HomeMy WebLinkAbout2004-084 Resale Restr-Jokinen Lawyers Title Insurance Corporation
1400 Ashland Street
Ashland, Oregon 97520
Tel: (541) 488-2240 Fax: 488-1786
April 30, 2004=
Barbara Christensen
City of Ashland
20 East Main
Ashland OR 97520
Re: Escrow No. 40g0400318
Dear Barbara:
We are pleased to advise that the above numbered escrow has been
completed, and the following items are enclosed as indicated:
o
Original Note in the amount of $5,990.34.
Recorded Trust deed securing the above note recorded as
Document No. 2004-017875 in the records of Jackson County.
Addendum B or OREF 001-iL Real Estate Sale Agreement
#311rvcdc - Jokinen Rogue Valley Community Development
Corporation
Recorded City of Ashland Affordable Housing Resale
Restriction Agreement as document no. 2004-018102 in the
records of Jackson County.
Thank you for this opportunity to be of service to you, and to
assure you that if you have any questions regarding the enclosures,
we will be happy to assist you.
Sincerely, ~% ~
~amie Baker
~.scrow Officer
Enclosures
JB/dh
When Recorded Return Original
Barbara Christensen, City Ftecorder
20 East Main Street, Ashland, Oregon 97520
PROMISSORY NOTE
SECURED BY DEED OF TRUST
$5990.34 Ashland, Oregon, .~ _ ~ 2004
For value received, I promise to pay to the order of the City of Ashland, Oregon, ("City"),
at City Hall or such other place as the City may designate, the principal sum of Five
Thousand Nine Hundred Ninety & 34/100 ($5990.34), 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 primaw 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 othenNise 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
PAGE I of 2-Promissory Note (Rev'd 8/97)
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 "l," "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 dghts 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 dghts 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 ~..A~dayof ~'~ ,2004
NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING
RESALES AND ASSUMPTIONS.
Si~naturg/
Printed Name
Signature
Printed Name
PAGE 2 of 2-Promissory Note
When Recorded Return Odginat to:
Barbara Christensen, City Recorder
20 East Main Street, Ashland, Oregon 97.520
J~¢kson County Official Records 2004-017875
R-TD
Cnt=~ stP,=S WALKERC~04/0S/2004 02:10:00 PM
520 O0 S500 $1100 Total:S36.00
01019230200400178750040044
I, Kathleen S Beckett, County Clerk for Jackson County, Oregon,
certify that the instrument identWied herein was recorded in the Clerk
records.
Kalhleen S. Beckett - County Clerk
TRUST DEED
This tru~ deed is made on ~,~ r~ , 2004. between
. i~ ~ %,) ¢/¢/. ./V_ C~-~d' 'g , as Gra~tor(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 dght, 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",) l'he 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
/--¢' ,3 · O ~ ("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 adsing 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 pbligations 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 dght 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.
Robin E.~okinen
STATE OF OREGON
COUNTY OF JACKSON
This instrument was acknowledged before me on ~ ~! ~OO~'/ by
~~FJ--~ N~Pu~iic for ~regon ///,.///..
~ ~u,~~:4~ /~y c0mmission expires:/~/~/d~
PAGE 3-TRUST DEED
40gO4003jb
EXHIBIT A
A leasehold interest in and to the following described property:
Parcel No. Five (5) of partition recorded July 8, 2003, as Partition Plat No. P-39-2003,
Record of Partition Plats in Jackson County, Oregon, and filed as Survey No. 17826 in the
Office of the County Surveyor.
(Code 5-01, Account #1-005101-6, Map #391E04DC, Tax Lot #2500)
Addendum B to OREF 001-1 Real Estate Sale Agreement #311rvcdc (Agreement)
for
Buyer: Robin Jokinen
Seller: Rogue Valley Community Development Corporation {RVCDC)
The parties to the Agreemer~t, upon their signatures below, agree to amend t~e
Agreement as foIlows:
1. The Property is composed of Land and improvements on the Land (a House).
Buyer assigns its right and delegates it duty to buy the Land accordin,.] to the
terms of the Agreement to Ashland Community Land Trust (ACLT), a~ Oregon
nonprofit corporation, Buyer retains its right and duty to purchase the House.
2.RVCDC consents to Buyer's assignment and ACL'I"s assumption of I:'.obin
Jokinen's duty to buy the Land.
3.Therefore, there are two Buyers, The first, Robin Jokinen, is buying t~e House
(more fully defined as ANY AND AL~L BUILDINGS, STRUCTURES, F XTURES
AND OTHER IMPROVEMENTS SITUATED ON THE GROUND OF tile 5.
