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
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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.
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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: ___________
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