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HomeMy WebLinkAbout2007-282 Resale Restriction Agrmt - Fordyce Co Housing W ..J I- - I- 0: o U - l- II CfJ'IO ~ Jackson County Official Records 2007 -040870 ~;.~,,~ 8t1F\0 ALOI\jZO~/29/2007 08:02:00 AM S40 00 $5 00 $5 00 $1100 Total:$61.00 1111111111111111 III11111 01283499200700408700080088 O~-'l~~C,jC1 ~,. U~ When Recorded Return Oriainal to: Barbara Christensen, City Recorder 20 East Main Street, Ashland, Oregon 97520 TICOR TITLE has ,ecorded this inst~u- ment by request 3S an accomodatlon only, and has not examined it ~or regu- larity and sufficiency or as to Its effect upon the title ,to any real property that ,";Iay be described therein, i. I'\athleen S Beckett County Clerk for Jackson County Oregon, Certify that tht IflstrUnll:nt Id~ntified herein was recorded in the Clerk records Kathleen S Beckett - County Clerk CITY OF ASHLAND AFFORDABLE HOUSING RESALE RESTRICTION COVENANT Owner: Property Address: Fordyce Co-Housing LLC Lot 3 PO Box 1118 located at : Ashland, OR 97520 1233 Calypso Ct. Ashland, OR, 97520 " r ~ ., Agreement date: . ; i f I . f '( Maximum Purchase Price established .,' ( '. , . .~ ! per resolution 1993-39 , ...-.... I ~ " )- ( 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 earning 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 # 391 E 10B taxlot 2600. Two of the units, which includes this Home, are to remain affordable in accordance with the Zone Change standards established under 18.108.060(B)(d) of the Ashland Land PI\GE 1-Fordyce_ CO-Housing, RESALE RESTRICTIO!~ CO\!Er\Af\lT t 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 Pi,G!:: L-FofCy'(k, U -", ""c: PE~.::..E FES-;-F"C"'c CC ,ii::' J" 'd- 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. ExemDt 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-Fordyce co-HOUSing;' RESALE RESTRICTIOI~ CO\!EN.ANT ) 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; :::',L(~t: i:-Fcrov'C(: (,c;-r\ _!~ PE~h~E F~E:::TRiC':C '~CD '[i\,~~<- ( v' 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. Priority 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-FordYC8_co-HOUS!flgi RESALE RESTRICTIOI~ COVE~JANT ~ 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. PAGE 6-FordYC8_co-HouSIn9' RESALE RESTRICTIOr~ COVEN.AN' \0 OWNER: Fordvce Co-Housina LLC. ~~~ By: Md~)j;c- MiV\.02//"\ binding agreements on behalf of the Owner. Date: l.4~/d 7 " / (printed name) is duly authorized to sign State of Oregon County of Jackson This instrument was acknowledged before me on ~, :I, ,2007. by me [a..";,e m,~dll n ~nd "-":;;"'""~~:""~'-':'..':"~';~'" "":""""~.: ' _' ')Fl=ICIAL SEAL B. BOSWELL NOTARYPUB~GON COMMISSION NO. 391525 MY COMMISSION EXPIRES APR. 07, 2009 CITY: (~D~ Notary Public for Oregon My commission expires: Jf- 7 - () l' Date: cr /J/fl- State of Oregon County of Jackson This instrument was acknowledged before me on AVijus+- tJ ~OO7 ,2007. by~. oolldr as c..~ ~ lVMiA isfm.fu:= oflhe City of Ashland. Oregon. 4) OFFICiAl SEAL DIANA R. SHIPLET NOTARY PUBlIC-OREGON COMMISSION NO. 405584 MY COMMISSION EXPIRES MAY 2,2010 (j)~f<~ Notary Public for Oregon My commission expires: rvltj d." J.[) {O PAGE 7-Fordyce cO-Housingi RESALE RESTRICTIOI~ COVEh!.Af~T I 'i EXHIBIT "A" LEGAL DESCRIPTION lot 3, BEAR GRASS VillAGE, A Planned Unit Development, in the City of Ashland, Jackson County, Oregon. END OF LEGAL DESCRIPTION Escrow No: 03-73859 Title No: 03-73859 <;