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HomeMy WebLinkAbout1994-138 Resale Restriction - Lott PROMISSORY NOTE SECURED BY DEED OF TRUST OWNER: PAMELA LOTT 1332 MILL POND ROAD $ ,~, ,~/~. ?,~ Ashland, Oregon,_?~z~t: /7' , 1994 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 7~',~/-/oz~,~ ~5~oi~,,,L.~Z .sizM~'~ ~/ott~ .,.,~,Z_. ?~ ~-~-,~($ ~2.~7/&. ~z~), 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, successors, and assigns. Throughout this note, the terms "1," "me," and "my" refer PAGE 1 of 2-Promissory Note 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 /~'-~ day of ~L..ZZ; ?.,~ ~_.~,~, , 1994. NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS. Signature Signature Printed Name Printed Name PAGE 2 of 2-Promissory Note (p:planning%~fforcv.no0(Rcv'd10/93) CITY OF ASHLAND AFFORDABLE HOUSING RESALE RESTRICTION AGREEMENT (SDCs ONLY) Owner: PAM LOTT Property'Address: 132 MILLPOND ROAD Agreement date: 2-//7/~.~- Purchase Price: '~ Name of development: CL-E~. ¢~T~.;~_ Date of Purchase: Recording Requested by: City of Ashland When Recorded Return to: 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 i's 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. 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 b.e 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 ~p:plannlng\aff-sdc.ft~(December28, lg93) 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 mo. rtgage 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 PAGE 3-RESALE RESTRICTION AGREEMENT declare the sale void notwithstanding the fact that the sale may have closed and become final as between the buyer and you. 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. Th~ 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 PAGE 4-RESALE RESTRICTION AGREEMENT (p:plannlng\aff-sdc.fk)(December 28, 1993) 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. 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 on by ~.~.-~, ~ and ~A N. A~ERMAN NOTARY PUBLIC - OREGON My_~miss~Expir.s ~-~ ~tmo oturogon , Coun~ of Jackson ,1994, Notar~ublic for Oregon My commission expires: This instrument War~S acknowledged befo~re me on~ ~'-,2 Z- ~7 ~ by ~~. '~_-/,J/--~~- as '~.~ ~g.~~_x~z..- of the City of Ashland, Oregon. u ~ OFFICIAL S_ _E_A~L_ _ _ ~ SONJA N A__KER~__A_N~_.. ~ ~[I~']~~10tARY PUBLIC- OR.EGO_N_ ~ Notary P~l,Blic for Oregon My Commi"'ssion expires: PAGE 5-RESALE RESTRICTION AGREEMENT (p:pl~nnlng\aff-m:lc.fi<)(December 28, 1993)