HomeMy WebLinkAbout2009-131 Resale Restriction - Rice Park Lot 1
When Recorded Return Original to:
. Jackson County Official Records 2009-023439
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01380645200900234390130131
Barbara Christensen, City Recorder
20 East Main Street, Ashland, Oregon 97520
, I, Christine Wal~tr. County Clerk for Jackson County, Oregon, e'ntify
that the Instrument Identified htrelnwas recorded Inthe Clerk
records.
Christine Walker - County Clerk
CITY OF ASHLAND AFFORDABLE HOUSING
RESALE RESTRICTION COVENANT
Owner: Rogue Valley Community Property: Lot 1
Development Corporation (RVCDC) 888 Perozzi St.
Ashland, OR 97520
Covenant date: . r I.J tJ~ 1..-"\ ,2009
Name of development: Rice Park Subdivision, a Planned Community Development
This Resale Restriction Covenant Agreement (the "Covenant") is 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 Covenant is described more fully on the attached
Exhibit A.
B. Sale or rental of the home is subject to certain restrictions contained in this
Covenant for the purpose of implementing the City's Affordable Housing Program as set
forth in Ashland City Council Resolution No. 2006-13 ("Program").
C. The resale or rental restrictions were imposed on this home when the
development received Planning Approval, including an annexation and zone change, to
develop 68 units at 87 Nevada and 811 Helman Streets. Fifteen of the units, which
include this Home, are to remain affordable in accordance 18.06.030. G (5) of the
Ashland Land Use Ordinance as in effect on the date of application. The Owner
understands that signing this Covenant 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, and to waive Community Development and Engineering
Services Fees. This Covenant fulfills condition #33 of Planning Action #2006-01663 that
requires the applicant to sign an agreement prepared by the City of Ashland stipulating
that fifteen of the units, as identified in the developer agreement, comply with the
Program established by the City of Ashland for purchase or rental housing affordable to
households earning less than 100% of Area Median Income for a period of not less
than 60 years as established by Resolution 2006-13. As a condition of eligibility for the
City of Ashland SDC deferral program, the unit must remain affordable to households
earning less than 80% of AMI for the first 30 years of the 60 year period. The
agreement is to be recorded in the deed records.
Page 1 of 13
AGREEMENT:
City and Owner agree:
The recitals set forth above are hereby incorporated herein by this reference.
1. Deferment of Svstems DeveloDment Charaes (SDC's). City will defer the payment
of SDC's owed by you and due on the home. You will execute a promissory note
payable to the City in a principal amount equal to the total cost of the SDC's that have
been deferred. The note and the obligations under this Agreement will be secured by a
trust deed on the home.
2. OccuDancv Reauirement.
1.1 Primarv Residence. You agree and acknowledge that the City's
acceptance of Your participation in the SDC deferral program requires that the sale of
the home is conditioned upon occupancy of the home only by qualified low- or
moderate-income households earning no more than 80% of the Area Median Income
(AMI). Rental of the home is conditioned upon occupancy of the home only by a
qualified low-income household earning no more than 60% AMI as established in 2006-
13. Both rental and ownership of the unit must remain affordable to households
earning 60% and 80% of AMI respectively for a period of not less than 30 years from
the date of this'agreement, thereafter the purchase of the units shall remain affordable
to households earning 100% or less the Area Median Income for a period of not less
than 30 years subsequent to the initial 30 year period. The total period of affordability
shall be not less than 60 years. 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. Please note that other agreements (for example, the Rogue
Valley Community Development Corporation Land Lease and other lenders' loan
documents) may prohibit You from renting your home or restrict your right to rent your
home to another person or household. This section does not affect those prohibitions
or restrictions.
1.2 Qualified Occupants. 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 80% of the Area Median Income when owner occupied, or the household
income does not exceed 60%AMI when rented. The term "Area Median Income"
means the median income of wage earning employees working on jobs located in the
City, as defined by the department of Housing and Urban Development for the Medford
Ashland Metropolitan Service Area. The Qualified Occupant test only applies as of the
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commencement of occupancy in order to encourage the occupants' career
advancement and other means of increasing the occupants' household income The
occupants must use the Home as their primary residence at all times throughout the
term of this Covenant.
