HomeMy WebLinkAboutD-1156 Norton Addition To City Slo Recorded 08/08/1983y. '`ING REQUESTED BY
€; iY CLERK'S OFFICE*
of San Luis Obispo
P.O. Box 321
San Luis Obispo, CA_93401
WHEN RECORDED MAIL TO
CITY CLERK'S OFFICIy
City of San Luis Obispo
P.O. Box 321
San Luis Obispo, CA. 93401
a 0. 0 F
.000M
9738
DOC. NO 370310
OFFICIAL RECORDS'
SAN LUIS OBISPO CO., CAL
AUG 91983
FRANOS M. COONEY
Cool* Clerk- Recorder
TIME 1 1 : 1 O AM
SPACE ABOVE THIS LINE FOR RECORDERS USE
II 'n mmT/".r+ww n11
DOWNTOWN HOUSING CONSERVATION PROGRAM
CITY OF SAN LUIS OBISPO, CALIFORNIA
RENTAL ASSISTANCE AGREEMENT
THIS AGREEMENT ENTERED INTO THIS FIFTEENTH DAY OF JULY , 19 83 BY AND BETWEEN
THE CITY OF SAN LUIS 681SPO AND PARK HOTEL PARTNERSHIP
HEREINAFTER REFERRED TO AS 'OWNER'.
IT IS MUTUALLY AGREED BY THE PARTIES HERETO AS FOLLOWS:
I. John E.King, Carole D.Kng, & Jessie H.Ray are oWNERs OF THE REAL PROPERTY LOCATED IN THE
CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS.OBISPO, CALIFORNIA, DESCRIBED AS FOLLOWS:
Lots 2 and 3 in Block 181 of the Ingleside Homestead Tract, in the City of San Luis
Obispo, County of San Luis Obispo, State of California, according to the official map
thereof surveyed by George Story, October 1887, and filed inthe office of the County
Recorder of said County.
EXCEPTING however, that part of said Lot 3 conveyed by Thomas Barrett, Jr., to the
Southern Pacific Railroad Company by Deed dated November 24, 1890, and recorded in
Book 11, Page 2.7, et seq., of Deeds, records of said County.
II. OWNER AGREES THAT THE FOLLOWING CONDITIONS AND RESTRICTIONS ON THE DESCRIBED PROPERTY
SHALL INURE TO AND BIND THE HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS,
SUCCESSORS AND ASSIGNS OF THE PARTIES HERETO:
A. THE OWNER AGREES TO RENT, AS VACANCIES OCCUR, ALL RENTAL UNITS LOCATED ON THE
PROPERTY TO A CERTIFIED SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM TENANT FOR THE
REMAINING LENGTH OF THE AGREEMENT, THE OWNER SHALL RENT TO SUCH QUALIFIED TENANT(S)
OF SUCH UNIT(S) WITHOUT REJECTING ANY EXCEPT FOR JUST AND REASONALBE CAUSE. THE
INITIAL RENT OF SUCH UNIT(S) SHALL NOT EXCEED THE FAIR MARKET RENT CEILINGS AS
DETERMINED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE CITY OF SAN LUIS
OBISPO'S SECTION,8 EXISTING HOUSING ASSISTANCE PAYMENTS PROGRAM, IN EFFECT AT THE TIME
THE TENANT TAKES OCCUPANCY OF THE UNIT.
B. THE OWNER AGREES TO CONTACT THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
(487 LEFF STREET, P.O. BOX 638, SAN LUIS OBISPO, CA 93406) PRIOR TO ANY RENTAL
INCREASES TO DETERMINE IF THE ADJUSTMENTS ARE IN ACCORDANCE WITH THE ANNUAL ADJUSTMENT
FACTOR PUBLISHED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EACH YEAR.
C. THE OWNER AGREES TO NOTIFY THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO OF A
VACANCY IN THE QUALIFIED UNIT(S). FOLLOWING SUCH NOTIFICATION, THE HOUSING AUTHORITY
SHALL REFER QUALIFIED PERSONS TO THE,OWNER FOR A- PERIOD OF THIRTY (30) DAYS, OR UNTIL
NOTIFIED THAT THE VACANCY NO LONGER EXISTS. THE OWNER SHALL NOT REJECT ANY QUALIFIED
TENANTS EXCEPT FOR JUST AND REASONABLE CAUSE. IF NO SECTION 8 TENANTS ARE AVAILABLE
AND QUALIFIED TO OCCUPY THE VACANT UNIT OR UNITS, THEN BORROWER AGREES TO RENT SUCH
UNITS TO PERSONS OR HOUSEHOLDS WITH ADJUSTED INCOME NOT IN EXCESS OF 80% OF THE AREA
MEDIAN INCOME, AS ESTABLISHED BY LOCAL LENDER, AT A RENT NOT GREATER THAN 25% OF SUCH
INCOME, PROVIDED THAT SUCH RENTS MAY BE ADJUSTED TO THE EXTENT NECESSARY TO MEET DEBT
SERVICE ON THE SUBJECT PROPERTIES AND ANY INCREASED COSTS OF OPERATION'AND MAINTENANCE
OF THE PROPERTIES, WITH THE APPROVAL. OF LOCAL LENDER. THE METHOD OF DETERMINING AND
DOCUMENTING THE'NEED FOR SUCH INCREASES SHALL.BE AT THE REASONABLE DISCRETION OF
LOCAL LENDER. IN EVERY CASE OF A PROPOSED RENT INCREASE, THE TENANT OR TENANTS AFFEC-
TED BY SUCH INCREASE SHALL RECEIVE WRITTEN NOTICE, AT LEAST 30 DAYS PRIOR TO THE PRO-
POSED DATE OF SUCH INCREASE, OF THE AMOUNT OF THE PROPOSED INCREASE AND THE JUSTIFICA-
TION THEREFOR. -IN NO CASE SHALL THE RENT EXCEED THE FAIR MARKET RENT LIMITATIONS
i ESTABLISHED UNDER THE SECTION 8 EXISTING HOUSING REGULATIONS.
(FORM CDBG -HASLO #2)
VOL PAGE 7�9
PGe 1 OF 2
OWNER AGREES TO MAKE THE RENTAL UNIT(S) AVAILABLE TO PERSONS OF LOW INCOME
ER ANY SUCCESSOR RENT SUBSIDY OR FUNDING PROGRAM AVAILABLE TO OR ADMINISTERED
F
BY THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO.
E. THE OBLIGATIONS OF THIS AGREEMENT SHALL REMAIN IN FULL FORCE AND. EFFECT FOR SO LONG
AS THE DEFERRED PAYMENT LOAN, OR ANY PORTION THEREOF, REMAINS OUTSTANDING.
F. BORROWER ACFWOWLEDGES THAT SHOULD RENTS IN EXCESS OF THOSE PERMITTED BY THIS
AGREEMENT AND APPROVED BY LOCAL LENDER BE CHARGED, THIS WILL BE CAUSE FOR APPROPRIATE
ACTION BY LOCAL LENDER, INCLUDING BUT NOT LIMITED TO, DECLARING A DEFAULT AND ACCEL-
ERATING REPAYMENT OF TFiE DEFERRED PAYMENT LOAN, REQUIRING REPAYMENT OF EXCESS RENTALS
TO TENANTS, SEEKING AN INJUNCTION AGAINST ANY VIOLATION OF THE AGREEMENT, REQUESTING
JUDICIAL APPOINTMENT OF A RECEIVER TO TAKE OVER AND OPERATE THE PROPERTY IN ACCORDANCE
WITH THE TERMS OF THIS AGREEMENT, OR SEEKING SUCH OTHER RELIEF AS MAY BE APPROPRIATE.
THE INJURY TO LOCAL LENDER ARISING FROM A DEFAULT UNDER ANY OF THE TERMS OF THIS AGREE-
MENT WOULD BE IRREPARABLE AND THE AMOUNT OF DAMAGE WOULD BE DIFFICULT TO ASCERTAIN.
G. THE PROVISIONS OF THIS AGREEMENT ARE IN ADDITION TO, AND.DO NOT ALTER, MODIFY OR SET
ASIDE IN ANY RESPECT., THE PROVISIONS OF THE LOAN AGREEMENT, PROMISSORY NOTE OR DEED OF
TRUST OR SIMILAR INSTRUMENT SECURING THE DEFERRED PAYMENT LOAN.
H. THESE CONDITIONS AND RESTRICTIONS SHALL EXPIRE ON JULY 15, 2003
H. THE PARTIES AGREE THAT THIS AGREEMENT IS ENTERED INTO AS PART OF AND IN CONSIDERATION OF
A COMMUNITY DEVELOPMENT BLOCK GRANT REHABILITATION LOAN, ADMINISTERED BY THE CITY OF SAN
LUIS OBISPO, AND SHALL BE RECORDED,
CITY OF SAN LUIS OBISPO
BY
CITY ADMINISTRATIVE OFFICEIV Jessie H. Ray
i
l4'.YC EY
R -
John E. Kjlzfg
a
CA
K,.:-_
OWNER -
Carole D. King
{ STATE CAI :.1 FORN I A
)
.QF
�j COUNTY' OSjk LUIS OBISPO)
Ss'
O!<VJ Z' I J I
U - -
BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC IN AND FOR .
SAID S TE . ERSONALLY
APPEARED
"
-.4- " SS J ` -
KNOWN TO ME TO BE THE
PERSON)
ES
!.
WHOSE NAME(() IS-'( RE)
SUBSCRIBED TO HE WITHIN INSTRUMENT
AND ACKNOWLEDGED THAT'-�-HE
EXECUTED THE SAME-
WITNESS MY HAND AND OFFICIAL SEAL•
y OFFICIAL SFA$+
CAROL ANN JAME=S
5'• 1°
NOTARY S SIGNATURE I, NOTARY PUBLIC - CALIFQ12N1A,
SP,tI LUIS 05IS ?0 COUNTY
My comm. cxpires JUN 29, 1994
State of California )
County of San Luis Obispo) ss.
On this 2nd day of August, in the year 1983„ before me, Marilyn Perry, a Notary
Public, personally appeared Paul A. Lanspery, Geoffrey L. Grote and Pamela Voges
personally known to me or proved to me-on the basis of satisfactory evidence to be
the persons who executed the within instrument as the City Administrative Officer,
City Attorney and City Clerk respectively of the City of San Luis Obispo, a municipal
corporation, and acknowledged to me that the City of San Luis Obispo executed the
same..
