HomeMy WebLinkAbout2007-228 Resale Restriction - Fordyce CoHousing
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Jackson County Official ReCOlds 2007 -044970
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01288097200700449700080087
When Recorded Return Oricinal to:
Barbara Christensen, City Recarder
20 East Main Street, Ashland, Oregon 97520
I. I\atllleen S Beckett, County Clerk for Jackson County Oregon,
C~r1ify that th~ instrument identified herein was r~corded irl the Clerk
records
Kathleen S Beckett - County Clerk
CITY OF ASHLAND AFFORDABLE HOUSING
RESALE RESTRICTION COVENANT
Owner: Property Address:
Fordyce Co-Housing LLC Lot 12
PO Box 1118 located at :
Ashland, OR 97520 1284 Calypso Ct.
Ashland, OR, 97520
Agreement date: Maximum Purchase Price established
Der resolution 1993-39
Date of Purchase:
Name of development: Bear Grass Village, A planned community subdivision
Covenant Agreement ("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 ("Home").
RECITALS:
A. The Home referred to in this Agreement is described more fully on the
attached Exhibit A.
B. Sale or rental of the Home is subject to certain restrictions which require that
the Home be sold to an eligible low-income household, or rented to an eligible low-
income household eaming 60% the Area Median Income or less, pursuant to the City's
Affordable Housing Program ("Program"). The Owner shall transfer or rent the Home
only to an eligible household where the purchaser or renter intends to live, and actually
does live, in the Home as a primary residence.
C. The resale or rental restrictions were imposed on this Home when the
development received Planning Approval, including a zone change, to develop 13 units
on Fordyce Street in the parent parcel with Assessors Map # 391E 10B taxlot 2600.
Two of the units, which includes this Home, are to remain affordable in accordance with
the Zone Change standards established under 18.1 08.060(B)(d) of the Ashland Land
PAGE 1-Fordyc€_co-Houslngi RESALE RESTRiCTIOhJ COVEhJi-\NT
Use Ordinance. The Owner understands that signing this Agreement and complying
with its terms are necessary to permit the City to fulfill its affordable housing goals. This
Agreement, in addition to a separate resale restriction covenant covering the other
affordable Home, fulfills condition 5 of Planning Action 2004-128 that required the
applicant in that planning action to sign and record an agreement prepared by the City
stipulating that two of the units, as identified in the Subdivision Homeowners bylaws,
comply with the Program established by the City and shall remain for purchase or
rental housing for a period of not less than 60 years. The Agreement is to be
recorded in the deed records.
City and Owner agree:
1. OccuDancv Reauirement. You agree and acknowledge that the City's acceptance
of your participation in the Program and sale of the Home is conditioned upon
continuing occupancy of the Home by qualified households per this section.
1.1 Qualified Occuoants. You agree that as of the commencement
date of a new occupancy (whether by sale or rental or otherwise), You must
provide the City evidence that the new occupants are Qualified Occupants as
of such date. The term "Qualified Occupants" means persons whose
combined household income does not exceed 60% of the Area Median Income
or Less as determined annually by the Department of Housing and Urban
Development for the Medford-Ashland Metropolitan Service Area. The
Qualified Occupant test only applies as of the commencement of occupancy in
order to encourage the occupants' career advancement and other means of
increasing the occupants' household income. Rental of the Home is
conditioned upon continued occupancy of the Home by qualified low-income
households. For purposes of this Agreement, continuing occupancy includes
renting of the Home by the Owner to others provided the renting household is
initially qualified under the City's affordable rental program income limits and
the rental costs do not exceed the limits established under the rental program.