1.3 Responsible Use. You shall use the Home in a manner so as not to cause
harm to others or create any nuisances, public or private; and shall dispose of any and
all waste in a safe and sanitary manner.
,
1.4 Responsible for Others. You shall be responsible for the use of the Home
by any and all occupants thereof, their families, their friends or visitors, or anyone else
using the Home, and shall make them aware of the spirit, intent and appropriate terms
of this Covenant.
1.5 Condition of Home. Compliance with Covenants and Law. You shall
maintain the Home in good, workable, safe, and habitable condition in all respects
except for normal wear and tear, and in full compliance with all applicable covenants,
easements, restrictions and agreements, and all laws, ordinances, rules and regulations
of the City and any other governmental authority with jurisdiction over matters
concerning the condition and use of the Home, including all such laws related to
environmental matters. You shall not cause or permit any hazardous substances,
including petroleum oil and its fractions, to be spilled, leaked, disposed of or otherwise
released on or under the Home. Tenant may store such substances in or about the
Home only in de minimis quantities customary for normal residential use and must
exercise the highest degree of care in the use, handling and storage of same.
1.6 Property Taxes. You shall pay all taxes and assessments, no matter how
designated, that relate to the Home ("Property Taxes") in order to avoid the loss of the
City's affordable housing by County tax foreclosure and sale of the Home at a market
price. You shall also pay directly, when due, any and all other service bills, utilities
charges, or other governmental assessments charged against the Home. Concurrently
with the payment thereof and upon the request of the City, You shall furnish evidence
satisfactory to the City documenting the payment of all taxes, assessments, and
charges paid by You as required or permitted by the provisions of this Covenant. A
photocopy of a paid receipt for such charges showing payment prior to the due date
thereof shall be the usual method of furnishing such evidence.
1.7 Alterations and Improvements. Any alteration or improvement of the
Home is subject to the following conditions: (1) You shall provide City evidence of
adequate financing of the work; (2) all construction shall be performed in a good and
workmanlike manner and shall comply with all applicable laws, ordinances and
regulations, including, without limitation, the requirements of local and state public
health authorities; (3) all construction must be consistent with use of the Home as a
primary residence; and (4) You shall furnish to City a copy of plans and specifications
for the work and obtain all required building permits from the City prior to commencing
construction work.
1.8 Prohibition of Liens. No lien for services, labor or materials resulting from
your alterations, additions or improvements shall attach to the Home or to City's interest
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in the Home or to any other property owned by City. You shall not suffer or permit any
vendor's, mechanic's, laborer's, or material man's statutory or similar lien to be filed
against the Home and You are responsible to remove any such lien from the Home
within sixty (60) days after it is filed by payment, deposit, bond, order of a court of
competent jurisdiction or as otherwise permitted by law. If You shall fail to cause such
lien to be removed from the Home within such time period then, in addition to any other
right or remedy, the City may, but shall not he obligated to, discharge the same by
paying the amount in question. You may contest the underlying lien claim as long as
you have removed the lien from the Home by the statutory procedure of depositing a
bond or cash with the Circuit Court to replace the Home as the security for payment of
the claim. Any amounts paid by City in respect of such liens you shall reimburse to the
City upon demand.
1.9 Maintenance. You shall, at Your sole expense, maintain the Home (which
specifically includes maintenance and repair of sewer, water, electrical, telephone,
cable, gas, and any other services and utilities, sidewalks, curbs, driveways,
landscaping, vegetation, sprinkler systems, and any and all structures and other
improvements on, under or above the surface of the land) in good, safe, habitable and
workable condition and in accordance with all applicable laws, rules, ordinances, orders
and regulations of the City and all other governmental agencies and entities with
jurisdiction and all insurance companies insuring all or any part of the Home
2. Transfer of Home. Except as provided in paragraph 3, You agree to "transfer" the
home consistent with this Covenant.