END OF DOCUMENT
Marilyn Perry, Notary Public 'VOL PAGE58n
OFFICIAL SEAL
MARILYN PERRY
NOTARY PUBLIC-CALIFORNIA
PRINCIPAL OFFICE IN
�• SAN LUIS OBISPO COUNTY
My Commission Expires Aug. 12, 1983
RESOLUTION NO. 2 -A
A RESOLUTION OF THE BLOCK GRANT .LOAN COMMITTEE OF THE CITY OF SAN LUIS OBISPO
APPROVING THE APPLICATION FOR FINANCIAL ASSISTANCE TO
THE PARK HOTEL PARTNERSHIP TO REHABILITATE THEIR HOUSING UNITS AT
1815 OSOS STREET, SAN LUIS OBISPO, CALIFORNIA
WHEREAS, in December 1980 the City Council of San Luis Obispo adopted Guidelines for
the administration of the federally funded Downtown .Housing Rehabilitation Loan Program;
and
WHEREAS, these Guidelines establish the Block Grant Loan Committee and empower it to
review all loan applications submitted to the City and, following program Guidelines,
either approve or deny loan applications; and
WHEREAS, John E. King, Carole D. King and Jessie H. Ray, DBA "The Park Hotel ", have
applied for financial assistance for the purpose of upgrading their housing units on the
second and third floors of the building at 1815 Osos Street, San.Luis Obispo, California;
and
WHEREAS, the Block Grant Loan Committee has reviewed the Park Hotel Partnership's
application and has found that it is consistent with the adopted Loan Program Guidelines,
the Block Grant applications approved by HUD in November 1980, and that it is an eligible
activity.
NOW, THEREFORE, BE IT RESOLVED by the Block Grant Loan Committee of the City of San
Luis Obispo as follows:
1. Application Approval: The.Park Hotel Partnership's Rehabilitation Loan
Application (attached as Exhibit "A and included herein by reference) is
approved.
2. Terms of Financial Assistance: The total rehabilitation cost for the subject
housing units is- estimated to be $566,073. The City will provide financial
assistance to the extent outlined in Exhibits "B" and "C" attached and included
herein by reference.
3. Conditions of Application Approval: The following are prerequisite to the formal
approval of subject application and shall be met prior to the application for
dispersal of federal funds to carry out the proposed rehabilitation project:
a. The applicants complete all City reviews and obtain a building, permit within
30 days.
b. The contractor shall provide evidence of satisfactory 100% Payment and
Performance Bond in the amount of $54.9,223 prior to signing a contract with
the applicants.
C. The applicants (The Park Hotel Partnership) and the contractor (Kingcorp)
shall execute a construction contract within 30 days.
d. The applicant has executed an agreement with the City of San Luis Obispo to
participate in the Federal Section 8 Rental Assistance, Program during the
time span of the rehabilitation loan, in this instance twenty (20) years.
4. Resolution No. 2 of this committee, dated March 18, 1983, is hereby rescinded
and replaced by Resolution No. 2 -A.
On motion of Mr. Sanville, seconded.by Ms. Pryor, and on the following roll call' vote:
AYES: Mr. Sanville, Ms. Pryor, Ms. Owens, Mr. Nelson
NOES: None
ABSENT: Mr. Muravez
the foregoing Resolution was duly adopted and passed this 20th day of May, 1963.
APPROVED AS TO FORM:
Director, Community Development
City of San Luis Obispo
Ci At ne
City of San Luis Obispo
7/2,
A5ock a R. Nelson, C irman
Grant Loan Cort ittee
r j•
Executive. DiEec—terr, Housing Aut ority
of the City of San Luis Obispo
CITY OP SAN I2Ii:ItA3ILI,rkft0N LOAN APPLICATION
EXHI A to RESOLUTION NO. 27A
Date: t e Dee.
.N,xplc�()f 1'r.,operty Owner: -./e 'A -Iwirsze Am Im
Address: 555 SgJf Lzi c, Telephone:
Applicant's Name (if difft-tvllt. from owner):- 6W" Z A41M OPKV4f
elfany Telephone:
Rc1a+1-i.()nshj,--) to Owner* 1
7` /pe of 7 So I e C n, i po ra t ion V,irtncrship
Arc .tray i I n i is owne r-uccup i od? : NO
I) QSC- :-.; pljr) I I c) f I I ous ill (I 'IN' I v- :
it. V 1.). Ajc of building 80 tfg4,Ra
C:
Occupied 1111i I Nitniho• of unoccupied units:
f. Cul:ow, rent s . chedlile 1,y UTlit ,;izc: Ilousckcupill') = $ ,/Studio = S
-oclill Ot her = $
su:Tunilry of pr-oposed i-ll: (briefly clescri.bc)
3. Improvemc!l1t:;:
M17V—Z
7
-fzm, t� /,,�Pr
1). 1 ic,il Tmpr0,v.vmont-!--: r--17oz91,r"- ;Zlil
AA ? lILe F
n-
4d/
4
IMP I UVQ 1110 ]It,:;:
IJAJ
.111•1 type of
r-il ki t.chen r111(1/01.- bAth) Studio 30
Bm.irnom Other
.,I vuh,ihi litation work:,
Currant ;,rc-q-,f--,rty Value: eolo
a.
e.
d.
e.
f.
"", j -
F71
k�bj
, F7
Co:; L [)it
Purchase price "I - - 0Pz2----
b. Date
of Purchase:
amount spent m; capital
jllipj-c)vcmcnt!;: S
cunt ow e cl 1st , t r u! i
'S 6 Monthly
pmt.: $ OD-- Payoff
date:
Amount awed 2nd trust 6..-Qd:
$3676?Z g' Monthly
pmt. $ Pa off
date: te _/9f3
4
any additional 3 i erl!; n r
am,o�m of riTj,jlj(:jjI
requested
fl-0111 City:
interest subsidy
rl.-inripal reduction
r I u Pa yme n L
r'.1,1.q V,- ztrf d.--
-1-
re
(' "-,hcr s')urce,; und umou.#: [1,.111;im7 availoblc to p
"
'
3)
�
r`` a [inancing /J,r |'^`i'`.x 410> � S
b Totnl pnz unit
12 . Proposed rent schedule, for hd i litated units (include in[ormation on paymcnt OLE
utiljti
` Do,�.:rdl,l.ion o[ current occupants:
a. no,�xx
of 6ccu\^aotr |ivio'} .`t. site for onc ynnr, nc nnro:
h. xvxJ�/ of uccu>`antx in th, k,llV*inq oatugorics:
('Dx' �cnn 'u/ld/ crly" inrlud(' �` any handicapped nr di !:i1bI o d Duzs n ou )
sld�,-1y - single (62 yrs. or older, houdic'appcd or disabled) -
- couple ([2 yr';' oc older, handicapped or disabled) -
|�w-,1ulc/ly, sinylc adult-
N)!)-elderly, couple -
�
n'in-clJcrly, �amily
(wi-th chi]dcun> -
T
`
'
will che }'rn[»osn'| r,hzhili�,ition require current occupants to move?
No I[ y0s, i.nd.icatc total number of porsons being displaced: 1-7
b. m,� ]nn'/ will '`ccu|vmrs bc .Uxp1ocnd7`
. c- r ii/c a}tecnut ive livinY .'u rainqements [oz occupants; temporarily displaced:
..
| �
Ji,i,'/ .`,cu^/uoeots for u/!7 who will be
!
------'-------------'------
�
Briefly sunnn'rize your \'\.m [ur nuno';ing and maintaining the rehabilitated housiLoj- u»it`
L you have for wor
��1AL-VO tot tu>me��
RENTAL PROPERTY LOAM APPLICATION
STATE DEFERRED PAYMENT REHABILITATION LOAN PROGRAM
i ► IRL1111119kii 11
Name: HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
Contact Person: Richard Crutchfield Phone' 805) 543 -4478
805 543 -1026
II. PROPERTY OWNER /BORROWER INFORMATION
A. Name: PARK HOTEL PARTNERSHIP /John E. King, Carole D. King
Jessie H. Ray
Address: 555 Chorro Street Suite. B /
San Luis Obispo, CA 93401
Phone: ( 805. ) 544 -4444 �� )
B. Borrower is a: (check one)
( ) Individual ( x ) Partnership ( ) Public Agency
{ ) Nonprofit corporation ( ) For - profit corporation
( ) Other
III ,
PROPERTY INFORMATION
A. Address of Rental Housing Development: 1815 Osos Street
go
C
D.
E
F
G
San Luis Obispo, CA 93401
Name of rehabilitation area in which Downtown dousing Conservation
property is located: 1/ District - Expanded
Type of area where property is located:
( ) CHFA ( ) Marks- Fora.n ( x ) CDGG or other area with federal funds
Number of Dwe.l l i ng units:
Type
Rooms (SRO) 2/
Studio
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
TOTAL
Number of Storms:
Type of Construction:
Age of Structure:
Before Rehab
42
i
1
44
3
Type V (wood frame)
.76 yrs.
After Rehab
4
17
2
1/ Property may be located outside of a target area when CDBG funds are used in
conjunction with a State Deferred loan, and benefit to low income households
is documented.
2/ Single room occupany dwellings, such as in residential hotels.
Numbers in*, are for.both residential a mmercial
!rc•
V, PROJECT COSTS AND PROPOSED REHABILITATION FINANCING
A. Rehabilitation /Repairs
1.
2.
3.
1. Construction
2. Other
3. Contingency, if any
4. Subtotal
B. Other Costs in Loan
$ (790,361) 549,223
I. Escrow, Title & Recording $ 350
2. Professional Services 15,000
3. Appraisal 1,506
4. Other Permi t No Fee
5. Other
6. Subtotal
S (790,361) 549,223
$ (Not estimated) 16,850
C.
Total Rehabilitation Costs
S (790,361 +)
566,073
37,868
D.
State Deferred Loan Request
$ ( -0-
> 100,000
46,868
E.
Balance Financed Through Other Funds
$ (690,361)
466,073
F.
List all.funding sources to be used on
Project. Indicate those
sources
that will create a lien against the subject property.
