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HomeMy WebLinkAboutMehr, Mohammad Naim and Madina; 2025-10-22;Recording Requested by: Fidelity National Title San Diego Office DSnow(a),ccdsd.orgRecording requested by and when recorded mail to: City of Carlsbad Housing Services Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 No fee for recording pursuant to Government Code Section 27383 DOC# 2025-0312747 111111111111 lllll 111111111111111111111111111111 IIIII IIIII IIIII IIII IIII Nov 05, 2025 02:58 PM OFFICIAL RECORDS JORDAN Z. MARKS, SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) PCOR: N/A PAGES: 13 DEED OF TRUST AND SECURITY AGREEMENT THIS DEED OF TRUST IS SECOND AND SUBSEQUENT TO A DEED OF TRUST RECORDING CONCURRENTLY HEREWITH (City of Carlsbad Affordable Housing Resale Program) Note to Borrower: This Deed of Trust contai11s provisio11s prohibiti11g assumptio11 THIS DEED OF TRUST AND SECURITY AGREEMENT (the "Deed of Trust11) is made as of this 20th day of October , 2025, Mohammad Nairn Mehr and Madina Mehr, husband and wife as community property with right of survivorship, ("Borrower11), as Trustor, ,and Fidelity National Title & Escrow ("Trustee"), as trustee, and the City of Carlsbad, a municipal corporation (11City11), as beneficiary. *Borrowers address is6172 Colt Place No 103, Carlsbad, CA 92009 . The Borrower, in consideration of the promises herein recited and the trust herein created, irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with power of sale, the real property located in the City of Carlsbad, State of California, described in the attached Exhibit A (the "Property"); TOGETHER with all the improvements now or hereafter erected on the real property described in Exhibit A, and all easements, rights, appurtenances, and all fixtures now or hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust (collectively, the "Property"); and TOGETHER with all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, and all renewals or replacements thereof or articles in substitution therefore, whether or not the same are, or shall be attached to said building or buildings in any manner; and all of the foregoing, together with the Property, is herein referred to as the "Security"; 1 1010\17\2045536.2 ~ Ex~mpt from fee per GC27388.1 due to being recorded in connection with ~oncu~~ent transfer that is subject to the 1mposItIon of documentary transfer tax. To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever; TO SECURE to the City the repayment of the sums evidenced by a promissory note in the amount Seven Hundred Sixty-Five Thousand Five Hundred Sixteen Dollars ($765,516) executed by the Borrower in favor of the City as of the date of this Deed of Trust ("Note"); TO SECURE to the City the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Deed of Trust; and the performance of the covenants and agreements of the Borrower herein contained; TO SECURE to the City the performance of the covenants and agreements of Borrower contained in that certain Declaration of Restrictive Covenants Regarding Restrictions on Transfer of Property, Occupancy Restrictions, Refinancing Restrictions and Option to Purchase executed by and between the Borrower and the City of even date herewith and recorded against the Property on, or about, the date this Deed of Trust is recorded as a lien against the Property (the "Resale Restriction Agreement") and to secure the payment of Excess Sales Proceeds (as defined in the Resale Restriction Agreement) and Unauthorized Rental Proceeds (as defined in the Resale Restriction Agreement) that may become due by Borrower to City; and TO SECURE the performance of any obligations of Borrower in any other agreements with respect to the financing of the Property or the Security the failure of which would adversely affect Beneficiary, whether or not Beneficiary is a party to such agreements. BORROWER AND CITY COVENANT AND AGREE AS FOLLOWS: 1. Borrower's Estate. That the Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Security, that other than this Deed of Trust, the Security is encumbered only by: (a) that deed of trust executed by the Borrower in connection with a loan made to the Borrower by CrossCountrW<tr<qts successors and assigns (t?e "First Lender"), dated ~ovember 1 , 2_025, executed by the B£rrower in favo~ of F1rst Lender, and recorded m the County of San Diego on concurren f-10:.:__, and assigned Recorder's Serial No. ______ ("First Lender Deed of Trust"), securing a promissory note executed by the Borrower in favor of the First Lender ("First Lender Note"), to assist in the purchase of the Property; and (b) the Resale Restriction Agreement. The Borrower agrees to warrant and defend generally the title to the Security against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the City's interest in the Security. (As used in this Deed of Trust, the term "First Lender" shall include all successors and assigns of the First Lender.) 2. Repayment of Loan; Prohibition on Assumptions. The Borrower will promptly repay, when due, the principal, interest and other sums required by the Note and Resale Restriction Agreement, including all principal and interest on the Homebuyer Loan ( as defined in the Note) and the Excess Sales Proceeds and Unauthorized Rental Proceeds due under the Resale Restriction Agreement. Among other things, the Note contains the following provisions concerning repayment of the loan under certain conditions: 2 IO I 0\1 7\2045536.2 Limitations on Assumption of Note. The Borrower acknowledges that this Note is given in connection with the purchase of the Property as part of a program of the City to assist in the purchase of homes by very low and low income households. Consequently, this Note is only assumable by Eligible Purchasers (as defined in the Resale Restriction Agreement). This Note is due in full upon all other Transfers. In the event this Note is assumed by an Eligible Purchaser, the Eligible Purchaser shall execute a new note, which shall be in an amount equal to the principal and Contingent Interest owed by Borrower, a new deed of trust and a new resale restriction agreement with a restarted te1m in forms approved by the City. 3. First Lender Loan. The Borrower will observe and perform all of the covenants and agreements of the First Lender Note, First Lender Deed of Trust, and related First Lender loan documents. 4. Resale Restriction Agreement. The Borrower will observe and perform all of the covenants and agreements of the Resale Restriction Agreement. Among other things, the Resale Restriction Agreement requires the Borrower to utilize the Property as the Borrower's principal residence, and restricts: (i) the Borrower's ability to transfer the Property, or the obligations under the Note; (ii) the Borrower's ability to refinance the First Lender Note; and (iii) the Borrower's ability to use the Property as security for additional loans or financing. The Borrower's failure to comply with the requirements of the Resale Restriction Agreement constitutes a default under this Deed of Trust. 5. Charges; Liens. The Borrower will pay all taxes, assessments and other charges, fines and impositions attributable to the Security which may attain a priority over this Deed of Trust, by the Borrower making any payment, when due, directly to the payee thereof. The Borrower will promptly furnish to the City all notices of amounts due under this paragraph, and in the event the Borrower makes payment directly, the Borrower will promptly discharge any lien which has priority over this Deed of Trust; provided, that the B01TOwer will not be required to discharge the lien of the First Lender Deed of Trust or any other lien described in this paragraph so long as the Borrower will agree in writing to the payment of the obligation secured by such lien in a manner acceptable to the City, or will, in good faith, contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Security or any part thereof. 6. Insurance. The Borrower will keep the Security insured with a standard fire and extended coverage insurance policy in at least an amount equal to the replacement cost of the Security, but in no event less than the amount necessary to prevent the Borrower from becoming a co-insurer under the terms of the policy. The insurance carrier providing this insurance shall be licensed to do business in the State of California and be chosen by the Borrower subject to approval by the City; provided, that such approval will not be withheld if the insurer is also approved by the First Lender, the Federal Home Loan Mortgage Corporation, Fannie Mae, Freddie Mac, the United States Department of 3 1010\17\2045536.2 Housing and Urban Development, the United States Department of Veterans Affairs, or any successor thereto. All insurance policies and renewals thereof will be in a form acceptable to the City and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of the First Lender Note and the City as their interests may appear and in a form acceptable to the City. The City shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and the Borrower shall promptly furnish to the City, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, the Borrower will give prompt notice to the insurance carrier and the City or its designated agent. The City, or its designated agent, may make proof of loss if not made promptly by the Borrower. The City shall receive ten (10) days advance notice of cancellation of any insurance policies required under this section. Unless the City and the Borrower otheiwise agree in writing, insurance proceeds, subject to the rights of the First Lender, will be applied to restoration or repair of the Security damaged, provided such restoration or repair is economically feasible and the Security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds will be used, subject to the rights of the First Lender, to repay the Note and all sums secured by this Deed of Trust, with the excess, if any, paid to the Borrower. If the Security is abandoned by the Borrower, or if the Borrower fails to respond to the City, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to the Borrower that the insurance carrier offers to settle a claim for insurance benefits, the City, or its designated agent, is authorized, subject to the rights of the First Lender, to collect and apply the insurance proceeds at the City's option either to restoration or repair of the Security or to repay the Note and all sums secured by this Deed of Trust. If the Security is acquired by the City, all right, title and interest of the Borrower in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to the sale or acquisition will pass to the City to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition subject to the rights of the First Lender. 7. Preservation and Maintenance of Security. The Borrower will keep the Security in good repair and will not commit waste or permit impairment or deterioration of the Security. If there arises a condition in contravention of this section, and if the Borrower has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Security to recover its cost of curing. 8. Protection of the City's Security. If the Borrower fails to perform the covenants and agreements contained in this Deed of Trust, the Resale Restriction Agreement, the First Lender Note, the First Lender Deed of Trust, or if any action or proceeding is commenced which materially affects the City's interest in the Security, including, but not limited to, default under the First Lender Deed of Trust, the First Lender Note, eminent domain, insolvency, code 4 I0I0\l7\2045536.2 enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the City, at the City's option, upon notice to the Borrower, may make such appearances, disburse such sums and take such action as it determines necessary to protect the City's interest, including but not limited to, disbursement of reasonable attorney's fees and entry upon the Security to make repairs. Any amounts disbursed by the City pursuant to this paragraph, with interest thereon, will become an indebtedness of the Borrower secured by this Deed of Trust. Unless the Borrower and City agree in writing to other terms of payment, such amount will be payable upon notice from the City to the Borrower requesting payment thereof, and will bear interest from the date of disbursement at the lesser of ten percent (10%) or the highest rate permissible under applicable law. Nothing contained in this paragraph will require the City to incur any expense or take any action hereunder. 9. Inspection. The City may make or cause to be made reasonable entries upon and inspections of the Security; provided that the City will give the Borrower reasonable notice of inspection. 10. Forbearance by the City Not a Waiver. Any forbearance by the City in exercising any right or remedy will not be a waiver of the exercise of any such right or remedy, nor shall acceptance by the City of any payment provided for in the Note constitute a waiver of the City's right to require prompt payment of any remaining principal and interest owed. The procurement of insurance or the payment of taxes or other liens or charges by the City will not be a waiver of the City's right to accelerate the maturity of the indebtedness secured by this Deed of Trust. 11. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. "Hazardous Substances" shall mean those substances defined as toxic or hazardous substances or hazardous waste under any Environmental Law, and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. "Environmental Law" shall mean all federal and state of California laws that relate to health, safety or environmental protection. Borrower shall promptly give City written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is 5 1010\17\2045536.2 necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. 12. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively. 13. Successors and Assigns Bound. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the City and the Borrower subject to the provisions of this Deed of Trust. 14. Joint and Several Liability. All covenants and agreements of the Borrower shall be joint and several. 15. Notice. Except for any notice required under applicable law to be given in another manner, all notices required in this Deed of Trust shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt, or personally delivered with a delivery receipt obtained, and shall be deemed to be effective as of the date shown on the delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was returned as undeliverable as follows: To the Owner: 6172 Colt Place No. 103 Carlsbad, CA 92009 To the City: City of Carlsbad Housing Services Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: Affordable Housing Resale Program The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this section. 16. Controlling Law. This Deed of Trust shall be construed in accordance with and be governed by the laws of the State of California. 