HomeMy WebLinkAbout2004-116 Resale Restriction - KnoxWhen Recorded Return Original to:
Barbara Christensen, City Recorder
20 East Main Street, Ashland, Oregon 97520
R-DR
C,qt=i Stn=10 CUTTINGA06/25/2004 11:05:16 AM
S55.00 $500 sl 1.00 Total:S71.00
IH 038595200400358540110112
t, Kathleen S. Beckett, County Clerk for Jackson County, OreGon,
certify that the inst~rnent identified herein was recorded in the Clerk
records.
Kathleen S. Beckett - County Clerk
CITY OF ASHLAND AFFORDABLE HOUSING
RESALE RESTRICTION COVENANT (SDCs ONLY)
Owner: Mark and Nora Knox
Agreement date: 6/24/2004
Name of development: Knox
Accessory Residential Unit
Property Address: 274 W Nevada Street
Rental Price: Not more than $599 per month
(adjusted annually per resolution 93-39)
Date of Purchase: Owned
Agreement entered into on the date specified above by the City of Ashland ("City") and
the "Owner" named above regarding certain improved real property located at the
property address specified above ("the rental units").
RECITALS:
A. The rental unit referred to in this agreement is described more full!/on the
attached Exhibit A.
B. The rental unit is being made available at affordable rent to eligible
Iow-income households, pursuant to the City's Affordable Housing Program
("Program").
C. The Owner recognizes that in making the rental unit available to eligible Iow-
income households, the Owner is receiving the benefits of the City's assistance to the
property upon which the rental units are located. 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. Rental Unit Occupancy Requirement. The Owner agrees and acknowledges that
the City's participation in the Program is conditioned upon Owner's continuous renting
of the rental unit to eligible Iow-income households at affordable rent levels, in
accordance with the provisions of Resolution No. 93-39 adopted by the Ashland City
Council.
PAGE 1-RESALE RESTRICTION COVENENT (2004)
2. Deferment of Systems Development Charc~es (SDCs). City will defer the payment
of SDCs owed by the Owner and due on the rental units. The Owner 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 property containing the rental unit.
3. Transfer of Property. When the property containing the rental unit is sold or
transferred, Owner agrees to pay any amount due from the promissory note referred to
in paragraph 2.
3.1. Definition of transfer. To "transfer" the property of the rental unit means any
sale, assignment or transfer, whether voluntary or involuntary, of any interest in the
property, 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 rental unit is transferred and the Owner retains title.
3.2. Assumption requirement. This agreement shall apply to and bind any
purchaser or transferee for the term of this agreement. Such purchaser or transferee
shall assume the Owner's duties and obligations under this Agreement in writing, or
sign an agreement substantially similar to this Agreement, prior to the transfer of the
property. 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
Owner 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. Owner
agrees 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, Owner 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. Owner Must Notify City of Transfer. If Owner desire to transfer the property
containing the rental unit, Owner is required to notify City in writing to that effect. The
notice shall state the street address of the Owner's home, full name or names, the
address and telephone number at which the Owner may 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 8.
PAGE 2-RESALE RESTRICTION COVENENT (2004)
5. 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 property, or of any estate or interest in the rental unit, by the Owner. The,
Agreement shall have priority over any subsequent sale, conveyance, transfer, lease or
other disposition or encumbrance of the property, or of any estate or interesl: in the
rental unit.
6. Term of Aqreement. The restrictions contained in this Agreement shall continue for
a period of 20 years from the date of this Agreement.
7. Survival of Aqreement Upon Transfer. The City's rights under this Agreement shall
survive any transfer of the property by Owner.
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 Specialist
City of Ashland
51 Winburn Way
Ashland, Oregon 97520
OWNER:
Mark Knox and Nora Wehmeyer-Knox
276 W. Nevada Street
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.
10. Default. A default shall occur if Owner fails 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.
PAGE 3-RESALE RESTRICTION COVENENT (2004)
1 1. Bindinq Effect. Throughout this Agreement, the term "Owner" refers 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.
12. 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.
13 Annual Report to City. Owner shall submit an annual report to the City in a form
approved by the City. The annual report shall include the income and family size of the
household occupying the rental unit. The report shall also state the date the, tenancy
commenced for the rental unit and such other information as the City may be required
by law to obtain.~/.,....~
OWNERS:
Mark Knox
State of Oregon
County of Jackson
Nora Wehmeyer-Knox
This instrument was acknowledged before me on ~c/'z.I
by .~,~r~,~ IL~,~(
Gino Grimaldi, City Administrator
,2004,
and ~',~ccu~ ~_
Notary Public for Oregon
My commission expires:
State of Oregon
County of Jackson
This ir. lstrument was acknowledged before me on ~ ¢ / ,2004,
by ~'~i~, L/~r,'~-,'uJ--cZ.d as ~~. //~,/--~u¢'/4.¢~,o~' of the City of
Ashland, Oregon.
I~, ~ OFFICIAL SEAL ~
[~ ~..~..~ SONJA N AKERMAN ~ Notary (P, bblic for Oregon .
~i~~ NOTARY PUBLIC - OREGON ~ ..