TERM
DEBT SERVICE
(if any)
LIEN
SOURCE % YEARS AMOUNT
MONTHLY
ANNUALLY
( X.) State Deferred 3 20 $100,000
$ 0
$ 0
( X ) CDBG
3 20 $300,000
750
9,000
X Sec "KLfic 121
4. TOTAL
V,
20 ($500,000)$277,750
(5860.75)
3155.66
(66,169)
37,868
($900,000)$677,750
(6610.75)
3905.66
(77,169)
46,868
1W 111110*9101119M MW INS9011110
A. First Mortgage Existing rrbrtgages to be refinanced
1. Lender
2. Original Loan amount 5 ( ,fir :i
3. Amount of Principal paid off $
4. Unpaid Balance S
5. Debt Service (P & I? Interest Only? ) 5 /Mo. }
6. Balloon payment? Yes (Due in ) No
B. Second Mortgage
1. Lender
2. Origfinal Loan-amount - $ ( yrs)
3. Amount of Principal paid off S
4. Unpaid Balance $
5. Debt Service (P & I? Interest Only? } S /Mo. S /Y r.
6. Balloon payment? Yes (Due in ) N0
C. Third Mortgage
1. Lender
2. Origins Loan amount
3. Amount of Principal paid off S
4. Unpaid Balance $
5. Debt Service (P & I? Interest-Only? }
6. Balloon payment? Yes (Due in ) _ No
(2)
vr';
5
/Mo. S
D. Other Liens or Judgements
1. $
2. $
3. $
4. Total other Liens or Judgements $
E.. Total Existing Indebtedness-
(V A.4. + B.4. + C.4..+ D.4)
F. Total Annual Debt Service
1. Existing Annual Debt Service
(V.A.5. + B.5. + C.5.� $ -0-
2. Annual Debt Service on New Loans
(68,169) 37,868 Security Pacific
(IV.F.4) (68,169) $ ( 9,000) 9,000 CDBG(lst 5 yrs.)
( 9,000)
3. Total Annual Debt Service after Rehabilitation $(77,169) 46,868
G. Owner's-.- Investment
1. Downpayment (41,615) $ 27,743
2. Reduction of Loan Princi pal (18,293.85) $ 12,195`
(V A.3-. + B -3. + C.3.)
3. Improvements l 6,924.60) $ 4,616
(attach Depreciation Schedule 1040)
4. Other (6,993.64) $ 4,662
5. Total Cash investment before rehab. (73,826.24)$ 49,216
6. Additional owner cash investment for
this rehabilitation project. _(62,000) $ 8,323
7. Total cash investment after rehab (135,826.24 +$ 57,539
A. As -is value (2351000). $ 156,667
B. After - rehabilitation value 3/ (1,200,000) $ 666,600
C. Total indebtedness on property after
rehabilitation. (IV.F.4 + V.E.) (900,000) $ - 677,7so
D. Ratio.-of total indebtedness o after -rehab
property value. (V.C. + B.) 4 (75 *) 1020
Provide current Profit and Loss Statements for the past two years and balance
sheet for the same period of .time.
3/ Attach a copy of appraisal, labeled as ATTACHMENT VI, or evidence that the
tax assessor's evaluation of the property is at least twice the amount of
existing and proposed indebtedness.
4/ May not exceed 90 %.
(3)
1
/III,
W `
NOTE: This page is not pro -rated for residential portion. Full commercial rents inc
STATEMENT OF INCOME AND EXPENSES BEFORE .REHABILITATION
A. Is subject rental housing development currently vacant? x yes x. no.
If yes, go on
to Section IX;
if
no, complete this section.
,Second floor is
occupied (15
housing units). Third
floor is vacant (25 SRO un:
B. Rental Income
Schedule
//
Other (specify) Arch Eccrg.
7,800.73
Unit Type
No. of Units
2.
Monthly Unit Rent
Total Monthly Rent
Rooms (SRO)
13
X
.$7 @ $100;1 @ $155
= $ 1,450.00
Studio
X
$3 @ $125;2 @T110
=
1 Bedroom
$ 234.00
X
$
= $
2 Bedrooms
2
X
$
_ $ 300.00
3 Bedrooms
X
$
_ $
4 Bedrooms
X
$
_ $
1. Total Monthly Rent $ 1,750.00
2. Vacancy Factor ( .20 %) 8 ( 350.00 )
3. Other, Monthly Project Income $ 2,665.00
(Laundry, commerical, etc.)
4. Total Gross Effective Monthly Income $ 4,065.00
5. Total Gross Effective Annual Income (VIII.4. x 12) S 43,780.00
C. Annual Expenses Before Rehabilitation
1.
Administration
Advertising $
-0-
Ma.nagement 8
6,435.00
//
Other (specify) Arch Eccrg.
7,800.73
Total
$ 14,23(,.00
2.
Operating Paid by Tenant
Paid By Owner
Water 8
82,095.53
Gas 5
$3,985.96
Electricity 5
$3,145.72
Garhage $_
$ 234.00
Insurance S
_
$1,208.52
Supplies $
$ 200.00
Other (specify) Silarm system
S 402.00
Total Paid by Ownerpest control
192.00 $ 11 0o
3.
Maintenance
Repairs & Upkeep g
2,073.37
(including wages)
Grounds Maintenance $
1,800.00
Other (spec.ify)fire ext.serv.$
115.50
Total reconstruct restrooms
1,320.96 S 5,310.00
4.
Tuxes a.nd Licenses
Rea I'Estate 1982 prop. tax S 2,587.20
Business (license) $ 55.00
Payroll $ 366.00
>1-� permits, maps, fees: 2,136.82 TOTAL:
5. Total Annual Operating and Maintenance Expenses
D. Net Annual Income Before Debt Service (B.5 - C.6)
F
F
G
Existing Annual Debt Service (V.F.1)
Annual Cash Flow (VIIL.D. = E.)
Annual Rate of Return on Investment (F - V.G.5)
5 5,145.00
5 36,155.00
S 1.2 .625.00
S (27,600.00 )
5 (14,975.00)
- '10
7i Assume 0.6, of replacement value of structure (not including land).
( r n )
°,' �eE eCtion 7402 0` the Program Regulations for determination of "fair rate
A. Rental Income Schedule
Unit Type No. of Units Monthly Unit Rent
Total
Monthly Pent
Rooms (SRO) X S =
S
Studio - 4 X S 246 =
S
984
1 Bedroom 17 X S 298 =
S
5,066
2 Bedrooms X S =
S
3 Bedrooms X
4 Bedrooms X S =
$
1. Total Montn;y Rent
S
6,050
2. Vacancy Factor ( 5 ) 5/ S (
302 )
3. Total Monthly Income After Vacancy Factor
S
5,748
4. Other Monthly Project Income (Laundry, cormerical,
etc.)S
52
5. Total Gross Effective Monthly Income
S
5,800
6. Total Gross Effective. Annual Income (IX.5. x 12)
S
69,600
annual Expenses After Rehabilitation
1. Administration
Advertising $ loo
Management g 9,360
Other (specify) S
Total
S
9,400
2. Operating Paid by Tenant Paid By Owner
Wa ter S S 2,760
Gas S $ 2, 960
Electricity S 2,490 S 720
Garbage S S 790
Insurance. S g 760
Supplies S $_120
Other (specify) S pest control S 360
Total Paid by Owner pay phone 320
S_
8,750
3.. laintenance
Repairs b Upkeep S 8,000
(including wages)
Grounds Maintenance S 960
Other (specify) j 3G0
x),3::10
Total -
S
4. Taxes and Licenses
Peal Estate S 5,280
Business S 120
Payroll S
Total S
S
5,00
5. Reserves
0 ,erati ng Reserves 6 / S 1,380
Replacement Reserves 7/ S 2,800
Total
g
o. dotal Annual Operating and Maintenance Expenses
S
37,110
�. ;het Annual Incor;e Before Debt Service (A.5,- B.6)
S
32,490
D. Total Annual Debt Service After Rehab (V.F.3)
$ (
27,400)
E. Annual Cash Flow (IX"C. - D.)
Annual Rate of Return on Investment (.Line IX,E. Y,G.71
B/
2.4
(T lust not exceed 8 %)
5/ 'Vacancy factor should normally be 5.;, If a higher factor is
used,
provide a
detailed explanation, labeled as ATTACHMENT IX.A.
F1/ ,assume 2`, al: gross effective annual income.
�•'
7i Assume 0.6, of replacement value of structure (not including land).
( r n )
°,' �eE eCtion 7402 0` the Program Regulations for determination of "fair rate
•
U14100 anigilloliolto
(If the rental housing development is currently vacant, skip this section.)
A. Total number of households currently residing in the rental
housing development. 11
B. Tenant Survey. The attached "Tenant Survey Form" must
be completed by the applicant with assistance from the
local entity for each existing tenant.
C. Low Income Tenant Benefit After Rehabilitation
1. Total number of units after.rehabilitation 21
2. Number of units to be occupied by low income
households.after rehabilitation 21
3. Percentage of units to be occupied by low
income households 1001!1
D. Displacement
1. Number of low or moderate income households which will
be temporarily displaced,during rehabilitation
2. Number of low or moderate income households which will
be permanently displaced as a result of rehabi l i.tti.on _o
3. Section 7265.3 of the Government Code requires that,.if tenants of
low or moderate income are displaced or have their rents increased
to an amount exceeding 25% of their income within one year of
rehabilitation of their residences by a rehabilitation program
assisted by a public entity, the public entity, subject to the
availability of State or Federal funds, shall make payment to pay
either: (1) the difference between the increased rent and 25',' of
gross income if rent before rehabilitation is less than 25% of
income, or (2) the difference between the increased rent and the
rent immediately before the rehabilitation if the rent before
rehabilitation is greater than 25% of gross income. This law,
therefore, requires that when occupied rental structures are
rehabilitated, steps must be taken to either avoid rent increases
which could cause displacement of existing tenants , or to mitigate
the effects of rent increase and /or displacement when it occurs.
If temporary or permanent displacement of low or moderate income
tenants will result from either the process of rehabilitation or
rent increases following rehabilitation, discuss on separate
sheets, labeled as ATTACHMENT X.D, the type, methods and estimated
costs of relocation assistance or rent increase payment assistance
to be provided to affected tenants currently res.iding in the rental
housing development, pursuant to the requirements -of Government
Code Section 7265.3.
I, PROJECT MANAGEMENT
A. The Applicant 'Will: (Check one)
1.. Operate and manage the rental housing development. X
2. Contract with a management firm to operate and
manage the rental housing development.
