HomeMy WebLinkAboutD-1581 053-034-002 - 053-034-003 - 3071 S. Higuera - 3085 S. Higuera Recorded 03/06/2003RECORDING REQUESTED BY:
Cuesta Title Company
3450 Broad Street, Suite 101
San Luis Obispo, CA 93401
100:53-7 —014
WHEN RECORDED, MAIL TO:
City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
JULIE RODEWALD
San Luis Obispo County— Clerk/Recorder
Recorded at the request of
l Cuesta Title Company
HOC #: 2003022696
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3/06/2003
8:00 AM
Titles: 5
Pages: 32
Fees
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Taxes
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Others
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PAID
$0.00
APN: 053- 034 -002 and 053- 034 -003
PURCHASE MONEY DEED OF TRUST, DEED OF TRUST COVENANTS,
AFFORDABILITY AGREEMENT, ASSIGNMENT OF RENTS, SECURITY
AGREEMENT AND FIXTURE FILING
THIS PURCHASE MONEY DEED OF TRUST, DEED OF TRUST COVENANTS,
AFFORDABILITY AGREEMENT, ASSIGNMENT OF RENTS, SECURITY AGREEMENT
AND IXTURE FILING (collectively, "Deed of Trust ") is made as of this 311°/ day of
6111 , 2003, by and between the City of San Luis Obispo ( "City ",
"Beneficiary", or "Lender") and Peoples' Self -Help Housing Corporation, a California non -profit
public benefit corporation ( "Owner" or "Trustor "), collectively, "the Parties;"
To CUESTA TITLE COMPANY ( "Trustee ") in favor of the CITY OF SAN LUIS OBISPO, a
municipal corporation, whose address is 990 Palm Street, San Luis Obispo, California 93401
RECITALS
A. CITY wishes to loan to Owner Community Development Block Grant ( "CDBG ")
funds to acquire certain property located at 3071 and 3085 South Higuera Street, as more
particularly described in Exhibits A and B (attached hereto and incorporated herein), and
hereinafter referred to as the "Property."
B. OWNER intends to develop and manage said Property for mixed -use residential
and commercial uses, including one- and two- bedroom apartments to be rented at levels
affordable to very-low or low- income persons.
C. PARTIES desire to assure that the dwellings in this rental housing project remain
affordable to very-low and low- income persons for a period of not less than 30
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Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
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years from the date of close of escrow.
D. CITY intends to retire the loan and to waive repayment or principal and interest if,
after 30 years from the date of close of escrow on the Property's purchase, OWNER has
complied with the terms of this Deed of Trust.
NOW, THEREFORE, THIS DEED OF TRUST WITNESSETH:
Trustor, in consideration of the indebtedness referred to below and the trust herein created,
irrevocably grants, conveys, transfers and assigns to Trustee, and its successors and assigns, in
trust, with power of sale and right of entry and possession, all of Trustor's estate, right, title and
interest in, to and under the Property;
TOGETHER WITH all structures and improvements now existing or hereafter erected on the
Property, all easements, rights and appurtenances, thereto or used in connection therewith, all
rents, royalties, issues, profits, revenues, income and other benefits thereof or arising from the
use or enjoyment of all or any portion thereof (subject, however, to the right, power and authority
given herein to Trustor to collect and apply such rents, royalties, issues, profits, revenues, income
and other benefits prior to an Event of Default hereunder), all interests in and rights, royalties and
profits in connection with all minerals, oil and gas and other- hydrocarbon substances thereon or
therein, development rights or credits, air rights, water, water rights (whether riparian,
appropriative or otherwise and whether or not appurtenant) and water stock, all intangible
property and rights relating to the Property or the operation thereof or used in connection
therewith, including, without limitation, trade names and trademarks and all furniture and
fixtures, now or hereafter located in, or on, or attached or affixed to, or used or intended to be
used in connection with, the Property, including, but without limitation, all heating, lighting,
laundry, incinerating, gas, electric and power equipment, pipes, plumbing, fire prevention and
fire extinguishing, refrigerating, ventilating and communication apparatus, air cooling and air
conditioning apparatus, shades, awnings, blinds, curtains, drapes, attached floor coverings,
including rugs and carpeting and other installed appliances, attached cabinets, trees, plants and
other items of landscaping, shall, to the fullest extent permitted by law and for the purposes of
this Deed of Trust; be deemed to be part and parcel of, and appropriated- to the use of, the
Property and, whether or not affixed or annexed thereto, be deemed conclusively to be Property
and conveyed by this Deed of Trust, and Trustor agrees to execute and deliver, from time to time,
such further instruments and documents as may be required by Beneficiary to confirm the lien of
this Deed of Trust on any of the foregoing;.
TOGETHER WITH all of the estate, interest, right, title, other claim or demand which Trustor
now has or may hereafter acquire in any and all awards made for the taking by eminent domain,
or by any proceeding or purchase in lieu thereof, of the whole or any part of the Property (as
hereinafter defined), including, without limitation, any awards resulting from a change of grade
of streets and awards for severance damages;
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TOGETHER WITH all of the estate, interest, right, title and other claim or demand which
Trustor now has or may hereafter acquire with respect to the unearned premiums accrued,
accruing or to accrue and the proceeds of insurance in effect with respect to all or any part of the
foregoing. All of the foregoing property referred to in this Deed of Trust, together with the
Property, is collectively referred to as the "Property."
ARTICLE 1. DEFINITIONS.
1.01. "Affordable to very-low and low- income" means residential rental or sales costs that
conform to income and affordable housing standards issued by the Community Development
Director of the City of San Luis Obispo and updated periodically to reflect state or federal
housing cost indices.
1.02. "HUD" shall mean the U.S. Department of Housing and Urban Development and its staff.
1.03. "Eligible" shall mean persons or households whose incomes meet the standards for very-
low or low- income categories in the City's most current Affordable Housing Standards, as issued
periodically by the City's Community Development Department.
ARTICLE 2. PURPOSE AND CONSIDERATION. This trust deed is established for the
purpose of securing, in such order of priority as Beneficiary may elect:
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(a) The repayment of the indebtedness evidenced by Trustor's Promissory Note (the "Note ") of
even date herewith payable to the order of Beneficiary, in the principal sum of $340,667 (Three
Hundred Forty Thousand and Six Hundred and Sixty Seven Dollars) ( "Principal"), and any and
all late charges, interest costs or fees required thereunder and all extensions, renewals,
modifications, amendments and replacements thereof. The amount of the Note is the total of all
City funds loaned to Trustor, said funds being from the City's Community Development Block
Grant program. The purposes of said loan is to help Trustor purchase the Property for housing
affordable to very-low and low- income persons;
(b) The payment of all other sums which may be advanced by or otherwise be due to Trustee or
Beneficiary under any provision of this Deed of Trust with interest (if any) thereon at the rate
provided herein or therein;
(c) Performance of all covenants of Trustor made in this Deed of Trust.
ARTICLE 3. DEED COVENANTS. To protect the security of this Deed of Trust, Trustor and
Trustee hereby covenant and agree as follows:
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SECTION 3.01. Restrictions on Use and Occupancy. The Property shall be used for mixed -
use residential and commercial uses. The City requires that not less than 49% of the residential
units be occupied by very-low or low - income households, consistent with the Project
Description, Exhibit "C."
SECTION 3.02. Term, Use and Occupancy Restrictions. Trustor agrees that the above
restrictions to the use and occupancy shall remain in effect for a period of not less than thirty (30)
years from the date of the close of escrow of the Property's initial acquisition, after which time
this Deed of Trust shall automatically expire. Further, Trustor agrees that all future grant deeds
for or transfers of interest in the properties shall contain a restriction providing that for the period
of time specified in this deed of trust, there shall be no sale, lease, rental, or other transfer of the
properties except for occupancy by eligible very-low or low income persons. Any sale, lease,
rental, or other transfer of the Property in violation of this covenant shall be void, as provided
below.