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 Covenant 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 Covenant in writing in a form approved and provided by the City, prior to the
transfer of the home. If the purchaser or transferee fails to assume this Covenant
and execute and deliver the City's form of assumption agreement to the City
prior to the sale or transfer then the City shall have the option of treating such
sale or transfer as null and void and the City may enforce any of its remedies as
set forth below in this Covenant.
Recording of the assumption agreement in the official deed 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 Covenant. Upon the close
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f
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 Covenant.
3.1. Exempt transfer. An "exempt transfer" is:
3.1.1. A taking of title by a surviving joint tenant; a court-ordered transfer
of title to a spouse (or domestic partner) as part of a dissolution proceeding; or
an acquisition of title, or of any interest in the title, in conjunction with marriage,
provided that as of the date of any of these types of exempt transfer the Home is
then occupied by a Qualified Occupant.
3.1.2. A Permitted Mortgage (as defined below) encumbering the Home in
an amount not greater than 100% of the Affordable Purchase Price (as defined
below) as of the date of the loan proceeds are advanced to You by the lender.
3.2. Qualified Transfer. A "Qualified Transfer" is a transfer to a Qualified
Occupant as their primary residence and either (a) a sale at a price that does not
exceed the Affordable Price as of the date of this Covenant, plus the cost of
Allowed Appreciation, as such terms are defined below, or (b) a rental or lease of
the Home for an Affordable Rent (as defined below) as of the date of such rental
or lease. The term "Affordable Price" means the price which the City estimates
will result in annual Home costs (principal, interest, property taxes, insurance,
Land Lease fees, and homeowner association dues) to be approximately thirty
(30%) of the annual Median Area Income. On such basis, the City has
determined that the Affordable Price for the Home is $222.000 as of the date of
this Covenant. Affordable Rent means a monthly rent throughout the rental term
that is no more than the maximum rents established by City of Ashland
Resolution 2006-13. On such basis, the City has determined that the Affordable
Rent for the three bedroom Home targeted to households earning at or below
60% Area Median Income is $720 as of the date of this Covenant. The City
makes no representation or warranty that you will be able to sell the Home for an
Affordable Price or rent the Home for an Affordable Rent at any given time. Your
ability to sell or rent the Home at any given time depends upon market conditions
over which the City has no control. Improvements including replacement of the
Home's original elements or any repairs even if the replacement materials are an
upgrade from the original materials previously incorporated in the Home do not
function to increase the Affordable Price beyond allowable appreciation. The
term "Allowed Appreciation" means the increase in the Affordable Price by the
same percentage as the percentage increase in the Area Median Income for the
Medford Ashland Metropolitan Service Area between the date of this Covenant
and the Qualified Transfer. At least 30 days prior to the transfer, You shall
provide the documents and information to the City described in the following
subsections for the purpose of qualifying the proposed transfer and determining
the price or rent is an Affordable Price or Affordable Rent as the case may be,
including:
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3.2.1. The name, address and telephone number of all the proposed
buyers or renters.
3.2.2. A financial statement from, and signed by, each proposed adult
occupant (whether a purchaser or renter) in a form reasonably acceptable to the
City and accompanied by such supporting documentation as requested by the
City. The financial information will be used by the City to insure the proposed
transfer is only to Qualified Occupants.
3.2.3. A copy of the proposed sale agreement or rental agreement and all
related documents, which set forth the terms of the transfer. Upon any increase
in rent, you must provide the City notice and evidence that the increased amount
will continue to be an Affordable Rent consistent with the limits established in
Resolution 2006-13;
3.2.4. A written certification to the City signed by each proposed adult
occupant of the Home in a form acceptable to the City stating that:
(a) 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;
(b) The proposed occupants will use the Home as their primary
residence; and
(c) The proposed occupants have not paid or caused anyone to
pay on their behalf to You or for Your benefit, and You have not received nor will
You receive from any such person any other consideration for the proposed
transfer other than the consideration disclosed to the City;
3.2.5. In the event that a transfer is made in violation of the terms of this
Covenant, 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 transfer; or to declare the
transfer void notwithstanding the fact that the transfer may have already
occurred and become final as between the parties.