Property). The second,Agreement.ACLT, is buying the LAND ONLY of the Prop ~.rty ,.~,'~
described in the
4. ACLT shall pay $40,000 of the purchase price of the Property for the
Robin Jokinen shall pay the balance, of the purchase pdce ($13~,g~00;"for the ~~/~'iJ
House. The total price is $172,g00~..~..C_ LT shall pay no commission, ~,/sorated ~
items, or escrow, title and recordings fee~'g:'~.-' ~ /J~/~ --~Z~ 72.¢
5. ACLT's assumption of the duty to buy the Land and payment of $40,6,00 of the
purchase price for the Land is conditioned on: 1) the City of Ashland (.fronting
S40,000 in CDBG funds to ACLT for its payment for the purchase price for the
Land; 2) satisfaction of the conditions stated in Addendum A; 3) ACL'I"s finding
that Robin Jokinen is qualified to purchase a home on ACLT land ant to lease
land from ACLT; 4) Robin Jokinen providing all informal;ion and fully executing all
documents required by the City of Ashland related to the CDBG fundi ~g; 5)
Robin Jokinen fully executing the documents related to the City of Asl~land's loan
represented by the waiver of SDC charges; 6) Robin Jokinen fully ex,~cuting the
ACLT Land Lease (Lease) and any exhibits or riders to the Lease or ~
Memoranda of the Lease; 6) no encumbrances on the title of the Prol: arty
existing except as noted below; 7) ACLT's approval of the inspection report for
the House; 8) the Land appraising for S40,000 or more; 8) satisfactlor of the
provision of the ACLT-City of Ashland Subreclplent Agreement for Pr(~jects
funded by CDBG Funds; and 9) no encumbrances on the title of the Land being
created at Closing except a purchase money trust deed in favor of W~shln§ton
Mutual to not exceed ¢~':~, _000_ .~O , the trust deed in favor of the C ~ of
Ashland securing repayment of the SE)C waiver in the amount of $5,9 ;)0,34, and
the ACLT Lease.
6. Yhe Escrow shall prepare the deed substantially in the foIIowing form: "Grantor
conveys and warrants to Ashland Community Land Trust, an Oregon ~onprofit
corporation, the ground only of the within described property, and to F:obin
Jokinen [insert name by which Homebuyer wishes ~o take title] any and all
buildings, structures, fixtures, and other improvements situated on the ground of
the within described property." If possible, the deed shall list ACLT's Lease and
the City of Ashland Affordable Housing Resale Restriction Agreement as
encumbrances_
7. The Escrow shall record all documents simultaneously; however, if thi~ is not
possible, It shall record them in the following order; 1) deed, 2) Lea~e and Fannie
Page 1 of 2 - Addendum to Real Estate Sate Agreement B 4104
and Fannie Mae Rider, 3) trust deed in favor of Washington Mutual, 4)
trust deed in favor of City of Ashland.
8. The Escrow shall prepare a separate, standard owner's title insurance policy for
ACLT providing coverage in the amount that ACLT pays for the land or the
appraised value of the land, whichever is greater within 30 days of Closing.
Robin Jonkinen shall pay any additional policy charge.
9. In the event that Buyer's earnest money is refunded, all of it shall be returned to
Robin Jonkinen.
10. This Addendum shall be accepted by Escrow Company as instructions from both
Buyers (Robin Jonkinen and ACLT) and Seller.
11. Seller represents and warrants that within 3 months prior to Closing there has
been less than $50,000.00 in improvements to the residence on the Land that
Robin Jonkinen is purchasing.
12. Seller represents and warrants that there are no liens on the Properly.
13. Robin Jonkinen and ACLT's duty to purchase is conditioned on removal of
emcumbrances listed as exceptions 11 and 12 in the preliminary title report order
number 40g0400318 prepared by the Escrow dated 2/19/04 at Closing.
14. The closing deadline shall be April 5, 2004.
15. The Escrow shall pay ACLT $5,000.00 from Seller's proceeds from the sale of
the House. The Escrow shall show the source of this payment in any HUD-
required settlement statement as the Seller's proceeds from the sale of the
House. The settlement statement shall also show the source of all prorated
items, escrow charge, recording cost, and title insurance charge as either the
Seller's proceeds from the sale of the House or Robin Jonkinen's payment of the
portion of the purchase price attrib~,~ted to the House.
16. All other terms remain the same.
17. In the event of inconsistencies between the addenda and the Agreement, the
Addenda shall control, and in the event of inconsistencies between the addenda,
Addendum B shall control.
18. This Agreement shall incorporate and be interpreted to be consistent with the
ACLT-City of Ashland Subrecipient Agreement for Projects funded by CDBG
Funds and the CDBG property acquisition provisions in 49 CFR 24.
19. This Agreement may be signed in counterparts. A fax transmission of a
signature page will be considered an original signature page. At the request of a
party, another party will confirm a fax-transmitted signature page by delivering an
original signature page to the requesting party.
HomeBuyer'~//¢.__ ~ .~ ' ,,~_~~ .initials:..'~ and date: V~,~-~ ~L?
:a,s:
Seller.~',,.~~')_ ~~~~/' initials' ~/~. and date: ~)c'r'/ ¢, ~.
Ashland Community Land Trus-f'~y: ~ ~/~-~, t-:~t~'t-~ */-~t'~
(ttate)
Ashland Community Land Tru~t~y: ~~ ~~5 ~--~
~~/ ~ ~ (date)
Listing Licensee Diane Paulso~ric Poo~
Selling Licensee Diane Paulson/Eric Poole
Page 2 of 2 -Addendum to Real Estate Sate Agreement B 4104
Mae Rider, 3) trust deed in favor of Washington Mutual, 4) trust deed in favor of
City of Ashland.