Name of Management Company
B. Will the project have a resident manager? yes X no
C. In the space provided below, briefly describe the plans for the management
of this project including the responsibility of the management and main-
tenance staff in regards to:
-- Marketing procedures and tenant selection
-- Rent collection
-- Bookkeeping and accounting
-- Property maintenance
Minor and major property repairs
SEE ATTACHMENT XI.
1: 11
A. Borrower's Certification
I /We certify, under p nnalty of perjury, that the above information and
statements are true, aurate, and complete to the best of my /our
knowledge. ( % cc
lgnaviee),John E.
Signap re Je ie
B. Local ntity4s Certification
7
ng Date
ll -14 -m7
Date
The Local Entity certifies that, to the best of its knowledge, this
application and supporting documentation is in accordance with the
Department of Housing and Community Development's regulations and
guidelines, and that State funds will be used only to correct code
violations and for other eligible expenses in accordance with Section
7414 of the regulations. Furthermore, it is also certified that all
sources of rehabilitation funds, used in conjunction with State Deferred
Payment Rehabilitation Loan funds, will be approved prior to the start
of rehabilitation construction and such funds will be used on the
rehabilitation construction.
- (Signature and Title)
R. c}:ubor,., i.;xecutivc Director
11 -12 -a2
Date
1. Test to determine need for, and appropriate amount of Deferred Program funds.
(Page 2 of analysis for approval of rental property loans.)
2. Preliminary Title Report
3. Verification of Mortgage(s).
4. Credit Report (for individual ovrners only).
5. Credit References
6. Personal Financial Statement of Applicant and Federal Income Tax Returns for
the past two years (for individual owners only).
7. Profit and Loss Sheet and Balance Statement (for corporations and partnerships).
2. Proposed Rehabilitation work contract and payment schedule.
9. Work write -up, cost estimate, and contractor's bid.
10. Copy of appraisal showing existing and post rehabilitation value. An appraisal
will not be necessary where.the existing'and proposed encumbrances do not exceed
50 of the assessors market value (must be documented).
11. Evidence of approval of other funds.
12. Hazard insurance binder.
13. Map showing property location within boundaries of an eligible area.
August 1982
•
EXHIBIT "B" to RESOLUTION NO. 2-A
"THE PARK HOTEL"
TERMS OF FINANCIAL ASSISTANCE
The loan shall be in the original amount of $300,000.
The loan shall be evidenced by two notes, effective in succession as follows:
1. The note first effective shall be a short- term.note, the term.of which
shall be nine months or the length of the rehabilitation period, whichever
is less. The short -term note shall. be non - interest bearing.
2. Upon recording the Notice of Completion or maturity of the short -term note,
whichever comes first, the short -term note shall be refinanced by an interest
bearing installment note. 'The terms of the note shall:
a) Be in the face amount of $300,000
b) Bear interest at the rate of three percent (3 %) per annum on the
principal outstanding at any time
c) Be for a term of twenty (20) years
d) Be payable interest only during the first five (5) years, and then be
fully amortized over the remaining fifteen (15) years.
Both the short -term note and the. installment note shall be secured by a Deed of Trust
covering the real property that is the subject of the rehabilitation for which the
proceeds of the loan are to be used.
The City of San Luis Obispo shall be designated as obligee on notes.
E IT "C" to RESOLUTION N0: 2 -A •
CITY OF SAN LUIS OBISPO
REHABILITATION LOAN PROGRAM
TERMS AND CONDITIONS
FORMAL ASSURANCE LOANS
A. PURPOSE OF LOAN
The Borrower agrees to use the loan proceeds.to accomplish the rehabilitation
of his property, identified in the Application filed by him to meet the
approved Housing Rehabilitation Standards and General Property Improvements.
The Borrower further agrees to use any loan proceeds remaining after the
accomplishment of the foregoing rehabilitation to carry out any additional
rehabilitation (including any general property improvements), to make any
related expenditures, to the extent and in the manner authorized by the
approved Application and its supporting documentation. ,
B. DESCR17 ION OF LOAN
The loan will be evidenced by a Promissory Note executed by the Borrov,,er and
will be secured by a Deed of Trust satisfactory to the City of San Luis Obisp,l.
The lNote wi 11 :
1. Be in the face amount of the loan approved by the City of San Luis Obispo
or its designee;
L. ,[.',ear interest at the rate of three_ ,( 3 % +;) percent per annuer on the
principal outstanding at any time•,
repaid at Such time or tinies, at such place (ir places; arid,
Be subject to such other conditions of repayment as shah be wore full;
specified in the Note.
The [ Borrower agrees that t
c:nly as necessary to carry
r).;r,igraph A, provided that
aGr! 1
(7, (1 by the City of San
ro;;ri ssory ',lot(, and second
;or i nc i p'l 1 du(, r rr the Note.
he proceeds ,of the loan are subject. tn
out the pur-pose(s) of the loan as describe! in
all proceeds of the loan not so wi thcirat:n hrr l 1 h
Luis Obispo first to any late charge clue r;n thc:
to the interest due on the Note and third :.:, the
Nithout attempting to enumerate all possibilities, the foregoing provi;c�
shall be applicable, when the purposes of the loan are no longer capahle of
being carried out, .,hen the loan has been cancelled by the City of San Luis
Obispo pursuant to paragraph C or when the entire amount of the loan has
become or has been declared by the City of San Luis Ubispo to he irmediatel,
dur� and payahle pursuant to the provisions of the dote, the security instru-
ment, if any, or these terms and conditions.
C. CANCELLATION AND ACCELERATION OF AMOUNTS DUE
At its option, the City of San Luis Obispo or its designee, reserves the rir;ii
to cancel and terminate this loan by sending written notice of cancellation
to the Borrower at his mailing address as set forth in the Application, if,
fora period of 60 days from the date of execution of the Note, the Borrower
shall have failed or refused to cause the conmencer,rent of physical rehabili-
tation work on his property, or if the Borrower shall have failed or refused
to complete such rehabilitation work within a reasonable time. The City of
San Luis Obispo's failure to exercise this right shall not be deemed a waiver
thereof, as long as the rehabilitation work remains incomplete.
-I-
CDBG -HASLO 08
I . 9 0.
In addition, to and not in derogation of, the provisions of the security
instrument, the Borrower agrees that the entire principal amount of the
dote, together with any accrued interest, late charges, and any other amounts
secured by the security instrument, shall become immediately due and payable
without notice or demand upon the cancellation of this loan, pursuant to this
paragraph. The Note shall also become immediately due and payable upon:
i. The appointment of a receiver or liquidator, whether- voluntary or
involuntary, for the Borrower or any of the property of the Borrower;
?_. The filing of a petition by or- against the Borrower under the provisions
of any State insolvency law, or under the provisions of the Bankruptcy
Act of 1898, as amended, or
_s. Thr making by the Borrower of an assignment for- the benefit of the
Borrower's creditors.
'h� borrower further agrees that the City of San Luis Obispo is authorized to
,isclare, at its option, any part or the entire amount of such indebtedness
i�l�ediately due and payable upon the happening of any of the following events:
I. The substantial demolition or destruction of the improvements on such
property by the Borrower or the substantial destruction of the improverr:ents
on such property by fire or other cause for which insurance is in effect and
the Borrower fails to make reasonable efforts to apply said insurance pro-
ce(,ds to repair or replace the improvements.
The Borrower's death or legal incapacity to act, prior to the completicn
r'ch11)iIiLaLion work, if the City of San Lui Obispo determine,; t.hrt
the purposes of the loan have been rendered impracticable of fulfiilrrsnt.
City of San l_.ui; Obispo's failure' to exercise any of its-rights hereunder
I riot. constitute a wai'rer• thereof.
i. _ I r'H SENT Or iIORK
7hc_ L'orrorrr agrees to carry out all rehabilitation work specified in 'the
i cation and its supporting documentation with all practicable dispatch
n ;ourd, economical, anti efficient mariner, either personally or through
contract. let by him with the prior• concurrence of the City of `,an Lug;
Lisp or it; designee. in accorirplishing such rehabilitation, Lhr (;n rc:::lr
„iii comply with applicable Housing Rehabilitntion Standards, including
l 1ca`rle c ty codes, and Lo the extent that these are not control l ing, vii th
rr' work write up submitted with the loan application. The City shall as1sisL
he ;;orrovier in securi nq bids for- work to be f i nanced br i th the rehabi l i tat-. on
'o:rn. An effort shall be made to secure 3 bids for all work and the contract
r.r rdcd to the lowest dual ified bidder. In cases where it is not possible
al secure 3 bids by reason of job size, bid charges, specialized services or'
;;th rr unforeseen circurrstarice a lesser number %•rill be accepted or a ConLr,lct
nr)rjoti,ible with the approval of the Loan Corarnrittee.
I;ICLIGIBLE CONTRACTORS
Tfr:r Borroa-rer• agrees not to award any contract or purchase order for rehat,ili-
t.,.-rLion a- rorl,, other- services, materials, equipi,rent, or- supplies, to be pail
for, in whole or in part with the proceeds of the loan, to any contractor- or.
s.rbcontractor, whom the Borrower has been advised is unacceptable to the
Cit of San Luis Obispo, its designee, or- delegates.
I NS'FC71 Oil OF 'rIOR�:
The City of San Luis Obispo or its designee shall have the right to inspect all
rnccibilitation a,'ork financed, in whole or in part, with the proceeds of the
L�.),rn, and rill inform the Borrower of any noncompliances with respect. to the
*1 0
contract for the rehabilitation work, but will not issue any orders or
instructions to the contractor or subcontractors performing the work. The
Borrower will take all steps necessary to assure that the City of San Luis
Obispo, or its designee, is permitted to examine and inspect the rehabili-
tation work, and all contracts, materials, equipment; payrolls, and con-
ditions of.employment pertaining to the work, including all relevant data
and records.