17. Invalid Provisions. If any one or more of the provisions contained in this Deed of Trust, Resale Restriction Agreement or the Note shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions, and this Deed of Trust, the Resale Restriction Agreement and the Note shall be construed as if such invalid, illegal or unenforceable provision had never been contained in this Deed of Trust, Resale Restriction Agreement or the Note. 6 1010\17\2045536.2 18. Captions. The captions and headings in this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof. 19. Nonliability for Negligence, Loss, or Damage. Borrower acknowledges, understands and agrees that the relationship between Borrower and the City is solely that of a borrower and the administrator of a municipal inclusionary housing program, and that the City does not undertake or assume any responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on, or inform Borrower of the quality, adequacy or suitability of the Security or any other matter. The City owes no duty of care to protect Borrower against negligent, faulty, inadequate or defective building or construction or any condition of the Security and Borrower agrees that neither Borrower, or Borrower's heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Security and will hold City harmless from any liability, loss or damage for these things. 20. Indemnity. Borrower agrees to defend, indemnify, and hold the City harmless from all losses, damages, liabilities, claims, actions, judgments, costs, expenses and reasonable attorneys' fees that the City may incur as a direct or indirect consequence of: a. Borrower's failure to perform any obligations as and when required by the Note, Resale Restriction Agreement, and this Deed of Trust; or b. the failure at any time of any of Borrower's representations or warranties to be true and coffect. This provision shall survive the term of this Agreement. 21. Default; Remedies. Upon the Borrower's breach of any covenant or agreement of the Borrower in the Note, Resale Restriction Agreement or this Deed of Trust, including, but not limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the City, prior to acceleration, will send, in the manner set forth in Section 15 of this Deed of Trust, notice to the Boffower specifying: (1) the breach; (2) if the breach is curable, the action required to cure such breach; (3) a date, not less than thirty (30) days from the date the notice is effective as set forth in Section 15 of this Deed of Trust, by which such breach, if curable, is to be cured; and (4) if the breach is curable, that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Security. Notice shall be effective as of the date shown on the delivery receipt as the date of delivery, the date delivery was refused or the date the notice was returned as undeliverable. The notice will also inform the Borrower of the Borrower's right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of default or any other defense of the Borrower to acceleration and sale. If the breach is not curable or is not cured on or before the date specified in the notice, the City, at the City's option, may: (a) declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by California law; (b) either in person or by agent, with or without 7 1010\17\2045536.2 bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof ( or any part thereof) and of any of the Security, in its own name or in the name of the Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Security, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any breach hereunder or invalidate any act done in response to such breach and, notwithstanding the continuance in possession of the Security, the City shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any uncured breach, including the light to exercise the power of sale; ( c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver to the Trustee a wiitten declaration of default and demand for sale, pursuant to the provisions for notice of sale found at California Civil Code Sections 2924, et seq., as amended from time to time; or ( e) exercise all other rights and remedies provided herein, in the instruments by which the Borrower acquires title to any Secuiity, or in any other document or agreement now or hereafter evidencing, creating or secuiing all or any portion of the obligations secured hereby, or provided by law. The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees. 22. Acceleration. Upon the occurrence of a default under the Note, the Resale Restriction Agreement, this Deed of Trust, the First Lender Note, or the First Lender Deed of Trust, the City shall have the right to declare the full amount of the principal along with any interest under the Note immediately due and payable. Any failure by the City to pursue its legal and equitable remedies upon default shall not constitute a waiver of the City's right to declare a default and exercise all of its rights under the Note, the Resale Restriction Agreement, and this Deed of Trust. Nor shall acceptance by the City of any payment provided for in the Note constitute a waiver of the City's right to require prompt payment of any remaining piincipal and interest owed. 23. Borrower's Right to Reinstate. Notwithstanding the City's acceleration of the sums secured by this Deed of Trust, the Borrower will have the right to have any proceedings begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Secuiity pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) the Borrower pays City all sums, if any, which would be then due under this Deed of Trust and no acceleration under the Note has occurred; (b) the Borrower cures all breaches of any other covenants or agreements of the Borrower contained in the Note, Resale Restriction Agreement or this Deed of Trust; ( c) the Borrower pays all reasonable expenses incurred by City and the Trustee in enforcing the covenants and agreements of the Borrower contained in the Note, Resale Restriction Agreement or this Deed of Trust, and in enforcing the City's and the Trustee's remedies, including, but not limited to, reasonable attorney's fees; and ( d) the Borrower takes such action as City may reasonably require to assure that the lien of this Deed of Trust, City's interest in the Secuiity and the Borrower's obligation to pay the sums secured by this Deed of Trust shall continue 8 1010\17\2045536.2 unimpaired. Upon such payment and cure by the Borrower, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred. 24. Reconveyance. Upon payment of all sums secured by this Deed of Trust, the City will request the Trustee to reconvey the Security and will surrender this Deed of Trust and the Note to the Trustee. The Trustee will reconvey the Security without warranty and without charge to the person or persons legally entitled thereto. Such person or persons will pay all costs of recordation, if any. 25. Substitute Trustee. The City, at the City's option, may from time to time remove the Trustee and appoint a successor trustee to any trustee appointed hereunder. The successor trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. 26. Subordination to First Lender Mortgage. Notwithstanding any other provision hereof, the provisions of this Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender, or the First Lender's successor or assign, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Borrower. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed or assignment in lieu of foreclosure, or upon assignment of the First Lender Deed of Trust to the Secretary of the United States Department of Housing and Urban Development (the "Secretary"), this Deed of Trust shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in lieu of foreclosure, or if the First Lender's Deed of Trust is assigned to the Secretary, this Deed of Trust shall automatically terminate upon such acquisition of title or assignment to the Secretary provided that: (i) the City has been given written notice of default under such First Lender Deed of Trust; and (ii) the City shall not have cured or commenced to cure the default within such thirty (30) day period and given its firm commitment to complete the cure in the form and substance acceptable to the First Lender. Borrower agrees to record any necessary documents to effect such termination, if applicable. Remainder of Page Left Intentionally Blank 9 1010\17\2045536.2 IN WITNESS WHEREOF, the Borrower has executed this Deed of Trust as of the date first written above. Note to Borrower: This Deed of Trust contains provisions prohibiting assumption Signature /Jo /i01;,-v1 r> Ct~J flld/ 1~ !1e/2 ~ Print Name iD/4;;_/-zo2-s Date BORROWER: Signature PrintName la-::iz-'2o2-S Date (Proper Notarial Ack1iowledgement of Execution by Borrower Must Be Attached) SEE ATTACHED CERTIFICATE 10 1010\17\2045536.2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego } On OG--tf).be, :;,_:;;._, :;)_O~ , before me, C. Peterson, Notary Public, personally appeared ff)ol,qrrt>11.{ d /Ja(m rrJenr N'rCI rr)qcft hq &hr who proved to me on the basis of satisfactory evidence to be the person(s) whose name{s) isfare subscribed to the within instrument and acknowledged to me thamey executed the same in liis,lher/their authorized ca acity(ies), and that by ~r/their ~gnature(s) on the instrument the person(s), or the entity upon beha of which the p_ersonu,) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of State of California that the foregoing paragraph is true and correct. eeeeeee•1 C. PETERSON Notary Public -California : San Diego County ~ Commission II 2410814 v Comm. Expiras Aug 8, 2026 PLACE NOT ARY SEAL ABOVE WITNESS my hand and official seal. SIGNATURE~ Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of attached document Title or type of document: ])eed ef =t=ust= Dine/ Secu.rify ~~ Document Date: QGkhe,c::2.o • .:::W 25 Number of Pages: ______ _ Signer(s) Other than Named Above: ____________________ _ EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Address: 6172 Colt Place #103, Carlsbad, CA 92009 Assessor Parcel No.: 213-262-22-18 [010\17\2045536.2 For APN/Parcel ID(s): 213-262-22-18 EXHIBIT A Legal Description THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: A CONDOMINIUM COMPRISED OF: PARCEL 1: AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN THE MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS SHOWN ON THE AMENDED AND RESTATED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON JUNE 13, 2019, AS DOCUMENT NO. 2019-230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO (COLLECTIVELY "CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT 1 OF CARLSBAD TRACT NO. 14-09 UPTOWN BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 2018 ("MAP"). PARCEL 2: RESIDENTIAL UNIT NO. 18, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN; EXCEPTING FROM PARCELS 1 AND 2, ALL EASEMENTS RESERVED IN THE DECLARATION, CORPORATE DECLARATION, AND EASEMENT, MAINTENANCE, AND COST SHARING DECLARATION (ALL DEFINED BELOW), THE CONDOMINIUM PLAN, THE MAP, AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF. PARCEL 3: AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY, DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES DESCRIBED IN THE DECLARATION. PARCEL 4: A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS AND EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY DESCRIBED AS STREET MODULE A, STREET MODULE B, STREET MODULE C, AND STREET MODULE 0, AS SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-380430, WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE. PARCELS: A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS, IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY DESCRIBED IN THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE AND A PUBLIC STREET. $765,516 PROMISSORY NOTE Secured by Deed of Trust Carls bad, California October 20, 2025 Notice to Bormwer: This Note is not assumable FOR VALUE RECEIVED, the undersigned Mohammad Nairn Mehr and Madina Mehr, C'Bonower"), promises to pay to the City of Carlsbad, a municipal corporation (11City11), at the Housing and Homeless Services Department, 1200 Carlsbad Village Drive, Carlsbad, California 92008, or such other place as the City may designate in writing, the principal sum of Seven Hundred Sixty-Five Thousand Five Hundred Sixteen Dollars ($765,516) plus Contingent Interest calculated pursuant to Section 4 below, plus any amounts due the City as Unauthorized Rental Proceeds or Excess Sales Proceeds pursuant to the Declaration of Restrictive Covenants Regarding Restrictions on Transfer of Property, Occupancy Restrictions, Refinancing Restrictions and Option to Purchase ("Resale Restriction Agreement ") by and between Bonower and City of even date herewith. 1. Purpose of Loan. Bmrnwer is purchasing the real property more particularly described in Exhibit A to the Deed of Trust and the improvements thereon located at 6172 Colt Place No. 103, Carlsbad, CA 92009 in the City of Carlsbad C'Property"). In connection with the Affordable Housing Resale Program and in fulfillmen_t of its inclusionaiy obligation pursuant to an Affordable Housing Agreement ("Affordable Housing Agreement") between the Shea Homes Limited Partnership, a California limited liability company entered into November 11, 2017. Developer made a subsidy loan ("Homebuyer Loan") to allow for the purchase of a home by a low-income household located in Carlsbad, California on that certain real property and more particularly described in Exhibit A (°Property") and then assigned the Homebuyer Loan to the City. The Homebuyer Loan is in an amount equal to the difference between the fair market value of the Property and the price affordable to Bonower, who is a lower income household. Because the home is being made affordable to Bonow er as part of the City's affordable housing program, B01rnwer is required and has agreed to execute the Resale Restriction Agreement. Among other things, the Resale Restriction Agreement restricts the price of the Property upon resale and requires the Borrower to pay any Excess Sales Proceeds ( as defined below) at resale to the City. This Note evidences both: (a) the obligation of Borrower to repay the Homebuyer Loan; and (b) the obligation of B01rnwer to pay any Unauthorized Rental Proceeds (as defined below) and Excess Sales Proceeds to the City pursuant to the Resale Restriction Agreement. 