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Leon, Olga; 2022-12-16;
Recording Requested by: Fidelity National Title San Oleg? Office 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# 2022-0481583 111111111111 lllll 111111111111111 IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII Dec 29, 2022 10:23 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 (S82 Atkins: $0.00) PAGES: 13 DEED OF TRUST AND SECURITY AGREEMENT (City of Carlsbad Affordable Housing Resale Program) Note to Borrower: This Deed of Trust contains provis/011s proMhlting assumption THIS DEED OF TRUST AND SECURITY AGREEMENT (the "Deed of Trust") is made as of this~ day of December, 2022, among Olga Leon. a single woman, ("Borrower"), as Trustor, and Fidelity National Title & Escrow ("Trustee"), as trustee, and the City of Carlsbad. a municipal corporation ("City"), as beneficiary. 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"; To have and to hold the Se~urity together with acquittances to the Trustee, its successors and assigns forever; IO I 0\17\2045536.2 lbon,pt from fee per Gf;27388., duo to bolng rocordod In connection with concurrent transfer that 18 subject to tho lmpasttlon of documema,y transfer lllx. .... Recording Requested by: fidelity National Title San Dieg? Office and when recorded mail to: C ity of Carlsbad Housing Services Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 No fee for recording pursuant to Government Code Section 27383 DEED OF TRUST AND SECURITY AGREEMENT (City of Carlsbad Affordable Housing Resale Program) Note to Borrower: This Deed of Trust contains provisions prohibiting assumption THIS DEED OF TRUST AND SECURITY AGREEMENT (the "Deed of Trust") is made as of this 16th day of December 2022 among Olga Leon. a single woman, ("Borrower"), as Trustor, and Fidelity National Title & Escrow ("Trustee"), as trustee, and the C ity of Carlsbad, a municipal corporation ("City"), as beneficiary. T he 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 fi xtures now or hereafter attached to the property, all of which, including re placements and additions thereto, shall be deemed to be and remain a pa1t of the property covered by this Deed of Trust (collectively, the "Property"); and TOGETHER with all articles of personal prope1ty 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 re placements thereof or articles in substitution therefore, w hether 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"; To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever; 10 I 0\17\2045536.2 f!xemP1 from fee per GC::27388.1 due to being recorded In connection with ?Oncuffent transfer that Is subject to the impos~lon of documentary transfer tax. .... TO SECURE to the C ity the repayment of the sums evidenced by a promissory note in the amount of Four Hundred Sixty Six Thousand Six Hundred Fifty One Do llars ($466,651). executed by the Borrower in favor of the City as of the date of this Deed of Trust ("Note"); TO SECURE to the C ity 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 C ity the performance of the covenants and agreements of Borrower conta ined 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 o f 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 a ny 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: I. Borrower's Estate. That the Borrower is lawfull y seized of the estate hereby conveyed and has the right to grant and convey the Security, that other than th is 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 Fidelity National T itle & Escrow or its successors and assigns (the "First Lender"), dated December 27, , 2022, executed by the Borrower in favor of First Lender, and recorded in the County o(.San Diego on De<:.eJ'j\b er 2'9 ,ao;)J_ 20_. and assigned Recorder's Seria l No. C'01\C.vrrtl\t\lj heJc~r~ttender 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 generall y the titl e to the Security against all c laims and demands. subject to any declarations. easements or restrictions listed in a schedule of exceptions to coverage in any title insurance poli cy ins uring the City's interest in the Security. (As used in this Deed of Trust, the term "First Lender" shall include a ll 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 Unauthori zed Rental Proceeds due under the Resale Restriction Agreement. Among other things, the Note contains the followin g provisions concerning repayment of the loan under certain conditions: 2 IO 10117\2045536.2 Limitations on Assumption of Note. The Borrower acknowledges that thi s 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 ful l upon a ll other T ransfers. 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 term in forms approved by the City. 3. First Lender Loan. The Borrower will observe and perform a ll o f 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 util ize th e 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. T he Borrower's fail ure to comply w ith the requirements of the Resale Restriction Agreement constitutes a default under thi s Deed of Trust. 5. Charges; Liens. The Borrower w ill 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 wi ll 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 w hich has priority over this Deed of Trust; provided, that the Borrower will not be required to d ischarge the lie n of the First Lender Deed of Trust or any other lien described in this paragraph so long as the Borrower w i 11 agree in writing to the payment of th e obi igation 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 li en 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 w ill keep the Security insured with a standard tire and extended coverage insurance policy in at least an amount equa l 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 pol icy. The insurance carrier providing this in surance shall be licensed to do business in the State of Cali fo rnia and be chosen by the Borrower subject to approval by the City; provided, that such approval wi ll not be w ithheld if the insurer is also approved by the First Le nder, the Federal Home Loan Mortgage Corporation, Fannie Mae, Freddie Mac, the United States Department o f 3 IO I 0\ 17\2045536.2 Housing and Urban Development, the United States Department of Veteran s Affairs, or any successor thereto. All insurance policies and renewals thereof will be in a form acceptable to the City and wi 11 in clude a standard mortgagee clause with standard lender's endorsement in favo r of the holder of the First Lender Note and the City as their interests may appear and in a form acceptable to the C ity. The City shall have the right to hold, or cause its designated agent to hold, the polic ies and renewals thereof, and the Borrower shall promptly furn ish to the City, or its des ignated agent, the original insurance poli cies or certificates of insurance, all renewal notices and all receipts of pa id premiums. In th e event of loss, th e Borrower will give pro mpt notice to the insurance carrier and th e 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 thi s section. Unless the City and the Borrower otherwise agree in writing, insurance proceeds, subj ect 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 feas ible 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 fail s to respond to the City, or its designated agent, within thi1ty (3 0) days from the date notice is mailed by either of them to the Borrower that the insurance carrier offers to settle a claim fo r insurance benefits, the City, or its designated agent, is authorized, subject to the ri ghts of the First Lender, to collect and apply the insurance proceeds at the City's option either to restoration or repair of th e 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 acqui sition 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 contraventi on 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 enfo rce a li en or other encumbrance against the Securi ty 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 1010\17\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 C ity 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 wil l 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. I 0. Forbearance by the City Not a Waiver. Any forbearance by the C ity 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 C ity of any payment provided for in the Note constitute a waiver of the C ity's right to require prompt payment of any remaining principal and interest owed. The procurement of insurance or the payment of taxes or other li ens or charges by the C ity w ill 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 al low 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" sha ll 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 invest igati on, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardo us Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governme ntal or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is 5 1010117\2045536 2 necessary, Borrower shall promptly take a ll necessary remedia l actions in accordance with Environmental Law. 12. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other r ight 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 deli very was refused, or the date the notice was returned as undeliverable as follows: To the Owner: Address of the Property To the City: C ity of Carl sbad 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 Restrictio n 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\1712045536 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 o f a borrower and the administrator of a municipal inclusio na ry housing program, and that the C ity does not undertake o r assume any responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on, or inform Borrower of the qua lity, 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 neithe r Borrower, or Borrower's heirs, successors o r assigns shall ever cla im, have or assert any right or action against the C ity for any loss, damage or other matter arising out of or resulting from any condition of the Security and will hold C ity harmless from any li ability, loss or damage for these things. 20. Indemnity. Borrower agrees to defend, indemnify, and hold the C ity harmless from all losses, damages, liabilities, claims, actions, judgments, costs, expenses and reasonable attorneys' fees that the C ity 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 representati ons or warranties to be true and correct. This provision shall survive the term of this Agreement. 2 1. 