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HomeMy WebLinkAbout2007-293 Resale Restriction Agrmt - Stahlman/Newman t\u~c)~~~1- ~1~ 0Cb Jackson County Official Records 2007 -057129 R-A 1.?/27/2007 08:00:00 AM Cnt=1 Stn=6 HELMANC~ $31 Ilillioif.llltl\~Jjllj![1mr ~:1i~~ j--W (J, .).. 9 :E crtJJ...J:J .(.)~(.) &: ~ W 0 c. (f) ::I: 0 0-1- >-O:::CI) <I-o:f ~~u.l- - en 0:: u: ~ 0 U.o - 'w !::O...J I-zt:G CJ~ I- LLI Q::. . u. U. U'~O!.l.. ~5zUJ C:(zQo::: -'ot:O >-;::0 a..C:(z> 000 c.~o(.)z U::iiUJ~ c., """ :t: (.) 0"< """ I- - CO u. <. (.) 0::: u. u.:(.)0:J (T. < u. (f) When Recorded Return Original to: Barbara Christensen, City Recorder 20 East Main street, Ashland, Oregon 97520 I Kathleen S. Beckett, County Clerk for Jackson County, ?regon, ~ertify that the instrument identified herein was recorded In the Clerk records Kathleen S. Beckett - County Clerk CITY OF ASHLAND AFFORDABLE HOUSING RESALE RESTRICTION COVENANT Owner(s): Eric G. Stahlman Property Address: Lot 2 Alii M. Newman 799 Park Street Current Address Ashland, OR 97520 249 Wimer St. Apt. # 7 Ashland, OR 97520 Agreement date: 12/3/07 Purchase Price or maximum Rent as adjusted annuallv bv resolution 2006-13 Date of Purchase: Name of development: Terrace Court Subdivision, a planned unit development Covenant Agreement entered into on the date specified above by the City of Ashland ("City") and Individual Owner (" Owner") named above regarding certain improved real property located at the property address specified above ("the home"). RECITALS: A. The home referred to in this covenant 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 or moderate-income household, or rented to an eligible low-income household, 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 in the home as a primary residence. C. The resale or rental restrictions were imposed on these homes when Rogue Valley Community Development Corporation proposed to build six affordable townhomes in conjunction with a Community Development Block Grant awarded by the City to purchase the property at 795 Park Street for that purpose. The Owner understands that signing this Covenant Agreement and complying with its terms are necessary to permit the City to fulfill its affordable housing goals and provide a deferral of the System Development Charges, Community Development Fees, and Engineering Services Fees. Upon transfer of ownership the home the buyer's income and the price shall be submitted to the Planning Division as well as a written certification, as provided in paragraph 4, signed by the proposed buyer stipulating that they understand and agree to the provisions of this Resale Restriction Agreement. The purchase of the units shall remain affordable to households earning 80% or less the Area Median Income for a period of not less than 30 years. The Resale Restriction Covenant, and any PAGE 1-RESALE RESTRICTION COVENANT G \comm-deviHOUSINGiHousing ProiectsiPark_RVCDCiR~:O. 799park_ RRe doc \ subsequent buyer Assumption Agreements, are to be recorded in the deed records. City and Owner agree: 1 Deferment of Systems Development Charaes 'SOCs). City will defer the payment of soes owed by you and due on the home. 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. 2. OccuDancy Reauirement. Owner agrees and acknowledges that the City's acceptance of Owner's participation in the Program and sale of the home is conditioned upon occupancy of the home only by qualified low or moderate-income households earning no more than 80% or the Area Median Income. Rental of the home is conditioned upon occupancy of the home only by a qualified low-income household earning no more than 60% of the Area Median Income. The term "Area Median Income" means the Medford-Ashland area median income as annually defined by the Department of Housing and Urban Development. The qualified income 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. For purposes of this agreement, occupancy includes renting of the home by the Owner to others provided the renting household is qualified under the City's affordable rental program income limits and the rental costs do not exceed the limits established under Resolution 2006-13. 3. Transfer of Home. Except as provided in paragraph 4, Owner agrees to "transfer" the home consistent with this agreement and the provisions of the Ashland City Council Resolution 2006-13 in effect on the date of signing this Covenant Agreement. 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, induding, 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 Owner retains title. 3.2. Assumption reauirement. This Covenant Agreement shall apply to and bind any purchaser or transferee in an exempt or qualified transfer (see paragraph 4). Such purchaser or transferee (other than a renting household qualified under the City's affordable rental program) shall assume Owner's duties and obligations under this Covenant Agreement in writing, or sign an agreement substantially similar to this Covenant Agreement, prior to the transfer of the home. If the purchaser or transferee fails to assume this Covenant 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 4.2.7 below. PAGE 2-RESALE RESTRICTION COVENANT :; Icomm rlevlHOUSINGIHousmQ ProjectsIPark_RVCOCIRRCI 709park_RRC doc 2- Recording of the covenant 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 Covenant Agreement. Upon the close of any transfer, Owner agrees 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. Ex.mot and Qualified Transfers. Notwithstanding paragraph 3 above, if a transfer is either an "exempt transfer" or a "qualtfied transfer", as provided in this paragraph, such transfer shall not be considered a violation of this agreement. 