SECTION 3.03. Covenants Binding. These affordability requirements shall be covenants
running with the land as defined in California Civil Code Section 1460, and shall apply to the
Property. Pursuant to Civil Code Section 1468, which governs such covenants, the provisions of
this Agreement shall be binding upon all parties having any right, title, or interest in any of the
properties described herein, or any portion thereof and on their heirs, successors in interest and
assigns for the term of this Agreement. The parties also agree that all future deeds or transfers of
interest regarding the properties shall show and be bound by these covenants for the term of this
Agreement.
SECTION 3.04. Upon resale to other than a tax credit limited partnership or by such partnership
to Trust, Trustor and Trustee agree that the Beneficiary or other housing provider approved by
the Beneficiary, shall have the right of first refusal to purchase the Property at the then current
appraised value, as further described in the Note.
SECTION 3.05. Performance of Obligations Secured. Trustor shall promptly pay when due
the indebtedness evidenced by the Note and any late charges, costs and/or fees provided for in the
Note and shall further perform fully and in a timely manner all other obligations of Trustor
contained herein or in the Note.
ARTICLE 4 — INSURANCE REQUIREMENTS
SECTION 4.01. Trustor shall keep the Property and all improvements thereon insured against
loss or damage by fire with extended all -risk coverage clauses, including vandalism and
malicious mischief clauses, in an amount not less than 100% (one hundred percent) of the full
replacement cost of such improvements with a company or companies and in such form and with
such endorsements as may be approved or required by Beneficiary.
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SECTION 4.02. Trustor shall also maintain in full force and effect a policy of general liability
insurance insuring Trustor against liability for bodily injury, Property damage and personal injury
arising out of the operation, use or occupancy of the Property. The initial amount of such
insurance shall be One Hundred Thousand Dollars ($100,000.00) per occurrence and not in the
aggregate and shall be subject to periodic increase based upon increased liability awards or the
reasonable recommendation of Trustor's professional insurance advisor. Trustor shall name
Beneficiary as an additional insured under such policy. Such insurance shall be primary with
respect to any insurance maintained by Beneficiary and shall not call on Beneficiary's insurance
for contributions.
SECTION 4.03. Trustor shall pay all premiums for the insurance policies required to be
maintained under this Deed of Trust within fifteen (15) days after Trustor's receipt of a copy of
the premium statement or other evidence of the amount due. At least thirty (30) days prior to the
expiration of such policy, Trustor shall deliver to Beneficiary a renewal of such policy.
SECTION 4.04. Any insurance which Trustor is required to maintain under this Deed of Trust
shall include a provision requiring that the insurance carrier give Beneficiary not less than thirty
(30) days written notice prior to any cancellation or modification of such coverage. If Trustor (i)
fails to deliver any policy or renewal to Beneficiary required under this Deed of Trust within the
prescribed time period or (ii) if any such policy is canceled or modified to reduce the amount or
type of coverage without Beneficiary's consent and no substituted comparable coverage is
obtained by Trustor prior to such cancellation or modification, Beneficiary may obtain such
insurance. In such case, Trustor shall reimburse Beneficiary for the cost of such insurance within
fifteen (1.5) days after receipt of a statement that indicates the cost of such insurance and upon
proof that Beneficiary has paid said statement.
SECTION 4.05. Trustor shall maintain all insurance required under this Deed of Trust with
companies holding a "general policy rating" of A -8 or better, as set forth in the most current issue
of "Best Key Rating Guide." Trustor acknowledges that the insurance described in this Section is
for the primary benefit of Beneficiary. Beneficiary makes no representation as to the adequacy of
such insurance to protect Trustor's or Beneficiary's interests. Therefore, Trustor shall obtain any
additional Property or liability insurance that Trustor deems necessary to protect Beneficiary and
Trustor, in the exercise of reasonable judgment.
SECTION 4.06. Notwithstanding anything to the contrary contained herein, Trustor's obligation
to carry the insurance provided for herein may be brought within the coverage of a so -called
blanket policy or policies of insurance carried and maintained by Trustor; provided, however,
that Beneficiary shall be named as an additional insured thereunder and that the coverage
afforded Beneficiary will not be reduced or diminished by reason of the use of such blanket
policy of insurance and provided further that the requirements set forth herein are otherwise
satisfied.
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SECTION 4.07. All of the above - mentioned insurance policies or certificates of insurance must
be satisfactory to Beneficiary. Beneficiary shall not by the fact of approving, disapproving,
accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with
respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts,
insolvency of insurance companies or payment or defense of lawsuits and Trustor hereby
expressly assumes full responsibility therefore and all liability, if any, with respect thereto.
SECTION 4.08. Condemnation and Insurance Proceeds.
SUBSECTION 4.08(a). Any award of damages in connection with any taking or condemnation,
or for injury to the Property by reason of public use, or for damages for private trespass or entry
onto the Property is hereby assigned and shall be paid to Beneficiary as further security for all
obligations secured by this Deed of Trust. Upon receipt of such proceeds, Beneficiary may hold
the proceeds as further security or apply or release them in the same manner and with the same
effect as provided in this Deed of Trust for the disposition of proceeds of fire or other insurance.
SUBSECTION 4.08(b). Any insurance proceeds or awards in connection with any casualty or
damage or injury to the Property covered by insurance ( "Insurance Proceeds ") are hereby
assigned to Beneficiary to be held and applied by Beneficiary in the manner hereinafter provided.
Beneficiary may, at its option, and at its own expense, appear in and prosecute in its own name
any action or proceeding to enforce any cause of action for such Insurance Proceeds. All
Insurance Proceeds shall be released to Trustor to repair and restore the improvements on terms
and conditions reasonably established by Beneficiary. This application or release shall not cure or
waive any default or notice of default under this Deed of Trust or invalidate any act done
pursuant to such notice.
SUBSECTION 4.08(c). Trustor, immediately upon obtaining knowledge of the institution of any
proceedings relating to condemnation or other taking of or damage or injury to the Property or
any portion thereof, or knowledge of any casualty damage to the Property or damage in any other
manner, shall immediately notify Beneficiary in writing. Beneficiary may participate, at its own
expense, in any such proceedings and may join Trustor in adjusting any loss covered by
insurance.
ARTICLE 5. TAXES, LIENS AND OTHER ITEMS. Trustor shall pay, when due, all taxes,
bonds, assessments, fees, liens (including prior trust deed liens), charges, fines, impositions and
any and all other items which are attributable to or affect the Property and which may attain a
priority over this Deed of Trust or the indebtedness or evidence of indebtedness secured hereby,
by making payment prior to delinquency directly to the payee thereof. Trustor may initiate
proceedings to contest any such taxes, bonds, assessments, fees, liens, charges, fines, impositions
or other items so long as Trustor takes steps to ensure that Beneficiary's security is not threatened
in any manner. Trustor shall pay all costs of the proceedings, including any costs or fees incurred
by Beneficiary. Upon the final determination of any proceeding or contest, Trustor shall
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immediately pay the amounts dues together with all costs, charges, interest and penalties
incidental to the proceedings..
ARTICLE 6. RENTS AND PROFITS. Trustor acknowledges and agrees that the Property
shall at all times be occupied as rental housing for very-low and low income persons and shall
not be leased or rented for other uses during the term of the Note and this Deed of Trust.