The occupants must use the Home as their primary residence at all times
throughout the term of this Covenant
1.2Primarv Residence. You shall use, and shall cause all occupants
thereof to use, the Home only as a primary residence and such incidental
activities related to residential use as are then permitted by applicable zoning,
building, subdivision and land use laws. This restriction and all other
requirements of this Covenant will be binding upon anyone who uses the Home
whether a purchaser, a renter or otherwise, because this Covenant is intended
to apply to the Home regardless of changes in ownership or occupancy. You
agree and acknowledge that use of the Home as a primary residence in
compliance with all the requirements of this Covenant is essential to the
fulfillment of the City's affordable housing purposes and shall apply during the
full term of this Covenant
2. Transfer of Home. Except as provided in paragraph 3, you agree to "transfer" the
Home consistent with this Agreement and the affordability provisions of Ashland City
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Council Resolution 1993-39.
2.1. 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, any right to possession
under a rental agreement, 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.
2.2. Assumption reauirement. This Agreement shall apply to and bind any
purchaser or transferee in an exempt or qualified transfer (see paragraph 3).
Such purchaser or transferee (other than a renting household qualified under the
City's affordable rental program) 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 the sale or transfer shall
be considered void and the City may enforce any of its remedies as contained in
section 3.2.7 below.
Recording of the 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.
3. Exempt and Qualified Transfers. Notwithstanding paragraph 2 above, if a transfer
is either an "exempt transfer" or a "qualified transfer" as provided in this paragraph,
such transfer shall not be considered a violation of this Agreement.
3.1. Exempt transfer. An "exempt transfer" is:
3.1.1. A transfer by the Owner of a home being rented to a low-income
household under the Program to a transferee who will continue to rent the Home
under the Program
3.1.2. 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. If title is taken as
described in this paragraph, and the Home is being rented to a low-income
household under the Program, the transfer is only exempt if the transferee will
continue to rent the Home under the Program.
3.1.3. A refinancing of the existing purchase money first mortgage or trust
PAGE 3-Fordycto-_co-Housillg/ RESALE RESTRIC110N COVEf\jAN-,.
3
deed encumbering the Home by securing a new first mortgage or trust deed on
the Home in an amount not to exceed the maximum purchase price established
by Resolution 1993-39 as calculated on the date of the transfer, 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 provided that the
cumulative total of all mortgages upon the Home do not exceed the maximum
purchase price established by Resolution 1993-39 on the date of the exempt
transfer.
3.2. Qualified transfer. A "qualified transfer" is a transfer to an eligible
buyer under the Program for a sales price that does not exceed the affordable
housing purchase price as determined by Ashland City Council Resolution
number 1993-39 including amendments, as in effect on the date this covenant is
signed. In such a case where the maximum purchase price calculated by
Resolution 1993-39 is less than the original purchase price, the then present
Owner may sell the unit for an amount equal to their original purchase price, plus
applicable closing costs and loan fees. A qualified transfer shall include the
rental of the Home to an eligible household as determined by Ashland City
Council Resolution number 1993-39. At least 30 days prior to the transfer, you
shall provide the following information to the City:
3.2.1. The name, address and telephone number of the proposed buyer
or renter(s);
3.2.2. A financial statement signed by the proposed eligible buyer and his
or her spouse, if any, in a form acceptable to the City and accompanied by such
supporting documentation as requested by the City. Use of the property, as a
rental, requires all members of the rental household to provide income
verification documentation to the City to qualify as an eligible renter. The
financial information shall be used by the City to determine the income eligibility
of the proposed buyer. 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.
3.2.3. A copy of the proposed sales agreement or rental agreement and
all related documents, which set forth the terms of the transfer;
3.2.4. A written certification signed by the proposed buyer or renter(s) and
you in a form acceptable to the City stating that:
3.2.5. The transfer shall be closed in accordance with the terms of the
sales agreement or rental agreement and other documents submitted and
approved by the City;
3.2.6. 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, renter(s), 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;
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3.2.7. 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 rental
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.
4. 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 3.2. 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.
5. Prioritv and Effectiveness of this Aareement. 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.
6. Term of Aareement. The restrictions contained in this Agreement shall continue for
a period of 60 years from the date of this Agreement.