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, inc luding, but not limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the C ity, prior to acceleration, will send, in the manner set forth in Secti on 15 of this Deed o f Trust, notice to the Borrower 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 wh ich suc h breach, if curable, is to be cured; and (4) if the breach is curable, that failure to c ure suc h breach on or before the date specified in the notice may result in acceleratio n of the sums secured by this Deed of T rust and sale of the Security. Notice sha ll 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 ri ght 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 optio n, may: (a) declare a ll o f the sums secured by this Deed of Trust to be immediately due and payable witho ut fu1t her 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 w ithout 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 pa1t 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 va lue 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 th is Deed of Trust, or by law upon occurrence of any uncured breach, including the ri ght to exercise the power of sale; (c) commence an ac tion to fo reclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver to the Trustee a written declaration of default and demand for sale, pursuant to the provisions for notice of sale fo und at Cali fo rnia Civil Code Sections 2924, et seq .. as amended from time to time; or (e) exercise al l other rights and remedies provided herein, in the instruments by which the Borrower acquires title to any Security, or in any other document or agreement now or hereafter ev idencing, creating or securing all or any portion of the obli gations secured hereby, or provided by law. The City shall be entitled to col lect 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 fu ll 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 defau lt 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 principal and interest owed. 23. Borrower's Right to Reinstate. Notwithstanding th e City's acceleration of the sums secured by thi s Deed of Tru st, the Borrower will have the right to have any proceedings begun by the City to enforce this Deed of Trust di scontinued at any time prior to five (5) days before sale of th e Security 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 enforc ing 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 reason~bly require to assure that the lien of this Deed of Trust, City's interest in the Security and the Borrower's obligation to pay the sums secured by this Deed of Trust shall continue 8 10 I 0\17\2045536.2 unimpaired. Upon such payme nt 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 witho ut cha rge to the person or persons legally entitled thereto. Such person or persons will pay a ll costs o f recordation, if any. 25. Substitute T rustee. The City, at the City's option, may from time to time remove the Trustee and appo int 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 sha ll be subordinate to the lien o f 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 o f a deed or assignment in lieu of foreclosure. After such foreclosure o r acceptance of a deed or assignment in li e u of foreclosure, or upon assignment of the First Lender Deed of Trust to the Secretary of the United States Department of Housing and Urban Developme nt (the "Secretary"), this Deed of Trust shall be forever terminated and shall have no further effect as to the Propetty or any transferee thereafter; provided, however, if the ho lder of such First Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in lieu of forecl osure, or if the First Lender's Deed of Trust is assigned to the Secretary, this Deed of Trust shall a utomatically terminate upon such acquisition of ti tle or assignment to the Secretary provided that: (i) the City has been g iven written notice o f 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. Borrowe r agrees to record any necessary documents to effect such termination, if a pplicable. Remainder of Page Left Intentionally Blank 9 IO I 0\ 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 BORROWER: f1b L Date I I (Proper Notarial Acknowledgement of Execution by Borrower Must Be Attached) S£E ATTACHED CERTIFICATE 1010\ 17\2045536.2 CALIFORNIA ACKNOWLEDGMENT □ □ □ l IOM O A□ illO □ J E 2 0 BOBB [IO(I B DB □ 0 lOQ8fd11110888UOOIIH1 l■IHIO 141 CIVIL CODE § 1189 nu A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which ~is certificate is attached, and not the truthfulness, accuracy, or validity of that document State of California County ~f 0 4oJ> l'<p On Dec,a-¥)U I(, I ~O'l,2 Date } personally appeared _O_lj:-+-9_.__ .......... LLo--'-'"""a__._ ___________________ _ Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(&) whose name(s) ls/at=e subscribed to the within instrument and acknowledged to me that l=te/sheAftey executed the same in his/her/thQlr authorized capacity(lest, and that byi,is/her/tAeif>slgnature{s) on the instrument the person(-}, or the entity upon behalf of which the person(.} acted, executed the instrument ~--·-••===••·~ • C. PETERSON : • Notary Public • California iii i San Dle10 County ! i Commission# 2410814 l MJ Comm. Exp:zs !uv.!, 202!, .. Place Notary Seal and/or Stamp Above 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. Signature CJ) > Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document Desc:ription of Attached DJlc:ument Title or Ty~e of Document:.,,., II~ =q:..,._:;!f:.,__-_..\._c""u..:r\::......,___,ili::...!-wlli_...:::~::.=C.w\J<.:.t--_,lc.:.J\l-+--A__,, .... ,~...c.~_.:....--=...::ft....,_ ____ _ DocumentDate: ~c He . ;2.s.::r:::::t Number of Pages: ___ _ Slgner{s) Other Than Named. Above: ______________________ _ Capacity(les) Claimed by Signer{s) Signer's Name: ___________ _ Signer's Name: ___________ _ o Corporate Officer -Tltle(s): ______ _ □ Corporate Officer -ntle(s): ______ _ o Partner -o Limlted o General □ Partner -□ Limited □ General o Individual □ Attorney in Fact □ Individual □ Attorney in Fact o Trustee □ Guardian or Conservator □ Trustee □ Guardian or Conservator o Other: D Other: ______________ _ Signer is Representing: _________ _ Signer is Representing: _________ _ 1 H 108881 IJ. 0 B B 008llfJU881l B B B □ B □a B 0§ 3 ~ Jii Bi i 8Bu 01l81J(JBBIMJBlltr B .Your Reference Number: EXHIBIT A LEGAL DESCRIPTION Fidelity National Title Company Order No.: 00202872-008-CP 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: A CONDOMINIUM LOCATED ON THE REAL PROPERTY DESCRIBED AS LOT 1 OF CITY OF CARLSBAD, TRACT NO. 01-13, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO, 14797, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY: MAY 17, 2004 AS FILE NO. 2004-446317 OF OFFICIAL RECORDS, COMPRISED OF: PARCEL 1: UNIT 571 , IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN UPON THAT CERTAIN CONDOMINIUM PLAN FOR LAGUNA POINT, AS RECORDED ON JUNE 27, 2005, AS FILE NO.2005-538003, IN THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY, CALIFORNIA ("CONDOMINIUM PLAN"). PARCEL 2: AN UNDIVIDED 1121ST INTEREST AS A TENANT IN COMMON IN THE UNDIVIDED INTEREST COMMON AREA AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN AND AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LAGUNA POINT HOMEOWNERS ASSOCIATION, RECORDED ON JUNE 27, 2005, AS FILE NO. 2005-538002, IN THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). THE UNDIVIDED INTEREST COMMON AREA WILL NOT BE OWNED BY LAGUNA POINT HOMEOWNERS ASSOC IATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION"). PARCEL 3: NON-EXCLUSIVE EASEMENTS FOR INGRESS, EGRESS, ACCESS, ENJOYMENT, USE AND SUPPORT OVER THE ASSOCIATION PROPERTY AS DESCRIBED IN THE DECLARATION AND INDICATED ON THE CONDOMINIUM PLAN, WHICH WILL BE OWNED BY THE ASSOCIATION. EXCEPTING THEREFROM THE FOLLOWING: (A) ALL UN ITS, AS SHOWN UPON THE CONDOMINIUM PLAN OTHER THAN THE UNIT CONVEYED AS PARCEL 1 ABOVE. (B) THE EXCLUSIVE RIGHT OF POSSESSION AND OCCUPANCY OF ALL THOSE AREAS DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY AS DESCRIBED IN THE DECLARATION AND AS SHOWN UPON THE CONDOMINIUM PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLUSIVE USE OF OWNERS OF UNITS. (C) THE EASEMENT AND OTHER RIGHTS RESERVED IN FAVOR OF DECLARANT AS DESCRIBED IN THE DECLARATION AND ON THE CONDOMINIUM PLAN. PARCEL 4: THE EXCLUSIVE RIGHT TO POSSESSION AND OCCUPANCY OF THAT PORTION OF THE ASSOCIATION PROPERTY, DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY, AS SHOWN ON THE CONDOMINIUM PLAN, DESIGNATED AS 0-571. your Reference Number: ' > PARCEL 5: Fidelity National Title Company Order No.: 00202872-008-CP THE EXCLUSIVE RIGHT TO POSSESSION AND OCCUPANCY OF THAT PORTION OF THE ASSOCIATION PROPERTY, DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY, AS SHOWN ON THE CONDOMINIUM PLAN, DESIGNATED AS S-571. PARCEL 6: ONE CLASS A MEMBERSHIP IN THE ASSOCIATION. APN: 203-101-37-12 Recording RequHted by: Fidelity National Title San Diego Office 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# 2022-0481582 111111111111 lllll 111111111111111111111111111111 IIIII Ill II IIIII IIII IIII Dec 29, 2022 10:23 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 {SB2 Atkins: $0.00) PCOR: N/A PAGES: 34 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) Owner: Olga Leon Address of Property: 571 Laguna Drive Carlsbad, CA 92008 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 Restrictions and Option to Purchase ("Resale Restriction Agreement") is entered into as of this 16th day of December , W2., by and between the City of Carlsbad, a municipal corporation (the "Qiy"), and Olga Leon, a single woman ("Owner"). 