4. You Must Notify Citv 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 the provisions of Section 3 of this
Covenant. 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. Financina.
5.1 Permitted Mortaaae(s) Only. You may mortgage, pledge, or encumber
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the Home or any portion thereof or interest therein only pursuant to a Permitted
Mortgage. A "Permitted Mortgage" shall be a mortgage or trust deed, and "Permitted
Mortgages" shall be mortgages or trust deeds which:
a) run in favor of an "institutional lender" such as, but not limited to, a
federal, state, or local housing finance agency (including the US Department of
Agriculture, Department of Housing and Urban Development, Oregon Housing and
Community Services, and other like agencies), a bank (including savings and loan
association or insured credit union), an insurance company, a pension and/or profit-
sharing fund or trust, or any combination of the foregoing, the policies and procedures
of which institutional lender are subject to direct governmental supervision or regulation;
or an "owner carry" or "private lender" on terms which provide similar protections to a
purchaser who is a Qualified Occupant as described, in part, below.
b) are a first or second lien on the Home (the "Security");
c) provide, among other things, that in the event of a default in any of
the mortgagor's obligations there under, the holder of the Permitted Mortgage shall
notify City of such fact and City shall have the right, but shall not have the obligation,
within 120 days after its receipt of such notice, to cure such default in the mortgagor's
name and on mortgagor's behalf, provided that current payments due the holder during
such 120-day period (or such lesser time period as may have been required to cure
such default) are made to the holder, and shall further provide that said holder shall not
have the right, unless such default shall not have been cured within such time, to
accelerate the note secured by such Permitted Mortgage or to commence to foreclose
under the Permitted Mortgage on account of such default;
d) provide, among other things, that if after such cure period the
holder intends to accelerate the note secured by such Permitted Mortgage or initiate
foreclosure proceedings under the Permitted Mortgage, all in accordance with this
Section, the holder shall first notify City of its intention to do so and City shall have the
right, but shall not have the obligation, upon notifying the holder within thirty (30) days
of receipt of said notice from said holder, to payoff the indebtedness secured by the
Permitted Mortgage and to acquire the Security (except that in the event Rogue Valley
Community Development Corporation ("RVCDC") or a successor community land trust
possesses an interest in the Security and has a similar right, City may not exercise its
rights under this paragraph unless RVCDC or its successor community land trust
waives its right or fails to exercise its similar right in which case City's thirty (30) days
begins on the sooner of 1) the date RVCDC or its successor gives notice to City of its
waiver or 2) the deadline for RVCDC or its successor to acquire the Security); and
e) provide that such holder shall use reasonable efforts to sell the
Security pursuant to any sale after or in lieu of foreclosure to a purchaser who is a
Qualified Occupant for an Affordable Price, as defined herein.
f) provide that in the event such holder is unable to sell the Security
pursuant to any sale after or in lieu of foreclosure to a purchaser who is Qualified
Occupant for an Affordable Price then an amount equal to the difference between the
Affordable price per resolution 2006-13, and the fair market value of the total
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consideration, shall be payable to the City and the Covenant shall be removed from the
property (except that City shall waive this requirement in the event that holder pays the
difference to RVCDC or a successor community land trust which uses it to create a
replacement unit of affordable housing).
