HomeMy WebLinkAboutD-2039 214 Highland Drive, Affordable Housing Fund Deed of Trust 511600497.RB Fidelity National Title CoRecorded for the Benefit of the
City of San Luis Obispo at No Fee Under
Section 27383 of the Government Code
5 (((. Uv 49 7- • x43
The undersigned declare that there is no documentary
transfer tax on this matter.
SUBORDINATE DEED OF TRUST, DEED OF TRUST COVENANTS, ASSIGNMENT
OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING
THIS SUBORDINATE DEED OF TRUST, DEED OF TRUST COVENANTS,
ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this
"Deed of Trust") is made as of this Andday of ber, 2016, by Sharon Wood
("Trustor"), the owner of the real property described herein below, whose address is:
214 Highland Drive, San Luis Obispo, California
*�fia Kati
t -
To [ _ Rae( l�i�, 71 -1P, (21). 1 ("Trustee") in favor of the
CITY OF SAN LUIS OBISPO, a municipal corporation, whose address is 990 Palm
Street, San Luis Obispo, California 93401 ('Beneficiary").
WHEREAS, Trustor owns certain real property described as 214 Highland Drive in the City of
San Luis Obispo, County of San Luis Obispo, State of California, as shown on the map recorded
in Book 5 of Maps at Page 98, in the office of the County Recorder of said county, on which is
further described in Exhibit A ("the Real Property"); and
WHEREAS, Beneficiary and Trustor desire to ensure that the Real Property remain affordable to
low income persons for a period of 15 years pursuant to the Affordable Housing Agreement and
Promissory Note; and
WHEREAS, Beneficiary has agreed to make a grant to Habitat for Humanity for San Luis Obispo
County from the Affordable Housing Fund, which is sourced from other than tax-exempt bonds,
to Trustor in the amount of $35,000.00 (the "Grant"), for the purpose of rehabilitating the
existing single-family dwelling unit and Trustor has delivered that certain Promissory Note
("Note") in favor of Beneficiary on the date hereof, and
WHEREAS, the Loan Agreement and Promissory Note impose certain restrictions on the sale or
transfer of the Real Property.
15070448.1 D -2o3i
2016064172
Recording Requested By
_ _--
RECE-1VEt)
Tommy Gong
Fidelity National Title
San Luis Obispo - County Clerk -Recorder
12/06/2016 08:00 AM
WHEN RECORDED RETURN TO:
CC��++
DCI. 2 7 2016
Recorded at the request of:
FIDELITY TITLE CO
�I Q rTTM CLERK
Titles: 1 Pages: 14
City of San Luis Obispo
Fees : $0.00
990 Palm Street
Ta.s10.00
Total : 0.00
San Luis Obispo, Ca. 93401
FURROW,�1,914ffll III
Attn: City Clerk
Recorded for the Benefit of the
City of San Luis Obispo at No Fee Under
Section 27383 of the Government Code
5 (((. Uv 49 7- • x43
The undersigned declare that there is no documentary
transfer tax on this matter.
SUBORDINATE DEED OF TRUST, DEED OF TRUST COVENANTS, ASSIGNMENT
OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING
THIS SUBORDINATE DEED OF TRUST, DEED OF TRUST COVENANTS,
ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this
"Deed of Trust") is made as of this Andday of ber, 2016, by Sharon Wood
("Trustor"), the owner of the real property described herein below, whose address is:
214 Highland Drive, San Luis Obispo, California
*�fia Kati
t -
To [ _ Rae( l�i�, 71 -1P, (21). 1 ("Trustee") in favor of the
CITY OF SAN LUIS OBISPO, a municipal corporation, whose address is 990 Palm
Street, San Luis Obispo, California 93401 ('Beneficiary").
WHEREAS, Trustor owns certain real property described as 214 Highland Drive in the City of
San Luis Obispo, County of San Luis Obispo, State of California, as shown on the map recorded
in Book 5 of Maps at Page 98, in the office of the County Recorder of said county, on which is
further described in Exhibit A ("the Real Property"); and
WHEREAS, Beneficiary and Trustor desire to ensure that the Real Property remain affordable to
low income persons for a period of 15 years pursuant to the Affordable Housing Agreement and
Promissory Note; and
WHEREAS, Beneficiary has agreed to make a grant to Habitat for Humanity for San Luis Obispo
County from the Affordable Housing Fund, which is sourced from other than tax-exempt bonds,
to Trustor in the amount of $35,000.00 (the "Grant"), for the purpose of rehabilitating the
existing single-family dwelling unit and Trustor has delivered that certain Promissory Note
("Note") in favor of Beneficiary on the date hereof, and
WHEREAS, the Loan Agreement and Promissory Note impose certain restrictions on the sale or
transfer of the Real Property.
15070448.1 D -2o3i
214 Highland Drive Affordable Housing Fund Deed of Trust
NOW, THEREFORE, THIS DEED OF TRUST WITNESSETH:
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 Real
Property, is herein referred to as the "Property."
ARTICLE 1. PURPOSE AND CONSIDERATION. This Deed of Trust is established for the
purpose of securing, in such order of priority as Beneficiary may elect:
(a) The payment of the indebtedness evidenced by the Trustor's Note of in the principal
amount of Thirty Five Thousand Dollars 00/100 ($35,000.00) ("Principal"), and any other
costs, in the event of a default or sale of the property to a non -low-income person.