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 "). B. In connection with the Affordable Housing Resale Program and in fulfillment of its inclusionary obligation pursuant to an Affordable Housing Agreement ("Affordable Housing Agreement") between the Wave Crest Resorts II, LLC, a California limited liability company ("Developer") and the City dated November 17, 2003, 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. C. As used herein, the tenn "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 . t trom fea Pflf GC27388, 1 due to ExTmp reoorded In connection with :i:::~rrent 1ranSler 11\81 ls subject to the Imposition ot documentarv transfer tax. • Recording Requested by: Fidelity National Title San Diego Office 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 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) Owner: Olga Leon Address of Property: 571 Laguna Drive Carlsbad, CA 92008 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 Restrictions and Option to Purchase ("Resale Restriction Agreement") is entered into as of this 16th day of December , 2022, by and between the City of Carl sbad, a municipal corporation (the "City"), and Olga Leon, a single woman ("Owner"). RECITALS A. The City has developed a second mortgage program designed to assist qualified lower income households purchase their homes located within th e City of Carlsbad ("Affordable Housing Resale Program "). B. In connection with the Affordable Housing Resale Program and in fulfillment of its inclusionary obligation pursuant to an Affordable Housing Agreement ("Affordable Housi ng Agreement") between the Wave Crest Resorts II , LLC, a Cali fornia limited li ability company ("Developer") and the City dated November 17, 2003, Developer made a subsidy loan ("Homebuyer Loan") to allow fo r the purchase of a home by a low income household located in Carlsbad, Califo rnia on that certain rea l property and more particularly described in Exhibit A ("Property") and then assigned the Homebuyer Loan to the City. C. As used herein, the term "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. 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 One Hundred Forty Eight Thousand Three Hundred Forty Nine Dollars ($148,349). 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 Promissory Note ("Full Purchase Price"). Owner is a low-income household. E. The Homebuyer Loan is Four Hundred S ixty Six Thousand Six Hundred Fifty One Dollars ($466,651). The Homebuyer Loan is evidenced by a promissory 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 Trust") subordinate to the lien of First Lender Deed of Trust. F. The purpose of this Agreement is to place resale controls on the Property, to provide the C ity an option to purchase the Property at a restricted price, and to ensure that the Owner complies w ith the Affordable Housin g Resale Program requirements. G. T his Agreement and the City Note require repay ment 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 C ity agree, as fo llows: I. DEFINITIONS AND EXHIBITS A. The fo llowing terms are specifically defined for this Agreement and their definitions can be found in the Sections indicated below: (I) "Affordable Sales Price" -Section I 4A( I). (2) "Ag reement" -first sentence of the Agreement on page I. (3) "City" -first sentence of the Agreement on page I. (4) "C ity Deed of Trust" -Recital F. (5) "City Designated Purchaser" -Section 128. (6) "City Note" -Recital F. (7) "C ity Option" -Section 12A. (8) "C ity Response Notice" -Section I 0. (9) "Default" -Section 18 ( I 0) "Eligible Purchaser" Section 158. ( I I) "Excess Sales Proceeds" -Section 16. (12) "Fair Market Value" -Section 14B. ( 13) "First Lender" -Recital E. (14) "First Lender Deed of Trust" or "First Mortgage"-Recital E. (15) "First Lender Loan" -Recital E. (16) "Full Purchase Price" -Recital D. ( 17) "Full Sales Price" -Section 14A. ( 18) "Homebuyer Loan" -Recital B. (19) "HUD"-Section30. (20) "Market Purchaser" -Section 1 0C. (2 1) "Maximum Restricted Resale Price" -Section 14. (22) "Median Income" -Section 14A. (23) "Official Records" -Recital E. (24) "Original Affordable Purchase Price" -Recital D. (25) "Owner" -first sentence of the Agreement on page I. (26) "Owner's Notice of Intent to Transfer" -Sectio n 8. (27) "Property" -Recital B. (28) "Proposed Purchaser" -Section I SA. (29) "Transfer" -Section 7. (30) "Unauthorized Rental Proceeds" -Section 4. B. The following Exhibits are attached to this Agreement: (1) (2) (3) Exhibit A: Exhibit B: Exhibit C: Legal Description of Property Fonn of Owner Occupancy Certification Form of Owner's Notice of Intent to Transfer (4) (5) (6) Exhibit D: Exhibit E: Exhibit F: 2. OWNER CERTIFICATIONS Form of C ity Response Notice Form of Owner Acknowledgement of City Response Notice Form of Owner Request for C ity Subordination to Refinanced First Lender Loan The Owner certifies that: (i) the financ ial and other information previously provided in order to qualify to purchase the Property is true and correct 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 of residence shall constitute a Default under this Agreement for w hich the City may exercise its option to purchase pursuant to Section 2 1 below. The Owner shall be considered as occupying the Property if the Owner is residing at the Property for at least ten ( I 0) months out of each calendar year. T he Owner shall provide an annual written certification in the form shown in the attached Exhibit B, to the City that the Owner is occupy ing the Prope1ty as his or her principa l place of residence and listing all occupants residing at the Property. No later than ten (10) days after receipt of the C ity's written request, the Owner shall provide any additional in formation and documents which the C ity requests including but not limited to tax returns and bank statements, which may evidence w hether the Owner is occupying the Property. Failure to provide any additiona l in formation 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 Property) is prohibited from being used a "short-term vacation rental" (as such term is defined in Chapter 5.60 of the City of Carl sbad Municipal Code, as may be amended from time to ti me); (ii) no portio n of the Property may be used for tourist or transient use, or any other short-term rental of the Property; and (iii) li sting the Property on any "hosting platform" (as de fined in Cali fo rnia 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 simil ar 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 a ll Unauthori zed 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. MAfNTENANCE AND INSURANCE PROCEEDS A. The Owner shall main tain the Property, including landscaping, in good repair and in a neat, clean and orderl y condition and will not commit waste or permit deterioration of the Property. Failure by the Owner to maintain the Prope1ty shall constitute a Default under this Agreement for which the City may exerci se the City Option to purchase the Property pursuant to Section 2 1 below. B. The Owner shall maintain a standard fire and extended coverage home in surance policy equal to the replacement value of the Property (adjusted every five (5) years by appraisal, if requested by City), naming the City as an additional insured. Additional insurance requirements are set fo11h in Section 6 of the City Deed of Trust. 7. TRANSFER AND SALE RESTRI CTIONS Any Transfer of the Prope1ty wi ll be subject to the provisions of this Agreement including, without limitation, exerc ise of the C ity Option pursuant to Section 12 below. "Transfer" shall mean any sale, assignment or transfer, voluntary or involuntary, 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 whi ch possession of the Property is trans ferred and Owne r 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 obli gor under the City Note; (i i) by the Owner 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 of Owner by devise or inheritance following the death of Owner; (v) by Owner into an inter v ivos revocable trust in which Owner is the Trustor; or (vi) refinance of the First Mortgage meeting the requirements of Secti on 28 of this Agreement; provided, however, that Owner shall provide written notice of all such transfers to C ity pursuant to Section 8 below; and Owner 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 Property and affirmatively assume Owner's obligatio ns under this Agreement, the C ity Note and the City Deed of Trust). 8. NOTICE OF INTENDED TRANSFER A. In the event the Owner intends to transfer (including w ithout limitation a ll "Transfers" as defined in Section 7) or vacate the Property, th e Owner shall promptly give the City written notice of such intent (the "Owner's Notice of Intent to Transfer") in the form shown in the attached Exhibit C. The Owner shall give the C ity 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. T he Ow ner's N otice of Intent to Transfer shall include the information necessary for the City to determine the Maximum Restricted Resale Price of the Property, including the foll owing information: (I) the address of the Prope1ty; (2) the date of purchase of the Property by the Ow ner; (3) the Original Affordable Purchase Price of the Property; (4) the Full Purchase Price of the Prope1ty (which is the O riginal Affordable Purchase Price plus the orig inal amount of the Home buyer Loan). (5) a copy of the HUD-I Settlement Statement or equivalent document from the c lose 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 C ity. 9. OWNER PREPARATION OF PROPERTY FOR SALE A . The Owner may not wish to contract w ith a real estate broker to sell the Property until the Owner has received the City Response Notice pursuant to Section IO below, as the servi ces of a broker will not be required if the City exerc ises the City Option to purchase the Property pursuant to Section 12 below. B. Following deli very to the City of the Owner's Notice of Intent to Transfer, the Owner sha ll prepare the Pro perty fo r sale, as follows: (I) w ithin thirty (30) days of de I ivery of the Owner's Notice of Intent to Transfer, the Owner sha ll o btain and deliver to the C ity a current written report of inspection of the Property by a licensed structural pest control operator; (2) w ithin the sooner of: (a) sixty (60) days from the date of de livery of the Owner's Notice of Intent to Transfer; o r (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 infecti on by wood-destroyin g pests; (3) within thirty (30) days of the date of the Owner's Notice of Intent to Transfer, the Owner sha ll allow the City to inspect the Property to determine its physical condition; (4) if the Property is vacant, the Owner sha ll 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 w ithout the C ity approving such removal; in the event the City approves the removal of any kitchen appliances the Owner shall replace said appliances with new and compa rable appliances; and (6) in the event of purchase of the Property by the C ity or City Designated Purchaser, th e Owner sh al I permit a final walk-through of the Property by the City or C ity Designated Purchaser, in the final three (3) days prior to c lose of escrow on the Transfer. 