Notwithstanding the foregoing, any rents, royalties, issues, profits, revenue, income and other
benefits of the Property arising from the use and enjoyment of all or any portion thereof or from
any lease or agreement pertaining thereto (the "Rents and Profits "), whether now due, past due, or
to become due, and including all prepaid rents and security deposits, are hereby absolutely,
presently and unconditionally assigned, transferred, conveyed and set over to Beneficiary to be
applied by Beneficiary in the payment of the principal and all other sums payable on the Note and
of all other sums payable under this Deed of Trust; provided, however, that prior to written
notice given by Beneficiary to Trustor of the breach by Trustor of any covenant or agreement of
Trustor in the Loan Documents, Trustor shall collect and receive all rents and revenues of the
Property as trustee for the benefit of Beneficiary and Trustor shall apply the rents and revenues so
collected to the sums secured by this Deed of Trust with the balance, so long as no such breach
has occurred, to the account of Trustor, it being intended by Trustor and Beneficiary that this
assignment of rents constitutes an absolute assignment and not an assignment for additional
security only. Upon delivery of written notice by Beneficiary to Trustor of the breach by Trustor
of any covenant or agreement of Trustor in the Loan Documents, and without the necessity of
Beneficiary entering upon and taking and maintaining full control of the Property in person, by
agent or by a court- appointed received, Beneficiary shall immediately be entitled to possession of
all rents and revenues of the Property as specified in this Article 6 as the same becomes due and
payable, including but not limited to rents then due and unpaid, and all such rents shall
immediately upon delivery of such notice be held by Trustor as trustee for the benefit of
Beneficiary only; provided, however, that the written notice by Beneficiary to Trustor of the
breach by Trustor shall contain a statement that Beneficiary exercises its rights to such rents.
Trustor agrees that commencing upon delivery of such written notice of Trustor's breach by
Beneficiary to Trustor, each tenant of the Property shall make such rents payable to and pay such
rents to Beneficiary or Beneficiary's agents on Beneficiary's written demand to each tenant
therefor, delivered to each tenant personally, by mail or by delivering such demand to each rental
unit, without any liability on the part of said tenant to inquire further as to the existence of a
default by Trustor.
It is understood and agreed that neither the foregoing assignment of Rents and Profits to
Beneficiary nor the exercise by Beneficiary of any of its rights or remedies under Article 11
hereof shall make Beneficiary a mortgagee -in- possession or otherwise responsible or liable in
any manner with respect to the Property or the use, occupancy, enjoyment or operation of all or
any portion thereof, unless and until Beneficiary, in person or by agent, assumes actual
possession thereof. Further, the appointment of a receiver for the Property by any court at the
request of Beneficiary or by agreement with Trustor, or the entering into possession of the
Property or any part thereof by such receiver, shall not be deemed to make Beneficiary a
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mortgagee -in- possession or otherwise responsible or liable in any manner with respect to the
Property or the use, occupancy, enjoyment or operation of all or any portion thereof.
ARTICLE 7. PRESERVATION AND MAINTENANCE OF PROPERTY. Trustor shall
keep the Property and every part thereof in good condition and repair and shall not permit or
commit any waste, impairment or deterioration of the Property nor commit, suffer or permit any
act upon or use of the Property in violation of law or applicable order of any governmental
authority, whether now existing or hereafter enacted and whether foreseen or unforeseen,
including, without limitation, violation of any zoning, building or environmental protection
statutes, ordinances, regulations, orders and restrictions or in violation of any covenants,
conditions or restrictions affecting the Property or bring or keep any article upon any of the
Property or cause or permit any condition to exist thereon which would be prohibited by or could
invalidate any insurance coverage maintained or required hereunder to be maintained by Trustor
on or with respect to any part of the Property and further shall do all other acts which from the
character or use of the Property may be reasonably necessary to protect the security hereof, the
specific enumerations herein not excluding the general. Trustor shall completely restore and
repair promptly and in a good and workmanlike manner any building, structure or improvement
thereon which may be damaged or destroyed and pay, when due, all claims for labor performed
and materials furnished therefor, whether or not insurance or other proceeds are available to
cover, in whole or in part, the costs of any such restoration or repair. Trustor shall notify
Beneficiary immediately in writing of any damage to the Property in excess of Ten Thousand
Dollars ($10,000.00).
ARTICLE 8. PROTECTION OF SECURITY: COSTS AND EXPENSES. Trustor shall
appear in and defend any action or proceeding purporting to affect the security hereof or the
rights or powers of Beneficiary or Trustee and shall pay all reasonable costs and expenses,
including, without limitation, costs of evidence of title and reasonable attorney's fees, in any such
action or proceeding in which Beneficiary or Trustee may appear and in any suit brought by
Beneficiary to foreclose this Deed of Trust or to enforce or establish any other rights or remedies
of Beneficiary hereunder. If Trustor fails to perform any of the covenants or agreements in this
Deed of Trust or if any action or proceeding is commenced which affects Beneficiary's interest in
the Property or any part thereof, including, but not limited to, eminent domain, code enforcement
or proceedings of any nature whatsoever under any federal or state law, whether now existing or
hereafter enacted or amended, relating to bankruptcy, insolvency, arrangement, reorganization or
other form of debtor relief, or to a decedent, then Beneficiary or Trustee may, but without
obligation to do so and upon ten (10) days' prior written notice to and demand upon Trustor
(unless a shorter notice period is necessary to protect Beneficiary's interest in the security hereof,
in which case only reasonable notice and demand under the circumstances shall be required) and
without releasing Trustor from any obligation hereunder, make such appearances, disburse such
sums and take such action as Beneficiary or Trustee deems necessary or appropriate to protect
Beneficiary's interest, including, but not limited to, disbursement of reasonable attorney's fees,
entry upon the Property to make repairs or otherwise protect the security hereof, and payment,
purchase, contest or compromise of any encumbrance, charge or lien which in the judgment of
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either Beneficiary or Trustee appear to be prior or superior hereto. Trustor further agrees to pay
all reasonable expenses of Beneficiary (including fees and disbursements of counsel) reasonably
related to the protection of the rights of Beneficiary hereunder, and enforcement or collection of
payment of the Note, whether by judicial or non judicial proceedings, or in connection with any
bankruptcy, insolvency, arrangement, reorganization or other debtor relief proceeding of Trustor,
or otherwise. Beneficiary shall give Trustor ten (10) days' prior written notice before disbursing
any amounts pursuant to this Article. Any amounts disbursed by Beneficiary or Trustee pursuant
to this Section shall be additional indebtedness of Trustor secured by this Deed of Trust as of the
date of disbursement. All such amounts shall be payable by Trustor immediately without
demand. Nothing contained herein shall be construed to require Beneficiary or Trustee to incur
any expense, make any appearance or take any other action.
ARTICLE 9. ENFORCEMENT.
Section 9.01. Acknowledgement of Enforceability. Trustor represents, warrants, covenants
and agrees that it is the lawful owner of the Property and that it has good right and lawful
authority to encumber the same as provided herein; that the Property is free from any and all liens
and encumbrances excepting only such as have been approved by Beneficiary and that Trustor
warrants and will defend the title to the Property against all claims and demands whatsoever not
specifically excepted herein (and except for claims and demands arising from acts or omissions
of Beneficiary or any predecessor -in- interest to Beneficiary not previously disclosed to Trustor),
and Trustor will execute, acknowledge and deliver all and every such further assurances unto
Beneficiary of the title to the Property hereby conveyed and intended so to be or that Trustor may
be or shall become hereinafter bound so to do. Trustor covenants and warrants that the Note and
this Deed of Trust are valid and enforceable obligations of Trustor in accordance with the terms
thereof and hereof; and that this Deed of Trust does not, nor does the Note, nor does the
performance or observance by Trustor of any of the matters or things in the Note or this Deed of
Trust, contravene any covenant in any indenture or agreement affecting Trustor.
ARTICLE 10. EVENTS OF DEFAULT. Each of the following shall constitute an event of
default after the expiration of applicable cure periods ( "Event of Default ") hereunder (including,
if Trustor and Trustee consists of more than one person or entity, the occurrence of any of such
events with respect to any one or more of such persons or entities):
SECTION 10.01. Breach of Covenants. Default and the failure to cure with applicable cure
periods by Trustor in the performance of any of the covenants or agreements of Trustor contained
herein, in the Note or any other note or instrument, trust deed or other obligation of Trustor
relating to the Property secured by any part of or all of the Property, whether junior or senior to
this Deed of Trust.