G . RFCORIDS
The Dorrower agrees to keep such records as may be required by the City of
San Luis Obispo with respect to the rehabilitation work financed, in whole
or in part, r•rith the aid of the. local loan. The Borrower will, at any time
urine normal business hours, and as often as the City o- San Luis Obispo or
its delegate may deem necessary, permit the City of San Luis Obispo or its
delegate to have full and free access to its records with respect to the
r!t.ilization of the proceeds of the Loan, and when applicable, will permit
the City of San Luis Obispo or its representative to audit, examine-, and
r,;kc excerpts or transcripts from his records and to review, inspect, and
ke audits of all rehabilitation work, contracts, invoices, material, payrolls,
records of personnel, conditions,of employment, books of record, and othor
c;ocurentary data pertaining to the loan and the rehabilitation 1•rork.
r'.. is ;rUAL ENPLOY11ENT OPPORTUNITY
Contract Subject to Executive Order 11246
The i,01 "r01;er" hereby agrees that it will incorporate or cause to be
incorporated into any contract for construction worr:, or u,odl ficatioll
`hereof, as defined in the regulations of Lhe Secretary of Labor at
'•1 CiR Chapter 60 which is paid for in who Ie or in part with funds
oh'wined from the City of San Luis Obispo, the. following equal opportu-
rrity clause:
Boring the performance of this contract, the contractor agrees as follow;:
(<,) The contractor will not discriminate against Duly employee or
applicant for employment because or race, color-, religion, ser. or
n�ltiondl origin. The contractor will take iffirmmitive action to
ins!. re th,rt i p p l icants are employed, and thot employees are treato „1
eturing eir;rloyMent, without regard to race, color, religion, :,(-%, ,!r
rlatlonaI or•i in. Such action shall include, but: not be limited to,
t.ile f0110'.'1i!Iq: Cllrp10yr11Crlt, upgrading, dei,iction or transfer;
rnent or recruitment advertising; layoff or termination; rates of !)ay
or nthc.r forms of compensation; and selection for training, incluciill(;
;;pprenticeshi; The contractor agrees to post in conspicuous pl�c:r
available to employees and applicants for employment, notices Lo
provided by the riunicipa1ity setting .forth the provisions of thi;
nondiscrirlination clause
(b) The cnnstractor rill, in all solicitations or advertisements For
f,wpl6yees placed by or on behalf of the contractor, state that
all qualified applicants will receive consideration for employment
without regard to their race, color, religion, sex, or national origin.
(c) The contractor will comply l,rith all provisions of Executiv.2 Order
11246 of September 24, 1965 as amended, and of the rules, regu1atl0ns,.
and relevant orders of the Secretary o.f Labor.
(d) The contractor will Cause the foregoing provisions be inserted irl all
subcontracts for any work covered by this contract so that such pro-
visions will be binding upon each subcontracts, provided that the
foregoing provisions shall not app1;- to contracts or subcontracts fur. -
standard Commercial .supplies or raw li)aterlals.
-3-
•
2. Enforcement Obligations of Borrowers
•
The Borrower further agrees that he will be bound by the above equal
opportunity clause with respect to his o',vn employment practices when he
participates in federally assisted construction V,'0l "E:: Provided, that if
the Borrower so participating is a State of local government, the above
equal opportunity clause is not applicable to any a,l(?ncy, instrumentality
or subdivision of such government which does not participate in work on
Or under the contract.
Ti;e Borrower agrees that he frill assist and cooperate actively with the
City :y cf San Luis Obispo and file Secretary of Labor in obtaining the com-
plir+ncc of contractors and subcontractors with the equal opportunity
clause and the rules, regulations and relevant orders of the Secretary
()f Labor, that he will furnish the Secretary of Labor sr:ch information as
*.hey :nay require for the supervision of such compliance, and that he will
ntherl•fise assist the. Secretary in the discharge of the 'Secretary's pri-
:;1,�ry responsibility for securing compliance.
h ' Bo? "row(-, r further agrees that he will refrain fron' entering into arty
contract or contract modification subject to Executive Order 117.46 of
e,)tember 24, '965, as amended, with a contractor barred fret! , or '~rile his
r1ot demonstrated eligibility for Governnlont contracts and federally
;i Led Censtluction contracts pursuant to Executive Order and \•rill
:rr out such s actions and penalties for violation of the e(l.lal cp;)or-
r ?l ty CialI C d5 illay be imposed upon contractors on(!
SJI COatraCtGrS j' ti?n
ctary cf Housing and Urban Development 01' t.hC `:eCt•etary of Labor pur-
;an *. to frir't II, Suhpart D of tilt? Executive Or "der. In addition, the
(I jr'I:e.s tha t i f he f , i 1 s or re fuses I.o earl;) i y '4 i Lh the r: undcr-
li;lnc: tile- Lit;' md;J take any or
all of the follol•;lac_j Ictions: cancel,
r, ?inilte, of !spend in whole or in pert this loan ,lI)plication and
llt. 1 "Cfl'<lln fl'UITI e::icnding ,lrlY 'fllT " -ther a5'il`,t,lnce to the P01'l'( %'.lF.'`"
n:!er Lhe pro(;rilw 1'ii th ri(s )ect to ',•rhlch tile- f,� i l ure ur r(,Fllnd occurr'eri
;f1 t s;ltiSfa(li:Or'y ,1S'_lll'ilnC(? of fUtl'll'C C(;I'Ij)11aiICC' hilt bCerl 1'0 (:ni`•'�(1 fr'�f ?l
11CI. ' 0r't'01lC'1'; 111(.1 1 "Cf(' "' I.I1C CaI1SL' to t:flc (] ^pc ?? i.11l!lii. OF JIIStiCe for
i %I)rCiU1'lat(' 1( ?(1..1I CCndlll(ls.
TI!'- C I V I L R I G!iTS 11C T OF 1964
: i I l l i:t', the procCCds O tilt. Luan in !.. ?ii'i)1 lance
U;• hlil';I),lrlf. tip 1'C(l:iat1011s Oi i.i;l', ;,ecretilr" Oi I.
5evc1Op;r;; n!. �ffectuatIrg TitIc. VI of file C:vil i�ichLs !ic!: of l':;,
;ta t. _.Ji lr? i 01'rU1;C1, a so agrees IIOt. tO 1 1 SC1' iii.1 L(, upon the
1`c1CC', COlnr', c.Y( ?Cd, of nilLlollal origin In the `.ialC, lease, rentai, .u: >(?
acv f t.il(' r (11 pl'i)per't';r rehabi l i fated ,li tit tilt assistance of the l,)ar .
- i 1 t0 be- a 1)Cne I 1 e-1 dl "V 0 these Dl -cvi s 1 ells
. Ilr� l)r d.:.emeCJ
.nd it it., ,xln ghI a'nd ,lino for the purpose of ,,! electing the into, c t
hn r;nnliili,ftll J ;,nd oLllr ??' ;).:'I -,i(, , public or prlvat.o, in whose favor or `C)r
cl1r f i t ti i ; r�r�vi s i ell fl s peen nrovi ded and sha 1 1 have the r'i (Jh %, i n t.11r:
:]ny i)reach of till`_ i)':'.0 \'151011, to ma intaln arly aCt10r1S Or S!llt:,.a•.
n e(;,;it.y cr ?,n; other Groper proceedings to enforce t..he cul'in of such
�rraciI
F FF 1) T r I
_ , II
i he Borro•,•!er 3grcC's
tit(> and no Resi
proceeds of the
FEDERAL OFFICIALS
t1a t no flember" of or Delegate to the Congress of the Ur i led
dent, Cownlissioner, shall be admitted to any share or hart of
loan, or to any benefit to arise from the same.
-4-
'r:. i?O:'i',JS, COF'diiSSION OR FEE
The Borrower will not pay any bonus, commission, or fee for the purpose of
obtaining approval of his Application for his loan, or any other approval
or concurrence required by the City of San Luis Obispo or its designee to
complete the rehabilitation work financed in whole or in part with this loan.
L. ANTEREST OF PUBLIC BODY .PERSONNEL
No member of the governing body of the City of San Luis Obispo who exercises
any functions or responsibilities in connection with the administration of
the City's Community Development Program within the city limits of the City.
of San Luis Obispo and no other officer or employee who exercises such functions
or responsibilities shall have any interest, direct or indirect, in the pro-
ceeds of this loan, or in any contract entered into by the Borrower for the
performance of work financed in whole or in part itii the- proceeds or this loan.
W. INTEREST OF OTHER LOCAL PUBLIC OFFICIALS
No r':a ber of the governing body of the City of Sari Luis.Obispo, the City in
which the property to be rehabilitated is situated, and no other public
afficial of such City who exercises any functions or responsibilities in
connection with the administration of the Cor,ununity Development Bloc: Grant
Program shall have any interest, direct or indirect, in the prbceecls of thK
loan, or in any contract entered into by the Borrcv.,er for the per forr'warice of
work Financed in.whole or in part with the proceeds of t!iis loan.
ii'. Wh1i �.�, r I " ''T I ON OF PAID TAXES AND i NSUPANCF
h Roma cr agrecq to provide the City Finance Depart,t'mr t with ver'i fica-
!.i;.:i ,,1i poirl pro perty taxes and insuranc(., on all tinnu,rl haSis, in ti io.r
,'riv ided and approved by the City.
. !J_A[) .,. ;`,SED PAINT IIA1./'RUS
We construction or
proceed; is subject
,. K of '!)using and
I.na;i I)C)('u Monts.
Kehabilitation of residential structures with Loan
to the Lead- (lased Paint itgulations of the U. S. [1pI?aQ
Urban Deveiopnient found at 24 CI= R Mt 35. A copy r,;.
1 be furnished along with the Ru.,rro'.,er`' s copy of thr,
The new definition states in part, ' ...with respect to paint MA h is mans, lac -
_ared niter „une 22, 1177, lead -based paint means any paint containing more
n h a n s i x one - hundredths of one percentum lead by ( cal cul a tee. a'; 1 ' '•;!
Octal ) in the total non - volatile content of the paint or the equivaleK r1ensure
of lead in the dried filar of paint already applied."
cr "-tify that 1 have read and understand the foregoing terms and con -
i i t nns and agree to comply with said terms and conditions should my appl i ca t ion
loin be approved.
Signature of Borrower --
Signature of Borrower
-5-
- -- Date
MORTGAGE INVESTORS
March 20, 2000
Vintage Properties
c/o D. Michael Patrick
Sunrise Mortgage & Investment Company
1159 Marsh Street
San Luis Obispo, CA 93401
RE: SMI, LLC, Loan Commitment No. A0022403
StanCorp Mortgage Investors, LLC, or its assigns, (hereinafter referred to as "Lender ") has - reviewed the
application for a real estate loan submitted by Sunrise Mortgage & Investment Company
( "Correspondent ") on behalf of Vintage Properties ( "Borrower "). This shall serve as Lender's
commitment ( "Commitment ") to Borrower for a Fee Simple real estate loan as described herein and shall
supersede any and all previous agreements, written or oral.