5.2 City's Consent to Permitted Mortaaae. Not less than thirty (30) days prior
to the date on which You desire a mortgage to be effective, You shall furnish, or cause
to be furnished to City true and correct copies of each and every document and
instrument to be executed in connection with the transaction represented by such
mortgage. City shall be required to consent to such mortgage only if:
a)
this Covenant;
the mortgage so submitted is a Permitted Mortgage as defined in
b) at the time of such submission and at the time proposed by You for
the execution of such documents, no default under this Covenant is then outstanding;
c) such Permitted Mortgage and related documentation do not contain
any provisions other than provisions generally contained in mortgages used for similar
transactions in the State of Oregon by institutional mortgagees;
d) such Permitted Mortgage and related documentation do not contain
any provisions which could be construed as rendering City or any subsequent holder of
the City's interest in and to this Covenant, or their respective heirs, executors,
successors or assigns, personally liable for the payment of the debt evidenced by such
note and Permitted Mortgage or any part thereof;
e) such Permitted Mortgage and related documentation shall contain
provisions to the effect that the holder of the Permitted Mortgage (a "Permitted
Mortgagee") shall not look to City or City's interest in the Home, but will look solely to
You and the buildings and improvements which may from time to time be a part of the
Home, for the payment of the debt secured thereby or any part thereof. (It is the
intention of the parties hereto that City's consent to such Permitted Mortgage shall be
without any liability on the part of City);
f) such Permitted Mortgage and related documentation provide that in
the event any part of the Security is taken in condemnation or by right of eminent
domain, the proceeds of the award shall be paid over to the holder of the Permitted
Mortgage in accordance with this Covenant;
g) You pay the City a reasonable fee for the City's review, approval
and processing of the Permitted Mortgage.
5.3 Riahts of Permitted Mortaaaee. Any Permitted Mortgagee shall without
requirement of consent by the City have the right, but shall not have the obligation, to:
a) cure any default under this Covenant, and perform any obligation
required hereunder, such cure or performance by a Permitted Mortgagee being
effective as if the same had been undertaken and performed by You;
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b) acquire and convey, assign, transfer and exercise any right,
remedy or privilege granted to You by this Covenant or otherwise by law, subject to the
provisions, if any, in said Permitted Mortgage, which may limit any exercise of any such
right, remedy or privilege; and
c) rely upon and enforce any provisions of this Covenant to the extent
that such provisions are for the benefit of a Permitted Mortgagee.
Permitted Mortgagee shall not, as a condition to the exercise of its rights hereunder, be
required to assume personal liability for the payment and performance of Your
obligations under this Covenant. Any such payment or performance or other act by
Permitted Mortgagee hereunder shall not be construed as an agreement by Permitted
Mortgagee to assume such personal liability except to the extent Permitted Mortgagee
actually takes possession of the Security [or collects fees or rents from You]. In the
event Permitted Mortgagee does take possession of the Security and thereupon
transfer the Security, any such transferee shall be required to enter into a written
agreement assuming such personal liability and upon any such assumption the
Permitted Mortgagee shall automatically be released from personal liability hereunder.
5.4 Notice. Whenever in this Section notice is to be given to Permitted
Mortgagee, such notice shall be given in the manner set forth in this Covenant to the
Permitted Mortgagee at the address which has been given by the Permitted Mortgagee
to City by a written notice to City sent in the manner set forth in this Covenant for
notices between the parties.
5.5 Costs of Permitted Mortaaae. You shall pay to City at City's option, all
fees, costs, and expenses, including, without limitation, reasonable attorney fees,
incurred by City in connection with any Permitted Mortgage.