10. CITY RESPONSE TO OWNER'S NOTICE OF INTENDED T RANSFER City shall respond in writing (the "City Response Notice") to the Owner's Notice of Intent to Transfer. The fo rm o f City Response Notice is attached as Exhibit D. The City Response Notice shall inform the Owner of the City's election to proceed under one (I) of the following two (2) a lternatives: 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 exerc ise the City Option to purchase the Property . The City Response Notice shall be sent within thirty (30) days of City rece ipt of Owner's Notice of Intent to Transfer and shall include the City's calc ulation 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 pa id by the Owner pursuant to Section 12 below; B. Owner Sale at a Restricted Sales Price to Elig ible Purchaser. Alternatively, the City Response Notice may noti fy the Owner that the City or a City Designated Purchaser will not exercise the C ity 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 Elig ible Purchaser at a price not to exceed the Maximum Restricted Resale Price, as set forth in Section 14 and pursuant to the procedure set fo rth in Section 14 below. In this event, the City Response Notice sha ll include the following in formation: (I ) the maximum qualifying income for an Eligible Purchaser (which shall be the same income category as the Owner at the time of the Owner's purchase); (2) the certifications required of an Elig ible Purchaser; (3) the Maximum Restricted Resale Price the Owner may receive for the Property, calculated by the C ity pursuant to Section 14 below; (4) whethe r Affordable Ho using Resale Program assistance from the C ity may be available to an Eligible Purchaser; and (5) Owner's repayment obligation as required by Section 13; and 11 . OWNER ACKNO WLEDGEM ENT OF CITY RESPONSE NOTICE No later than seven (7) days fo llowing the date of th e City Response Notice, the Owner sha ll 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 O PTION A . The Owner agrees that if the Owner decides to Transfer the Property, the City sha ll have the o ption to purchase the Property for the Maximum Restricted Resale Price calcul ated 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 Restricted Resale Price if the City or a City Designated Purchaser exercises the City Option and purchases the Property. The City Option may be exercised by the C ity 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 w ill 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 deli vered by the Owner to the City by grant deed free and clear of any mortgage 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 C ity (any of which shall be referred to herein as a "City Designated Purchaser"). If the C ity assigns the City Option to a City Designated Purchaser, the C ity Response Notice shall be executed by the City Designated Purchaser and shall notify the Owner that a City Des ignated 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 permit a final walk-through of the Property by the C ity 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 Trans fer of the Property, the outstanding principal and interest due under the City Note shall be repaid pursuant to the City Note unless: (i) such principal 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 outstand ing amount of principal and Contingent Interest due under the City Note sha ll be paid to the City in the form 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 w ith th is Agreement, which shall remain in full force and effect fo ll owing any repayment o f 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 w hen 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 Price; plus (b) the principal and contingent interest then due on the City Note. T he Affordable Sales Price means the Original Affordable Purchase Price, as set forth 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 of receipt by the City of the Owner's Notice of Intent to Transfer. "Median Income" shall refer to the median yearly income, adj usted for a household size of four, in San Diego County, as published by the Cali fornia Department of • • I-lousing and Community Deve lopment ("I-ICD"), or, in the event such income determination is no longer published by I-I C D, or has not been updated for a period of at least e ighteen ( 18) months, the C ity may use o r de velop such other reasonable method as it may choose in order to determine 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 Six Thousand N in e Hundred Doi la rs ($106,900). (2) The Affordable Sa les Price shall inc lude a downward adjustment, where applicable , in an amount necessary to repair any violations o f applicable building, plumbing, electric, fire or housing codes or any other provisions o f the City o f 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 determined by the City, and may inc lude cleaning, painting and making needed structural, mechanical, electrical, plumbing and fi xed applia nce repairs and other deferred maintenance repairs. B. Fair Market Value. In certain circumstances it may be necessary to determine the fair market value of the Property without taking account of the resale restrictions imposed by this Agreement (the "Fair Market Value"). These circumstances inc lude but are not limited to: (I) w here the parties w ish to determine if the Full Sales Price exceeds the Fair Market Value in order to determine the Maximum Restricted Resale Price pursuant to this section; (2) where the pa11ies w ish to determine if the sales price of the Prope11y 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 Fa ir Market Value of the Property, it sha ll be determined by a certified MAI or other qua lified real estate appraiser approved in advance by the C ity. If possible, the appraisal sha ll be based upon the sales prices of comparable prope rties sold in the market area during the preceding three (3) month peri od. The cost of the appraisal shall be paid by the Owner, unless the appraisal is obta ined from a new purchaser. Nothing in this section shall preclude the Owner and the City from establishing the Fair Market Value o f the Property by mutua l agreement in lieu of an appraisal pursuant to this section. 15. SALE BY OWNER IF C ITY DOES NOT EXERC ISE OPTION TO PURC HASE In the event the C ity Response Notice notifies the Owner to proceed to sell the Property to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, the Owner may proceed to sell the Prope rty in compliance with the foll owing requirements: A. Marketing. The Owner shall use bona fide good faith effo rts 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 Pro perty availa ble to show to agents and prospecti ve buyers, and providing buyers w ith Eligible Purchaser requireme nts, including income qualifications and the City's form of disclosure statement summariz ing the terms o f the buyer's occupancy and resale restri ction agreement with option to purchase. A proposed purchaser ("Proposed Purchaser") who the Owner believes will qualify as an Eligible Purchaser sha ll be re ferred to the City for an e ligibility d eterminatio n. If the Proposed Purchaser qualities as an Elig ible Purchaser the City will also determine if such Eligible Purchaser is eli gible fo r 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" if he or she meets the following requirements, as determined by the C ity: (I) Income Eligibility. T he combined maximum income for a ll household members of the Proposed Purchaser shall not exceed the income level designated by the City in the City Response Noti ce. (2) Intent to Owner Occupy. The Proposed Purchaser shall certify that he or she will occupy the Property as to his or her principa l place of reside nce 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 w ith the City in promptly providing all information requested by the C ity to assist the City in monitoring the Proposed Purchaser's compliance w ith 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 calc ulated by the City pursuant to Section 14 above, as set forth in the City Response Notice. The closing costs paid by the Eligible Purchaser sha ll 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 Homebuyer Loan and the effective purchase price that the Eligible Purchase r w ill pay for the Property is anticipated to be the Affordable Sales Price. D . Disclosure and Submitta ls. The Owner and the Proposed Purchaser shall provide the following information and documents to the C ity: (I) The na me, mailing address, telephone number, and email address in writing of the Proposed Purchaser. (2) A signed financial statement of the Proposed Purchaser in a form acceptable to the City and any other supporting documentation requested by the City. The financial information shall be used by the City to determine the income eligibility of the Proposed Purchaser. (3) The proposed sales contract and all other related documents w hich shall set forth all the terms of the sale of the Property. Said documents shall include at least the fo llowing terms: (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 a ny, and any credits, allowances or othe r consideration, if any. ( 4) A written certification, from the Owner and the Proposed Purchaser in a form acceptable to the City that the sale sha ll be closed in accordance w ith the terms of the sales contract and other documents submitted to and approved by the C ity. The certification shall also provide that the Proposed Purchaser or any other party has not paid and w i II not pay to the .. Owner, and the Owner has not received and will not rece ive from the Proposed Purchaser or any other party, money or other consideration, including personal property, in addition to what is set forth in the sales contract and documents submitted to the City. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement o r false or misleading statements are made in any documents or certification submitted to the City, the City shall have the right to foreclose on the Prope1ty or tile an action at law or in equity as may be appropriate. In any event, any costs, li abilities or obligati ons incurred by the Owner and the Proposed Purchaser fo r the return 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 borne by the Owner and/or the Proposed Purchaser and they shall hold the C ity harmless and reimburse the City's expe nses, legal fees and costs fo r any action they reasonably take in good faith in enforcing the terms of this Agreement. (5) An executed buyer's resale restriction agreement and deed of trust to the C ity from the Proposed Purchaser in forms provided by the City. If the Proposed Purchaser is receiving assistance from the Affordable Housing Resale Program, a promissory note to the City shall also be required. The recordation of the new deed of trust and buyer's resale restricti on agreement shall be a condition of the C ity's approval of the proposed sale. (6) The name of the title company escrow ho lder for the sale of the Prope1ty, the escrow number, and name, address, and phone number of the escrow officer. (7) Upon the close of the proposed sale, certi tied copies o f the recorded City deed of trust and buyer's resale restriction agreement, a copy of the final sales contract, settlement statement, escrow instructions, and any other documents which the City may reasonabl y request. 