Lender will fund its permanent loan ( "Loan ") to Borrower subject to the following terms and conditions:
1) Borrower: Vintage Properties, a California. general partnership.
2) Property:
A 13,544 square foot commercial property situated on a 31,312 square foot parcel of land located
at 1811 -1819 Osos Street, San Luis Obispo, California.
A complete legal description to be furnished to Lender for review and approval prior to closing.
3) Amount of Loan: . $425,000.00.
4) Term: 10 years with a 20 year amortization.
The amortization schedule will be based on a 30/360 interest calculation method. However, per
diem interest calculations required in connection with any prepayment or other unscheduled
payment shall be based on an actual accrual method.
5) Rate of Interest: 8.625% per annum.
6) Payments: $3,722.00 per month.
7) Commitment Fee: 1 %.
The non - refundable commitment fee is to be remitted to Lender, upon acceptance of this
Commitment, for reserving the funds committed hereunder until the Commitment expiration date
hereinafter set forth.
If the Loan does not fund on or before the funding . date specified below due to Lender's
disapproval of any Commitment requirement, Borrower shall be entitled to a prompt refund of its
loan commitment fee and good faith deposit in which case this Commitment shall terminate. If
the Loan does not fund on or before the funding date specified below due solely to Lender's
SLanCorp Mortgage Investors, LLC \Member, StanCorp Financial Group, Inc.
920 SM SiXLh Avenue P0rL12tnd OR 972041203 503.321.6100 Tel
•
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 2 of 9
•
failure to perform in accordance with the terms of this Commitment, the funding date shall be
extended for a period of thirty (30) days on the same terms and conditions specified herein.
8) Refinance of Existing Loan: This transaction represents a refinance of existing Standard
Insurance Company Loan No. 16275, which shall be paid in full with this loan. Borrower will be
responsible for payment of all interest and charges accrued to the date of closing of this
transaction. The prepayment charge due under Loan No. 16275 shall not be collected. If any
default exists under the terms of Loan No. 16275 at the time of loan funding, this commitment
shall, at the option of Lender, become null and void and of no further effect.
9) Extension of Maturity Date of Existing Loan: During final processing of this transaction,
Standard Insurance Company shall extend the maturity of its Loan No. 16275 to June 1, 2000,
subject to continued monthly payments of principal and interest per the original terms of the-
Deed of Trust Note securing this loan. During this period, there shall be no change in the note
rate of 10.25 %, and the monthly principal and interest payment shall remain at $4,391.00.
10) Loan Documents: The Loan shall be evidenced and secured by the following loan documents as
required herein and other such documents as are necessary (collectively, the "Loan Documents "):
® • Deed of Trust Note
0 Deed of Trust
�heft� • Assignment of Lessor's Interest in Leases
" • Certificate and Indemnity Agreement
c�t • Borrower's Warranty Letter
t •
Tax Reserve Requirement Waiver and Insurance Premium Waiver Letter..
- • UCC -1 Financing Statement
Lender's Loan Documents are attached hereto. The final Loan Documents will incorporate the
terms and conditions outlined herein. Please review these documents carefully. They may differ
substantially from those which were used in connection with your existing loan..
.11) Document Provisions: Please refer to the attached Loan Documents for specific provisions,
among others, relating to:
a) Prepayment Restrictions, Charge;
b) Annual Financial and Operating Statements;
C) Due on Sale or Encumbrance; and
d) Late Payment Charges.
12) Signatures Required:
a) All Loan Documents to be executed by the partners having the authority to legally bind
Vintage Properties, a California general partnership.
b) Note, Certificate and Indemnity Agreement,' and Borrower's Warranty Letter to be
individually executed by Borrower and the following individuals as co- makers: Robert
D. Lombardi, Vincent S. Fonte, Marianne E. Fonte, Alan J. McVay'and Dale A. McVay.
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 3 of 9
C) The use of a. Power of Attorney signature in place of any required signatures shall not be
acceptable.
13) General Partnership Review: Lender's review and approval of the following:
a) Complete Partnership Agreement, and any amendments thereto.;
b) Filed Assumed Business Name / Fictitious Name filing; and
C) Recorded Statement of Partnership.
d) Trust Agreement Review: Lender's review and approval of the complete. Trust
Agreement, and any amendments thereto if any partner holds his or her interest in a
Trust.
14) Leases: Lender's review and approval of all existing leases and any amendments and/or
assignments to leases.
This Commitment is being issued with the understanding that the leases itemized on Exhibit "A"
attached are in full force and effect, at the terms referenced on Exhibit "A ".
a) Lease Assignment: All leases, whether in place at funding or entered into during the
term of the Loan, will be assigned to Lender and governed by the terms of the
Deed/Mortgage and Assignment of Lessor's Interest in Leases.
b) Certified Rent Roll: Lender's receipt and approval of a Certified Rent Roll listing:
(1) Each tenant name;
(2) Square footage leased;
(3) Monthly rent
(4) Any rent deposits; and
(5) Lease commencement and expiration dates.
The Rent Roll shall include:
(6) Certification by Borrower in writing as being true and correct;
(7) Verification by the Correspondent;
(8) Date no sooner than thirty (30) days prior to funding;
(9) Occupancy of no less than 100% of net rentable area; and
(10) Total annualized income of no less than $246,300 including CAM
reimbursements..
15) Insurance: Borrower shall provide evidence establishing the existence of insurance in one of
the following formats, and meeting the general requirements and coverages below:
for loans under $2, 000, 000: A Standard ACORD Form 27 Evidence of Insurance Certificate.
General Requirements:
a) All policies shall be written by a company with an "A" category rating by A.M. Best
Company, Inc., authorized to do business in the property state;
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 4 of 9
b) Each policy described above shall provide for not less than a thirty (30) day notice of
cancellation or modification, and shall otherwise be satisfactory to Lender as to form and
substance;
c) Each policy described above shall contain endorsements that no act or negligence of
Borrower or any occupant, and no occupancy or use of the Property for purposes more
hazardous than permitted by the terms of the policy will affect the validity or
enforceability of such insurance as to Lender; and
d) If any portion of the fire and other risks insured as provided herein are reinsured, the
policies shall contain a so- called "cut- through" endorsement
Coverages:
a. All Risk or Fire, Extended Coverage: All amounts to be not less than full replacement
cost of all improvements including cost of debris removal, and including:
Endorsements: - waiver of subrogation
- replacement cost coverage
- inflation adjustment
- vandalism and malicious coverage
Other: - Standard. Mortgagee Clause naming Lender as first mortgagee
with loss proceeds under the policies payable to Lender..
b. Comprehensive General Liability Coverage: With a combined single limit of at least
,$2,000,000, and including:
Endorsements: - broad form coverage (if not in standard policy provisions)
Other: - Lender named as additional insured.
C. Rental Income/Business Interruption Insurance: For a minimum period of twelve
(12) months annualized income, the initial amount being $237,180, and naming Lender
as loss payee.
d. Flood .Insurance: If the property is located in any zone that lies within the one hundred
(100) -year flood plain as designated by the Federal Emergency Management
Association, and including:.
Endorsements: - waiver of subrogation
Other: - Standard Mortgagee Clause naming Lender as. first mortgagee
with loss proceeds under the policies payable to Lender.
16) Title and Title Insurance:
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 5 of 9
a) An ALTA title policy acceptable to Lender insuring Lender's lien in a first priority
position, with endorsements 100, 104.6 and 116, or the equivalent endorsements for the
state in which the Property is located, and any other endorsements required by Lender
after review of the preliminary title report and copies of all exceptions to title.
b) Lender's review and approval of any and all title exceptions.
C) An ALTA survey may be required by the title company to issue the ALTA title policy.
17) Tax Reserve: A tax reserve established so that the initial reserve, together with a monthly
remittance of one twelfth (1 /12th) of the estimated annual real property talc, assessments and
similar charges, will be sufficient to pay all such charges when due and payable. These reserves
are for the coming tax year and any taxes for the current year must be paid'in full in escrow prior
to the funding of this Loan. Any currently due or future supplemental tax payments will be the
sole responsibility of the Borrower.
Lender will waive this requirement by separate letter subject to the following conditions:
a) No default exists under any of the Loan Documents;
b) The ownership of the Property remains the same; and
C) The real property taxes, assessments and similar charges are paid when provided within
thirty (30) days after the due date.
The provisions above notwithstanding; Lender reserves the right to revoke this waiver if any one
or more of the above conditions is not met or at any time Lender, in. its sole discretion, deems it
necessary to protect its security.
18) Tax Service Contract: A real property Tax Service Contract to be provided, at Borrower's
expense, at the time of closing. Contract to be ordered through a real estate tax service according
to closing escrow instructions.
19) Hazardous Substance Questionnaire: Review and approval of a Hazardous Substance
Questionnaire to be completed by Borrower. A form is attached.
20) Security Agreement: A Security Agreement under the Uniform. Commercial Code Procedure
on all furnishings and equipment, including but not limited to appliances, window coverings and
other furniture and furnishings in the apartment units, listing individual major items with
manufacturer's name and serial number where possible, all of which shall be free from any other
encumbrance.
21) Junior Indebtedness: The following secondary financing is hereby approved:
a) Payable to The Housing Authority of San Luis Obispo as follows;
i) $98,000 payable at 3% interest due 3/4/04
ii) $100,000 plus accruing interest at 3% due in October 2003
b) Subordinated to Lender's first lien.
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 6 of 9
C) The form of the loan documents securing the junior indebtedness shall be approved by
Lender prior to the funding of this Loan.
22) Condition of Security: Lender's review and approval of a statement from Correspondent
certifying that the security for this Loan is:
a) In good condition;
b) Undamaged by fire and other hazards; and
C) Free of waste except for ordinary wear and use.
The Property Certification shall be based in part upon a site inspection made no more than
fourteen (14) days prior to funding.
23) Borrower Identification Forms: Lender's receipt and approval of a fully executed W -9 form
indicating the correct tax identification number of the Borrower and the Borrower's I.D. Form,
which each borrower, co -maker and guarantor is to fill out in its entirety. Attached are the W -9
and the Borrower's I.D. Forms for completion.