4.1. Exempt transfer. An "exempt transfer" is: 4.1.1. A transfer by 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 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; an acquisition of title, or of any interest in the title, in conjunction with marriage; an acquisition of title, or of any interest in the title, either by intestacy under Oregon Revised Statutes chapter 112 or by will or devise. 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. 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 that does not exceed the then present affordable housing purchase price as determined by the version of Ashland City Council Resolution number 2006-13 in effect on the date of signing this covenant, 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 under the Program for a sales price that does not exceed the affordable housing purchase price as determined by City of Ashland Resolution 2006-13 in effect on the date of signing this Covenant Agreement. A qualified transfer shall include the rental of the home to an eligible household earning no more than 60% the Area Median Income as established by the City of Ashland Resolution number 2006-13. At least 30 days prior to the transfer, Owner shall provide the PAGE 3-RESALE RESTRICTION COVENANT G \comm-dev\HOUSI~IG\Houslng Projects\Park_RVCDC\RRC\ 79~lpark_RRC doc "3 following information to the City: 4.2.1. The name, address and telephone number of the proposed buyer or renter(s); 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. Use of the property, as a rental, requires all members of the rental household 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. To be an eligible buyer under the Program, 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 or rental agreement and all related documents, which set forth the terms of the transfer; 4.2.4. A written certification signed by the proposed buyer or renter(s) and Owner 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 or rental 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 Owner or for Owner's benefit, and Owner has not received nor will Owner receive from the proposed buyer, renter(s), or any other party, either directly or indirectly or for Owner's 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 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 Owner. 5. Notification to City of Transfer is Reauired. Prior to transfer of the home, Owner agrees to notify City in writing of such proposed transfer. If the proposed transferee is a qualified transferee 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, full name or names of the proposed transferee(s), the address and telephone number at which the proposed transferee(s) are to be contacted. The notice shall be given at least 30 days prior to the transfer and shall be delivered as provided in paragraph 9. PAGE 4-RESALE RESTRICTION COVENANT G \comm-devIHOUSINGIHouslng ProJectsIPark_RVCDCIRRC\ 799park_RRC doc L\ 6. Priority and Effectiveness of this Covenant Aareement. This Covenant 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 Owner. The Covenant 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 Aareement. The restrictions contained in this Covenant Agreement shall continue for a period of 30 years from the'date of this Covenant Agreement 0 8. Survival of AGreement Upon Transfer. The City's rights under this Covenant Agreement shall survive any transfer of the home by Owner. 9. Notices. Except as otherwise specified in this Covenant Agreement, all notices required to be sent pursuant to this Covenant 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 1ive 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 OWNERS: Eric G. Stahlman and Alii M. Newman 249 Wimer St., Apt. # 7 Ashland, OR 97520 , 0 > ~ "t t. " 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. Amendment This Covenant Agreement may be amended upon mutual agreement in writing signed by the City of Ashland and the Owner or the Owner's successor in interest. 12. Default. A default shall occur if Owner fails to perform or observe any of the provisions of this Covenant Agreement. If any default occurs, City may, at its option, require Owner to rescind any sale or rental, or the City may seek specific performance of this Covenant Agreement by suit in equity. The remedies provided above shall be nonexclusive and in addition to any other remedies provided by law. 13. Bindina Effect. Throughout this Covenant Agreement, the terms "Owner" refer PAGE 5-RESALE RESTRICTION COVENANT G \comm-dev\HOUSINGIHouslng Projects\Park_RVCDC\RRC\ 799park_RRC doc 5, 0, individually and collectively to all persons who sign this Agreement and all persons signing this Covenant Agreement shall be jointly and severally liable for its obligations. 14. Attornevs' fees. If either party is required to initiate legal proceedings to enforce its rights under this Covenant 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. O~(S): ~"~Jj~ ~. ~'-//~~ State of Oregon County of Jackson This instrument was acknowledged before me on I:J. -:~ - by ~("'G G. Sro... h fJt)C(rJ and Ci{(i hi. ,2007, _ OFFIC1Al SEAL JEANNE L. PETERS NOTARY PUBUC-OREGON COMM1SSIOH NO. 380195 COMMISSION EXPIRES APR. 29, 2008 State of Oregon County of Jackson nowledged before .me on p~hr 13 as ~t1f1 r ,2007, of the City of __ OFFICIAL SEAL DIANA R. SHIPLET NOTARY PUBLIC-oREGON COMMISSION NO. 405684 MY COMMISSION EXPIRES MAY 2, 2010 Notary Public for Ore on tvalJ\ P..... rJ ()f () My commission expires: ~ PAGE 6-RESALE RESTRICTION COVENANT G \comm-dev\HOUSING\Housing Projerts\Park_RVCDC\RRC\ 799park_RRC doc (p