6. Default.
6.1 Events of Default. It shall be an Event of Default:
a) if You shall fail to perform or observe any other term or condition in
this Covenant, and such failure is not cured by You or a Permitted Mortgagee within
one hundred twenty days (120) days after notice thereof from City to You and such
Permitted Mortgagee; however, in the case where You or Permitted Mortgagee has
commenced to cure such default within such one-hundred-twenty-day (120-day) period
and is continuing such cure with all due diligence, but cannot by the exercise of due
diligence cure such default within such period, such period shall be extended for such
additional period as may be reasonably required under the circumstances to complete
such cure; or
b) if Your interest in the Home shall be taken on execution or by other
process of law, or if You shall be judicially declared bankrupt or insolvent according to
law, or if any assignment shall be made of Your property for the benefit of creditors, or if
a receiver, trustee in involuntary bankruptcy or other similar officer shall be appointed to
take charge of all or any substantial part of your property by a court of competent
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jurisdiction, or if a petition shall be filed for the liquidation or reorganization of You under
any provisions of the Bankruptcy Code now or hereafter enacted, or if You shall file a
petition for such liquidation or reorganization, or for arrangements under any provision
of the Bankruptcy Code now or hereafter enacted and providing a plan for a debtor to
settle, satisfy or extend the time for payment of debts; or
6.2 Remedies. In the event You default and upon the expiration of any
applicable cure period, City may, immediately or at any time thereafter, exercise all
rights and remedies available to City at law or in equity including but not limited to the
following remedies:
(a) Terminate the occupancy of the Home by You and anyone in
possession of the Home through or under You by summary eviction proceedings or any
other appropriate legal proceedings. Pursuant to such proceedings, without demand or
notice, City may enter into and upon the Home or any part thereof in the name of the
whole and expel You and those claiming through or under You and remove its or their
effects without being guilty of any manner of trespass, and without prejudice to any
remedies which might otherwise be used for money owed to City or preceding breach of
covenant.
(b) Specifically enforce the obligations You are required to perform by the
terms of this Covenant or such other equitable relief as may be appropriate in the
circumstances such as a restraining order and injunction, receivership and the like.
(c) Obtain an award of liquidated damages in the amount of $100 per day,
which the' parties hereby acknowledge is a reasonable estimate of the actual damages
that would be suffered by City if You default on this Covenant and which actual
damages the parties acknowledge would be difficult to precisely determine and prove.
If City evicts the occupants of the Home pursuant to an Event of Default, or otherwise
incurs costs or expenses in correcting or remedying an Event of Default, You agree to
pay and be liable for any damages which may be due or sustained prior to or in
connection with such termination, eviction, or correction or remedying of an Event of
Default, and all reasonable costs, fees and expenses (including, without limitation,
reasonable attorneys' fees) incurred by City in pursuit of its remedies under this
Covenant.
6.3 City's Default. City shall in no event be in default in the performance of
any of City's obligations hereunder unless and until City shall have failed to perform
such obligations within sixty (60) days, or such additional time as is reasonably required
to correct any default, after notice by You to City properly specifying wherein City has
failed to perform any such obligation.
7. Priority and Effectiveness of this Covenant. This Covenant, or a memorandum of
this Covenant, 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 Covenant 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. The Land Lease between You
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and RVCDC or its successor community land trust which owns the land under the
Home is an encumbrance or restriction in addition to the controls of this covenant;
where the Covenant and Land Lease conflict, the covenant shall control.
Notwithstanding the above, RVCDC or its successor community land trust may petition
the City for subordination on a case by case basis.
8. Term of Covenant. The restrictions contained in this Covenant shall continue for a
period of 60 years from the date of this Covenant.
9. Survival of Covenant Upon Transfer. The City's rights under this Covenant shall
survive any transfer of the home by You. In the event that the City's interest under this
. Covenant is assigned or otherwise transferred (whether voluntarily or involuntarily) by
City to any other person or entity, this Covenant shall not cease, but shall remain
binding and unaffected. However, the City may only transfer its interest under this
Covenant to a non-profit corporation, charitable trust, govemmental agency or other
similar entity sharing the goals and objective set forth in the Recitals above regarding
the development and maintenance of adequate levels of affordable housing in the City.
10. Notices. Except as otherwise specified in this Covenant, all notices required to be
sent pursuant to this Covenant 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:
Rogue Valley Community Development Corporation (RVCDC)
PO Box 1733
Medford, OR 97501
The addresses above may be changed by notice given pursuant to this paragraph.
11. Waiver. No condition of this Covenant or of the note or trust deed shall be deemed
waived unless expressly waived in writing by City.
12. Amendment. This Covenant may be amended upon mutual agreement in writing
signed by the City of Ashland and the Owner or the Owner's successor in interest as
the case may be.