2. Definitions. The terms set fmth in this section shall have the following meanings in this Note. l0l0/17/2045538.2 (a) "Appreciation Amount" shall mean the amount calculated by subtracting the Original Affordable Purchase Price of the Property from one of the following amounts, as applicable: (i) in the event of a sale of the Property to the City or City designee pursuant to the City Option, the Affordable Sales Price; or (ii) in the event of a sale of the Property to an Eligible Purchaser (as defined in the Resale Restriction Agreement) during the Initial Period (as defined in the Resale Restriction Agreement), the Affordable Sales Price; or (iii) in the event of any other sale, the amount received by the Bo1rnwer as the sale price of the Property, as ce11ified by the Bon-ower; or (iv) in the event of a prepayment of this Note, a Transfer other than sale of the Prope11y, or in the event of a default, the Fair Market Value of the Prope11y; or (v) in the event a creditor acquires title to the Property through a deed in lieu of foreclosure, a tmstee's deed upon sale, or otherwise, the amount paid for the Property at a creditor's sale of the Prope11y; or (vi) in the event of payment at the expiration of the Te1m the Fair Market Value of the Property. The provisions of this Section 2(b )(iv) shall be subject to Section 16 of the Resale Restriction Agreement which requires that when Excess Sales Proceeds are paid to the City that the Appreciation Amount is calculated by subtracting the Original Affordable Purchase Price from the Maximum Restricted Resale Price. (b) "Contingent Interest" shall mean the percentage of the Appreciation Amount set out in Section 4. ( c) "Excess Sales Proceeds" shall have the meaning set forth in Section 16 of the Resale Restriction Agreement. (d) "Fair Market Value11 shall be dete1mined by a real estate appraisal made by an independent residential appraiser designated by the City. If possible, the appraisal shall be based upon the sales prices of comparable prope11ies sold in the market area during the preceding thi-ee (3)-month period. The cost of the appraisal shall be paid by the Bon-ower. Nothing in this subparagraph shall preclude the Bmmwer and the City from establishing the Fair Market Value of the Prope11y by mutual agreement in lieu of an appraisal. ( e) "First M011gage" shall mean the promissory note and deed of trust evidencing and securing the first mortgage loan for the Property. (f) "Maximum Restricted Resale Price" shall have the same meaning as set fo11h in Section 14 of the Resale Restriction Agreement. (g) "Original Affordable Purchase Price" shall mean Three Hundred Nine Thousand Four Hundred Ninety-Four Dollars ($309,494), the affordable price paid by B01mwer to the Seller for the purchase of the Prope11y. The Original Affordable Purchase Price is the effective price of the Prope11y. The 11Full Purchase Price" of the Property ( as defined in the Resale Restriction Agreement) is equal to the Original Affordable Purchase Price plus the amount of this Promissory Note. (h) "Property" shall mean the land and improvements thereon encumbered by the deed of tiust executed in connection with this Note. IO I O/l 7 /2045538.2 (i) "Resale Restriction Agreement" shall mean the Declaration of Restrictive Covenants Regarding Restrictions on Transfer of Property, Occupancy Restrictions, Refinancing Restrictions and Option to Purchase executed by the Bo1rnwer and the City in connection with the Homebuyer Loan. G) "Transfer" shall mean any sale, assignment or transfer, voluntary or involunta1y, of any interest in the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, tenancy in common interest, a life estate, a leasehold interest, or an interest evidenced by a land contract by which possession of the Property is transferred and the Borrower retains title. Any Transfer without satisfaction of the provisions of this Note is prohibited. A transfer: (i) to an existing spouse who is also an obligor under the Note; (ii) by a Bo1rnwer to a spouse where the spouse becomes the co-owner of the Property; (iii) between spouses as part of a marriage dissolution proceeding; (iv) to an existing spouse or child of the Borrower by devise or inhedtance following the death of the B01rnwer; (v) by the Borrower into an inter vivos revocable tmst in which the B01Tower is the tmstor; or (vi) by refinance of the First Mortgage meeting the requirements of Section 11, shall not be considered a Transfer for the purposes of this Note; provided, however, that the Borrower shall continue to occupy the Property as his or her principal place of residence ( except where the transfer occurs pursuant to subsection (iii) or (iv) above, in which event the transferee shall owner-occupy the Home and affinnatively assume Owner's obligations under this Note and the City Deed of Tmst, and the Resale Restriction Agreement) and the Bo1rnwer shall provide written notice of such transfer to the City pursuant to Section 8 of the Resale Restriction Agreement. (k) "Unauthorized Rental Proceeds" shall have the meaning set forth in Section 4 of the Resale Restriction Agreement. 3. Security. This Note is secured by a second deed oftmst dated the same date as this Note (the 11Deed of Trust"). 4. Contingent Interest. The Borrower shall pay contingent interest equal to Eight Percent (48%) of the Appreciation Amount (the "Contingent Interest11). No interest other than Contingent Interest shall be due hereunder. The Contingent Interest shall be paid to the City at the time set forth in Section 6 below. Bo1rnwer acknowledges that the Contingent Interest percentage amount is equal to the Homebuyer Loan principal amount as a percentage of the total purchase price of the Property paid by the Borrower at the time of purchase (which includes the amount of this Note), multiplied by seventy-five one hundredths (.75). Borrower acknowledges that this calculation of the percentage of the Appreciation Amount due to the City as Contingent Interest includes a twenty-five percent (25%) discount to Borrower to account for any capital improvements B01rnwer may make to the Property. City has agreed that the Contingent Interest percent shall not exceed fifty percent (50%). 5. Tetm. The Tenn of this Note shall mean the period commencing on the date of this Note and expiring on the date thirty (30) years thereafter (the 11Term11). 6. Repayment. The total amount of the principal and any Contingent Interest owed under this Note (including Unauthorized Rental Proceeds and Excess Sales Proceeds due to the l 0 l 0/ 17 /2045538.2 City pursuant to the Resale Restriction Agreement) shall immediately become due and payable: (a) in the event of a default by the B01TOwer under this Note, the Resale Restriction Agreement, the Deed of Trust, or the First Mortgage; (b) on the date Transfer is made whether voluntarily, involuntarily, or by operation oflaw and whether by deed, contract of sale, gift, devise, bequest or othe1wise; ( c) in the event Bonower ceases to occupy the Property as his or her principal place ofresidence; or (d) at the end of the Term of this Note as described above in Section 5. Failure to declare such amounts due shall not constitute a waiver on the part of the City to declare them due in the event of a subsequent Transfer. 7. Late Payment Fees. If any payment due hereunder is not paid within five (5) days from the date such becomes due, Bonower shall pay a reasonable late or collection charge equal to five percent (5%) of the amount so unpaid. The City and B01TOwer agree that the actual damages and costs sustained by the City due to the failure to make timely payments would be extremely difficult to measure and that the charges specified in this paragraph represent a reasonable estimate by B01TOwer and the City of a fair average compensation for such damages and costs. Such charges shall be paid by B01TOwer without prejudice to the right of the City to collect any other amounts provided to be paid under this Note, the Resale Restriction Agreement or the Deed of Trust or, with respect to late payments, to declare a default. 8. Prepayments. The B01TOwer may prepay all or pa11 of the balance due under this Note including principal and Contingent Interest. In the event the entire amount of principal due under this Note is prepaid, all Contingent Interest, calculated as of the date of prepayment, shall also be due at the time of prepayment. In the event of partial prepayment, the amount of Contingent Interest due upon prepayment shall be determined at the time of any partial prepayment based on the Fair Market Value of the Property. Partial prepayments shall be allocated between payment of Contingent Interest and payment of principal in the same proportion as the ratio of each to the total amount due (principal and interest) at the time of prepayment. Following a prepayment, the percentage of Contingent Interest due the City shall be recalculated to reflect the paydown in principal owed the City. The recalculated Contingent Interest shall equal the outstanding principal amount of the Note divided by Full Purchase Price. Notwithstanding any prepayment of amounts due under this Note, the Resale Restriction Agreement shall continue in full force and effect for the period of time set forth in Section 25 of the Resale Restriction Agreement. 9. Limitations on Assumption of Note. The Bonower acknowledges that this Note is given in connection with the purchase of the Prope11y as pai1 of a program of the City to assist in the purchase of homes by low-income households. Consequently, this Note is only assumable by Eligible Purchasers (as defined in the Resale Restriction Agreement). This Note is due in full upon all other Transfers. In the event this Note is assumed by an Eligible Purchaser, the Eligible Purchaser shall execute a new note, which shall be in an amount equal to the principal and Contingent Interest owed by B01TOwer, a new deed of tiust and a new resale restriction agreement with a restarted tenn in fo1ms approved by the City. 10. Maintenance; Taxes; Insurance. Bonow er shall maintain the Property in good repair and in a neat, clean and orderly condition. B01TOwer shall promptly pay all prope11y taxes l010/17/2045538,2 due on the Property prior to any delinquency and shall comply with the insurance requirements set fo1ih in the Deed of Tmst and Resale Restriction Agreement. 11. Refinance of First Mortgage Loan. The outstanding principal and interest on this Note shall not be due upon prepayment and refinance of the First Mortgage, and the Resale Restriction Agreement and Deed of Tmst shall be subordinated to the refinanced loan, provided that: (a) such refinancing is approved by the City; (b) the amount refinanced does not exceed the outstanding principal balance of the First Mmigage at the time of refinance plus reasonable costs of refinance; and ( c) the refinance does not result in higher monthly payments on the First Mortgage Loan than were due prior to the refinance. 12. Default. (a) The Bonower shall be in default under this Note if he or she is in default under the First Mo1igage following the expiration of First Mortgage cure periods, or if, after the notice and cure period provided by the City to the B01Tower pursuant to the notice and cure provisions of the Deed ofTmst, the B01Tower: (i) fails to pay any money when due under this Note; (ii) breaches any representation or covenant made in this Note or Resale Restriction Agreement in any material respect; or (iii) breaches any provision of the Deed ofTmst. (b) Upon the Bmrnwer's breach of any covenant or agreement of the Bonow er in this Note, the Resale Restriction Agreement or the Deed of Trnst, including, but not limited to, the covenants to pay, when due, any sums secured by the Deed of Tmst, the City, prior to acceleration, will send, in the manner set forth in Section 17, notice to the Bmrnwer specifying: (i) the breach; (ii) if the breach is curable, the action required to cure such breach; (iii) a date, not less than thirty (30) days from the date the notice is effective, by which such breach, if curable, is to be cured; and (iv) if the breach is curable, that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by the Deed of Tmst and foreclosure by the City. The notice will also infonn the B01Tower of the Bonower's right to reinstate after acceleration and the right to bring a court action to asse1i the nonexistence of default or any other defense of the B01wwer to acceleration and sale. 13. Acceleration. Upon the occuffence of a default under this Note, the Resale Restriction Agreement, the Deed of Tmst, or the First Mmigage, the City shall have the right to declare the full amount of the principal along with any Contingent Interest under this Note immediately due and payable. Any failure by the City to pursue its legal and equitable remedies upon default shall not constitute a waiver of the City's right to declare a default and exercise all of its rights under this Note, the Resale Restriction Agreement, and the Deed ofTmst. Nor shall acceptance by the City of any payment provided for herein constitute a waiver of the City's right to require prompt payment of any remaining principal and interest owed. 14. No Offset. The Borrower hereby waives any rights of offset it now has or may later have against the City, its successors and assigns, and agrees to make the payments called for in this Note in accordance with the terms of this Note. 1010/17/2045538.2 15. Waiver; Attorney Fees and Costs. The Bon-ower and any endorsers or guarantors of this Note, for themselves, their heirs, legal representatives, successors and assigns, respectively, severally waive diligence, presentment, protest, and demand, and notice of protest, dishonor and non-payment of this Note, and expressly waive any rights to be released by reason of any extension of time or change in tenns of payment, or change, alteration or release of any security given for the payments hereof, and expressly waive the right to plead any and all statutes of limitations as a defense to any demand on this Note or agreement to pay the same, and jointly and severally agree to pay all costs of collection when incurred, including reasonable attorney fees. If an action is instituted on this Note, the Bmrnwer promises to pay, in addition to the costs and disbursements allowed by law, such sum as a court may adjudge reasonable as attorneys' fees in such action. 16. No Waiver by the City. No waiver of any breach, default or failure of condition under the terms of this Note shall be implied from any failure of the City to take action with respect to such breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure. 17. Notices. All notices required in this Note shall be sent by certified mail, return receipt requested, or express delivery service with a delivery receipt, or personally delivered with a delivery receipt obtained and shall be deemed to be effective as of the date shown on the delivery receipt as the date of delive1y, the date delivery was refused, or the date the notice was returned as undeliverable as follows: To the Borrower: 6172 Colt Place No. 103 Carlsbad, CA 92009 To the City: City of Carlsbad Housing Se1vices Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: Affordable Housing Resale Program The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this section. 