SECTION 10.02. Appointment of Trustee. The appointment pursuant to an order of a court of
competent jurisdiction, of a trustee, receiver or liquidator of the Property or any part thereof, or
of Trustor, or any termination or voluntary suspension. of the transaction of business of Trustor,
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or any attachment, execution or other judicial seizure of all or any substantial portion of Trustor's
assets; provided, however, that if such attachment, execution or seizure is involuntary, Trustor
shall not be deemed in default unless the same is not discharged within sixty (60) days.
SECTION 10.03. Bankruptcy Filing. The filing by or against Trustor of a petition in bankruptcy
or for an arrangement or for reorganization or for other form of debtor relief pursuant to the
federal Bankruptcy Act, as the same may be amended or replaced from time to time, or any other
law, federal or state, whether now existing or hereafter amended or enacted relating to insolvency
or debtor relief (except that in the case of a filing against Trustor, an Event of Default shall not
exist unless Trustor fails to have the proceeding discharged within sixty (60) days after such
filing), or the adjudication of Trustor as a bankrupt or an insolvent by a decree of a court of
competent jurisdiction, or the making of an assignment for the benefit of creditors, or the
admission by Trustor in writing of its inability to pay its debts generally as they become due; or
the giving of consent by Trustor to the appointment of a receiver or receivers of all or
substantially all of its Property.
SECTION 10.04. Misrepresentations. Any representation or disclosure made to Beneficiary by
Trustor as an inducement to the making of the loan evidenced by the Note that proves to be false
or misleading in any material respect as of the time the same was made, whether or not any such
representation or disclosure appears as part of this Deed of Trust.
SECTION 10.05. Other Events. Any other event which, under this Deed of Trust, or under the
Note or the Agreement, constitutes an Event of Default by Trustor hereunder or thereunder or
gives Beneficiary the right to accelerate the maturity of the indebtedness, or any part thereof,
secured hereby.
SECTION 10.06. Cure Periods. Unless otherwise provided in the Deed of Trust, any default or
failure to perform any covenant under this Deed of Trust shall not be an Event of Default if it is
cured within thirty days (30) after notice thereof given by the Beneficiary or, where cure is not
possible within thirty days, whose cure is commenced within thirty days and diligently
prosecuted to completion provided such cure is completed within 90 days.
ARTICLE 11. REMEDIES. Upon the occurrence of any Event of Default and the expiration
of any applicable period within which to cure the same, Trustee and Beneficiary shall have the
following rights and remedies:
SECTION 11.0.1. Acceleration. Beneficiary may declare the entire outstanding Principal and all
other sums or payments required hereunder to be due and payable immediately and
notwithstanding the date such sums would otherwise be due in accordance with the Note and the
Agreement.
SECTION 11.02. Entry. Whether or not Beneficiary exercises the right provided in Section
11.01 above, Beneficiary, in person or by agent or court- appointed receiver, may enter upon, take
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possession of, manage and operate the Property or any part thereof and do all things necessary or
appropriate in Beneficiary's sole discretion in connection therewith, including, without limitation,
making and enforcing, and if the same be subject to modification or cancellation, modifying or
canceling leases upon . such terms or conditions as Beneficiary deems proper, obtaining and
evicting tenants, and fixing or modifying rents, contracting for and making repairs and
alterations, and doing any and all other acts which Beneficiary deems proper to protect the
security hereof and either with or without so taking possession, in its own name, in the name of
Trustor or by court- appointed receiver . (which may be appointed on notice or on ex parte
application without notice), suing for or otherwise collecting and receiving the rents and profits,
including those past due and unpaid, and applying the same less costs and expenses of operation
and collection, including reasonable attorney's fees, upon any indebtedness secured hereby and in
such order as Beneficiary may determine. Upon request of Beneficiary, Trustor shall assemble
and make available to Beneficiary at the site of the Property any of the Property that has been
removed there from. The entering upon and taking possession of the Property, or any part
thereof, the collection of any rents and profits and the application thereof as aforesaid shall not
cure or waive any Event of Default theretofore or thereafter occurring or affect any notice or
Event of Default or notice, and, notwithstanding continuance in possession of the Property or any
part thereof by Beneficiary, Trustor or a receiver, and the collection, receipt and application of
the rents and profits, Beneficiary shall be entitled to exercise every right provided for in this
Deed of Trust or by law or in equity upon or after the occurrence of an Event of Default,
including, without limitation, the right to exercise the power of sale. Any of the actions referred
to in this Section may be taken by Beneficiary irrespective of whether any notice of an Event of
Default or election to sell has been given hereunder and without regard to the adequacy of the
security for the indebtedness hereby secured.
SECTION 11.03. Judicial Action. Beneficiary may bring an action in any court of competent
jurisdiction to foreclose this Deed of Trust or to enforce any of the covenants and agreements of
this Deed of Trust, or the Note and the Housing Agreement.
SECTION 11.04. Power of Sale.
SUBSECTION 11.04(a). Beneficiary may elect to cause the Property or any part thereof to be
sold under the power of sale herein granted in any manner permitted by applicable law. In
connection with any sale or sales hereunder, Beneficiary may elect to treat any of the Property
that consists of a right in action or that is Property that can be severed from the Property or any
improvements thereon without causing structural damage thereto as if the same were personal
Property and dispose of the same in accordance with applicable law, separate and apart from the
sale of the Property.
SUBSECTION 11.04(b). Trustee may, and upon request of Beneficiary shall, from time to time,
postpone any sale hereunder by public announcement thereof at the time and place noticed
therefore. If the Property consists of several items of Property, Beneficiary may designate the
order in which such items shall be offered for sale or sold. Any person, including Trustor,
Deed of Trust/Deed of Trust Covenants— 3071 and 3085 South Higuera Street
Page 12
Trustee or Beneficiary, may purchase at any sale hereunder, and Beneficiary shall have the right
to purchase at any sale hereunder by crediting upon the bid price the amount of all or any part of
the indebtedness hereby secured.
SUBSECTION 11.04(c). Should Beneficiary desire that more than one sale or other disposition
of the Property be conducted, Beneficiary may, at its option, cause the same to be conducted
simultaneously, or successively, on the same day, or at such different days or times and in such
order as Beneficiary may deem to be in its best interests, and no such sale shall terminate or
otherwise affect the lien of this Deed of Trust on any part of the Property not sold until all
indebtedness secured hereby has been fully paid. Upon any sale hereunder, Trustee shall execute
and deliver to the purchaser or purchasers a deed or deeds conveying the Property so sold, but
without any covenant or warranty whatsoever, express or implied, whereupon such purchaser or
purchasers shall be let into immediate possession; and the recitals in any such deed or deeds of
facts, such as default, the giving of notice of default and notice of sale and other facts affecting
the regularity or validity of such sale or disposition, shall be conclusive proof of the truth of such
facts and any such deed or deeds shall be conclusive against all persons as to such facts recited
therein.
SUBSECTION 11.04(d). In case of any sale of the Property pursuant to any judgment or decree
of any court or at public auction or otherwise in connection with the enforcement of any of the
terms of this Deed of Trust, Beneficiary, its successors or assigns, may become the purchaser,
and for the purpose of making settlement for or payment of the purchase price, shall be entitled to
deliver over and use the Note, together with all other sums, with interest, advanced and unpaid
hereunder, in order that there may be credited as paid on the purchase price the sum then due
under the Note, including principal thereon and all other sums, with interest, advanced and
unpaid hereunder.
SECTION 11.05. Proceeds of Sale. The proceeds of any sale made under or by virtue of this
Article, together with all other sums that then may be held by Trustee or Beneficiary under this
Deed of Trust, whether under the provisions of this Article or otherwise, shall be applied as
follows:
(a) First, to the payment of the costs and expenses of sale and of any judicial proceedings
wherein the same may be made, including reasonable compensation to Trustee and Beneficiary,
their agents and counsel, and to the payment of all expenses, liabilities and advances made or
incurred by Trustee under this Deed of Trust, together with interest on all advances made by
Trustee at the maximum rate permitted by law to be charged by Trustee.