16. PAYMENT TO C ITY 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 T ransfers the Property in violation of this Agreement, the Appreciati on Amount (as such term is de fin ed in th e C ity Note) sha ll be calculated using the Maximum Restricted Resale Price of the Property, rather than the actual sales price. For purposes of this Agreement, "Excess Sales Proceeds" 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 o f the Owner to the City, further evidenced by the City Note, and secured by the City Deed of T rust. The Owner acknowledges that the City shall have no obligation to cause the release and termination of this Agreement, or the reconveyance of the City Deed of T rust, until the Excess Sales Proceeds a re paid to the City. The City shall utilize the Excess Sales Proceeds fo r City affordable ho using programs. The Owner and the C ity acknowledge that the formula for calcul ation of the amo unt of Excess Sales Proceeds d ue from the Owner to the City is intended to cause the Owner to receive the same net sales proceeds (following payment by Owner of a standard bro ker's commission) from sale of the Property at an unrestricted price to a market purchaser (in vio lation of this Agreement) as the Owner would receive from sale of the Property to the City, City Designated Purchaser or to an Elig ible Purchaser at the Maximum Restri cted Resale Price. 17. DEF AUL TS A. A Default by the Owner is any failure to comply with th e requirements of this Agreement, the City Note or the City Deed of Trust, whether by commission or omi ss ion which includes, but is not limited to the following: (I) The City determines 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) The Owner fail s to owner occupy the Property, as required pursuant to Section 3 above, and such failure continues fo llowing written notice by the City and sixty (60) days opportunity to cure fol lowing 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) The Owner fai ls to provide information or documents to the City that the City deems necessary to determine Owner's compliance with the req uirements 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 tru st against the Property in the Official Records, or otherwise places a mortgage on the Property in violation of Section 28 below. (9) Owner declares bankruptcy or makes an assignment of assets for th e benefit of cred itors. 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 court of competent jurisdiction for such relief at law or in equity as may be appropriate, including, but not limited to specific perfo rmance. (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 Trust; and (4) Exercise the C ity Option upon Default as described in Section 21, below. Owner acknowledges that any breach in Owner's performance of Owner's obligations under this Agreement shall cause irreparable harm to the City. Therefore, Owner agrees that the City is entitled to equitable relief in the form of specific performance upon its exerc ise of the City Option set fo1th in Section 2 1, be low, and that an award of damages may not be adequate to compensate the C ity for Owner's fa ilure 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 Trust, the C ity 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 sati sfaction of the C ity within a reasonable period of time, not longer than thirty (30) days from the date the notice is mailed, or within such further time as the City determines is necessary to correct the violation, or if the Owner is in default under the First Mortgage, the City may declare a Default under this Agreement. If the violation is fa ilure to occupy the Property, as set forth in Section 3, or any rental of the Property or any other act prohibited by Section 4, then Owner shall be given sixty (60) days from the date the notice is mailed to correct that violation, and, to the extent applicable, remit a ll Unauthorized Rental Proceeds to the City before the C ity may declare a Default. The City shall notify First Lender at the address provided by the First Lender to the City in the manner set forth 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 T rust. 19 . NOTICE TO C ITY OF DEFAULT A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Property shall be recorded by the City in the Official Records for the bene fit of the City. The City may declare a default under this Agreement upon receipt of any notice given to the City pursuant to Civi l 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 mortgage loan on the Prope1ty, the City shall have the same right as the Owner to cure defaults and redeem the Property prior to the foreclosure sale. Nothing herein shall be construed as creating any obligation of the City to cure any such default, nor sha ll this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage. If the City failed to fi le the request for notice of default, the City's right to purchase the Property shall commence from the date a notice of default is g iven by the City to the Owner. 20. PURC HASE O PTION UPON DEFAULT A. Purchase Option. Notwithstanding, and in addition to, the remedies provided the City in Section 18, and the City Purchase Option provid ed 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 Restricted Resale Price set forth in Section 14. The City may assign its rights to purchase the Property under this section to a City Designated Purchaser. 21. NON LIABILITY OF T HE CITY A. No Obli gation 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 2 1 nor shall the City be in any way obli gated or liable to the Owner or any successor-in-interest to the Owner for any fai lure to exercise its option to purchase. B. Nonliability for Negli gence, Loss, or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and the C ity is solely that of an owner and an administrator of a City inclusionary housing program, and that the City does not undertake 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 Property 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 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 Property and will hold the City harmless from any liability, loss or damage as set forth 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 Property, is solely to confirm 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 ho ld the City harmless 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: (I) Owner's default, performance, or failure to perform 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. RESTRI CTIONS ON FOREC LOSURE PROCEEDS If a creditor acquires title to the Property through a deed in lieu of foreclosure, a trustee's deed upon sale, or otherwise, 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 Price. The Owner shall instruct 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 Prope1ty, the Owner shall pay the City the po1tion of any insurance proceeds received by the Owner for such destruction or damage w hich 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, run with the land and the Property and this Agreement shall bind, and the benefit he reof 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) thirty (30) years from the date of recordation of this Agreement in the Official Records; or (ii) the date of Transfer of the Property 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 C ity). 25. SUPERIORITY OF AGREEMENT The Owner covenants that he or she has not, and wil I not, execute any other agreement with provisions contradictory to or in opposition to the provisions of this Agreement hereof: and that, in a ny event, this Agreement is controlling as to the ri ghts 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 I ie u of foreclosure. After such foreclosure or acceptance of a deed or assignment in lieu of foreclosure, this Agreement 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 li eu of foreclosure, this Agreement shall automatically terminate upon such acquisition of title, provided that: (i) the City has been g iven 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 g iven its firm commitment to complete the cure in the form and substance acceptable to the First Lender. Owner agrees to record any necessary documents to effect such termination, if applicable. 27. REFINANCE OF FIRST LENDER LOAN 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 of Trust 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 principal 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 Fi rst Lender Loan than were due prior to the refinance. Mortgage loans or equity lines of credit junior in lien priority to the City Deed of Trust are not permitted. Owner acknowledges that such prohibition on junior liens was granted in consideration for the receipt of the Home buyer Loan on favorable tenns that have assisted the Owner acquire the Property for Original Affordable Purchase Price, and that without such financial assistance from the City, the Owner would not be able to pay the Original Affordable Purchase Price, or otherwise 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 risk of loss of the Property by Owner through default and foreclosure of mortgage loans. Owner further acknowledges that vio lation of the provisions of this section shall constitute a Default under this Agreement. A form for use by the Owner in requesting City subordination to a refinanced First Lender Loan is attached hereto as Exhibit F. 28. NONDISCRIMrNAT ION T he Owner covenants by and for itself a nd its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons o n account of race, color, religion, c reed, age, disability, sex, sexual orientation, 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 c laiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation w ith 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 of Trust. Notwithstanding any other provision in this Agreement to the contrary, this Agreement sha ll not diminish or affect the rights of the Califo rn ia Housing Finance Agency ("CalHFA"), the United States Department of Housing and Urban Development ("HUD"), the Federal National Mortgage Association ("FNMA"), or the Veterans Administration ("VA") under the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Property in compliance w ith Section 28 above. 