: Date of Purchase: ______________ 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 and the renting household shall be qualified under the City's affordable rental program income limits and the rental costs shall not exceed the limits established under this program. PAGE 1-RESALE RESTRICTION AGREEMENT 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 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 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 AGREEMENT 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. 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. PAGE 4-RESALE RESTRICTION AGREEMENT 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: ____________________________ By: _________________________ Title: ________________________ ___________________________ State of Oregon County of Jackson This instrument was acknowledged before me on ____________, 2004, by __________________________ and _________________________. Notary Public for Oregon My commission expires: State of Oregon County of Jackson This instrument was acknowledged before me on _____________________, 2004, by _________________________ as ____________________________ of the City of Ashland, Oregon. Notary Public for Oregon My commission expires: PAGE 5-RESALE RESTRICTION AGREEMENT When Recorded Return Original to: Barbara Christensen, City Recorder 20 East Main Street, Ashland, Oregon 97520 PROMISSORY NOTE SECURED BY DEED OF TRUST $(SDC DEFERRAL AMOUNT) Ashland, Oregon, _____________, 2005 For value received, I promise to pay to the order of the City of Ashland, Oregon, ("City"), at City Hall or such other place as the City may designate, the principal sum of SDC DEFERRAL AMOUNT ($__________), 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. PAGE 1 of 2-Promissory Note (Rev'd 8/97) 4. BINDING EFFECT; JOINT AND SEVERAL OBLIGATIONS. This note and its terms shall be binding upon my heirs, executors, administrators, personal representatives, successors, and assigns. Throughout this note, the terms "I," "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. ATTORNEY 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 _____ day of ___________________, 2005 NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS. ___________________________ ___________________________ Signature Signature ___________________________ ___________________________ Printed Name Printed Name PAGE 2 of 2-Promissory Note (Rev'd 8/97) When Recorded Return Original to: Barbara Christensen, City Recorder 20 East Main Street, Ashland, Oregon 97520 TRUST DEED This trust deed is made on , 2005, between (Buyer/propertyowner), 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 ______________ ("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 PAGE 1-TRUST DEED 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. 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. PAGE 2-TRUST DEED 9.4. Any other right or remedy provided in this deed, the Note or the Agreement. 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 on by ___________________________________________________________. __________________________________ Notary Public for Oregon My commission expires: ___________ PAGE 3-TRUST DEED