(b) Second, to the payment of any and all sums expended by Beneficiary under the terms hereof
(including, but not limited to, sums paid by Beneficiary on the prior trust deed) not then repaid
and all other sums required to be paid by Trustor pursuant to any provisions of this Deed of Trust
or the Note, including, without limitation, all expenses, liabilities and advances made or incurred
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 13
by Beneficiary under this Deed of Trust or in connection with the enforcement hereof, together
with interest thereon as herein provided.
(c) Third, to the payment of the entire amount then due, owing or unpaid upon the Note,
including attorney's fees and costs.
(d) Fourth, all amounts otherwise due Beneficiary.
(e) The remainder, if any, to the person or persons legally entitled thereto.
SECTION 11.06. Waiver of Marshaling. Trustor, for itself and for all persons hereafter
claiming through or under it or who may at any time hereafter become holders of liens junior to
the lien of this Deed of Trust, hereby expressly waives and releases all rights to direct the order in
which any of the Property shall be sold in the event of any sale or sales pursuant hereto, and to
have any of the Property and/or other Property now or hereafter constituted security for any of the
indebtedness secured hereby, marshaled upon any foreclosure of this Deed of Trust or for any
other security for any of said indebtedness.
SECTION 11.07. Remedies Cumulative. No remedy herein conferred upon or reserved to
Trustee or Beneficiary is intended to be exclusive of any other remedy herein or by law provided,
but each shall be cumulative and shall be in addition to every other remedy given hereunder or
now or hereafter existing at law or in equity or by statute. No delay or omission of Trustee or
Beneficiary to exercise any right or power accruing upon any Event of Default shall impair any
right or power or shall be construed to be a waiver of any Event of Default or any acquiescence
therein; and every power and remedy given by this Deed of Trust to Trustee or Beneficiary may
be exercised from time to time as often as may be deemed expedient by Trustee or Beneficiary. If
there exists additional security for the performance of the obligations secured hereby, the holder
of the Note, at its sole option, and without limiting or affecting any of its rights or remedies
hereunder, may exercise any of the rights and remedies to which it may be entitled hereunder
either concurrently with whatever rights and remedies it may have in connection with such other
security or in such order as it may determine. Any application of any amounts or any portion
thereof held by Beneficiary at any item as additional security hereunder, whether pursuant to this
deed of trust or otherwise, to any indebtedness secured hereby shall not extend or postpone the
due dates of any payments due from Trustor to Beneficiary hereunder or under the Note, or
change the amounts of any such payments or otherwise be construed to cure or waive any default
or notice of default hereunder or invalidate any act done pursuant to any such default or notice. In
the event that Beneficiary shall have proceeded to enforce any right under this Deed of Trust by
foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or
abandoned for any reason or shall have been determined adversely, then, and in every such case,
Trustor and Beneficiary shall be restored to their former positions and rights hereunder with
respect to the Property subject to the lien hereof.
•
•
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 14
ARTICLE 12. MISCELLANEOUS
SECTION 12.01. Severability. In the event that any one or more of the provisions contained in
this Deed of Trust shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of this
Deed of Trust, and this Deed of Trust shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.
SECTION 12.02. Certain Charges. Trustor agrees to pay the charges of Beneficiary for any
service rendered Trustor, or on its behalf, connected with this Deed of Trust or the indebtedness
secured hereby, including, without limitation, delivering to an escrow holder a request for full or
partial reconveyance of this Deed of Trust, transmitting to an escrow holder moneys secured
hereby, changing the records pertaining to this Deed of Trust and indebtedness secured hereby,
showing a new owner of the Property and replacing an existing policy of insurance held
hereunder with another such policy.
SECTION 12.03. Notices. All notices expressly provided hereunder to be given by Beneficiary
to Trustor and all notices and demands of any kind or nature whatsoever that Trustor may be
required or may desire to give to or serve on Beneficiary shall be in writing and shall be served
by first class or registered or certified mail, return receipt requested. Any such notice or demand
so served shall be deposited in the United States mail, with postage thereon fully prepaid and
addressed to the party so to be served at its address above stated or at such other address of which
said party shall have theretofore notified in writing, as provided above, the party giving such
notice. Service of any such notice or demand so made shall be deemed effective on the date of
actual delivery as shown by the addressee's return receipt or the expiration of forty-eight (48)
hours after the date of mailing, whichever is the earlier in time, except that service of any notice
of default or notice of sale provided or required by law shall, if mailed, be deemed effective on
the date of mailing.
SECTION 12.04. Trustor Not Released. Extension of the time for payment or modification of
the terms of payment of any sums secured by this Deed of Trust granted by Beneficiary to any
successor -in- interest of Trustor shall not operate to release, in any manner, the liability of the
original Trustor. Beneficiary shall not be required to commence proceedings against such
successor or refuse to extend time for payment or otherwise modify the terms of the payment of
the sums secured by this Deed of Trust by reason of any demand made by the original Trustor.
Without affecting the liability of any person, including Trustor, for the payment of any
indebtedness secured hereby, or the lien of this Deed of Trust on the remainder of the Property
for the full amount of any such indebtedness and liability unpaid, Beneficiary and Trustee are
respectively empowered as follows: Beneficiary may from time to time and without notice (a)
release any person liable for the payment of any of the indebtedness, (b) extend the time or
otherwise alter the terms of payment of any of the indebtedness, (c) accept additional real or
personal Property of an kind as security therefore, whether evidenced by deeds of trust,
mortgages, security agreements or any other instruments of security, or (d) alter, substitute or
•
Deed of Trust/Deed of Trust. Covenants 3071 and 3085 South Higuera Street
Page 15
release any Property securing the indebtedness; Trustee may, at any time and from time to time,
upon the written request of Beneficiary (a) consent to the making of any map or plat of the
Property or any part thereof, (b) join in granting any easement or creating any restriction thereon,
(c) join in any subordination agreement or other agreement affecting this Deed of Trust or the
lien-or charge hereof, or (d) reconvey, without any warranty, all or part of the Property.
SECTION 12.05. Inspection. Beneficiary may at any reasonable time or times, with reasonable
notice, make or cause to be made entry upon and inspections of the Property or any part thereof
in person or by agent.
SECTION 12.06. Reconveyance. Upon the payment in full of all sums secured by this Deed of
Trust or upon forgiveness of such payment in accordance with the Note, Beneficiary shall request
that Trustee reconvey the Property and shall surrender this Deed of Trust and Note evidencing
indebtedness secured by this Deed of Trust to Trustee. Upon payment of its fees and any other
sums owing to it under this Deed of Trust, Trustee shall reconvey the Property without warranty
to the person or persons legally entitled thereto. Such person or persons shall pay all costs of
recordation, if any. The recitals in such reconveyance of any matters of facts shall be conclusive
proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the
person or persons legally entitled thereto." Five (5) years after issuance of such full
reconveyance, Trustee may destroy the Note and this Deed of Trust unless otherwise directed by
Beneficiary.
SECTION 12.07. Interpretation. Wherever used in this Deed of Trust, unless the context
indicates a contrary intent, or unless otherwise specifically provided herein, the word "Trustor"
shall mean and include both Trustor and any subsequent owner or owners of the Property, and
the word 'Beneficiary" shall mean and include not only the original Beneficiary hereunder but
also any future owner and holder, including pledgees, of the Note secured hereby. In this Deed of
Trust wherever the context so requires, the masculine gender includes the feminine and/or neuter,
and the neuter includes the feminine and/or masculine, and the singular number includes the
plural and conversely. In this Deed of Trust, the use of the word "including" shall not be deemed
to limit the generality of the term or clause to which it has reference, whether or not non - limiting
language (such as "without limitation," or "but not limited to" or words of similar import) is used
with reference thereto. The captions and headings of the Articles and Sections of this Deed of
Trust are for convenience only and are not to be used to interpret, define or limit the provisions
hereof.