30. HUD FORBEARANCE RELIEF Notwithstanding other provisions of this Agreement, the Option sha ll not be exercised by the City w hen a deed of trust insured by HUD is secured by the Property, and: (i) the Owner is undergoing consideratio n by HUD for assignment forbearance relief; or (ii) the Owner is undergoing consideratio n for re lief under HU D's Temporary Mortgage Assistance Payment (TMAP) program. 31. IN VA LID PROVISIONS If any one or more of the provisions contained in this Agreement shall for any reason be he ld to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severabl e from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 32. NOTICES All notices required herein sha ll be sent by certifie d 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 deli very, or the date delivery was refused as indicated on the return receipt, or the date Notice was returned as undeliverable as follows: To Owner: Address of the Property To the City: City of Carls bad Ho using 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. 33. INTERPRETATION O F AGREEM ENT The terms of th is Agreement shall be interpreted so as to avoid speculation on the Property and to insure to the extent possible that the mo11gage payments remain affordable to lower-income household s. Owner acknowledges that, purs uant to thi s Agreement, in additio n to other rights of the City set forth herein, the Owner has granted the C ity multiple options to purchase the Property (as more parti cularly set forth in Section 12 and Secti on 2 1 ), and that each option to purchase is given in consideration o f the economic bene fits received by the Owner resulting from ownership of the Prope rty made possible by the financial assistance provided by the City to the Owner for the purchase of the Property. This Agreement sha ll not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared it. The parties have read and rev iewed thi s Agreement and agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party (including but not limited to C ivil Code Section 1654 as may be amended from time to time) shall not appl y to the interpretation of this Agreement. In the event of any conflict between the terms of thi s Agreement, and the term s of the disclosure statement executed by the City and the Owner in conjuncti on with this Agreement, the term s of this Agreement shall prevail. 34. CONTROLLING LAW; VENUE The terms of this Agreement shall be interpreted under the laws of the State of Cali fornia. In the event any legal action is commenced to interpret or to enfo rce the terms of this Agreement or to co llect 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. ATTORNEYS' FEES In the event any action or proceeding in court or other dispute resolution mechanism permitted under this Agreement is commenced by either party to interpret or enforce the terms of this Agreement, the prevai ling party therein shall be entitled to recover from the non-preva iling party 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 rend ered to the prevailing party in such action or proceeding (whi ch shall include the reasonable costs fo r services of the City's in-house counsel). 36. TIME IS OF T HE ESSENCE In all matters under thi s Agreement, the pa11ies agree that time is of th e essence. 37. TITLE OF PARTS AND SECTIONS Any titles of the articles, sections or subsections of this Agreement are inserted for convenience of reference onl y and shall be disregarded in construing or interpreting any part of its provision. 38. EX HIBITS Any exhibits referred to in this Agreement are incorporated in this Agreement by such reference. 39. INTERPRETATION Where the context requires herein, th e singul ar shall be construed as the plura l, and neuter pronouns shall be construed as mascul ine 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 undertake 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 fo r carrying on substantially all business fun ctions (a "B us iness Day"), then the last day for giving or replying to such notice, meeting such deadline or undertaking any such other acti on 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", "such as" or words of similar import when used with reference to any general term, statement or matter shall not be construed to limit such statement, term or matter to the specific statements, terms or matters, unless language of limitation, such as "and limited to" or words of similar impo11 are used with reference thereto. 40. NON-WAIVER OF BREACH Neither the failure of the City to insist upon strict performance of any of the covenants and agreements of this Agreement, nor the fa ilure by the City to exercise any rights or remedies granted to the City under the terms of this Agreement sha ll 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 C ity to insist upon and to enforce by any appropriate legal remedy a strict compliance with all of the covenants a nd conditions of this Agreement. 41. O WNER'S ACKNOWLEDGEMENT OF RESALE RESTRICTION Owner hereby acknowledges and agrees that: A. Owner hereby subjects the Property to the restrictio ns set fo rth above, and hereby lim its the price for which Owner may sell the Property and the persons to whom Owner may sell the Property as set forth above. The resale price limitation and other provisions contained in this Agreement restrict the full benefits of owning the Property. Owner may not enjoy the same economic or other benefits fro m owning the Property 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 furth er acknowledges that this Agreement requires that the Property be made available to Eligibl e Purchasers at an affordable price. C. Owner understands all of the prov isions 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 understa nding that this Agreement will remain in fu ll force and effect as to the Property fo llowing any Transfer of the Property throughout the Tenn. D. OWNER UNDERSTANDS THAT THE DETERMINATION OF THE MAXIMUM RESTRICTED RESALE PRICE OF THE PROPERTY TO AN ELIG IBLE 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 SIMI LAR 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 HAVE THE PROPERTY SUBJECT TO THIS AGREEMENT. A (Initials of Owner) 42. COUNTERPARTS 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. Remainder of Page Left Intentiona/(y Blank . .. IN WITNESS WHEREOF, the parti es have executed this Agreement on or as of the date first written above. CITY: CITY OF CA RLSBAD, a municipal corporation By: Geo ff Patnoe, Assistant City Manager Dated: OWNER: By: Dated: (Proper notarial acknowledgment of execution must be attached) SEE ATTACHED CERTIFICATE CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 1 m c1 a crJOOOOOOOOooll:OB'OOOOl.:aata m 110:0:0 o:o:o o o om J:0io,o:o:o:o o 0:():o:o:oo:D081J Jti o 0:11:0 o:e-800:111111 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~ J>l f1fj0 On 1)Pf , 2 3+2 0 2. 2.. before me, _____.:,...LL.l!.~~--'----'L......l,....!.......l-~:::::i.....~~~~~~=- Clote personally appeared b'e..Dc;:f' M:bnO e,. Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(i whose name(?1 is/alf subscribed to the within instrument and acknowledged to me that he/sh/ltt,{:y execu'ted the same in his/heffttieir authorized capacity(ies), and that by his/hyr/thfir signature(s~ on the instrument the person(s), br the entity upon behalf of which the person(s) acted, executed the instrument. l*♦il ♦OO ♦OOOOO~ _0 , •. SrE~3Y '"· NE~SON --~ >10~,y Pu~lic • C.lifo,ni: i · -: Sin Ot~o County f Commtu:on • 23 73071 - "'Y Comm. h,trtu.1 J1. 2C25 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. Place Notary Seal and/or Stamp Above Signatuce~~ lb-~~ lJ ~f Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or ~p_e .. p._f ~ · 6~~~~:~iDCtV~ Signer(s) Other Than Named Above: ________________________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: ____________ _ D Corporate Officer -Title(s): ______ _ □ Partner -□ Limited □ General D Individual □ Trustee D Other: □ Attorney in Fact □ Guardian or Conservator Signer is Representing: _________ _ Signer's Name: ____________ _ □ Corporate Officer -Title(s): ______ _ □ Partner -□ Limited □ General D Individual □ Trustee D Other: □ Attorney in Fact □ Guardian or Conservator Signer is Representing: _________ _ (11 111111)86:Q □ □ §0 □ D §ilJ0:8I~II:I1:I1:80@~8006~:0:0:0 0 O: [l:00:88lJ:0:0I~DDIIIIJOOffli ©2019 National Notary Association ' -. II GOVERNMENT CODE 27361.7 ll I CERTIFY UNDER PENAL TY OF PERJURY THAT THE-NOTARY ·SEAL ON THE DOCUMENT TO WHIC.H THIS.STATEMENT IS ATTACHED READS AS FOLLOWS: Name of the N_.otary:_1,;:_~~G;,.:_1 I .J,L\2...;,j 1---.:,_ffi~,-..LM~e.~l~...LoL..JvJL.....r-, ------- Commission .Number: a?i7 .30] I Date Commission Expires: f.,3 h~o,2\5 County Where Bond is Filed:_,_}t!Alt!Y\........_--40"'-ll ...... f ... gf--'1)..,__ __________ _ Manufacturer or Vendor Number:_..._N .... fV_.;.A-_f....__ ___________ _ (Located on both sides of the n~tary seal border) Signature:--l,IIQ'4--J W.~-......=.0 "-~l~~""""'"~W.._.. _ __._· -'------------- Firm Name (if applicable) Place of Execution: QtliY\ D \ CBD l C.J4 1 Rec. Form UR 1 0 (Rev. 7/961 CALIFORNIA ACKNOWLEDGMENT Oil 3 n■ IC 2 30fJIO □ □ D □ Eli ..... IC ')() □ □ 1€.tB 3 2 Bl]IO( □ )(JO O UAOOOOll h I M & CIVIL CODE § 1189 ! § A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which ~is certificate ls attached, and not the truthfulness, accuracy, or validity of that document State of California County ~f ~~ On Tu-c ctcl?v: Ill , .;201?,. before me, ~~!........l~~~~~~.u..s~~-=~------> Date personally appeared _C)~~----T'_A_~Le~o_/""\ ______________________ _ Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person{s} whose name(s) is/~subscribed to the within instrument and acknowledged to me thathelshe/they executed the same in hefher/~ authorized capacity0~). and that by hts,ther/tl'teif..6ignature(.) on the instrument the person(s), or the entity upon behalf of which the person($} acted, executed the Instrument .. Place Notary Seal and/or Stamp Above I certify under PENAL 1Y OF PERJURY under the laws of the State of California that the foregoing paragraph ls true and correct. WITNESS my hand and official seal. Signature QC) _,) Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document Descriptiori of Attached Document Title o;; Typ~pfs ocumen~o" d--R~.-h\~ C,-r~ Ri8c..rd}'L Resf,\'~'dl'S &,-tt°rw,sW CY f'~'-"'1 , ([A}f~ R:e.sh-\Gi.