8. The Escrow shall prepare a sepanate, standard owner's title insuranc<~ policy for
ACLT providing coverage in the amount that ACLT pays for the land (,r the
appraised value Of the land, whichever fs greater Within 30 days of Classing.
Robin Jokinen shall pay any additional policy charge_
9. In the event that Buyer's earnest money is refunded, all of it shall be returned to
Robir~ Jokinen.
10. This Addendum shall be accepted by Escrow Company as instructions from both
Buyers (Robin Joklnen and ACLT) and Seller.
11_ Seller represents and warrants that within 3 months prior to Closing tl~ere has
been less than $50,0D0.00 in improvements to the residence on the Land that
Robin Jokinen is purchasing.
12. Seller represents and warrants that there are no liens on the Prope~.
13. Robin Jokinen and ACLT's duty to purchase is conditioned on remowd of
emcumbrances listed as exceptions 11 and 12 in the prelimina~ title -epo~ order
number 4090400318 prepared by the Escrow dated 2/19/04 at Closin
14. The closing deadline shall be April 5, 2004.
15. The Escrow shall pay ACLT $5,000.00 from Selter's proceeds from the sale of
the House. The Escrow shall show the source of thls payment in any HUD-
required se~lement s~tement as the Seller's proceeds from the sale )f the
House. The settlement statement sl~all also show the source of all prorated
items, escrow charge, recording cost, and title insurance charge as e thor the
Seller's proceeds from the sale of the House or Robin Jokinen's payn~ent of the
podlon of the purchase price attributed to the House.
16. Ail other terms remain the same.
17. In the event of inconsistencies be~ee~ the addenda and the Agreement, the
Addenda shall control, and in the event of inconsistencies between the addenda,
Addendum B shall control,
18. This Agreement shall in~orate and be interpreted to be consistent with the
ACLT-CiIy of Ashland Subrecipient Agreement for Proje~s funded by CDBG
Funds and the CDBG properly acquisition provisions in 49 CF~ 24.
19. This Agreement may be signed in counterpa~. A fax t~nsmission o~ a
signature page will be considered 8n original signature page. At the ~equest of a
pady, another pa~ will confirm a fax-transmitted signature page by celiverin9 an
original signature page to the requesting pa~y_
HomeBuyer~~ ~ ' ~_ initials: ~~ __ a~ddate:
Selle~ /~~ initials:_. ~ and date:
Seller~ g 3~J initials: ~ ._ and
~ /' (c ate)
Ashland Community Land Trust by:.
(date)
Listing Licensee Diane PauJson/Eric Poole
Selling Licensee Diane Paulson/Eric Poole
Page 2 of 2 - Addendum to Real Estate Sate Agreement B 4104
When Recorded Return Original to:
Barbara Christensen, City Recorder
20 East Main Street, Ashland, Oregon 97520
JacKson County Official Records 2004-018102
R-A
Cnt:l Stn=4 SH~WB,~ 0410612004 02:10:00 PM
S3ooo SSOO s11,oo Total:S46.00
010194572004001810:'.0060061
I Kathieen S I~eckett, County' Clerk for Jackson County, Oregon
se,lily that the instrument identified herein was recorded in the Clerk
Kathleen S, Beckett - County Clerk
CITY OF ASHLAND AFFORDABLE HOUSING
RESALE RESTRICTION AGREEMENT (SDC Deferral)
Owner: Robin Jokinen
~Agreement date: ~.,f'.//,~'
Name of development: ACLT-Hersey project
Property Address: 311 E. Hersey St.
Assessors Map: 391E 04DC taxlot 2500
Purchase Price: $132,000.®
Date of Purchase: /~,~'2/~t~. ~//
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 horne. 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. 'l-he 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 Aqreement. 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 Aqreement. The restrictions contained in this Agreement shall continue for
a period of 20 years from the date of this Agreement.
8. Survival of A.qreement 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 rnade 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:
State of Oregon
County of Jackson
This i~,¢trum, ent was acknowledged before me on~¢''~, 2004,
~ ~E~',JCN~_
..........
State of Oregon /
County of Jackson
\
This instrument was acknowledged before me on ~ ~ ,2004,
by ~¢.¢.x./.~ /(,/¢/kc-- as ~_-/ /¢//~,~¢-~¢-c~ of the City of
Ashland, Oregon.
[~,~'~, SONJA N AKERMAN
~E~)~ NOTARY PUBLIC-OREGON
~ '~~ SSION _~5~29
~~~ MY COP~MISSIO~ EXPIRES APRIL 6, 2006
Notary PL4b/lic for Oregon
My commission expires:
PAGE 5-RESALE RESTRICTION AGREEMENT
40gO4003jb
EXHIBIT A
The improvements only as located on the following described property:
Parcel No. Five (5) of partition recorded July 8, 2003, as Partition Plat No. P-39-2003,
Record of Partition Plats in Jackson County, Oregon, and filed as Survey No. 17826 in the
Office of the County Surveyor.
(Code 5-01, Account #1-005101-6, Map #391E04DC, Tax Lot #2500)