SECTION 12.08. Consent. The granting or withholding of consent by Beneficiary to any
transaction as required by the terms hereof shall not be deemed a waiver of the right to require
consent to future or successive transactions.
SECTION 12.09. Successors and Assigns. All of the grants, obligations, covenants,
agreements, terms, provisions and conditions herein shall run with the land and shall apply to,
bind, and inure to the benefit of the heirs, administrators, executors, legal representatives,
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 16
successors and assigns of Trustor and the successors -in -trust of Trustee and the endorsees,
transferees, successors and assigns of Beneficiary. In the event that more than one party is
Trustor, the obligations, covenants, agreements and warranties contained herein as well as the
obligations arising there from are and shall be joint and several as to each such party.
SECTION 12.10. Governing Law. This Deed of Trust shall be governed by and construed under
the laws of the State of California.
SECTION 12.11. Trustor Waivers. Trustor waives the benefit of all laws now existing or that
hereafter may be enacted with respect to any statute of limitations for the filing of any action or
claims by Beneficiary.
SECTION 12.12. Superiority of First Lender Documents.
SUBSECTION 12.12(a). This Deed of Trust shall not diminish or affect the rights of the First
Lender under that certain deed of trust dated , executed by the
Trustor in favor of the First Lender and recorded in the County of San Luis Obispo on
, and assigned Instrument No. or any subsequent
First Lender deeds of trust hereafter recorded against the Security (the "First Deed of Trust "),
except as provided in Subsection 12.12(b) below. Beneficiary and Trustor acknowledge and
agree that this Deed of Trust is subject and subordinate in all respects to the liens, terms,
covenants and conditions of the First Deed of Trust and to all advances heretofore made or which
may hereafter be made pursuant to the First Deed of Trust including all sums advanced for the
purpose of (i) protecting or further securing the lien of the First Deed of Trust, curing defaults by
the Trustor under the First Deed of Trust or for any other purpose expressly permitted by the First
Deed of Trust or (ii) constructing, renovating, repairing, furnishing, fixturing or equipping the
Property. The terms and provisions of the First Deed of Trust are paramount and controlling, and
they supersede any other terms and provisions hereof in conflict therewith.
SUBSECTION 12.12(b). In the event of default, the First Lender may take the following actions
to cure the default, provided first that: (i) the Beneficiary has been given written notice of a
default under the First Deed of Trust, and (ii) the Beneficiary shall not have cured the default
under the First Deed of Trust, or diligently pursued curing the default as determined by the First
Lender, within the 60 -day period provided in such notice sent to the Beneficiary:
1) Foreclose on the subject Property pursuant to the remedies permitted by law and written
in a recorded contract or deed of trust; or
2) Accept a deed of trust or assignment to the extent of the value of the unpaid first
mortgage to the current market value in lieu of foreclosure in the event of default by a
trustor; or
•
•
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 17 `
3) Sell the Property to any person at a fair market value price subsequent to exercising its
rights under the deed of trust. Any value in excess of the unpaid mortgage and costs of
sale administration shall be used to satisfy the City loan. In no case may a first mortgage
lender, exercising foreclosure assignment in -lieu of foreclosure or sale, obtain value or
rights to value greater than the value of the outstanding indebtedness on the first
mortgage at the time of the debt clearing action.
The following types of transfers shall remain subject to the requirements of the City's loan:
transfer by gift, devise, or inheritance to the owner's spouse; transfer to a surviving joint tenant;
transfer to a spouse as part of divorce or dissolution proceedings; or acquisition in conjunction
with a marriage.
SECTION 12.13. Request for Notices of Default and Sale.
SUBSECTION 12.13(a). Trustor hereby requests that a copy of any notice of default and notice
of sale as may be required by law or by this Deed of Trust be mailed to Trustor at its address
above stated.
SUBSECTION 12.13(b). In accordance with Section 2924b of the California Civil Code, request
is hereby made that a copy of any notice of default and a copy of any notice of sale under that
deed trust recorded concurrently herewith, be mailed to: Community Development Director,
City of San Luis Obispo, 990 Palm Street, San Luis Obispo, California 93401.
SECTION 12.14. No Transfer. Trustor shall not voluntarily or involuntarily assign or otherwise
transfer any of its rights, duties, liabilities or obligations hereunder or under the Note without the
prior written consent of Beneficiary.
SECTION 12.15. Attorney's Fees. In any action to interpret or enforce any provision of this
Deed of Trust, the prevailing party shall be entitled to reasonable costs and attorney's fees.
SECTION 12.16. Notices`. Notices required to be sent to CITY shall be sent by certified mail,
return receipt requested, to the following address:
Community Development Director, c/o City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Notices required to be sent to OWNER shall be sent by certified mail, return receipt requested, to
the following address:
Deed of Trust/Deed.of Trust Covenants - 3071 and 3085 South Higuera Street
Page 18
Executive Director
Peoples' Self -Help Housing Corporation
3533 Empleo Street
San Luis Obispo, CA 93401
IN WITNESS WHEREOF, the undersigned have executed this Deed of Trust as of the day and
year first above written.
PEOPLES' SELF -HELP HOUSING CORPORATION, A CALIFORNIA NON - PROFIT
PUBLIC BENEFIT CORPORATION:
Jeanette Duncan, Assistant Secretary Date
OF SAN LUIS OBISPO:
Ken
Officer
APPROVED AS TO FORM AND LEGAL EFFECT:
Trujillo, A6&iffrCitY460r
—o
Date
• •
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 19
by:
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO
SS.
On FZ-�or'u �� r "0� > before me, E� /f 2.4 6eff- ��eL , personally
(Name and Title of Officer)
appeared V6Gq [* D"AC&. do4 0CDYt CWT 7Y—
(name of Signer(s)
personally known to me - OR -
❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he4ke/they executed the
same in r /their authorized capacity(igs), and that by lamer /their signatures) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
agreement.
WITNESS my hand and official seal.
SignaturVof Notary Public
I Title of Document
Date of Document
Other signatures not acknowledged:.
ELIZABETH LOPEZ
.- �•� a COMM. #1305651
'Notary Public - California ca
SAN LUIS OBISPO COUNTY -+
• My Comm. Exp. May 24, 2005
No. of Pages
0 . 0
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 20
CERTIFICATE
This is to certify that the interest in the Property described i i Exhibits A and B and conveyed by
the Deed of Trust/Deed of Trust Covenants dated a,,,; G 3 from Peoples' Self -
Help Housing Corporation, a California non - profit public benefit Corporation, to the City of San
Luis Obispo, a Charter Municipal Corporation, is hereby accepted by the undersigned officer or
agent on behalf of the Council of the City of San Luis Obispo, pursuant to the authority granted
by City Council Resolution No. 8190 (1993 Series), adopted July 6, 1993, and the grantee
consents to recordation thereof by its duly authorized officer.
Notary:
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO ) SS.
appeared
before me, , personally
(Name and Title of Officer)
(name of Si
personally known to me - OR -
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the
same in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
agreement.