~"> ~'1-f \('at'-CA:·l'l1/ ~1.tr6 ~ ~7 6 fOt=--cJaC DocumentDate: 0:<c.c.rl?if 11o . ~3--'.2 · J _ NumberofPages: ___ _ Slgner{s) Other Than Named_ Above: ______________________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: ___________ _ Signer's Name: ___________ _ o Corporate Officer -Title(s): ______ _ □ Corporate Officer -Tltle(s): ______ _ o Partner -o Limited □ General □ Partner -□ Limited □ General □ Individual □ Attorney in Fact o Individual D Attorney in Fact o Trustee □ Guardian or Conservator □ Trustee □ Guardian or Conservator o Other: ______________ _ □ Other: ______________ _ Signer is Representing: _________ _ Signer ls Representing: _________ _ BIiii A DtRil D □ B a a a a E Ba JIii■ DE a a D □ i p : □ : § §b [)@£ u 80(] BBDUUiEBBB BBB 088 8 II Your Reference Number: EXHIBIT A LEGAL DESCRIPTION Fidelity National Title Company Order No.: 00202872-008-CP 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: A CONDOMINIUM LOCATED ON THE REAL PROPERTY DESCRIBED AS LOT 1 OF CITY OF CARLSBAD, TRACT NO. 01-13, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO, 14797, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY: MAY 17, 2004 AS FILE NO. 2004-446317 OF OFFICIAL RECORDS, COMPRISED OF: PARCEL 1: UNIT 571 , IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN UPON THAT CERTAIN CONDOMINIUM PLAN FOR LAGUNA POINT, AS RECORDED ON JUNE 27, 2005, AS FILE NO.2005-538003, IN THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY, CALIFORNIA ("CONDOMINIUM PLAN"). PARCEL 2: AN UNDIVIDED 1121ST INTEREST AS A TENANT IN COMMON IN THE UNDIVIDED INTEREST COMMON AREA AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN AND AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LAGUNA POINT HOMEOWNERS ASSOCIATION, RECORDED ON JUNE 27, 2005, AS FILE NO. 2005-538002, IN THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). THE UNDIVIDED INTEREST COMMON AREA WILL NOT BE OWNED BY LAGUNA POINT HOMEOWNERS ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION"). PARCEL 3: NON-EXCLUSIVE EASEMENTS FOR INGRESS, EGRESS, ACCESS, ENJOYMENT, USE AND SUPPORT OVER THE ASSOCIATION PROPERTY AS DESCRIBED IN THE DECLARATION AND INDICATED ON THE CONDOMINIUM PLAN, WHICH WILL BE OWNED BY THE ASSOCIATION. EXCEPTING THEREFROM THE FOLLOWING: (A) ALL UNITS, AS SHOWN UPON THE CONDOMINIUM PLAN OTHER THAN THE UNIT CONVEYED AS PARCEL 1 ABOVE. (B) THE EXCLUSIVE RIGHT OF POSSESSION AND OCCUPANCY OF ALL THOSE AREAS DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY AS DESCRIBED IN THE DECLARATION AND AS SHOWN UPON THE CONDOMINIUM PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLUSIVE USE OF OWNERS OF UNITS. (C) THE EASEMENT AND OTHER RIGHTS RESERVED IN FAVOR OF DECLARANT AS DESCRIBED IN THE DECLARATION AND ON THE CONDOMINIUM PLAN. PARCEL 4: THE EXCLUSIVE RIGHT TO POSSESSION AND OCCUPANCY OF THAT PORTION OF THE ASSOCIATION PROPERTY, DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY, AS SHOWN ON THE CONDOMINIUM PLAN, DESIGNATED AS 0-571 . Your Reference Number: PARCEL 5: Fidelity National Title Company Order No.: 00202872-008-CP THE EXCLUSIVE RIGHT TO POSSESSION AND OCCUPANCY OF THAT PORTION OF THE ASSOCIATION PROPERTY, DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY, AS SHOWN ON THE CONDOMINIUM PLAN, DESIGNATED AS S-571 . PARCEL 6: ONE CLASS A MEMBERSHIP IN THE ASSOCIATION. APN: 203-101-37-12 EXHIBIT B FORM OF OWNER OCCUPANCY CERTIFICATION To: City of Carlsbad ("City") From: ___________ I name of owner(s)] ("Owner(s)") Address of Property: ____________ ("Property") Date: By signature below, I _______________ [insert name or names of Owner(s)] hereby certify to the City under penalty of perjury that I/we occupy the home located at __________________ [insert address] ("Property") as my/our principal place of residence and that I/we have occupied the Property for _____ (_) [insert number] months of the calendar year ______ [insert previous calendar year]. Attached to this letter is a copy of ____ [insert utility bill or driver's license] showing my p lace of residence? All of the occupants of the Property are li sted as follows: This Owner Occupancy Certification is signed on ________ , 20_, under penalty of perjury. By: Owner signature Date: By: Owner signature Date: Due Date: of each calendar year. ----- Attach copy of utility bil I or driver's license showing address of Property. B-1 EXHIBIT C FORM OF OWNER'S NOTICE OF INTENT TO TRANSFER To: C ity of Carlsbad ("City") From: ___________ [name of owner(s)J ("Owner(s)") Address of Property: ____________ ("Property") Date: Please be notified pursuant to Section 8 of the Resale Restriction Agreement and Option to Purchase between Owner and City dated ______ that the Owner intend s to transfer the Property listed above. A. The fo llowing information is provided to the C ity pursuant to Section 8 of the Resale Agreement: I. Address of Property: ____________________ _ 2. Date Owner purchased Property: ________________ _ 3. Original Affordable Purchase Price: _______________ _ 4. Original amount o f Homebuyer Loan: _______________ _ 5. Full Purchase Price: --------------------- 6. Date Owner intends to vacate Property : ______________ _ 7. Name and phone number of person for City to contact to schedule in spection: ____________ and __________ _ (name) (phone number) B. As required by Section 8 of the Resale Restrictio n Agreement, the following the H UD-1 Settlement Statement from Owner's purc hase o f the property is attached. C. I have not listed the Property for sale with a multiple listing service, or contacted a real estate broker or fin ancia l institution. I agree to prepare the Prope rty for sale by: I. obtaining a pest control report within thirty (30) days of the date o f this notice; C-1 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 tran sfer 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 transferred; 5. not removing any kitchen appliances prior to vacating the Property without the City approving such removal; and 6. permitting 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 true and correct and is signed on the date(s) below under penalty of perjury. By: Owner signature Date: By: Owner signature Date: C-1 EXHIBIT D FORM OF CITY RESPONSE NOTICE To: _________ ("Owner(s)") From: City of Carlsbad ("City") Address of Property: ____________ ("Property") Date: Thank you for delivering the Notice of Intent to Transfer. This letter is the City Response Notice described in Section IO of the Resale Restriction Agreement that was recorded against title to your home. The City: I. __ City w ill check this Sentence #I and complete other information listed in #I if the City intends to exercise its option to purchase the Property or assign its option to the Property to a Designated Purchaser at any point during the entire Term of Resale Restriction Agreement A. Affordable Sales Price: $ -------- B. Amount owed on Homebuyer Loan:$ ________ _ C. Full Sales Price (add numbers in I (A) and I (B)): $ _____ _ D. Fair Market Value (as estimated by the City):$ ______ _ The Price for which you may sell your Property (or the Maximum Restricted Resale Price) (The greater of l(C) and l(D)): $ _______ _ In connection w ith the C ity's Option, you will owe a$ ___ to City. If the C ity 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 Property, that designated purchaser may assume the amount you owe on the Home buyer Loan. If the City purchases your Property, the D-1 amount you owe on the Homebuyer Loan shall be credited agai nst the purchase price paid by the City. 2. ___ City will check this Sentence #2 and complete other information li sted in #2 if the City intends for Owner to sel l the Prope1ty to an El igible Purchase during years 1-30 of the Resale Restriction Agreement. A. Affordable Sales Pri ce: $ -------- B. Amount owed on Homebuyer Loan:$ ________ _ C. Full Sales Price (add numbers in I (A) and I (B)): $ _____ _ D. Fair Market Value (as estimated by the City):$ ______ _ The total price for which you may sell your Property (or the Max imum Restricted Resale Price) (the greater of 1 (C) and I (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 wil l then agree to repay the amount of the Home buyer Loan. You must market your Prope1ty to an "Eligible Purchaser" as required by Section 15 of the Resale Restriction Agreement. The Maximum Qualifying Income of Eligible Purchaser is: ___ Very Low Income Household (50% of Area Median Income) I person household$ ______ _ 2 person household$ ______ _ 3 person household$ ______ _ 4 person househo Id $ ______ _ 5 person household$ ______ _ 6 person household $ ______ _ ___ Low Income Household (80% of Area Median Income) I perso n hou sehold $ ______ _ D-2 2 person household$ ______ _ 3 person household $ ______ _ 4 person household $ ______ _ 5 person house hold $ ______ _ 6 person house hold $ ______ _ When you locate a proposed purchaser of your Property, you must provide the City with the information listed in Section 15(8) of the Resale Restriction Agreement and l S(D)( I) through (4). Upo n sale of your Property to a proposed purchaser who has been approved by the City as an Eligible Purchaser, you must provide the information required by Section l S(D)(S) through (7). CITY: Name: -------------- Title: Date: Designated Purchaser (if applicable): Name: _____________ Name: _____________ _ Date: Date: All questions regarding thi s notice should be directed to _________ _ D-3 -... - EXHIBIT E FORM OF OWNER ACKNOWLEDGEMENT OF CITY RESPONSE NOTICE Name: Address of Property: I (We), _____________ I insert name(s)] hereby acknowledge that I (We) received the City Response Notice (as described in Section IO of the Resale Restriction Agreement on _____ [insert date(s}I. By: Owner signature Date: By: Owner signature Date: E-1 To: From: EXHIBIT F FORM OF OWNER REQUEST FOR CITY SUBORDINATION TO REFINANCED FIRST LENDER LOAN City of Carlsbad ("City") -----------------("Owner(s)") Property Address: _______________ ("Property") The Owner hereby requests the City to approve the Owner's refinance of the existing fi rst mortgage on the Property. The Owner provides the following info rmation which it certifies to be true and correct: I. Original Affordable Purchase Price of Property: $ ------- 2. Original Homebuyer Loan Amount 3. Fu ll Purchase Price of Property (I plus 2) $ ______ _ 3. Original principal balance of existin g 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 Le nder Loan: $ ______ _ 9. Monthly payments to be due on new First Lender Loan: $ ______ _ The Owner hereby certifies the above info rmation is true and correct and this Owner(s) Request is executed under penalty of perj ury on the date(s) be low. By: Owner signature Date By: Owner signature Date F-1 Recording Requested by: Fidelity National Title San Diego Office NO r-ee, fo~ 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# 2022-0481584 111111111111 lllll 111111111111111 IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII Dec 29, 2022 10:23 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 (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 ("City"), has required Olga Leon, a single woman, (''Owner") to enter into certain affordability covenants and restrictions entitled, Affordability Restrictions on Transfer of Property, Occupancy, and Refinancing Restrictions and Option to Purchase ("Restrictions"), with reference to certain real property located at 571 Laguna Drive, Carlsbad. CA 92008, San Diego County ("Property''), 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 described 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 forth 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 Property. 