7. Survival of Aareement Upon Transfer. The City's rights under this Agreement shall
survive any transfer of the Home by you.
8. 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:
Fordyce Co-Housing LLC
PO Box 1118
Ashland, OR 97520
The addresses above may be changed by notice given pursuant to this paragraph.
9. Waiver. No condition of this Agreement or of the note or trust deed shall be deemed
waived unless expressly waived in writing by City.
PAGE 5-Fordyce_ co-Housing,.' ReSALE RESTRICTION COVENANT c;-
10. Amendment This Agreement may be amended upon mutual agreement in writing
signed by the City and the Owner or the Owner's successor in interest.
11. Default. A default shall occur if you fail to perform or observe any of the provisions
of this Agreement. If any default occurs, City may, at its option, require you to rescind
any sale or rental, or the City may seek specific performance of this Agreement by suit
in equity. The remedies provided above shall be nonexclusive and in addition to any
other remedies provided by law.
12. Bindina 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. Attornevs' 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.
READ AND APPROVED BY:
BUYE~ OF LOT 12 PRIOR TO CLOSE O~ ESCROW
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{~t~'k> ('w" , -t,ol~ {v"v"-~
EDGE E ROBERT-LISLE WIER
READ AND APPROVED BY:
BUY~ 0; 12 PRIO\R TO/ CLO(SE ;~C(~Wn G~~
1l;!vf'~\'ZY\ \\CL\O €-.,.c ~'-= - )
rf!!iP. OffiCiAl SEAl
:(.cji.';'" DIANE PETERMANN
\~OT ARY PUBLIC - ORECDN
'" -. COMMISSION NO. A372496
\~y COfJMISSION EXPiRES OCTOBER 3, 2007
KARSTEN NICHOLE PETERSON
STATE OF OREGON, COUNTY OF JACKSON ss):
-!his do.c.ument was acknowledged beforege on this 26. th day of September,
by _ GENE R~LE WIER and KARSTEN ICHOLE PETERSON. ~
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2007
PAGE 6-Fordyce__ co-Housirlgi RESALE RESTRICTIOhJ COVENAhJT ~
OWNER: Fordvce Co-Housina llC.
~~ Date: ~~A,7
By: MELANIE MINDLIN, PROJECT MANAGER ' /
DESIGNATED SIGNER
11 e!Mle. Hi VI d r i 1'\ (printed name) is duly authorized to sign
binding agreements on behalf of the Owner.
State of Oregon
County of Jackson
This instrument was acknowledged before me on ~ ~ l. ,2007,
by '-1Yl-eJa.V)~e H/nd/'h and
[1',---" ---
. ,F'ICIAL SEAL
B. BOSWELL
NOTARY PUBlIC-OREGON
COMMISSION NO, 391525
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CITY:
(tf~
Notary Public for Oregon
My commission expires: 4- 7-0 q
Date:
?/f/q-
State of Oregon
County of Jackson
This instrument was acknowledged before m~ on AtAjUcc,t 1>
by _Martha ~JwH- as tt~ Akinlsnu/ny
Ashland, Oregon.
",
. OFFICIAL SEAL
DIANA R. SHIPI.ET
NOTARY PUBLIC-OREGON
COMMISSION NO. 405684
MY COMMISSION EXPIRES MAY 2,2010
,2007,
of the City of
(~p~;t
Notary Public for Oregon .
My commission expires: M~:2 j cla(O
PAGE 7-FordYC8_co-Housingi RESALE RESTRICTION CO\!ENAr~l
1
EXHIBIT "A"
LEGAL DESCRIPTION
lot 12, BEAR GRASS VillAGE, a Planned Unit Development, in the City of Ashland, Jackson
County, Oregon.
END OF LEGAL DESCRIPTION
Escrow No: 03-73902
Title No: 03-73902
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