18. Joint and Several Obligations. This Note is the joint and several obligations of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns. 19. Nonliability for Negligence, Loss, or Damage. Bonower acknowledges, understands and agrees that the relationship between Bon-ower and the City is solely that of boITower and lender, and that the City does not unde11ake or assume any responsibility for or duty to Bon-ower to select, review, inspect, supervise, pass judgment on, or inform BoITower of IO I O/l 7 /2045538.2 the quality, adequacy or suitability of the Prope1ty or any other matter. The City owes no duty of care to protect Bo1wwer against negligent, faulty, inadequate or defective building or construction or any condition of the Property and Bo1Tower agrees that neither Bo1Tower, or Bmrower's heirs, successors or assigns shall ever claim, have or asse1i any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Property and will hold the City hrumless from any liability, loss or damage for these things. 20. Tennination of Restrictions. Any legal restrictions on conveyance of the Property (as defined in 24 CFR 203.4l(a)(3)) included in this Note shall tenuinate upon transfer of the Prope1ty by foreclosure, deed in lieu of foreclosure, or assignment to the Secretary of the United States Department of Housing and Urban Development. 21. Controlling Law. This Note shall be construed in accordance with and be governed by the laws of the State of California. 22. Assignment by City. The City may assign its right to receive the proceeds under this Note to any person and upon notice to the Bonower by the City all payments shall be made to the assignee. 23. Invalid Provisions. If any one or more of the provisions contained in this Note shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Note, and this Note shall be construed as if such invalid, illegal or unenforceable provision had never been contained in this Note. 24. Entire Agreement. This Note (along with the Resale Restriction Agreement and Deed of Trust) sets forth the entire understanding and agreement of the City and the Bo1Tower and any amendment, alteration or interpretation of this Note must be in writing signed by both the City and the Borrower. Remaillder of page left intentionally blank l 0 I 0/l 7 /2045538.2 Executed by the undersigned as of the date first written above. Notice to Borrower: This Note is not assumable (Signature) rloli tr-J/VJMqol N0t1/fr7 ;Vte/,f (Print Name) 10/22=/202q (Dated) BORROWER: ~-==-=------ Mdint\. lY\ew (Print Name) (Dated) 1010/17/2045538.2 Recording Requested by: Fidelity National Title San Diego Office Recording requested by and when recorded mail to: City of Carlsbad Housing Services Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 DOC# 2025-0312746 111111111111 lllll 111111111111111111111111111111111111111111111 IIII IIII Nov 05, 2025 02:58 PM OFFICIAL RECORDS JORDAN Z. MARKS, SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) PAGES:34 No fee for recording pursuant to Government Code Section 27383 DECLARATION OF RESTRICTIVE COVENANTS REGARDING RESTRICTIONS ON TRANSFER OF PROPERTY, OCCUPANCY RESTRICTIONS, REFINANCING RESTRICTIONS, AND OPTION TO PURCHASE (City of Carlsbad Affordable Housing Resale Program) Owners: Mohammad Nairn Mehr and Madina Mehr Address of Property: 6172 Colt Place No. 103 Carlsbad, CA 92009 Note to Owner: This document contains provisions restricting your ability to sell this property and obtain junior financing. This Declaration of Restrictive Covenants Regarding Restrictions on Transfer of Property, Occupancy Restrictions, Refinancing Restdctions and Option to Purchase ("Resale Restriction Agreement") is entered into as of this 20th day ofOctober , 2025, by and between the City of Carlsbad, a municipal c01poration (the "City"), and Mohammad Nairn Melu· and Madina Mehr (11Ow11er11). RECITALS A. The City has developed a second mortgage program designed to assist qualified lower income households purchase their homes located within the City of Carlsbad ("Affordable Housing Resale Program 11). B. In connection with the Affordable Housing Resale Program and in fulfillment of its inclusiona1y obligation pursuant to an Affordable Housing Agreement C'Affordable Housing Agreement") between Shea Homes Limited Partnership, a California limited liability company entered into November 11, 2017. Developer made a subsidy loan ("Homebuyer Loan") to allow for the purchase of a home by a low-income household located in Carlsbad, California on that certain real property and more particularly described in Exhibit A C'Property") and then assigned the Homebuyer Loan to the City. C. As used herein, the tem1 "Property" includes both the real property and all improvements now or hereafter erected thereon (including, but not limited to the residential dwelling unit), and all easements, rights, appurtenances, and all fixtures now or hereafter attached thereto. i" Exempt from fee per GC27388.1 due to "\' being recorded in connection with concurrent transfer that is subject to the imposition of documentary transfer tax. \ D. The "Original Affordable Purchase Price" of the Property is Three Hundred Nine Thousand Four Hundred Ninety-Four Dollars ($309,494). The Original Affordable Purchase Price is the effective price of the Property paid by the Owner. The actual price of the Property is equal to the Original Affordable Purchase Price plus the amount of the Promiss01y Note ("Full Purchase Price"). Owner is a low-income household. E. The Homebuyer Loan is Seven Hundred Sixty-Five Thousand Five Hundred Sixteen Dollars ($765,516). The Homebuyer Loan is evidenced by a promisso1y note in the amount of the Loan ("City Note"). This Agreement and the City Note shall be secured by a deed of trust ("City Deed of Trnst") subordinate to the lien of First Lender Deed ofTrnst. F. The purpose of this Agreement is to place resale controls on the Property, to provide the City an option to purchase the Prope1ty at a restricted price, and to ensure that the Owner complies with the Affordable Housing Resale Program requirements. G. This Agreement and the City Note require repayment of the Homebuyer Loan plus contingent interest and, in certain instances, payment of excess proceeds of sale. This Agreement will remain in full effect as an encumbrance on the Property after any prepayment of the City Note by the Owner. NOW, THEREFORE, in consideration of the benefits received by the Owner and the City, the Owner and the City agree, as follows: 1. DEFJNITIONS AND EXHIBITS A. The following terms are specifically defined for this Agreement and their definitions can be found in the Sections indicated below: (1) "Affordable Sales Price" -Section 14A(l). (2) "Agreement" -first sentence of the Agreement on page 1. (3) "City" -first sentence of the Agreement on page 1. (4) "City Deed ofTrnst" -Recital F. (5) "City Designated Purchaser" -Section 12B. (6) "City Note" -Recital F. (7) "City Option" -Section 12A. (8) "City Response Notice" -Section 10. (9) "Default" -Section 18 ( 10) "Eligible Purchaser" Section 15B. (11) 11Excess Sales Proceeds" -Section 16. (12) 11Fair Market Value11 -Section 14B. (13) 11First Lender" -Recital E. (14) 11First Lender Deed of Trust11 or 11First Mortgage11-Recital E. (15) "First Lender Loan11 -Recital E. (16) 11Full Purchase P1ice11 -Recital D. (17) 11Full Sales Price" -Section 14A. (18) 11Homebuyer Loan" -Recital B. (19) 11HUD11 -Section 30. (20) "Market Purchaser11 -Section 1 0C. (21) 11Maximum Restricted Resale Price" -Section 14. (22) "Median Income" -Section 14A. (23) "Official Records" -Recital E. (24) "Original Affordable Purchase Price11 -Recital D. (25) 11Owner11 -first sentence of the Agreement on page I. (26) "Owner's Notice of Intent to Transfer" -Section 8. (27) 11Property11 -Recital B. (28) "Proposed Purchaser11 -Section 15A. (29) 11Transfer11 -Section 7. (30) 11Unauth01ized Rental Proceeds11 -Section 4. B. The following Exhibits are attached to this Agreement: (1) Exhibit A: Legal Description of Property (2) (3) Exhibit B: Exhibit C: Fo1m of Owner Occupancy Certification Form of Owner's Notice offutent to Transfer (4) (5) (6) ExhibitD: ExhibitE: Exhibit F: 2. OWNER CERTIFICATIONS Fmm of City Response Notice Fonn of Owner Acknowledgement of City Response Notice F01m of Owner Request for City Subordination to Refinanced First Lender Loan The Owner certifies that: (i) the financial and other infonnation previously provided in order to qualify to purchase the Property is true and con-ect as of the date first written above; (ii) the Owner is an Eligible Purchaser; (iii) the Owner has disclosed all individuals that shall reside at the Property; and (iv) the Owner shall occupy the Property as the Owner's principal place of residence. 3. OCCUPANCY OF PROPERTY The Owner shall occupy the Property as the Owner's principal place of residence within sixty (60) days after the close of escrow on the Homebuyer Loan. Failure by the Owner to occupy the Property as the Owner's principal place ofresidence shall constitute a Default under this Agreement for which the City may exercise its option to purchase pursuant to Section 21 below. The Owner shall be considered as occupying the Property if the Owner is residing at the Property for at least ten (10) months out of each calendar year. _ The Owner shall provide an annual written certification in the form shown in the attached Exhibit B, to the City that the Owner is occupying the Property as his or her principal place of residence and listing all occupants residing at the Property. No later than ten (10) days after receipt of the City's w1itten request, the Owner shall provide any additional infonnation and documents which the City requests including but not limited to tax returns and bank statements, which may evidence whether the Owner is occupying the Property. Failure to provide any additional info1mation or documentation requested shall constitute a Default under this Agreement. 4. NO LEASING OF PROPERTY The Owner shall not lease all, or any portion of, the Property to another party. Any lease, sublease, or any other renting of the Property to a third-party is prohibited and shall be a Default under this Agreement and the City Deed of Trust. For the avoidance of doubt, the City and the Owner agree and acknowledge that: (i) the Property (or any portion of the Prope1ty) is prohibited from being used a "shmt-term vacation rental" (as such term is defined in Chapter 5.60 of the City of Carlsbad Municipal Code, as may be amended from time to time); (ii) no portion of the Pi·operty may be used for tourist or transient use, or any other shmt-term rental of the Property; and (iii) listing the Property on any "hosting platf01m" (as defined in California Business & Professions Code 22590, as may be amended from time to time), including, but not limited to any Internet-based "hosting platform", such as "airbnb.com", or any similar service, is prohibited. All proceeds derived from any leasing, subleasing, or any other activity prohibited by this Section are defined as "Unauthorized Rental Proceeds". In addition to all other available rights and remedies set forth in this Agreement, in the event of violation of this Section, the Owner shall pay to the City all Unauthorized Rental Proceeds in accordance with Section 19. 5. HOMEBUYER EDUCATION CLASS The Owner successfully completed a homebuyer education course offered by Money Management International. 6. MAINTENANCE AND INSURANCE PROCEEDS A. The Owner shall maintain the Property, including landscaping, in good repair and in a neat, clean and orderly condition and will not commit waste or pe1mit deterioration of the Property. Failure by the Owner to maintain the Property shall constitute a Default under this Agreement for which the City may exercise the City Option to purchase the Property pursuant to Section 21 below. B. The Owner shall maintain a standard fire and extended coverage home insurance policy equal to the replacement value of the Property (adjusted eve1y five (5) years by appraisal, ifrequested by City), naming the City as an additional insured. Additional insurance requirements are set forth in Section 6 of the City Deed of Trnst. 7. TRANSFER AND SALE RESTRICTIONS Any Transfer of the Property will be subject to the provisions of this Agreement including, without limitation, exercise of the City Option pursuant to Section 12 below. 11Transfer11 shall mean any sale, assignment or transfer, voluntaiy or involuntaiy, of any interest in the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, tenancy in common interest, a life estate, a leasehold interest, an interest evidenced by a land contract by which possession of the Property is transfen-ed and Owner retains title. Any Transfer without satisfaction of the provisions of this Agreement is prohibited. A Transfer shall not include a transfer: (i) to an existing spouse who is also an obligor under the City Note; (ii) by the Owner to a spouse where the spouse becomes the co"owner of the Property; (iii) between spouses as pai-t of a maiTiage dissolution proceeding; (iv) to an existing spouse of Owner by devise or inheritance following the death of Owner; (v) by Owner into an inter vivas revocable tlust in which Owner is the Trnstor; or (vi) refinance of the First Mortgage meeting the requirements of Section 28 of this Agreement; provided, however, that Owner shall provide written notice of all such transfers to City pursuant to Section 8 below; and Owner shall continue to occupy the Prope1-ty as his or her principal place of residence ( except where the u·ansfer occurs pursuant to subsection (iii) or (iv) above, in which event the transferee shall owner"occupy the Prope1-ty and affi1matively assume Owner's obligations under this Agreement, the City Note and the City Deed ofTrnst). 