24) Assignment: This Commitment is personal to Borrower as identified in the first paragraph of
this letter, and may not be assigned without the express written consent of Lender. Lender's
consent to an assignment may be granted or denied at its sole discretion, and may be conditioned
upon, among other things, all or any of the following:
a) A complete underwriting review of the assignee, including but not limited to review of
fully executed and dated organizational and financial documents;
b) Payment of an administrative fee of $1,000.00, together with legal fees of Lender's
counsel;
C) The extension of the closing date for a period of up to sixty (60) days from the date
specified herein; and
d) An adjustment of the Rate of Interest specified in Paragraph 5 above, to the greater of the
rate specified in Paragraph 5, or the rate equal to the weekly average of the ten (10) year
Treasury Note yield, as indicated by the published Federal Reserve Statistical Release
H.15(519), or from any other authoritative publication selected by Lender in the event
the Statistical Release is discontinued, for the fourth (4th ) week prior to the actual
funding date plus 225 basis points, but not to exceed the maximum allowed by law.
25) The Funding Date: This Commitment, if accepted, will expire on April 25, 2000.
If the Loan does not fund on or before the funding date due to Borrower's, Correspondent's or
any third -party contractor's failure to deliver Commitment requirements on the scheduled dates
detailed above, or to promptly process and return any necessary Loan Documents, the funding
date shall be extended by no more than thirty (30) calendar days and the interest rate shall be
adjusted, at Lender's sole option, to the greater of the rate specified in Paragraph 5 or the rate
equal to the weekly average of the ten (10) year Treasury Note yield for the second week prior to
the actual funding date plus 225 basis points, but not to exceed the maximum allowed by law.
. i
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 7 of 9
This Commitment will be void., at Lender's sole option, if:
C
a) The Borrower, Co- maker, Guarantor; or any related entity commits an act of bankruptcy,
or a proceeding is commenced against the Borrower, Co- maker, Guarantor; or any
related entity under any bankruptcy or insolvency law; or
b) Within two (2) weeks of the Funding Date, the Borrower, Co- maker, Guarantor, or any
related entity is unable to warrant that there have been no material adverse changes in
their financial condition as disclosed on financial statements submitted in support of this
Commitment.
If either event noted above should occur, StanCorp Mortgage Investors, LLC, or its assigns, shall
have the right, in StanCorp's sole option, to require additional financial disclosures, or to
withdraw this Commitment, and declare it null and void, and of no further effect.
TIME IS OF THE ESSENCE. The funding date is subject to the following schedule:
To StanCorp By:
Commitment Requirements
March 31, 2000
Executed Commitment
# 7 - I% commitment fee
#13 - Partnership /Trust Agreement Review
#14 - Copies of fully executed leases, with all assignments,
amendments and addenda. (apartment leases not needed)
#16 - Preliminary title report with plat map, copies of all exceptions to
title and plotted easements.
#23 Executed W -9 and completed Borrower's I.D. Forms
April 18, 2000
#15 - Insurance Requirements
#19 -Environmental Questionnaire
#20 - List of Property for UCC Filing
#21.- Copies of secondary financing documents
April 21, 2000
#14b - Certified Rent Roll
##22 Condition of Security from Correspondent
Subject to Borrower's agreement, if all Commitment requirements are completed to Lender's satisfaction
prior to the Funding Date, Lender may elect to fund early.
If the above terms and conditions meet with your approval, and Borrower's approval, please acknowledge
your acceptance of this Commitment by signing both the original and the enclosed copy where indicated
and return the enclosed copy no later than March 31, 2000, with a check payable to StanCorp Mortgage
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 8 of 9
Investors, LLC representing the non - refundable commitment fee, along with the
requirements referred to above. Otherwise, this Commitment is void.
.,N�cer ly,
C iARLOTTE HYLTON
Senior Mortgage Loan Officer
The above terms and conditions are hereby accepted. Borrower acknowledges receipt of the Loan
Documents, and further acknowledges that the final Loan Documents will be in that form, with the above
terms and conditions incorporated.
Under Oregon law,, most agreements, promises and commitments made by us after
October 3, 1989, concerning loans and other credit extensions which are not for personal. family nr
household purposes or secured solely by the Borrower's residence .must be in writing. express
be
Mortgage & Investment Company
By:i� J ` r
D ` ick xecutive Vice President
BORROWER:
Vintage Properties
a California general partnership
By: ,9'
Robert D. Lombardi, General Partner
By: Lnc_ 1-1
Vincent S. Fonte, General Partner
to be
VIM
Date:_
CO- MAKERS:
Robert D. Lombardi, Individually
Vincent S. Fonte, Individually
Marianne E. Fonte, General Partner Marianne E. Fonte, I vidually
By:
an J.
7
ay, General Partner/'
artner Ian J. V , Individually
By:
((,
Dale A. McVay, GeneraYI rtner Dale A. McVay, Individually
SMI, LLC Loan No. A0022403
Vintage Properties
San Luis Obispo, California
March 20, 2000
Page 9 of 9
EXHIBIT "A" = SCHEDULE OF LEASES
Tenant
SF
Occupied
SF Vacant
From
To
Monthly
Rent
$ /SF/
Month
1815
Peter P. Kelley dba Pete's'
Southside Cafe
2,112
06/01/86
11/30/91
$2,623.00
$1.24
1817
Wine Guy, Inc.
1,350
12/31/97
11/30/02
$2,047.00
$1.52
1819
Steven Hazell & Heidi Hazell
1,650
12/31/97
11/30/02
$3,875.00
$2.35
TOTAL RETAIL
5,112
0
$8,545.00
$1.67
201
Tompkins
$552.00
202
Myers
_
$481.00
203
Sheldon
$552.00
204
Susac
$475.00
205
jBentley
$547.00
206
White
$553.00
207
Myrick
$552.00
208
Jenks
$551..00
209
Pounder
$553.00
21.0
Zeilenger
$497.00
211
Smith
$553.00
301
Young
$550.00
302
Fordyce
$462.00
303
Spada
$550.00
304
Jeter
$477.00
305
Lawler
$552.00
306
Morrison
$553.00
307
Somes
$553.00
308
O'Dell
$553.00
309
Elam
$550.00
310
Deckert
$554.00
TOTAL APARTMENTS
8,432
0
$11,220.001
$1.33
Totals I 13,544 011 1$1.9,76 5.00 $1.46
100.0%1 0.0%1 Annual Rent: 1 $237,1801 i
;i
��iiil�l�li�ll��►� ���� � � �I' ''�I ►j`,�illl�l� �� ;.
Ii city of sAn lu oaspo
- OFFICE OF THE MAYOR
Post Office Box 321 • San Luis Obispo, CA 93406 -0321 • 8051541 -1000 -
November 9, 1982
Ms. Teri Bressler, Program Manager
Department of Housing and
Community Development
Division of Community Affairs
921 - 10th Street
Sacramento, CA 95814
Dear Ms. Bressler:
As Mayor of the City of San Luis Obispo, I want to express our city's
strong support of the Park Hotel Rehabilitation project and the state's
assistance in funding this project.
The City of San Luis Obispo is prepared to provide $285,000 worth of
low- interest loans out of our Community Development Block Grant Program
Downtown Housing Conservation Program towards the reconstruction of this
hotel. We strongly urge the state to approve the $100,000 low- interest
loan out of its Deferred Interest Rehabilitation Program to make this
project, as well as our city's CDBG Program, a success. The result will be
twenty -one units of low- income housing that is much needed in our community.
A further result will be an extensive and sensitive restoration of a
building that is-presently a hazard to its occupants and an eyesore to the
community.
The sponsors of this project have spent a great amount of time and
effort in designing and engineering extensive improvements to the building.
They have steadily sought and procured all of the numerous public approvals
that have been required by our city. They have already made a substantial
financial commitment on this project.
The San Luis Obispo City Council urges and hopes for your approval of
deferred rehabilitation loan for this worthy and sorely needed project.
Sincerely,
CITY -OF SAN LUIS OBISPO
M t: lanie \ Billig
Mayor
MCB /dkr
November 5, 1982
Mayor Melanie Billig
City of SLO, City Hall
990 Palm Street
San Luis Obispo, CA 93401
Dear Melanie
1:
4
L
Below is the transcript of a letter that we would ask you to sign in one
form or another on City stationery that could be incorporated into our
Park Hotel Loan Package to the State. Rich Crutchfield at the Housing
Authority will need it by Wednesday, November 11. Hope you can see fit
to do this -- it will really help!
Thanks,
T. KEITH GURNE
Project Planning irector
L
TKG /cj
Tref' essler, Prog' nager
ept. of Housing and Communi _ eve
Division of Community Affairs
921 10th Street.
Sacramento, CA 95814
Dear Teri:
As u ss Obispo, I want to express our City's
strong support of the Park Hotel Rehabilitation project and of State
assistance in funding this project.
Our City is prepared to provide $285,000 worth of low- interest loans out
of our Community Development Block Grant Program Downtown Housing
Conservation Program towards the reconstruction of this hotel. We
strongly urge the State to approve the $100,000 low- interest loan out of
its Deferred Interest Rehabilitation Program to make this project, as well,
as our City's CDBG Program a success. The result will be 21 units of
low- income housing that is much needed in our community. A further
result will be an extensive and sensitive .restoration of a building that is
555 CHORRO STREET, SAN LUIS OBISPO, CALIFORNIA 93401 805/544 -4444
Melanie Billig
Page 2
presently a hazard to its occupants and an eyesore to the community.
The sponsors of this project have spent a great amount of time and effort
in designing and engineering extensive improvements to the building.
They have steadily sought and procured all of the numerous public
approvals that have been required by our City. They have already made
a substantial financial commitment on this project.
We on the San Luis Obispo City Council urge and hope- for your approval
of a deferred rehabilitation loan for this worthy and sorely needed project.
Sincerely,
1/44j,
PAR<HOTEL
A-42"
90-CA adpt 05/23/90 subordina
tlon
C agrmt' of the
DBG Rehab,
Loan,
�,k !%y /ti�-
���! ����iiii�llilllllllll1 ° "�"911!Il
MEMORANDUM
CITY OF SAN LUIS OBISPO
TO: Jeff Jorgensen
John Du
FROM: Jeff Hoo
DATE: April 1 00
SUBJECT: Subordination Request for Park Hotel Rehabilitation Loan
Jeff and John:
In 1983 the City loaned $300,000 in State CDBG funds to owners of the Park Hotel to
rehabilitate the building. The term of the loan was 20 years. The owner, Vintage Properties,
has been paying down the loan and we've been using the funds for CDBG - related activities.