LEE PRICE
WITNESS an ffici Commission # 1220447
$ Natary Put'ic - Calitomia
Z San Luis ObiSPO County
My Comm Expo Nh_721, Z)03
Signature of Notary Public
Deed of Trust/Deed of Trust Covenants — 3071 and 3085 South Higuera Street
Page 21
Exhibits:
.A. Legal Description
B. Map
C. Community Development Block Grant Application
jh /UCDBG/McBridedeedoftrust2 -26 -03
•
CITY OF SAN LUIS OBISPO
MCBRIDE PROPERTY ACQUISITION
LEGAL DESCRIPTION
Parcel A: APN No: 053- 034 -002
The land referred to in this report is situated in the State of California, County of San Luis
Obispo, State of California, and is described as follows:
That portion of Lot 24 according to the map of the Subdivision of the San Luis Obispo suburban
Tract, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according
to map recorded February 7, 1906 in Book 1, Page 93 of Record of Surveys, described as
follows:
Beginning at a point in the Easterly line of the California State Highway at a concrete monument
at the Southwest corner of said Lot 24;
Thence along the Easterly line of said highway, North 3 29' East, 132.57 feet to a concrete
monument;
Thence North 3 49' West, 213,46 feet to a point in the Easterly line of said highway;
Thence North 11 07' West, 9.99 feet for the True Point of Beginning, said point being the
Southwest corner of the land conveyed to N.W. Biddles by deed dated February 19, 1937 and
recorded in Book 211, Page 319 of Official Records;
Thence from said True Point of Beginning, Southeasterly along the said Easterly line of the
California State Highway 120 feet;
Thence North 89 49' East, 208 feet, more or less, to the East line of the property conveyed to
Octavia Augusta Martin, by deed dated March 10, 1934 and recorded in Book 150, Page 231 of
Official Records;
Thence along said East line North 0 11' West, 120 feet, more or less to the Southwest corner of
the land so conveyed to N.W. Biddles as aforesaid;
Thence South 89 49' West along the South line of the land so conveyed to said N.W. Biddles ,
235 feet, more or less to the point of beginning.
Parcel B: APN No: 053- 034 -003
The land referred to in this report is situated in the State of California, County of San Luis
Obispo, State of California, and is described as follows:
Those portions of Lot 24 of the subdivision of the San Luis Obispo Suburban Tract, in the City
of San Luis Obispo, County of San Luis Obispo, State of California, according to map recorded
February 7, 1906 in Book 1, Page 93 of Record of Surveys, described as follows:
Parcel B 1:
Beginning at a point in the Easterly line of the California State Highway at a concrete monument
at the Southwest corner of said Lot 24;
•
Thence along the Easterly line of said highway, North 3 29' Est, 132.57 feet to a concrete
monument;
Thence North 3 49' West, 213.46 feet to a point in the Easterly line of said highway;
Thence North 11 07' West, 59.99 feet for the True Point of Beginning, said point being the
Northwest corner of the land conveyed to Octavia Augusta Martin by deed dated March 10, 1934
and recorded in Bok 150, Page 231 of Official Records;
Thence from said True Point of Beginning, South 11 07' East; 50 feet;
Thence North 89 49' East, 235 feet, more or loess, to the East line of the property conveyed to
said Octavia Augusta Martin;
Thence along the North line North 0 11' West, 120 feet, more or less to the Southeast corner of
the property so conveyed South 89 49' West, 235.14 feet to the point of beginning.
Parcel B2:
Beginning at a point in the North line of the property conveyed to N.W. Biddles, by deed
recorded in Book 211, Page 319 of Official Records, said point being North 89 49' East, 200 feet
from the Easterly line of the California State Highway, said point being also the Southeast corner
of the property conveyed to R.C. Terhune and Wife, by deed recorded in Book 85, Page 281 of
Official Records.
Thence North 89 49' East along the North line of the property so conveyed to said N.W. Biddles,
35.13 feet;
Thence North 0 11' West, 70 feet;
Thence South 89 49' West, 43.65 feet to the East line of the property so conveyed to said R.C.
Terhune and Wife;
Thence South 11 07' East along said East line, 71.29 feet to the point of beginning.
jh/Ucdbg/mcbridelegaldescription
401•
i7�i i 7: ff9IwraF,.VTT7rd ii iTe
*COUNTY OF SAN LUIS OBISP010
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
APPLICATION FOR FUNDING DURING 2002 PROGRAM YEAR
(Attach additional sheets if necessary)
NOTE: (1) Please review the CDBG regulations and guidelines and the Request for
Proposals before completing this proposal. A copy of a HUD - prepared CDBG
eligibility guidebook is available upon request from county staff. Also, please
call county and /or city CDBG staff with any questions about how to complete the
form or about the rating criteria and process.
(2) If the information for any of the questions below requires more room to
provide a complete explanation of your proposed project or program, please
attach additional sheets.
1. Name and mailing address of applicant organization, with contact person and
phone number:
Peoples' Self -Help Housing Corporation
3533 Empleo St.
San Luis Obispo, CA 93401
Cindy Jacinth, Project Manager
(805) 781 -3088 ext. 442
fax (805) 544 -1901
email: cindyj @pshhc.org
2. Title /name of proposed project or program:
South Higuera Street Apartments, City of SLO
3. Please describe the proposed project or program. Include a description of the
groups who will benefit and an explanation of how they will benefit from the
proposed project or program. For projects, describe the location of the project (be
as specific as possible, e.g. street address). For programs, state the location from
which the program will be operated and /or describe the geographic area served by
the program. Also, please include a schedule of project/program milestones.
Peoples' Self -Help Housing Corporation has entered into a purchase agreement for the
McBride's Plumbing property at 3071 & 3085 S. Higuera Street in the City of San Luis
Obispo with the goal of providing badly needed affordable housing in the City. The project
is zoned for mixed use and will contain affordable housing as well as some commercial
space. The project is infill development and will assist the City meet its affordable housing
objectives while at the same time direct development to existing sites within City
boundaries with water, sewer and other services.
PSHHC's project seeks to address the need for affordable housing in the City of San Luis
Obispo. The project is consistent with the City's mixed use zoning regulations. It will
1- - 3 -02
2002 CDBG
•
�raw
provide an estimated mix of 20 one- and. two- bedroom units for low- and very- low income
persons along with approximately 4,000 square feet of commercial space. The project's
unit mix of apartments will satisfy a serious need in the city by providing housing for small
families, single parent households and single persons. Rents will be reduced to levels
affordable to low and very-low income households at 30 percent of their income.
Local funding support via HOME and CDBG programs is critical to secure at this time in
order to allow PSH to proceed with the site purchase. Local funding commitments are also
critical to document in funding applications in order to leverage the balance of financing for
development, including Affordable Housing Tax Credits and Federal Home Loan Bank's
Affordable Housing Program (AHP) funds.
PSHHC will be able to utilize a 2002 CDBG
per schedule. Peoples' Self -Help
County staff to administer funds according
CDBG regulatory requirements.
PSHHC's milestone schedule is as follows:
• Finalize site plan
• Purchase property*
(* subject to securing HOME /CDBG funding)
• Obtain discretionary planning approvals
• Submit funding applications
allocation well within the required HUD /City
Housing Corporation will work with City &
:o program guidelines designed to meet all
December 2001
February 2002 (or extend to August 2002)
June 2002
Spring & Fall of 2002
4. Total amount of CDBG funds requested: $ 350.000
Please identify the jurisdiction(s) you are applying to: City of San Luis Obispo
If you are requesting CDBG funds from more than one jurisdiction, please break down
the amount shown above by the jurisdiction listed below. N/A
City of Arroyo Grande:
City of Atascadero: _
City of Grover Beach:
County -wide:
City of Paso Robles:
City of San Luis Obispo:
Unincorporated community of:
2-
2002 CDBG Application Organization: _Peopletelf -Help H
5. Please describe the budget for the proposed project or program.
1. Revenues:
1. CDBG Funds requested $ 350,000
2. Other funds (please describe below) $ 3,198,043
Total Revenues $ 3,548,043
PSHHC has applied for County HOME funds for the balance of site acquisition costs, as
well as other project expenses. PSHHC will make applications to the Federal Home Loan
Bank (FHLB)'s Affordable Housing Program (AHP) and Low Income Housing Tax Credit
Program. A long -term mortgage with California Community Reinvestment Corporation will
be utilized for the residential space, and a private commercial loan will be utilized to finance
the commercial space.
2. Expenditures: List below by item or cost category..
The CDBG expenditures for the South Higuera Street Apartments activity proposed by
PSHHC will consist of site acquisition.