8. NOTICE OF INTENDED TRANSFER A. In the event the Owner intends to transfer (including without limitation all "Transfers" as defined in Section 7) or vacate the Prope1-ty, the Owner shall promptly give the City written notice of such intent (the "Owner's Notice of Intent to Transfer") in the fmm shown in the attached Exhibit C. The Owner shall give the City the Owner's Notice of Intent to Transfer prior to notifying real estate brokers or lenders of Owner's intent to Transfer the Property and prior to listing of the Property on the Multiple Listing Service. The Owner's Notice of Intent to Transfer shall be sent to the City in the manner and at the address provided in Section 32 of this Agreement. The Owner's Notice of Intent to Transfer shall include the infonnation necessaiy for the City to determine the Maximum Restricted Resale Price of the Property, including the following infonnation: ( 1) _ the address of the Property; (2) the date of purchase of the Property by the Owner; (3) the Original Affordable Purchase P1ice of the Property; (4) the Full Purchase Price of the Property (which is the Original Affordable Purchase Price plus the original ainount of the Homebuyer Loan). (5) a copy of the HUD-I Settlement Statement or equivalent document from the close of escrow on the Owner's purchase of the Property; (6) the date on which Owner intends to vacate Property; (7) the name and phone number of the person to contact to schedule inspection of the Property by the City. 9. OWNER PREPARATION OF PROPERTY FOR SALE A. The Owner may not wish to contract with a real estate broker to sell the Property until the Owner has received the City Response Notice pursuant to Section 10 below, as the services of a broker will not be required if the City exercises the City Option to purchase the Property pursuant to Section 12 below. B. Following delive1y to the City of the Owner's Notice of Intent to Transfer, the Owner shall prepare the Property for sale, as follows: (1) within thirty (30) days of delive1y of the Owner's Notice of Intent to Trai1sfer, the Owner shall obtain and deliver to the City a cun-ent written repo1t of inspection of the Property by a licensed structural pest control operator; (2) within the sooner of: (a) sixty (60) days from the date of delive1y of the Owner's Notice of Intent to Transfer; or (b) prior to close of escrow on the Transfer, the Owner shall repair all damage noted in the pest report including damage caused by infestation or infection by wood-destroying pests; (3) within thirty (30) days of the date of the Owner's Notice of Intent to Transfer, the Owner shall allow the City to inspect the Property to determine its physical condition; ( 4) if the Property is vacant, the Owner shall maintain utility connections until the close of escrow on the Transfer; and (5) the Owner shall not remove any kitchen appliances prior to vacating the Property without the City approving such removal; in the event the City approves the removal of any kitchen appliances the Owner shall replace said appliances with new and comparable appliances; and ( 6) in the event of purchase of the Property by the City or City Designated Purchaser, the Owner shall pe1mit a final walk-through of the Property by the City or City Designated Purchaser, in the final three (3) days prior to close of escrow on the Transfer. 10. CITY RESPONSE TO OWNER'S NOTICE OF INTENDED TRANSFER City shall respond in writing (the 11City Response Notice11) to the Owner's Notice of Intent to Transfer. The form of City Response Notice is attached as Exhibit D. The City Response Notice shall inf01m the Owner of the City's election to proceed under one (1) of the following two (2) alternatives: A. City Exercise of City Purchase Option. The City Response Notice may notify the Owner that the City or a City Designated Purchaser elects to exercise the City Option to purchase the Property. The City Response Notice shall be sent within thirty (30) days of City receipt of Owner's Notice of Intent to Transfer and shail include the City's calculation of the: (i) Maximum Restricted Resale Price pursuant to Section 14 below to be paid by the City or a City Designated Purchaser; and (ii) the transaction fee to be paid by the Owner pursuant to Section 12 below; B. Owner Sale at a Restlicted Sales Price to Eligible Purchaser. Alternatively, the City Response Notice may notify the Owner that the City or a City Designated Purchaser will not exercise the City Option to purchase the Property. In this case, the City Response Notice shall inform the Owner that the Owner may proceed to sell the Property to an Eligible Purchaser at a price not to exceed the Maximum Restricted Resale Price, as set forth in Section 14 and pursuant to the procedure set forth in Section 14 below. In this event, the City Response Notice shall include the following info1mation: (1) the maximum qualifying income for an Eligible Purchaser (which shall be the same income category as the Owner at the time of the Owne1Js purchase); (2) the certifications required of an Eligible Purchaser; (3) the Maximum Restricted Resale Price the Owner may receive for the Property, calculated by the City pursuant to Section 14 below; (4) whether Affordable Housing Resale Program assistance from the City may be available to an Eligible Purchaser; and (5) Owner's repayment obligation as required by Section 13; and 11. OWNER ACKNOWLEDGEMENT OF CITY RESPONSE NOTICE No later than seven (7) days following the date of the City Response Notice, the Owner shall acknowledge in writing to the City, in the form shown in the attached Exhibit E, that he/she has received the City Response Notice and still intends to Transfer the Property. 12. CITY PURCHASE OPTION A. The Owner agrees that if the Owner decides to Transfer the Property, the City shall have the option to purchase the Property for the Maximum Restricted Resale Price calculated pursuant to Section 14 of this Agreement (the "City Option"). The Owner shall pay the City a transaction fee up to six percent (6%) of the Maximum Reshicted Resale P1ice if the City or a City Designated Purchaser exercises the City Option and purchases the Property. The City Option may be exercised by the City or by a City Designated Purchaser in the City Response Notice. If the City Response Notice notifies the Owner that the City or a City Designated Purchaser will exercise the City Option to purchase the Property, the City or the City Designated Purchaser shall purchase the Property within ninety (90) days of the date of the City Response Notice and title shall be delivered by the Owner to the City by grant deed free and clear of any m01tgage or other liens, unless approved in writing by the City. B. The City may assign the City Option to another public agency, a nonprofit corporation, or an Eligible Purchaser selected by the City (any of which shall be refeITed to herein as a "City Designated Purchaser"). If the City assigns the City Option to a City Designated Purchaser, the City Response Notice shall be executed by the City Designated Purchaser and shall notify the Owner that a City Designated Purchaser is exercising the City Option in lieu of the City. C. In the event of exercise of the City Option and purchase of the Property by the City or a City Designated Purchaser, the Owner shall pe1mit a final walk-through of the Property by the City or the City Designated Purchaser in the final three (3) days prior to close of escrow on the Transfer. 13. REPAYMENT OF CITY NOTE Upon any Transfer of the Prope1ty, the outstanding principal and interest due under the City Note shall be repaid pursuant to the City Note unless: (i) such p1incipal and interest is assumed by an Eligible Purchaser in accordance with Section 9 of the City Note; or (ii) the City exercises the City Option to purchase the Property, in which event the outstanding amount of principal and Contingent Interest due under the City Note shall be paid to the City in the fonn of a credit against the purchase price to be paid by the City to the Owner. Repayment of the City Note shall not affect Owner's obligation to comply with this Agreement, which shall remain in full force and effect following any repayment of the City Note. 14. DETERMINATION OF MAXIMUM RESTRICTED RESALE PRICE The maximum sales price that the Owner shall receive from the resale of the Property to the City or City Designated Purchaser, or from other sale or Transfer by the Owner when the Owner sends the Notice of Intent to Transfer (the "Maximum Restricted Resale Price") shall be the Full Sales Price or the Fair Market Value, whichever is less. A. Full Sales Price. (1) The Full Sales Price of the Property means: (a) the Affordable Sales P1ice; plus (b) the principal and contingent interest then due on the City Note. The Affordable Sales Price means the Original Affordable Purchase P1ice, as set f01th in Recital D to this Agreement, increased by the percentage of increase in the Median Income from the date of the original purchase of the Property by the Owner to the date ofreceipt by the City of the Owner's Notice of Intent to Transfer. "Median Income" shall refer to the median yearly income, adjusted for a household size of four, in San Diego County, as published by the California Deprutment of Housing and Community Development C'HCD11), or, in the event such income dete1mination is no longer published by HCD, or has not been updated for a period of at least eighteen ( 18) months, the City may use or develop such other reasonable method as it may choose in order to detennine the median yearly income in San Diego County. As of the date of Owner's purchase of the Property, the Median Income for a household of four persons is One Hundred Thilty Thousand and Eight Hundred Dollars ($130,800). (2) The Affordable Sales Price shall include a downward adjustment, where applicable, in an amount necessary to repair any violations of applicable building, plumbing, electric, fire or housing codes or any other provisions of the City of Carlsbad Building Code, as well as any other repairs needed to put the Property into a "sellable condition". Items necessary to put a Property into sellable condition shall be detennined by the City, and may include cleaning, painting and making needed stmctural, mechanical, electlical, plumbing and fixed appliance repairs and other defe1Ted maintenance repairs. B. Fair Market Value. In certain circumstances it may be necessary to dete1mine the fair market value of the Property without taking account of the resale resti·ictions imposed by this Agreement (the 11Fair Market Value"). These circumstances include but are not limited to: (I) where the parties wish to dete1mine if the Full Sales Price exceeds the Fair Market Value in order to determine the Maximum Reshicted Resale Price pursuant to this section; (2) where the parties wish to determine if the sales pdce of the Property to a Market Purchaser is comparable to the Fair Market Value; and (3) to calculate the amount due under the City Note at the end of the term of the City Note or upon prepayment. If it is necessary to determine the Fair Market Value of the Property, it shall be dete1mined by a certified MAI or other qualified real estate appraiser approved in advance by the City. If possible, the appraisal shall be based upon the sales pdces of comparable properties sold in the market area during the preceding three (3) month period. The cost of the appraisal shall be paid by the Owner, unless the appraisal is obtained from a new purchaser. Nothing in this section shall preclude the Owner and the City from establishing the Fair Market Value of the Property by mutual agreement i11 lieu of an appraisal pursuant to this section. 15. SALE BY OWNER IF CITY DOES NOT EXERCISE OPTION TO PURCHASE In the event the City Response Notice notifies the Owner to proceed to sell the Property to an Eligible Purchaser at a price not exceeding the Maxilnum Restricted Resale Price, the Owner may proceed to sell the Property in compliance with the following requirements: A. Marketing. The Owner shall use bona fide good faith efforts to sell the Property to an Eligible Purchaser in compliance with this section, including listing the Property on the Multiple Listing Service, keeping the Property in an orderly condition, making the Property available to show to agents and prospective buyers, and providing buyers with Eligible Purchaser requirements, including income qualifications and the City's f01m of disclosure statement summaiizing the terms of the buyer's occupancy and resale reshiction agreement with option to purchase. A proposed purchaser ("Proposed Purchaser") who the Owner believes will qualify as an Eligible Pm-chaser shall be refen-ed to the City for an eligibility dete1mination. If the Proposed Purchaser qualifies as an Eligible Purchaser the City will also determine if such Eligible Purchaser is eligible for City housing-related financial assistance that may be available at the time of resale. B. Eligible Purchaser. A Proposed Purchaser shall qualify as an "Eligible Purchaser" ifhe or she meets the following requirements, as determined by the City: (1) Income Eligibility. The combined maximum income for all household members of the Proposed Purchaser shall not exceed the income level designated by the City in the City Response Notice. (2) Intent to Owner Occupy. The Proposed Purchaser shall certify that he or she will occupy the Property as to his or her principal place of residence throughout his or her ownership. Co-signers who will not occupy the property are prohibited. (3) Agreement to Sign Resale Restriction Agreement and to Cooperate with the City. The Proposed Purchaser shall agree to sign a resale restriction agreement restricting future resale of the Property and shall agree to cooperate fully with the City in promptly providing all info1mation requested by the City to assist the City in monitoring the Proposed Purchaser's compliance with the resale restriction agreement. C. Maximum Restricted Resale Price. The purchase price for the sale of the Property by the Owner to the Eligible Purchaser shall not exceed the Maximum Restricted Resale Price calculated by the City pursuant to Section 14 above, as set fo1th in the City Response Notice. The closing costs paid by the Eligible Purchaser shall not exceed reasonable customary buyer's closing costs in the County of San Diego. Pursuant to Section 13 of this Agreement and Section 9 of the City Note, the Eligible Purchaser may assume the Home buyer Loan and the effective purchase price that the Eligible Purchaser will pay for the Property is anticipated to be the Affordable Sales Price. D. Disclosure and Submittals. The Owner and the Proposed Purchaser shall provide the following information and documents to the City: (1) The name, mailing address, telephone number, and email address in writing of the Proposed Purchaser. (2) A signed financial statement of the Proposed Purchaser in a fonn acceptable to the City and any other suppmting documentation requested by the City. The financial infonnation shall be used by the City to detennine the income eligibility of the Proposed Purchaser. (3) The proposed sales contract and all other related documents which shall set forth all the terms of the sale of the Property. Said documents shall include at least the following te1ms: (a) the sales price; and (b) the price to be paid by the Proposed Purchaser for the Owner's personal Property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any. ( 4) A written certification, from the Owner and the Proposed Purchaser in a fonn acceptable to the City that the sale shall be closed in accordance with. the te1ms of the sales contract and other documents submitted to and approved by the City. Thi ce1tification shall also provide that the Proposed Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Proposed Purchaser or any other party, money or other consideration, including personal property, in addition to what is set fo1th in the sales contract and documents submitted to the City. The written ce1tification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or ce11ification submitted to the City, the City shall have the right to foreclose on the Property or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Proposed Purchaser for the retum of any moneys paid or received in violation of this Agreement or for any of the Owner's and/or the Proposed Purchaser's costs and legal expenses, shall be home by the Owner and/or the Proposed Purchaser and they shall hold the City hannless and reimburse the City's expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the te1ms of this Agreement. (5) An executed buyer's resale restriction agreement and deed of trust to the City from the Proposed Purchaser in fmms provided by the City. If the Proposed Purchaser is receiving assistance from the Affordable Housing Resale Program, a promiss01y note to the City shall also be required. The recordation of the new deed of trust and buyer's resale restriction agreement shall be a condition of the City's approval of the proposed sale. (6) The name of the title company escrow holder for the sale of the Property, the escrow number, and name, address, and phone number of the escrow officer. (7) Upon the close of the proposed sale, certified copies of the recorded City deed of trust and buyer's resale restriction agreement, a copy of the final sales contract, settlement statement, escrow instrnctions, and any other documents which the City may reasonably request. 