~ ~-...~_....~,/ COMMISSION NO. 355829 ~ ~wy commission expires: "fi-~-~'~
~ ~ MY C0aMISSI01 EXPIRES APRIL 6. 2006
,I
LP-60592
EXHIBIT A
Nine (9) /n Block Two (2) of CEDAR ~ SUBDIVISION ~O the City of AshlarS, Jackson
tbs official plat thereof, nc~ of reoord
:i~(Code 5-1, Account #1-5332-7, Map #391E5AD, Tax Lot #107)
1. The 1994/95 taxes, a lien notyet due andpayable.
2. The effect of said property, or any part thereof, ly/r~ within tbs Talent Irrigaticn
,District, ar~ subject to all water and irrigatic~ riuhts, easemen~ for di'~ ar~
canals, and all regulatioms of said District, ~ud~ any ar~ all asses~nents, liens and
3. Exist~ irrigation ditch ar~ rights in
recorded May 9, 1902 in Volume45 paue226 of theDeedReoDrdsof Jackson(~ty,
4. 10.0 foot sanitary sewer easement as sk~gn c~ t~ Plat and. Dedicatic~ of Ced~__r Hcmes
Subctivisicn. (Affects West 5 feet)
5. 10.0 foot storm drain ~t as shown on the Plat ar~ Dedicaticn of Cedar Hcmes
Subdivision. (Affects East 5 feet)
6. Prc~ BuildinU and Use Restrtcticms cn Cedar Hcmes Subdivision, ~ set out in
instrument recorded January 18, 1966 as No. 66-00599 of t3~ Official R~cord~ of Jackson
TERAS. ?0RI,I, Al. ID C0},!DITI0~S CONTAI~D
When Recorded Return Original to:
Barbara Christensen, City Recorder
20 East Main Street, Ashland, Oregon 97520
TRUST DEED
This trust deed is made on June 21 ,2004, between The Ashland
Community Land Trust (ACLT), 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 ot" 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. (-['he
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
~ z-i.z~-c~ ("the Agreement") entered into by Grantor and Beneficiary. The term
'~an oblig&tions" 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 acco~-dance with
PAGE1-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 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 receiver:ship, 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.
PAGE2-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 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.
ruTH
flEGON
~] "~"'"COMMISSION NO.'378839
Nora Wehmeyer-K~(
STATE OF OREGON
COUNTY OF JACKSON
This instrument was acknowledged before me on
/
Notary Public for Oregon
My commission expires:
PAGE 3-TRUST DEED
When Recorded Return Original to:
Barbara Christensen, City Recorder
20 East Main Street, Ashland, Oregon 97520
PROMISSORY NOTE
SECURED BY DEED OF TRUST
/_
$4375.36 Ashland, Oregon, (,--" ,/z~ 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 Four
Thousand Three Hundred Seventy Five & 36/10o ($4375.36), 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 oblig8~tion 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 the property
and make the rental unit available to eligible Iow-income households, 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 transfer of the property containing the rental
unit to a 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 property to any person or entity, other than a buyer as defined in the
Agreement who assumes this note and the trust deed securing it, and agree, to comply
with all of its terms, or whenever I am in default for failure to comply with an!/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 l am at that time the owner of the property containing the rental
unit and am not in default under any terms of this note or the trust deed, this note and
PAGE 1 of 2-Promissory Note (Rev'd 8/97)
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
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, suclh 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 ancl effect.
This note shall be governed by and interpreted under the laws of the State o'f 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 ,2i day of ([ u.v~,~z ,2004
0
NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING
RESALES AND ASSUMPTIONS.
Signature
Printed Name
Signature
Printed Name
PAGE 2 of 2-Promissory Note (Rev'd 8/97)
!0
LP-60592 '
EXHT~IT A
Nine (9) in Block T~O (2) of 'CEDAR HC~ES SU~D~SI~ to tk~ City of Ashland, Jackson
___,~, acoord~r~3 to the official plat thereof, r~w of reoord
~_%-(.Code 5-1, Acoount #1-5332-7, Map #391ESAD, Tax lot #107)
1. The 1994/95 taxes, a lien r~t yet due and payable.
2. The effect of said property, or any part ~f, lyir~ within the Talent Irrigation
District, ar~ subject to all water and irrigation rights, easements for dhl~clx~ and
'canals, and all regulations of said District, ir~lt~ any ar~ all asse~~ts, liens ar~
3. Existir~ irrigatic~ ditch and rights in c~nnect~on ~th, as r~~ in deed
reoo~ May 9, 1902 in Volume 45 pa~e 226 of the Dccd Records of Jackson County, ~.
4. 10.0 foot sanitary sewer easement as shown on tr~ Plat ar~. Dedicatic~ of Cedar Hc~es
Subdivision. (Affects West 5 feet)
5. I0.0 foot storm drain easement as ~ on the Plat and Dedicaticn of Cedar Homes
Sulxtivision, (Affects East 5 feet)
6. Proposed Build~r~ a~d Use P~stri~~ cn _Cedm~ r H~nes Subdivision, 8~ set out in
inset recorded January 18, 1966 as No. 66-00599 of tt~ Official Recozds of Jacksc~,.-
~ ~-OCU~NT tS ~REBY AP?~OTM
TEllS, FORM, AND CONDITIONS