4. The Owner has granted the City an option to purchase the Property upon resale or default. 5. The Owner's rights to pledge the Property as security for a debt are limited. In the event of any conflict between this Notice of Affordability Restrictions on Transfer of Property ("Notice") and the Restrictions, the terms of the Restrictions shall prevail. The Restrictions have been recorded concurrently herewith and shall remain in effect for thirty (30) years commencing on the date of recordation of the Restrictions. Exempt from fee per GC27388.1 due to being recorded Jn connection with concurrent transfer that la subject to the lmpoaltlon of documemary transfer tax. P,ecording Requested by: Fidelity National Title San Diego Office NO ree, FG\\. RECORDIN G REQUESTED PURSUAN T TO GOVERN MENT CODE SECTION 27383 When Recorded Mail To: City of Carlsbad Housing Services Manager 1200 Carlsbad Village Drive Carlsbad, CA 92008 NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (City of Carlsbad Affordable Housing Resale Program) NOTICE IS HEREBY GIVEN, that the C ity of Carl sbad ("City"), has required O lga Leon, a sin gle woman, ("Owner") to ente r into certain affordability covenants and restrictions entitled, Affordability Restrictions on Transfer of Property, Occupancy, and Re financing Restrictions and Option to Purchase ("Restrictions"), w ith reference to certain real property located at 571 Laguna Drive, Carlsbad, CA 92008, San Diego County ("Prope rty"), and further described in Exhi bit A, incorporated herein by reference. The affordability covenants and restrictions contained in the Restrictions include without limitation and as fu rther described in the Restricti ons: 1. The Property is restricted for resale to a low-income househo ld at a purchase price affordable to a low-income household, except as set forth in the Restriction. 2. The Owner must occupy the Prope1ty as the Owner's principal residence. 3. The Owner must give noti ce to the City before resale of the Prope1ty. 4. The Owner has granted the City an option to purchase the Property 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 o f Affordability Restrictions on Transfer of Property ("Notice") and the Restrictions, the terms of the Restrictions shall prevail. The Restrictions have been recorded concurrently herewith and sha ll rema in in effect for thirty (30) years commencing on the date of recordation of the Restrictions. 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. This Notice is being recorded and fi led by the City of Carlsbad ("City") in compliance with Health and Safety Code Sections 33334.5(t)(3) and ( 4) and/or Section 33413( c )(5), as amended effective this date, and shall be indexed against the City and the Owner. lN 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: Geoff Patnoe, Assistant City Manager OWNER ~ L Olga Leon Dated: _l_v____,J/,__-z.,_>__,_}_-z._n_ _____ _ Dated: __ rd--l---1_f _,__~_~_Q--__ (PROPER NOTORIAL ACKNOWLEDGEMENT MUST BE ATTACHED) SEE ATTACHED CERTIFICATE 2 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 0081 l0089080i0:880il [Ji8lQ@a m 1:rn1 I:80l{JIQc )1008000111) ~ 11 II I:ROffl] D [J:(l@O 111j1:01maJ1J 0 □ □ D U 1 111)11111111 1:(1:QcOOOO:IOI0:0 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 Cali~~ } County of<~ £)i ~) On ]g_c_. '2.. ~ l 2D Z. befoce me:C~ \---:l-WW:fu::l ~)~~\[. Date 0 . M ? ; nsert Name and Title of lhe Officer personally appeared CYR D ti'.. ~() L Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(f whose name~ is/a_fe. subscribed to the within instrument and acknowledged to me that he/str/thfy' executed the same in his/hr/tlfir authorized capacity(ies), and that by his/h1/th/ir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Place Notary Seal and/or Stamp Above 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. Signature f Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: -i-:::~~~~11.-----1-.i.µµ!!J.A~~~~P-~~.!.JO.....t..~_..!..,;~1..1.~~L.l~=:Ln..<t Document Date: _______________________ Number of Pages: ____ _ Signer(s) Other Than Named Above: _______________________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: □ Corporate Officer -Title(s): ______ _ □ Corporate Officer -Title(s): ______ _ □ Partner -□ Limited □ General □ Partner -□ Limited □ General □ Individual □ Attorney in Fact □ Individual □ Attorney in Fact □ Trustee □ Guardian or Conservator □ Trustee □ Guardian or Conservator □ Other: □ Other: Signer is Representing: _________ _ Signer is Representing: _________ _ ©2019 National Notary Association ll GOVERNMENT·CODE 27361.7 II I CERTIFY UNDER PENAL TY OF PERJURY THAT THE · NOTARY ·SEAL ON THE DOCUMENT TO WHIC.H THIS.STATEMENT IS ATTACHED READS AS FOLLOWS: Commission .Number: i ~73'01 J Date Commission Ex~lres: f-~? }:2:Q ,t/ .. County Where Bond is Filed:-.:...a(~LJl:4,¥'.'l,t!..____.;D~\.:...;(8,14..J,...04 1_.l,,,,.{,4..L.A ________ _ Manufacturer or Vendor Numbe~:_.,-i.tJu.fV.x...:..JA:u..l _· ___________ _ (Located on bo1h sides of the notary seal border) Firm Name (if applicable) •· .· Pl ace of Execution: Sal'I\ n vCg O I cA 1 Rec. Form RR 10 (Rev. 7/96) CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 OCBlillrJ 2 fJIO¥ 2 2 2 j J □ 2 BB IJCl80ll B □□a [l!{] IJ088608A08ll10B881Hli&IIUIJ800I J lOO A notary public or other officer completing this certificate verlfles 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 ~f ;Sq(\]k.1-9 On Oecb:x::b,.v Ll. .J.c;) ;L Date } before me, ··c. Peterson, Notar~ Public Here Insert Name an Title of the Officer personally appeared _0_l9~Q. __ u_~_o_0 _____________________ _ Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s} whose narne(s)' is/are subscribed to the within instrument and acknowledged to me that"he/shetthey executed the same in11islherftfi'ei1; authorized capacity[~. and that by hts/her/1:heif' signature(s) on the instrument the person{s), or the entity upon behalf of which the person~) acted, executed the Instrument .. C. PETERSON Noury Public • C•llfornla S.n D1"iO County Commission I 2◄1011◄ ( My Comm. Expires AUS,,:, "!26 Place Notary Seal and/or Stamp Above 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. Signature ~oo~~========--------- Signature of Notary Pub/le OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document Descrlptlop of Attached Document ntle or Type of Document:Noh-Ce tf-Af{6;-d.cJ:,ctI:bj ~$0~ .,.._ 4-r-c.cs:f<c 4 P,--,f?Y±y DocumentDate: ~b&:: jC, 1 .:2-0U NumberofPages: ___ _ Slgner{s) Other Than Named_ Above: ______________________ _ Capacity(ies) Claimed by Signer{s) Signer's Name: ___________ _ Signer's Name: ___________ _ o Corporate Officer -Tltle(s): ______ _ o Corporate Officer -Tltle(s): ______ _ o Partner -□ Limited o General □ Partner -o Limited □ General o Individual o Attorney in Fact o Individual o Attorney In Fact □ Trustee □ Guardian or Conservator □ Trustee □ Guardian or Conservator o Other: □ Other: ______________ _ Signer is Representing:---,--------Signer is Representing: _________ _ 0880€ ED A [J88( CB B □DU m BU ll80889C a BB D na@a ■ijl □ 5 D £□ E □aSU ESBOutllliDBLJIIII Your Ref~rence Number: . EXHIBIT A LEGAL DESCRIPTION Fidelity National Title Company Order No.: 00202872-008-CP 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: A CONDOMINIUM LOCATED ON THE REAL PROPERTY DESCRIBED AS LOT 1 OF CITY OF CARLSBAD, TRACT NO. 01-13, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO, 14797, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY: MAY 17, 2004 AS FILE NO. 2004-446317 OF OFFICIAL RECORDS, COMPRISED OF: PARCEL 1: UNIT 571, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN UPON THAT CERTAIN CONDOMINIUM PLAN FOR LAGUNA POINT, AS RECORDED ON JUNE 27, 2005, AS FILE NO.2005-538003, IN THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY, CALIFORNIA ("CONDOMINIUM PLAN"). PARCEL 2: AN UNDIVIDED 1121ST INTEREST AS A TENANT IN COMMON IN THE UNDIVIDED INTEREST COMMON AREA AS SHOWN AND DEFINED ON THE CONDOMINIUM PLAN AND AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LAGUNA POINT HOMEOWNERS ASSOCIATION, RECORDED ON JUNE 27, 2005, AS FILE NO. 2005-538002, IN THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY, CALIFORNIA ("DECLARATION"). THE UNDIVIDED INTEREST COMMON AREA WILL NOT BE OWNED BY LAGUNA POINT HOMEOWNERS ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION"). PARCEL 3: NON-EXCLUSIVE EASEMENTS FOR INGRESS, EGRESS, ACCESS, ENJOYMENT, USE AND SUPPORT OVER THE ASSOCIATION PROPERTY AS DESCRIBED IN THE DECLARATION AND INDICATED ON THE CONDOMINIUM PLAN, WHICH WILL BE OWNED BY THE ASSOCIATION. EXCEPTING THEREFROM THE FOLLOWING: (A) ALL UNITS, AS SHOWN UPON THE CONDOMINIUM PLAN OTHER THAN THE UNIT CONVEYED AS PARCEL 1 ABOVE. (B) THE EXCLUSIVE RIGHT OF POSSESSION AND OCCUPANCY OF ALL THOSE AREAS DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY AS DESCRIBED IN THE DECLARATION AND AS SHOWN UPON THE CONDOMINIUM PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLU SIVE USE OF OWNERS OF UNITS. (C) THE EASEMENT AND OTHER RIGHTS RESERVED IN FAVOR OF DECLARANT AS DESCRIBED IN THE DECLARATION AND ON THE CONDOMINIUM PLAN. PARCEL 4: THE EXCLUSIVE RIGHT TO POSSESSION AND OCCUPANCY OF THAT PORTION OF THE ASSOCIATION PROPERTY, DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY, AS SHOWN ON THE CONDOMINIUM PLAN, DESIGNATED AS D-571. PARCEL 5: Fidelity National Title Company Order No.: 00202872-008-CP THE EXCLUSIVE RIGHT TO POSSESSION AND OCCUPANCY OF THAT PORTION OF THE ASSOCIATION PROPERTY, DESIGNATED AS EXCLUSIVE USE ASSOCIATION PROPERTY, AS SHOWN ON THE CONDOMINIUM PLAN, DESIGNATED AS S-571. PARCEL 6: ONE CLASS A MEMBERSHIP IN THE ASSOCIATION. APN: 203-101-37-12