16. PAYMENT TO CITY OF EXCESS SALES PROCEEDS If the Owner makes a Transfer in violation of this Agreement at any time, the Owner shall pay the Excess Sales Proceeds to the City. If the Owner Transfers the Property in violation of this Agreement, the Appreciation Amount (as such tennis defined in the City Note) shall be calculated using the Maximum Restricted Resale Price of the Prope1ty, rather than the actual sales price. For purposes of this Agreement, "Excess Sales Proceeds11 shall mean ninety-four percent (94%) of the amount by which the gross sales proceeds received by the Owner from the new purchaser exceed the Maximum Restricted Resale Price for the Property. This amount shall be a debt of the Owner to the City, further evidenced by the City Note, and secured by the City Deed of Trust. The Owner acknowledges that the City shall have no obligation to cause the release and te1mination of this Agreement, or the reconveyance of the City Deed ofTrnst, until the Excess Sales Proceeds are paid to the City. The City shall utilize the Excess Sales Proceeds for City affordable housing programs. The Owner and the City acknowledge that the fmmula for calculation of the amount of Excess Sales Proceeds due from the Owner to the City is intended t.o cause the Owner to receive the same net sales proceeds (following payment by Owner of a standard broker's commission) from sale of the Property at an unrestricted price to a market purchaser (in violation of this Agreement) as the Owner would receive from sale of the Prope1ty to the City, City Designated Purchaser or to an Eligible Purchaser at the Maximum Restricted Resale Price. 17. DEFAULTS A. A Default by the Owner is any failure to comply with the requirements of this Agreement, the City Note or the City Deed of T1ust, whether by commission or omission which includes, but is not limited to the following: (1) The City detennines that the Owner has made a misrepresentation to obtain the benefits of purchase of the Property or in connection with its obligations under this Agreement. (2) TI1e Owner fails to owner occupy the Property, as required pursuant to Section 3 above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure following the date of such notice. (3) The Owner rents all or a portion of the Property in violation of Section 4 above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure. ( 4) TI1e Owner fails to provide information or documents to the City that the City deems necessary to determine Owner's compliance with the requirements of this Agreement. (5) The Owner makes a Transfer in violation of this Agreement. ( 6) A notice of default is issued under First Lender Loan. (7) A lien is recorded in the Official Records against the Property other than the First Mortgage. (8) Owner records a deed of trust against the Property in the Official Records, or otherwise places a m01tgage on the Property in violation of Section 28 below. (9) Owner declares banlo.uptcy or malces an assignnient of assets for the benefit of creditors. B. . Upon a declaration of Default by the City under this Agreement, the City may exercise any remedies at law or in equity, including without limitation, any or all of the following: (I) Declare all Excess Sales Proceeds immediately due and payable without further demand, accelerate payments due under the City Note and invoke the power of sale under the City Deed of Trust; (2) Apply to a comt of competent jurisdiction for such relief at law or in equity as may be appropriate, including, but not limited to specific perfonnance. (3) Declare a Default under the City Note and the City Deed of Trust and pursue all City remedies under the City Note and the City Deed of Trnst; and (4) Exercise the City Option upon Default as described in Section 21, below. Owner acknowledges that any breach in Owner's pe1formance of Owner's obligations under this Agreement shall cause iiTeparable haim to the City. Therefore, Owner agrees that the City is entitled to equitable relief in the fonn of specific pe1formance upon its exercise of the City Option set forth in Section 21, below, and that an award of damages may not be adequate to compensate the City for Owner's failure to perform according to the terms of this Agreement. The City, in its sole and absolute discretion, may elect the appropriate remedy for Owner's default under this Agreement. 18. NOTICE AND CURE Upon a violation of any of the provisions of this Agreement, the City Note or the City Deed of Trnst, the City shall give written notice to the Owner specifying the nature of the violation and demanding a cure. If the violation is not corrected to the satisfaction of the City within a reasonable period of time, not longer than thiliy (30) days from the date the notice is mailed, or within such further time as the City detennines is necessary to conect the violation, or if the Owner is in default under the First Mortgage, the City may declai·e a Default under this Agreement. If the violation is failure to occupy the Prope1iy, as set forth in Section 3, or any rental of the Prope1iy or any other act prohibited by Section 4, then Owner shall be given sixty (60) days from the date the notice is mailed to conect that violation, and, to the extent applicable, remit all Unauthorized Rental Proceeds to the City before the City may declare a Default. The City shall notify Fil'st Lender at the address provided by the First Lender to the City in the manner set fo11h in Section 33 of this Agreement, if the City has declared a Default under this Agreement or under the City Note or City Deed of Trnst. 19. NOTICE TO CITY OF DEFAULT A request for notice of default and any notice of sale under any deed of trnst or m01tgage with power of sale encumbering the Property shall be recorded by the City in the Official Records for the benefit of the City. The City may declare a default under this Agreement upon receipt of any notice given to the City pursuant to Civil Code Section 2924b and may exercise its rights as provided in Sections 18 and 21. In the event of default and foreclosure under the First Lender Loan or any other m01tgage loan on the Prope1iy, the City shall have the same right as the Owner to cure defaults and redeem the Prope1iy prior to the foreclosure sale. Nothing herein shall be construed as creating any obligation of the City to cure any such default, nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed oftiust or mortgage. If the City failed to file the request for notice of default, the City's right to purchase the Prope1iy shall commence from the date a notice of default is given by the City to the Owner. 20. PURCHASE OPTION UPON DEFAULT A. Purchase Option. Notwithstanding, and in addition to, the remedies provided the City in Section 18, and the City Purchase Option provided in Section 12, the Owner hereby grants to the City or the City Designated Purchaser the option to purchase the Property effective upon the declaration of a Default by the City pursuant to Section 18 and Section 19 above, and subject to notice and cure rights set forth in Section 19. B. Exercise of Option. The option to purchase may be exercised upon a Default under this Agreement or upon default under any promissory note, deed of trust or any other lien, including a judgment lien, recorded against the Property. The City shall have thirty (30) days after a Default is declared to notify the Owner and the First Lender of its decision to exercise its option to purchase. Not later than ninety (90) days after the notice is given by the City to the Owner of the City's intent to exercise its option, the City shall purchase the Property for the Maximum Restlicted Resale Price set fmth in Section 14. The City may assign its rights to purchase the Prope1ty under this section to a City Designated Purchaser. 21. NONLIABILITY OF THE CITY A. No Obligation to Exercise Option. The City shall have no obligation to exercise any option granted it under this Agreement. In no event shall the City become in any way liable or obligated to the Owner or any successor-in-interest to the Owner by reason of its option to purchase under Sections 12 and 21 nor shall the City be in any way obligated or liable to the Owner or any successor-in-interest to the Owner for any failure to exercise its option to purchase. B. Nonliability for Negligence, Loss, or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and the City is solely that of an owner and an administrator of a City inclusionary housing program, and that the City does not unde1take or assume any responsibility for or duty to Owner to select, review, inspect, supervise, pass judgment on, or inform Owner of the quality, adequacy or suitability of the Prope1ty or any other matter. The City owes no duty of care to protect Owner against negligent, faulty, inadequate or defective building or construction or any condition of the Property and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or asse1t any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Prope1ty and will hold the City harmless from any liability, loss or damage as set fmth in Section 22( c ). Any review by the City of any documents submitted by the Owner to the City pursuant to this Agreement, including, but not limited to any purchase and sale agreement for the Prope1ty, is solely to confitm compliance with the requirements of this Agreement and shall not be deemed to be a representation of any kind of the validity or legal enforceability of such document(s). C. Indemnity. Owner agrees to defend (with counsel reasonably selected by the City), indemnify, and hold the City hannless from all losses, damages, liabilities, claims, actions, judgments, and costs, including expenses, and reasonable attorneys' fees that the City may incur, as a direct or indirect consequence of: (1) Owner's default, performance, or failure to perf01111 any obligations as and when required by this Agreement, the City Note, or the City Deed of Trust; or (2) the failure at any time of any of Owner's representations to the City to be true and correct. This provision shall survive the termination or expiration of this Agreement, and the reconveyance of the City Deed of Trust. 22. RESTRICTIONS ON FORECLOSURE PROCEEDS If a creditor acquires title to the Property through a deed in lieu of foreclosure, a trustee's deed upon sale, or othe1wise, the Owner shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited to the creditor exceed the Maximum Restricted Resale Pdce. The Owner shall instrnct the holder of such excess proceeds (in addition to other amounts due to the City pursuant to the City Note and this Agreement) to pay such proceeds to the City in consideration of the benefits received by the Owner through purchase of the Property under this Agreement. 23. RESTRICTION ON INSURANCE PROCEEDS If the Property is damaged or destroyed and the Owner elects not to rebuild or repair the Property, the Owner shall pay the City the po1tion of any insurance proceeds received by the Owner for such destruction or damage which is in excess of the Maximum Restricted Resale Price calculated pursuant to Section 14 above. 24. TERM OF AGREEMENT All the provisions of this Agreement, including the benefits and burdens, rnn with the land and the Prope1ty and this Agreement shall bind, and the benefit hereof shall inure to, the Owner, his or her heirs, legal representatives, executors, successors in interest and assigns, and to the City and its successors until the earlier of: (i) tl1irty (30) years from the date of recordation of this Agreement in the Official Records; or (ii) the date of Transfer of the Prope1ty to the City or another purchaser in compliance with this Agreement (including execution by the purchaser of a new resale restriction agreement for the benefit of the City). 25. SUPERIORITY OF AGREEMENT The Owner covenants that he or she has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions of this Agreement hereof, and that, in any event, this Agreement is controlling as to the rights and obligations between and among the Owner, the City and their respective successors. 26. SUBORDINATION Notwithstanding any other provision hereof, the provisions of this Agreement shall be subordinate to the lien of the First Lender Loan and shall not impair the rights of the First Lender, or the First Lender's successor or assign, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed or assignment in lieu of foreclosure, this Agreement shall be forever te1minated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed ofTmst acquired title to the Prope1ty pursuant to a deed or assignment in lieu of foreclosure, this Agreement shall automatically terminate upon such acquisition of title, provided that: (i) the City has been given w1itten notice of default under such First Lender Deed ofTmst; and (ii) the City shall not have cured or commenced to cure the default within such thirty (30) day period and given its firm commitment to complete the cure in the fonn and substance acceptable to the First Lender. Owner agrees to record any necessary documents to effect such tennination, if applicable. 