13. Bindina Effect. Throughout this Covenant, the terms .Owner" and .You" refer
individually and collectively to all persons who sign this Covenant and all persons
signing this Covenant shall be jointly and severally liable for its obligations.
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14. Attornevs' Fees. With respect to any dispute relating to this Covenant, or in the
event that a suit, action, arbitration, or other proceeding of any nature whatsoever,
including (without limitation), any proceeding under the U.S. Bankruptcy Code and
involving issues peculiar to federal bankruptcy law or any action seeking a declaration
of rights or an action for rescission, is instituted to interpret or enforce this Covenant or
any provision of this Covenant, the prevailing party shall be entitled to recover from the
losing party its reasonable attomeys', paralegals', accountants' and other experts' and
professional fees and all other fees, costs and expenses actually incurred and
reasonably necessary in connection therewith including (without limitation) deposition
and expert fees and costs incurred in creating exhibits and reports, as determined by
the judge or arbitrator at trial or other proceeding, or on any appeal or review, in
addition to all other amounts provided by law. As used in this Covenant, the "prevailing
party" shall be that party in whose favor the balance of the issues were decided. In
making the determination of who is the prevailing party, the parties agree that an award
of money damages shall be one factor in the judge's, arbitrator's or other authority's
decision but shall not be the only factor. Other factors for the judge, arbitrator or other
authority to consider shall include, but not be limited to, the number, size and
importance of claims asserted by the party in whose favor a monetary award was made
but on which the party did not prevail, the size of any monetary award in relation to the
amount requested and the resolution of non monetary issues. To aid in the judge's,
arbitrator's or other authority's determination of who is the prevailing party and the
reasonableness of the award of attomeys' fees, the judge, arbitrator or other authority
shall be entitled to compare his/her final award to the parties' settlement offers made in
writing prior to the arbitration hearing. For purposes of this Covenant, the term attorney
fees includes all charges of the prevailing party's attomeys and their staff (including
without limitation legal assistants, paralegals, word processing, and other support
personnel) and any post petition fees in a bankruptcy court. For purposes of this
Covenant, the term fees and expenses includes but is not limited to long-distance
telephone charges; expenses of facsimile transmission; expenses for postage
(including costs of registered or certified mail and return receipts), express mail, or
parcel delivery; mileage and all deposition charges, including but not limited to court
reporters' charges, appearance fees, and all costs of transcription; and costs incurred in
searching records.
Signatures on following page
\0-
Page 12 of 13
OWNER: Rogue Valley Community Development Corporation, an Oregon nonprofit
corporation, b
(sign name)
State of Oregon
County of Jackson
This instrumellt w9J> acknowledged before me on ::June. .5" ,2009,
by :-rbhl1 ttbe.e../e.r
. OFFICIAl SCAl.
CAROLYN MARlENE SCHWEJIDEIER
NOTARY P\JBI./C-OREOON
COMMISSION NO. 436232
MY COMMISSION EXPIRES MAR. 20. 2013
)
Notary P. Iic for Oregon
My com ission expires: ...5'. .:1(/../3
(sign name)
Printed Name r~ r J. '/i:-..r L luSt. ~reSident RVCDC
This instrument wa~acknowledgeq before me o~ 9' ,2009,
by R I?:td j/~crW,w ,
. """' "" ~...:Q~
BilliE K. BOSWEll Notary Public for Oregon
, NOTARY PUBLlC.OREGON ,. . . f 7 /3
,z COMMISSION NO, 436471 My commiSSion expires: '-t'- -
MY COMMISSION EXPIRES APR. 7, 2013
Date:
~h/c7 y
.
,2009,
of the City of
OFFICIAL SEAl
"ilANA R. SHIPLET
;I N~I':~RY PUBLIC-OREGON
',,<""'fti"SION NO. 405584
MY CO"'"". '"," 9:i'IRES MAY 2, 2010
~'~"""""~'i_..-',,;',.,,,,-..-' .
{J
Page 13 of 13