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HomeMy WebLinkAbout2000-198 Resale Restriction - Wildfang TRUST ~EED ~~ , ~s ~rantor(s), the Ci~ of Ashland, ~ Be~flcia~, and Paul Nolte, an active member of the Oregon State Bar as Trustee. - v 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 Ashl_an~Affordable Housing Resale Restriction Agreement (SDCs Only) dated ~- ~ '7" 01~ ("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 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. PAGE 1-TRUST DEED O0 39921 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. 9.4. Any other right or remedy provided in this deed, the Note or the Agreement. PAGE2~RUST DEED O0 39921 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 ack,nowledged before me on Notary Public for Oregon My commission expires:~,. PAGE3-TRUST DEED O0 3992~ 94724 EXHIBIT A in MOUNTAIN CREEK ESTATES, A PLANNED COMMUNITY, Lot Forty-seven (47) PF~SE 2, in the City of Ashland,Jackson County, Oregon, according to the official plat thereof, now of record. (Code 5-01, Account #1-91760-8, Map #391E04DD, Tax Lot #711) Jackson County, Oregon Recorded OFFICIAL RECORDS SEP 2 9 2000 PROMISSORY NOTE SECURED BY DEED OF TRUST $ ~ )5''~, q'~)'~ Ashland, Oregon, ~-~7 ,2000 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 crued interest, upon the terms and cbh'~li{ions 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 immediatelydue 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, PAGE 1 of 2-Promissory Note (Rev,d 8/97) CITY OF ASHLAND AFFORDABLE HOUSING RESALE RESTRICTION AGREEMENT (SDCs ONLY) owner:~."~k(,.,0..°-t~. ~.- [~O~,[~1~'~ Propel'b/Address: Ag reement date: q ~'~'-Z -' ~JO Purchase Price: ~'l '~- I, ~ ~- I Name of devel0pment: I~'f~ ~5~ 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 Ho'using 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. 2. Deferment of Systems Development Charaes ISDCs). City will defer the payment of SDCs owed by you and due on the home. You will execute a promissory note PAGE 1-RESALE RESTRICTION AGREEMENTcmT) 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 prop~)sed 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¢~?) 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 ~n~t . ~ ~7 by /~c,~/ll~°LP (.~-~'~lEJ~o,_~t and '~/~/~ ,2000, State of Oregon County of Jackson This in,~rument was acknowledged before me on_~!,/-. ~ ,2000, by ~..~ as ~, ~---~-~ Ashland, ~'regon. ~/ Notary Public for Oregon My commission expires: ~,, ~. of the City of Notary Public for Oregon ., My Commission expires: z./,- PAGE 5-RESALE RESTRICTION AGREEMENT¢~'r)