27. REFINANCEOFFIRSTLENDERLOAN The outstanding principal on the City Note shall not be due upon prepayment and refinancing of the First Lender Loan, and this Agreement and the City Deed ofTmst shall be subordinated to the refinanced First Lender Loan, provided that: (i) such refinancing 'is approved by the City; (ii) the amount refinanced does not exceed the outstanding p1incipal balance of the First Mortgage at the time of refinance plus reasonable costs of refinance; and (iii) the refinance does not result in higher monthly payments on the First Lender Loan than were due prior to the refinance. Mortgage loans or equity lines of credit junim· in lien priority to the City Deed of Tmst are not permitted. Owner acknowledges that such prohibition on junior liens was granted in consideration for the receipt of the Homebuyer Loan on favorable tenns that have assisted the Owner acquire the Property for Original Affordable Purchase Price, and that without such fmancial assistance from the City, the Owner would not be able to pay the Original Affordable Purchase P1ice, or othe1wise acquire the Property. The City and the Owner agree that the requirements of this section are necessary to ensure the continued affordability of the Property to Owner and to minimize the Iisk of loss of the Property by Owner through default and foreclosure of mortgage loans. Owner further acknowledges that violation of the provisions of this section shall constitute a Default under this Agreement. A f01m for use by the Owner in requesting City subordination to a refmanced First Lender Loan is attached hereto as Exhibit F. 28. NONDISCRIMINATION The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual oiientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Property. The foregoing covenant shall run with the land. 29. RIGHTS OF BENEFICIARIES UNDER DEEDS OF TRUSTS This Agreement shall not diminish or affect the rights of the City under the City Note and the City Deed ofTmst. Notwithstanding any other provision in this Agreement to the contrary, this Agreement shall not diminish or affect the rights of the California Housing Finance Agency ("CalHFA"), the United States Department of Housing and Urban Development ('1HUD11), the Federal National Mortgage Association ("FNMA"), or the Veterans Administration (11VA11) under the First Lender Deed of Trust or any subsequent First Lender deeds of tmst hereafter recorded against the Property in compliance with Section 28 above. 30. HUD FORBEARANCE RELIEF Notwithstanding other provisions of this Agreement, the Option shall not be exercised by the City when a deed of trust insured by HUD is secured by the Property, and: (i) the Owner is undergoing consideration by HUD for assignment forbearance relief; or (ii) the Owner is undergoing consideration for relief under HUD's Temporary Mortgage Assistance Payment (TMAP) program. 31. INVALID PROVISIONS If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be constrned as if such invalid, illegal or unenforceable provision had never been contained herein. 32. NOTICES All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt or personally delivered with delivery receipt obtained and shall be deemed to be effective as of the date shown on the delivery receipt as the date of delivery, or the date delivery was refused as indicated on the return receipt, or the date Notice was returned as undeliverable as follows: To Owner: 6172 Colt Place No. 103 Carlsbad, CA 92009 To the City: , City of Carlsbad Housing & Homeless Services 1200 Carlsbad Village Drive Carlsbad, CA 92008 The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this section. 33. INTERPRETATION OF AGREEMENT The te1ms of this Agreement shall be interpreted so as to avoid speculation on the Property and to insure to the extent possible that the m011gage payments remain affordable to lower-income households. Owner acknowledges that, pursuant to this Agreement, in addition to other rights of the City set f011h herein, the Owner has granted the City multiple options to purchase the Property (as more pa11icularly set forth in Section 12 and Section 21), and that each option to purchase is given in consideration of the economic benefits received by the Owner resulting from ownership of the Prope11y made possible by the financial assistance provided by the City to the Owner for the purchase of the Prope11y. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both pai1ies had prepared it. The parties have read and reviewed this Agreement and agree that any rnle of constrnction to the effect that ambiguities are to be resolved against the drafting party (including but not limited to Civil Code Section 1654 as may be amended from time to time) shall not apply to the interpretation of this Agreement. In the event of any conflict between the terms of this Agreement, and the tenns of the disclosure statement executed by the City and the Owner in conjunction with this Agreement, the te1ms of this Agreement shall prevail. 34. CONTROLLING LAW; VENUE The te1ms of this Agreement shall be interpreted under the laws of the State of California. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the venue for such action shall be the Superior Court of the County of San Diego. 35. ATTORNEYS1 FEES In the event any action or proceeding in comt or other dispute resolution mechanism pennitted under this Agreement is commenced by either party to inte1pret or enforce the terms of this Agreement, the prevailing party therein shall be entitled to recover from the non-prevailing paity all of the prevailing party's reasonable costs and expenses in connection therewith, including on any appeal and including expert witness fees, document copying expenses, exhibit preparation costs, carrier expenses and postage and communication expenses, and reasonable attorneys' fees and costs for the services rendered to the prevailing party in such action or proceeding (which shall include the reasonable costs for services of the City's in-house counsel). 36. TIME IS OF THE ESSENCE In all matters under this Agreement, the parties agree that time is of the essence. 37. TITLE OF PARTS AND SECTIONS Any titles of the aiticles, sections or subsections of this Agreement ai·e inse1ted for convenience of reference only and shall be disregarded in constming or interpreting any part of its provision. 3 8. EXHIBITS Any exhibits refen-ed to in this Agreement are inco1porated in this Agreement by such reference. 39. INTERPRETATION Where the context requires herein, the singular shall be construed as the plural, and neuter pronouns shall be constmed as masculine and feminine pronouns, and vice versa. References in this Agreement to days shall be to calendar days. If the last day of any period to give or reply to a notice, meet a deadline or unde1take any other action occurs on a day that is not a day of the week on which the City of Carlsbad is open to the public for can-ying on substantially all business :functions (a "Business Day"), then the last day for giving or replying to such notice, meeting such deadline or unde1taking any such other action shall be the next succeeding Business Day. In no event shall a Saturday or Sunday be considered a Business Day. The use in this Agreement of the words "including", 11such as11 or words of similar imp01t when used with reference to any general term, statement or matter shall not be constlued to limit such statement, tenn or matter to the specific statements, terms or matters, unless language of limitation, such as "and limited to" or words of similar import are used with reference thereto. 40. NON-WAIVER OF BREACH Neither the failure of the City to insist upon strict perfonnance of any of the covenants and agreements of this Agreement, nor the failure by the City to exercise any rights or remedies granted to the City under the tenns of this Agreement shall be deemed a waiver or relinquishment of: (i) any covenant contained in this Agreement, or of any of the rights or remedies of the City under this Agreement; or (ii) the right in the future of the City to insist upon and to enforce by any appropriate, legal remedy a strict compliance with all of the covenants and conditions of this Agreement. 41. OWNER1S ACKNOWLEDGEMENT OF RESALE RESTRICTION Owner hereby acknowledges and agrees that: A. Owner hereby subjects the Property to the restii.ctions set forth above, and hereby limits the price for which Owner may sell the Property and the persons to whom Owner may sell the Prope1ty as set f01th above. The resale price limitation and other provisions contained in this Agreement restrict the full benefits of owning the Prope1ty. Owner may not enjoy the same economic or other benefits from owning the Prope1ty that Owner would enjoy if this Agreement did not exist. B. Owner acknowledges that the City provided the Homebuyer Loan to the Owner because of the Owner's income eligibility, and the Owner fmther acknowledges that this Agreement requires that the Property be made available to Eligible Purchasers at an affordable price. C. Owner understands all of the provisions of this Agreement. In recognition of the acknowledgments and agreements stated in this Section, Owner accepts and agrees to the provisions of this Agreement with the understanding that this Agreement will remain in full force and effect as to the Property following any Transfer of the Prope1ty throughout the Tenn. D. OWNER UNDERSTANDS THAT THE DETERMINATION OF THE MAXIMUM RESTRICTED RESALE PRICE OF THE PROPERTY TO AN ELIGIBLE PURCHASER CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INCREASES IN MEDIAN INCOME AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE SALES PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS AGREEMENT OR SUBJECT TO THE CITY'S AFFORDABLE HOUSING RESALE PROGRAM. OWNER FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE SALES PRICE OF THE HOME, THE PRIMARY OBJECTIVE OF THE CITY AND THIS AGREEMENT IS TO IMPLEMENT THE CITY'S AFFORDABLE HOUSING RESALE PROGRAM IN ORDER TO PROVIDE HOUSING TO ELIGIBLE PURCHASERS AT AN AFFORDABLE HOUSING COST. THE MAXIMUM RESTRICTED RESALE PRICE COULD BE LESS THAN OTHER SIMILAR PROPERTIES THAT HA VE NO RESTRICTIONS. NOTWITHSTANDING SUCH LIMITATIONS AND RESTRICTIONS IMPOSED ON THE PROPERTY PURSUANT TO THIS AGREEMENT, OWNER DESIRES TO OBTAIN THE HOMEBUYER LOAN AND HA VE THE PROPERTY SUBJECT TO THIS AGREEMENT. 42. COUNTERPARTS ,#ffl'l I r,..W' (Initials of Owners) This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts, which shall constitute one and the same agreement. Remai11de1· of Page Left l11te11tio11ally Blank IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first written above. CITY: CITY OF CARLSBAD, a municipal corporation Dated: r , :~~ Moharnm~ Nfm Mehr Dated: / f/2-2/7.,,0 Z--5 OWNER: Madina Mehr Dated: ,q-2 'Z -2 o 2-S: (Proper notarial ack11owledgme11t of exec11tio11 11111st be attached) SEE ATTACHED CERTIFICATE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego on October 30, 2025 before me, Shelby Nelson, Notary Public (insert name and title of the officer) personally appeared _S_h_e_i_la_C_o_b_i_a_n ____________________ _, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) I 2 in 1 CERTIFICATION I Pursuant to the provision of Government Code 27361.7, I certify under penalty of perjury that the Notary Seal on the document to which this statement is attached reads as follows: Name of Notary: Shelby Nelson Commission No. 2529064 County where Bond is filed: San Diego Commission expiration date: 8-31-2029 Manufacturer or Vendor No. NNAI Pursuant to the provision of Government Code 27361.7, I certify under penalty of perjury that the illegible portion of this document to which this statement is attached reads as follows: Sheila Cobian, Assistant City Manager Place of Execution: SAN DIEGO Date: 11-4-2025 i Signature: hct~~ ~ AGENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate rerifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego } On ~(;{-OW ~d-• c9.ti:;_!j before me, C. Peterson, Notary Public, personally appeared CC/tU!mmrd lturn P')ehr a.nd rr;o.c1.az fY)e,hr who proved to me on the basis of satisfactory evidence to be the person(s) whose n~ is/are subscribed to the within instrument and acknowledged to me thatlie7slre7they executed the same in his/her/their authorized CJ!Pacity~s), and that by hi:siher/their signature{s) on the instrument the P,erson(s)1.or the entity upon behalf of which the p~rson(~) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of State of California that the foregoing paragraph is true and correct. eeeeeeeef C. PETERSON Notary l'ubllc • California : San Diego County i; Comm!ss!on 112410814 - V Comm. Expires Au118, 1026 PLACE! NOTARY SEAL ABOVE WITNESS my hand and official seal. SIGNATURE c_j)c........-- Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of attached document 'tie or e of doc ent: fY2 [ CA---h'tra es--h,-; ;ti Document Date: 0(;--tc\o-er Q..O, Qb < Number of Pages: ______ _ Signer(s) Other than Named Above:_..S_h_~ ___ V>_b=----j y__._Q ___________ _ EXHIBIT A LEGAL DESCRIPTION OF PROPERTY ADDRESS: 6172 Colt Place #103, Carlsbad, CA 92009 ASSESSOR PARCEL NO.: 213-262-22-18 A-1 For APN/Parcel ID(s): 213-262-22-18 EXHIBIT A Legal Description THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: A CONDOMINIUM COMPRISED OF: PARCEL 1: AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN THE MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS SHOWN ON THE AMENDED AND RESTATED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON JUNE 13, 2019, AS DOCUMENT NO. 2019-230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO (COLLECTIVELY "CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT 1 OF CARLSBAD TRACT NO. 14-09 UPTOWN BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 2018 ("MAP"). PARCEL 2: RESIDENTIAL UNIT NO. 18, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN; EXCEPTING FROM PARCELS 1 AND 2, ALL EASEMENTS RESERVED IN THE DECLARATION, CORPORATE DECLARATION, AND EASEMENT, MAINTENANCE, AND COST SHARING DECLARATION (ALL DEFINED BELOW), THE CONDOMINIUM PLAN, THE MAP, AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF. PARCEL 3: AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY, DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES DESCRIBED IN THE DECLARATION. PARCEL 4: A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS AND EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY DESCRIBED AS STREET MODULE A, STREET MODULE B, STREET MODULE C, AND STREET MODULE 0, AS SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-380430, WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE. PARCEL 5: A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS, IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY DESCRIBED IN THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE AND A PUBLIC STREET. EXHIBITB FORM OF OWNER OCCUPANCY CERTIFICATION NAME ADDRESS CITY Re: 2024 Affordable Housing Owner Occupancy Certification Per your Promissory Note requirements with the City of Carlsbad, please complete and return this form and proof of resldene;r to our office or by postage paid envelope by March. 