The CDBG award will be used to leverage additional private, state, and /or federal funds
around the development of the proposed activity.
6. Does the proposed project or activity meet one of the three national objectives
of the CDBG program? Please check one of the objectives below that applies to
the proposal, and explain below that applies to the proposal, and explain how the
project or activity meets that national objective.
a. _XX— Benefits low and moderate- income persons as defined by the U.S.
Department of Housing and Urban Development (HUD).
NOTE: To meet this national objective, the proposed activity must benefit a specific
clientele or residents in a particular area of the county or participating city, at least
51 percent of whom are low and moderate - income persons. See current income
limit schedule in the Request for Proposals.
b. Aids in the prevention or elimination of slums or blight.
NOTE: To meet this national objective, the proposed activity must be provided
within a designated slum or blighted area, and must be designed to address one or
more conditions that contributed to the deterioration of the area.
C. Meets community development needs having a particular urgency where
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existing conditions pose a serious and immediate threat to the health or welfare of
the community, and no other funding sources are available.
NOTE: To meet.this national objective, the proposed activity must be provided to
deal with major catastrophes or emergencies such as floods or earthquakes.
7. If the project or program is designed to meet the National Objective of providing benefit
to low and moderate income persons, please estimate the number of persons (or
households) to benefit from the project and break that estimate down by income group
as follows:
1. Total number of persons or households who will benefit from the project (regardless
of income group):
20 Persons households (circle the applicable unit)
Affordable Housing for 20 households would be permanently available. The number
of households to benefit would greatly exceed 20 if a rental turnover rate is factored in considering
the number of persons or families expected to occupy the development over the course of many
years.
2. Of the total number of persons or households entered above, how many will be low -
income (earning 51% - 80% or less of the County Median income)?
16 persons households (circle the applicable unit)
3. Of the total number of persons or households entered above, how many will be very
low - income (earning 50% or loess of the County Median income)?
At least 4 Persons households (circle the applicable unit)
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8. Check any of the following eligible activity categories that apply to the proposed
project or program: (Refer to CDBG regulations and Guide to Eligible CDBG
Activities)
XX Acquisition of real property
Disposition of real property
Public facilities and improvements (may include acquisition,, construction,
reconstruction, rehabilitation or installation)
Privately -owned utilities
Clearance, demolition, removal of buildings and improvements, and /or
movement of structures to other sites
Interim assistance
Relocation of individuals, families, businesses, non - profit organizations, and /or
farms
Removal of architectural barriers
Housing rehabilitation
New housing construction (under limited circumstances)
Code enforcement
Historic preservation
Commercial or industrial rehabilitation
Special economic development
Special activities by subrecipients
Public services
Planning studies
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2002 CDBG Application •
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9. Describe the need and the degree to urgency for the proposed project or
program. What would be the consequences if the proposed projector program
is not funded in the next year?
The proposed activity involves the acquisition of land for the development of
affordable rental housing and commercial space at 3071 & 3085 S. Higuera Street
in the City of San Luis Obispo. PSHHC has entered into a purchase agreement
with the owners of this property with escrow scheduled to close February 2002.
Included in the purchase agreement are the option of two 6 month extensions.
Considering the scarcity of both land and affordable housing in the City of San Luis
Obispo, PSHHC was attracted to this property and the property owners were
cooperative.
The lack of affordable housing in the city of San Luis Obispo is a plight that has
been discussed at length including several newspaper articles in The Tribune
newspaper in the last year. In the July 15, 2001 edition of the Tribune, the City
indicated that "lack of low -cost housing in San Luis has reached an emergency
level." Furthermore, the importance of affordable housing is illustrated by the fact
that the Human Services Commission of the City of SLO ranks affordable housing
as its number one priority for use of CDBG funding.
As stated in the City's General Plan Digest of the Housing Element, Section H 5.2.2
states, "where housing can be compatible with offices or other businesses, mixed -
use residential /commercial projects should be encouraged. The possibility of
providing new rental housing with a CDBG award would assist the City in meeting
another requirement of the Housing Element which is "... preserve and expand its
supply of affordable rental housing ..." This would greatly meet the need of many
low- income and very low- income families and households who currently live in
overcrowded conditions or pay more than 30 percent of their income on rental costs
because of a lack of decent, affordable housing.
If CDBG funds were not awarded, PSHHC could not follow- through with the
purchase of the property. Additionally, the lack of local funding commitments would
eliminate PSHHC's chances of successfully applying for highly competitive State,
Federal and private funding sources. The consequences of not being funded are
that the project would not go forward. The urgent need for decent, affordable
housing for many families would continue to go unmet as these families overpay
(more than 30% of gross income) every month for rent and /or live in overcrowded
living conditions.
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10. Please describe the specific organization(s) method to implement the proposed
project or program: (single or multiple group, with roles; public agency ?; non-
profit?; for - profit ?; experience in operating similar programs; etc.).
Peoples' Self -Help Housing Corporation (PSHHC) will be the group to implement
the project. PSHHC is a local non - profit corporation formed in 1970 to improve
housing conditions for low and moderate income household on California's Central
Coast. PSHHC is a Community Housing Development Organization (CHDO), and
as such maintains accountability to low- income households through its bylaws and
practices.
PSHHC initially started with a single program - the Mutual Self -Help Homeownership
Program. Since that time PSHHC has expanded to include housing rehabilitation,
rental housing development, property management, and technical assistance to
local government in program design and management.
PSHHC has produced almost 1000 self -help homeownership units, rehabilitated or
repaired several thousand units, and constructed or acquired and rehabilitated
nearly 1,00 units of rental housing. Presently, PSHHC has an additional 260 rental
units in varying stages of development. PSHHC currently provides property
management and tenant services to all of its rental housing developments.
PSHHC has used a broad range of local, state and federal housing programs in
accomplishing its mission to date. These sources include the following: HOME
Investment Partnership Program; Entitlement CDBG Program; Small Cities CDBG
Program; State and Federal Tax Credits; The Federal Home Loan Bank's Affordable
Housing Program; FmHA 523 and 502 funds; California Housing Finance Agency
(CHFA) Mortgage Revenue Bonds; California Self -Help Housing Program; HCD
Farmworker Grant Program; HCD Rural and Urban Predevelopment Loan Program;
HUD Section 202/8 Program; FmHA Section 515 Program; HCD SUHRP Program;
FmHA 514/516 Program; US Department of Health and Human Services
(HHS /OCS) Rural Housing Program; Redevelopment Agency funds; Density Bonus
Program,; In -Lieu Fee Programs; California Housing Acquisition and Rehab Program
(CHRP), Federal Home Loan Bank Community Investment Fund, the Fannie Mae
Housing Impact Program.
PSHHC has a core professional staff of 20. PSHHC's senior management staff
average 20 years experience in low- income housing development and
management. PSHHC has a full -time licensed CPA acting as Chief Financial
Officer overseeing fiscal operations, on staff, a full -time licensed CPA overseeing
regulatory compliance of its housing operations, and a full -time licensed CPA acting
as Director of Property Management. PSHHC has an annual audit performed by
an independent auditing firm in conformance with all Federal and State regulations.
PSHHC's Executive Director serves on the national Fannie Mae Housing Impact
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Council, is on the Board of Directors for the California Community Reinvestment
Corporation (a statewide consortium of 45 banks), the California Coalition for Rural
Housing, the National Rural Housing Coalition, and the newly formed Community
Development Corporation, a subsidiary of Mission Community Bank.. In addition,
PSHHC staff serve on numerous local housing and community development boards
and committees.
PSHHC has twice received the National Fannie Mae Maxwell Award of Excellence
and was a first place recipient of the Great Western Bank's Leslie Shaw Memorial
Award, the National "Association of Housing and Redevelopment Officials Award of
Excellence, and the California League of Cities Helen Putnam Award.
certify that the information in. this application is true and accurate to the best of my ability
and knowledge.
ate
Scott Smith„ Deputy Director
Printed or typed name Title
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