The owner would like to refinance the primary $425,000 loan on the property and has asked
the City to subordinate its loan to the primary loan. As of March 6, 2000, the remaining city
loan balance is .$95,171. It is due to be paid off by May 20`'', 2003 (20 years from initiation
date). Vintage Properties has had an excellent payment record, and subordination should not
have any effect on the City's ability to collect its loan. The project continues to meet the City
Council's original condition of approval regarding Section 8 rental housing - 17 of the hotel's
21 apartments are rented to Section 8 clients administered through the City's Housing
Authority.
I've reviewed the request with the Housing Authority and with Finance (Linda Asprion). They
support the request. If all is in order, John, please sign the subordination request for City of
San Luis Obispo (as beneficiary) and have your signature notarized. Please return the package
tome. Thanks.
Attachments:
- Request for Subordination
- Property owner letter
- Background information.
jh/L: parkhotel memo
VINTAGE
P R O P E R T I E S
April 6, 2000
Jeff Hook
Planning Commission
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Jeff,
We are in the process of renewing our current loan in first position with Stancorp
Mortgage Investors (name changed from Standard Insurance). This loan was originally
placed in 1990 and is due for renewal at the time. The new loan to be recorded will be for
$425,000.00. The original loan was $490,000.00. We need the City to subordinate to this
loan in first position.
As you can see the City's position is not weakened by the subordination.
First American Title has forwarded you copies of the necessary papers for subordination.
Richard Crutchfield (543 -1026) will be a good contact if you have any quesitons of the
Housing Authority of the City of San Luis Obispo.
Time is of the essence. This loan is ready to record after receiving this subordination and
the one in third position held by the State of California.
We currently make payments to Bank of America for this loan. It will be fully
amortorized by the due date March 2004.
Thank you for your help in this matter.
Sincerely,
Marianne Fonte
VINTAGE PROPERTIES
Cr ti R1,
1ahacd Gr 0A1&%= -«ldl
Post Office Box 13210 • 979 Osos Street, Suite B -2 • San Luis Obispo, California 93406 • 8051544 -6529
Order N65565 -KLO
Escrow No. ` 45565 -KLO • •
Loan -No.
WHEN RECORDED MAIL TO:
SUBORDINATION AGREEMENT
REC UHDtR'S
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY
BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN. THE LIEN OF SOME OTHER OR LATER
SECURITY INSTRUMENT.
THIS AGREEMENT, made this 6th day of April, 2000 , 1pj , by
VINTAGE PROPERTIES, A California general partnership
owner of the land hereinafter described and hereinafter referred to as "Owner," and
THE CITY OF SAN LUIS OBISPO
present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as 'Beneficiary';
WITNESSETH
THAT WHEREAS, John E. King and Carole. D. King and Jessie H. Ray
did execute a deed of trust, dated March 15, 1984 to Equitable Deed Company
as trustee, covering:
Parcel 1 of Parcel Map No. SLO -84 -192, in the City of San Luis-Obispo, County of San
Luis Obispo, State of California, according to map recorded June 21, 1985 in Book 37,.
Page 59 of Parcel Maps, in the office of the County Recorder of said County.,
to secure a note in the sum of $ 300,000.00 , dated March 15 , 1984 , in favor of
Security Pacific National Bank, and subsequently assigned to * ., which deed of trust was
recorded June 7, 1984 , as Instrument No. 2950 , in Book 2601 , Page 978 , Official Records
of said county; and *THE .CITY OF SAN LUIS OBISPO
WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $ 425, 000.00
dated , in favor of StanCorp Mortgage Investors, LLC
, hereinafter referred to as "Lender," payable with interest, and upon the terms and conditions
described therein, which deed of trust is to be recorded concurrently herewith; and
WHEREAS, it is .a condition precedent to obtaining said loan that said deed. of trust last above mentioned shall unconditionally
be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of
the deed of trust first above mentioned; and
(continued on reverse side) 1266(1/94)
Page 1 of 2
a 37
ti
7
,T A M E R I
}
STATE OF CALIFORNI }ss.
COUNTY OF
On �d �o o d , before me, ,
personally appeared
U personally known to me
( to be the person(s) whose name( is /are
subscribed to the within instrument and acknowledged to me that he /may executed the same
in his /herftheii authorized capacity(te*�, and that by his / +r signatureN on the instrument the
person(s+ or the entity upon behalf of which the person acted, executed the instrument.
WITNESS
Signature
(rtes area fu dvic l notarial seA
Title of Document
Date of Document -/o -00 No. of Pages
Other signatures not acknowledged
a37
3MG (IM4) rag
First American Tike Irmrance Com
S C A M E R I
C
4�4 9 ti
E
o
City of San Luis Obispo
Planning Department
990 Palm Street
San Luis Obispo, CA 93401
ATTN; Jeff Hook
Fit American Title I �rance
• 899 PACIFIC STREET (P.O. BOX 1147),, SAN LUIS OBISPO, CA 93401
559 FIVE CITIES DRIVE, PISMO BEACH, CA 93449
935 RIVERSIDE, SUITE 13, PASO ROBLES, CA 93446
6895 MORRO ROAD, ATASCADERO, CA 93422
815 MORRO BAY BOULEVARD, MORRO BAY, CA 93442
1352 LOS OSOS VALLEY ROAD, SUITE C, LOS OSOS, CA 93402
783 ARLINGTON STREET, CAMBRIA, CA 93428
RECEIVED
APR 0 7 2000
GI i Y OF SAN LU(S UbIbPO
COMMUNITY DEVELOPMW
RE: Your Loan No: unknown $300,000.00 original note
Borrower: Vintage Property
Property: 1811 -1819 Osos Street, San Luis Obispo, CA 93401
Company
• (805) 5434900
• (805) 773 -6600
• (805) 238 -7747
• (805) 466 -8545
• (805) 772 -2773
• (805) 528 -5224
• (805) 927 -6192
* Office FAX No: (805) 543 -5524
Escrow Officer's
Voice Mail No:
Date: April 5, 2000
Escrow No: 45565 -KLO
We are handling the above numbered escrow which calls for subordination of the loan you currently hold on property described
as follows:
Parcel 1 of Parcel Map No. SLO- 84-192 in the City of San Luis Obispo, County of San Luis Obispo, State of California,
according to map recorded June 21, 1985 in Book 37, Page 59 of Parcel Maps, in the office of the County Recorder of
said County.
In order that we may comply with these instructions, please send us your demand for Subordination of your loan and please
execute the enclosed Subordination Agreement (must be signed before a Notary Public).
Should you have any questions, please do not hesitate to contact us at the number(s) referenced above.
Karen O
Certified Sr. Escrow
KLO
E
VINTAGE
P R O P E R T I E S
April 6, 2000
Jeff Hook
Planning Commission
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Jed
We are in the process of renewing our current loan in first position with Stancorp
Mortgage Investors (name changed from Standard Insurance). This loan was originally .
placed in 1990 and is due for renewal at the time. The new loan to be recorded will be for
$425,000.00. The original loan was $490,000_ .00. We need the City to subordinate to this
loan in first position.
As you can see the City's position is not weakened by the subordination.
First American Title has forwarded you copies of the necessary papers for subordination.
Richard Crutchfield (543 -1026) will be a good contact if you have any quesitons of the
Housing Authority of the City of San Luis Obispo.
Time is of the essence. This loan is ready to record after receiving this subordination and
the one in third position held by the .State of California.
We currently make payments to Bank of America for this loan. It will be fully
amortorized by the due date March 2004.
Thank you for your help in this matter.
Sincerely,
Marianne Fonte
VINTAGE PROPERTIES
CC L ��cha�d Ccu- �cti�icld
Post Office Box 13210 • 979 Osos Street, Suite B -2 • San Luis Obispo, California 93406 • 8051544 -6529
RECORDING REQUESTEC.0
ANDRE, MORRIS & BUTTERY
,kND WHEN RECORDED MAIL THIS DEED AND. UNLESS OTHER
{VISE SHOWN BELOW. MAIL TAX STATEMENTS TO:
NAME F— Marie C. Norton
ADDRESS c/o Harvey Norton
CITY , 67 Benton Way
STATE San Luis Obispo, CA 93401
ZIP L
;Title Order No. Escrow No.
SPACE ABOVE THIS LINE FOR RECORDER'S USE
Quitclaim Deed
The undersigned declares that the documentary transfer tax is 8.......-..- ................................... ... ...................... . . . . .. and is
N computed on the full value of the interest or property conveyed, or % settlement of litigation
❑
computed on the full value less the value of liens or encumbrances remaining thereon at the time of sale. The land,
tenements or realty is located in
❑ unincorporated area ® city of .San... Luis.... bis p_o........................................................ and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
the CITY OF SAN LUIS OBISPO, a municipal corporation,
does . hereby remise, release and forever quitclaim to
the followinc described real property in the
state of California:
MARIE C. NORTON, an individual,
county of San Luis Obispo
Lot 3 in Block 3 of Norton's
the Town of San Luis Obispo,
of San Luis Obispo, County o
Obispo, State of California,
map filed for record October
Book A at page 79 of Maps. ,
Addition to
in the City
f San Luis
according to
24, 1901 in
CITY OF SAN LUIS OBISPO, a
municipal corporation
Dated_ B
STATE OF CALIFORNIA
COUNTY OF_ __
STATE OF CALIFORNIA )
SS.
COUNTY OF SAN LUIS OBISPO)
SS.
On this 8th day of August, in the year 1.9.83, before me, Marilyn Perry, a Notary
Public in and for said State, personally appeared Melanie C. Billig, personally
known to me to be the person who executed the within instrument as the Mayor, and
Pamela Voges, personally known to me to be the person who executed the within
instrument as the City Clerk of The City of San Luis Obispo, a municipal corporation,
and acknowledged to me that The City of San Luis Obispo executed it.
WITNESS my hand and official seal.
i
Marilyn Perry
.. ._.. _ -. •, k. 211•1
-. OFFICIAL SEAL
MARILYN PERRY
NOTARY PUBLIC-CALIFORNIA
PRINCIPAL OFFICE IN
SAN LUIS OBISPO COUNTY
My Commission Expires Aug. 12, 1983