1, 2024. By checking and signing below~ I/we hereby certi/}1 to the City of Corlsbad, under penalty of p.e1jury1 that I/we occupy the home located at the address listed above os my/our principal place of residence and that I/we occupy the home for at least 10 months of the calendar year. □ I understand that the city may inspect tile property lf there is reason to believe the owners are not occupying the property. □ I understand leasing. subleasing, or renting any part of the property is strictly prohibited and constitutes a default under this agreement. As proof of residencv, I have included: D A current copy of a utility biU with m'tr name and address or □ A copy of mv driver's license witll my address. Please list all household members residing in the home: _____________ _ ~: Mi\:<Y-NG ;>t\!SS S1.4.TEMe.!l"S 1.5:. fELO\l\' UR!iERCf,LIFOfi:.,l,'.'ASTl\1£ !.AW fl'E"N.!tl. O::,;J,iSECT,otlS: llS,, ! 13, 11117, S:32l Ii. Ml\'f ;)Erul TIN tR"-\!IM,41. CHI\RGl:S Jr<CWDltlG Pt.~11Jiff,.Gf/Jlf~IJ 1HEH, HWIS f>\!SE DOCtl\lErfTS ,.v;r::.;; ,\ :'lJ3UC Ol'ff::E & OBTA"-'IIL'IIG MO.l-.ln' UHDER FALSE PRE1Etl!.ES. [}.! I\Otl';lJOJ.1, '!J.'f,HO ST,!, TES C:OllE UltDER 'TITtE lS; SECTIOO tlllll STA!ES THAT' JI, F1:ll.'.;c« IS ~1.1. lY •:lF A FELO'fl' FOR IU'iO\Vi:~G!. Y & WllUN•3W MAl:ltJG ;:.LSE STATEMWl!i 10 ,\ Vt' OEPMTME1ff 00 :t..mcv OF THE UIIIT:DSTAf!'S,. Signature: Signature: Print Name: Print Name: Date: Date: Email: Email: Phone: Phone: C-1 EXHIBITC FORM OF OWNER'S NOTICE OF INTENT TO TRANSFER To: City of Carlsbad ("City") From: __________ I name of owner(s)] ("Owner(s)") Property Address: ___________ ("Property") Date: Please be notified pursuant to Section 8 of the Resale Restriction Agreement and Option to Pm-chase between Owner and City dated ______ that the Owner intends to transfer the Property listed above. A. The following infonnation is provided to the City pursuant to Section 8 of the Resale Agreement: I. Property Address: 2. Date Owner purchased Property: 3. Original Affordable Purchase Price: 4. Original amount of Homebuyer Loan: 5. Full Purchase Price: 6. Date Owner intends to vacate Property: 7. Contact info1111ation: (name) (phone number) (email) (name) (phone number) (email) B. As required by Section 8 of the Resale Restriction Agreement, the following the HUD-1 Settlement Statement from Owner's pm-chase of the property is attached. C-1 C. I have not listed the Property for sale with a multiple listing service, or contacted a real estate broker or financial institution. I agree to prepare the Property for sale by: 1. obtaining a pest control report within thirty (30) days of the date of this notice; 2. repairing all damage noted in the pest report within the sooner of: (i) sixty (60) days from the date of this notice; or (ii) two (2) weeks prior to close of escrow or the transfer of the Property; 3. allowing the City or its designee to inspect the Property within thirty (30) days of this notice; 4. maintaining utility connections until the Property is transfen-ed; 5. not removing any kitchen appliances p1ior to vacating the Property without the City approving such removal; and 6. pe1mitting a walk through by the City prior to close of escrow or the transfer. This Owner's Notice of Intent to Transfer is certified by Owner to be tme and c01Tect and is signed on the date(s) below under penalty ofpe1jmy. By: Owner signature Date: By: Owner signature Date: C-1 EXHIBITD FORM OF CITY RESPONSE NOTICE To: _________ (110wner(s)11) From: City of Carlsbad (11 City11) Address of Property: ___________ (11Prope1ty11) Date: Thank you for delivering the Notice of Intent to Transfer. This letter is the City Response Notice described in Section 10 of the Resale Restriction Agreement that was recorded against title to your home. The City: 1. __ City will check this Sentence #1 and complete other infmmation listed in #1 if the City intends to exercise its option to purchase the Prope1ty or assign its option to the Prope1ty to a Designated Purchaser at any point during the entire Te1m of Resale Restriction Agreement A. Affordable Sales Price: $ ------- B. Amount owed on Homebuyer Loan: $ ________ _ C. Full Sales Price (add numbers in l(A) and l(B)): $ ____ _ D. Fair Market Value (as estimated by the City): $ _____ _ The Price for which you may sell your Prope1ty ( or the Maximum Restricted Resale Price) (The greater of l(C) and l(D)): $ ______ _ In connection with the City's Option, you will owe a$ ___ to City. If the City has assigned its option, the name of Designated Purchaser is _____ _ The City or its Designated Purchaser will follow up with you to complete the sale of your Property. If a Designated Purchaser purchases your Prope1ty, that designated purchaser may assume the amount you owe on the Homebuyer Loan. If the City purchases your Prope1ty, the D-1 amount you owe on the Homebuyer Loan shall be credited against the purchase price paid by the City. 2. ___ City will check this Sentence #2 and complete other infonnation listed in #2 if the City intends for Owner to sell the Property to an Eligible Purchase <luting years 1-30 of the Resale Restriction Agreement. A. Affordable Sales Price: $ ------- B. Amount owed on Homebuyer Loan:$ ________ _ C. Full Sales Plice (add numbers in l(A) and l(B)): $ _____ _ D. Fair Market Value (as estimated by the City):$ _____ _ The total price for which you may sell your Property ( or the Maximum Restricted Resale Price) (the greater of l(C) and l(D)): $ ______ _ As noted in 2(B) above, the amount owed on the Homebuyer Loan is$ ____ . An Eligible Purchaser is likely to assume the City Note and will tl1en agree to repay the amount of the Homebuyer Loan. You must market your Property to an "Eligible Purchaser" as required by Section 15 of the Resale Restriction Agreement. The Maximum Qualifying Income of Eligible Purchaser is: ___ Ve1y Low Income Household (50% of Area Median Income) 1 person household$ ______ _ 2 person household $ _____ _ 3 person household$ ______ _ 4 person household$ ______ _ 5 person household$ ______ _ 6 person household$ ------- ___ Low Income Household (80% of Area Median Income) 1 person household $ ------- D-2 2 person household $ ______ _ 3 person household $ ______ _ 4 person household $ ______ _ 5 person household $ ______ _ 6 person household $ ------- When you locate a proposed purchaser ofyom Property, you must provide the City with the infonnation listed in Section 15(B) of the Resale Restriction Agreement and 15(D){l) through (4). Upon sale of your Property to a proposed purchaser who has been approved by the City as an Eligible Purchaser, you must provide the infmmation required by Section 15(0)(5) through (7). CITY: Name: ------------- Title: Date: Designated Purchaser (if applicable): Name: ____________ Name: ____________ _ Date: Date: All questions regarding this notice should be directed to _________ _ D-3 EXHIBITE FORM OF OWNER ACKNOWLEDGEMENT OF CITY RESPONSE NOTICE Name: Address of Property: I (We), ____________ [insert name(s)J hereby aclmowledge that I (We) received the City Response Notice (as described in Section 10 of the Resale Restriction Agreement on ____ [insert date(s)]. By: Owner signature Date: _________ _ By: Owner signature Date: E-1 To: From: EXHIBITF FORM OF OWNER REQUEST FOR CITY SUBORDINATION TO REFINANCED FIRST LENDER LOAN Prope1ty Address: City of Carlsbad ("City") ________________ ("Owner(s)") ________________ (11Prope1ty11) The Owner hereby requests the City to approve the Owner's refinance of the existing first mortgage on the Prope1ty. The Owner provides the following infonnation which it ce1tifies to be true and con-ect: 1. Oliginal Affordable Purchase Price of Property: $ ______ _ 2. Original Homebuyer Loan Amount 3. Full .Purchase Price of Property (1 plus 2) $ _____ _ 3. Original principal balance of existing First Lender Loan: $ ______ _ 4. Interest rate of existing First Lender Loan: $ ______ _ 5. Outstanding principal balance of existing First Lender Loan: $ ------- 6. Monthly payments due on existing First Lender Loan $ ______ _ 7. Principal amount of proposed new First Lender Loan: $ ______ _ 8. Interest rate of Proposed new First Lender Loan: $ ______ _ 9. Monthly payments to be due on new First Lender Loan: $ ______ _ The Owner hereby certifies the above infonnation is true and conect and this Owner(s) Request is executed under penalty ofpe1jmy on the date(s) below. By: Owner signature Date By: Owner signature Date F-1 Recording Requested by: Fidelity National Title San Diego Office RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 When Recorded Mail To: City of Carlsbad Housing Services Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 DOC# 2025-0312748 111111111111 lllll 111111111111111111111111111111 IIIII IIIII IIIII IIII IIII Nov 05, 2025 02:58 PM OFFICIAL RECORDS JORDAN Z. MARKS, SAN DIEGO COUNTY RECORDER FEES: $32.00 (SB2 Atkins: $0.00) PAGES: 7 NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (City of Carlsbad Affordable Housing Resale Program) NOTICE IS HEREBY GIVEN, that the City of Carlsbad ("City11), has required Mohammad Nairn Mehr and Madina Mehr, husband and wife as community prope1ty with right of survivorship (11 Owner11) to enter into ce1tain affordability covenants and restrictions entitled, Affordability Restrictions on Transfer of Property, Occupancy, and Refinancing Restrictions and Option to Purchase ("Restrictions11), with reference to certain real prope1ty located at 6172 Colt Place No. 103, Carlsbad, CA 92009, San Diego County (11Property11), and further described in Exhibit A, incorporated herein by reference. The affordability covenants and restrictions contained in the Restrictions include without limitation and as further desc1ibed in the Restrictions: 1. The Property is restricted for resale to a low-income household at a purchase price affordable to a low-income household, except as set fmth in the Restriction. 2. The Owner must occupy the Property as the Owner's principal residence. 3. The Owner must give notice to the City before resale of the Prope1ty. 4. The Owner has granted the City an option to purchase the Prope1ty upon resale or default. 5. The Owner's rights to pledge the Prope1ty as security for a debt are limited. In the event of any conflict between this Notice of Affordability Restrictions on Transfer of Prope1ty (11Notice11) and the Restlictions, the tenns of the Restrictions shall prevail. The Restrictions have been recorded concUITently herewith and shall remain in effect for thilty (30) years commencing on the date of recordation of the Restrictions. Jt Exempt from fee per GC27388.1 due to i being recorded in connection with concurrent transfer that is subject to the imposition of documentary transfer tax. This Notice is being recorded and filed by the City of Carlsbad ("City") in compliance with Health and Safety Code Sections 33334.5(£)(3) and (4) and/or Section 33413(c)(5), as amended effective this date, and shall be indexed against the City and the Owner. IN WITNESS WHEREOF, the parties have executed this Notice of Affordability Restrictions on Transfer of Property on or as of the date first written above. CITY: Mohammad Nairn Mehr Dated: ___ /_D_-~3Q~"'-Q>___,__C:S-__ _ Dated: _/_o---'/4'--2----=z/2~2-D __ 2_5 ___ _ 2 OWNER: ~dinaMebr Dated: ------""'{p;:__.-=7....::...2_-_..Zo==-=Z"'-'~------ (PROPER NOTORIALACKNOWLEDGEMENT MUST BE ATTACHED) SEE ATTACHED CERTIFICATE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego ) On October 30, 2025 before me, Shelby Nelson, Notary Public -----------(insert name and title of the officer) personally appeared _S_h_e_il_a_C_o_b_ia_n ____________________ _, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) I 2 in 1 CERTIFICATION I Pursuant to the provision of Government Code 27361.7, I certify under penalty of perjury that the Notary Seal on the document to which this statement is attached reads as follows: Name of Notary: Shelby Nelson Commission No. 2529064 County where Bond is filed: San Diego Commission expiration date: 8-31-2029 Manufacturer or Vendor No. NNAl Pursuant to the provision of Government Code 27361.7, I certify under penalty of perjury that the illegible portion of this document to which this statement is attached reads as follows: Sheila Cobian, Assistant City Manager Place of Execution: SAN DIEGO Date: 11-4-2025 1 / Signature: hli@l ~~ AGENT CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego } ....,, On @ber !i.:J-, 2-D~ , before me, C. Peterson, Notary Public, personally appeared /Y)OOOfhfY\O..d Natm hlehr ~ rrpcl,'roi tq-ehr who proved to me on the basis of satisfactory evidence to be the person(s) whose name_(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in msfhcr/their authorized..capacity(ies), and that by hisAler/their signature(.s) on the instrument the nerson( s ), or the entity upon behalf of which the ~ersonl§) acted, executed the instrument. I certify under PENAL TY OF PER.ITJRY under the laws of State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. SIGNATURE 6/L-- PLACE NOTARY SEAL ABOVE Though the information below is not required by law, it may prove valuable to persons relying on the document 'and could prevent fraudulent removal and reattachment of this form to another document. Description of attached document Title or re of doc~: flloh~ of l\ffird@(\ & &!IT 'ttm ~e;Jn, I~ ""-h1clcc w' :lhret/y Document Date:. _______________ ---'Number of Pages: ______ _ Signer(s) Other than Named Above:-=S..:....Jht.=Ct.._,' \=m----=C---"b~b=t'u~n-1-------------- ASSESSOR PARCEL NO.: EXHIBIT A LEGAL DESCRIPTION 213-262-22-18 For APN/Parcel ID(s): 213-262-22-18 EXHIBIT A Legal Description THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: A CONDOMINIUM COMPRISED OF: PARCEL 1: AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN THE MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS SHOWN ON THE AMENDED AND RESTATED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON JUNE 13, 2019, AS DOCUMENT NO. 2019-230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO (COLLECTIVELY "CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT 1 OF CARLSBAD TRACT NO. 14-09 UPTOWN BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 2018 ("MAP''). PARCEL 2: RESIDENTIAL UNIT NO. 18, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN; EXCEPTING FROM PARCELS 1 AND 2, ALL EASEMENTS RESERVED IN THE DECLARATION, CORPORATE DECLARATION, AND EASEMENT, MAINTENANCE, AND COST SHARING DECLARATION (ALL DEFINED BELOW), THE CONDOMINIUM PLAN, THE MAP, AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF. PARCEL 3: AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY, DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES DESCRIBED IN THE DECLARATION. PARCEL 4: A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS AND EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY DESCRIBED AS STREET MODULE A, STREET MODULE B, STREET MODULE C, AND STREET MODULE 0, AS SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-380430, WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE. PARCEL 5: A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS, IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY DESCRIBED IN THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE AND A PUBLIC STREET.