(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 thereon at the rate
provided herein or therein.
(c) Performance of all covenants of Trustor made in this Deed of Trust.
(d) Performance of all covenants of Trustor as set forth in the Promissory Note.
(e) Performance of all covenants of Trustor as set forth in the Affordable Housing
Agreement to provide affordable ownership housing for a period of fifteen (15) years (the
"Affordability Agreement").
ARTICLE 2. DEED COVENANTS. To protect the security of this Deed of Trust, Trustor and
Trustee hereby covenant and agree as follows:
SECTION 2.01. Restrictions on Use and Occupancy. The Real Property shall be used solely
for low income ownership housing purposes as set forth in the Affordability Agreement referred
to in subsection (e) of Article 1 above.
SECTION 2.02. Term of Use and Occupancy Restrictions. Trustor agrees that the above
restrictions to the use and occupancy of the Real Property shall remain in effect for a period of
fifteen (15) years from the date hereof.
SECTION 2.03. 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
Real Property as further described in Exhibit A. Pursuant to Civil Code Section 1468, which
governs such covenants, the provisions of this Deed of Trust shall be binding upon all parties
having any right, title, or interest in any of the Real Property, or any portion thereof, and on their
heirs, successors in interest and assigns for a period of 15 years from the date hereof. The parties
agree that all future deeds or transfers of interest regarding the Real Property shall show the
restrictions of this Agreement for as long as the Agreement is in effect.
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214 Highland Drive Affordable Housing Fund Deed of Trust
SECTION 2.04. 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 3 — INSURANCE REQUIREMENTS
SECTION 3.01. 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 one hundred percent (100%) 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.
SECTION 3.02. Trustor shall also maintain in full force and effect a policy of homeowners'
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. 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 3.03. 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 3.04. 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 (15) days after receipt of a statement that indicates the cost of such insurance and upon
proof that Beneficiary has paid said statement.
SECTION 3.05. Trustor shall maintain all insurance required under this Deed of Trust with
companies holding a "general policy rating" of A -VIII 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 3.06. 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,
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214 Highland Drive Affordable Housing Fund Deed of Trust
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.
SECTION 3.07. 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 therefor and all liability, if any, with respect thereto.
ARTICLE 4. 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
immediately pay the amounts due, together with all costs, charges, interest and penalties
incidental to the proceedings.
ARTICLE 5. 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.
ARTICLE 6. 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
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214 Highland Drive Affordable Housing Fund Deed of Trust
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
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 Promissory 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 7. ENFORCEMENT.
Acknowledgement of Enforceability. Trustor represents, warrants, covenants and agrees that
it is the lawful owner of the Real Property and that it has good right and lawful authority to
encumber the same as provided herein; that the Real 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
Promissory 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
Promissory Note, nor does the performance or observance by Trustor of any of the matters or
things in the Promissory Note or this Deed of Trust, contravene any covenant in any indenture or
agreement affecting Trustor.
ARTICLE 8. EVENTS OF DEFAULT. Each of the following shall constitute an event of
default ("Event of Default") hereunder (including, if Trustor and Trustee consists of more than
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214 Highland Drive Affordable Housing Fund Deed of Trust
one person or entity, the occurrence of any of such events with respect to any one or more of such
persons or entities):
SECTION 8.01. Breach of Covenants. Default by the Trustor in the performance of any of the
material covenants or agreements of Trustor contained herein, in the Promissory Note, and in the
Affordable Housing Agreement; and Promissory Note and Deed of Trust with Habitat for
Humanity for San Luis Obispo County, shall be a breach of covenant.
SECTION 8.02. 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,
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 ninety (90) days.
SECTION 8.03. 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 ninety (90) 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 8.04. Misrepresentations. Any representation or disclosure made to Beneficiary by
Trustor as an inducement to the making of the Loan evidenced by the Promissory 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 8.05. Sale to Non -Income Eligible Household. Should the property owner sell the
home to a non -income eligible household before the end of the fifteen (15) year affordability
requirement, the grant shall become immediately due and payable. If property owner remains in
the home, or sells the home to a qualified low-income household, no repayment of the grant shall
be due.
SECTION 8.06. Other Events. Any other event which, under this Deed of Trust, or under the
Promissory 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 8.07. Cure Rights.
(a) Monetary Default. If a monetary Event of Default occurs, prior to exercising any remedies
thereunder, Beneficiary shall give the Trustor written notice of such default. Trustor shall have a
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214 Highland Drive Affordable Housing Fund Deed of Trust
period of ten (10) days after such notice is given within which to cure the default prior to exercise
of remedies by Beneficiary.
(b) Non -Monetary Default. If a non -monetary Event of Default occurs, prior to exercising any
remedies thereunder, Beneficiary shall give Trustor written notice of such default. If the default
is reasonably capable of being cured within thirty (30) days, Trustor shall have such period to
effect a cure prior to exercise of remedies by Beneficiary. If the default is such that it is not
reasonably capable of being cured within thirty (30) days, and if Trustor (a) initiates corrective
action within said period, and (b) diligently, continually, and in good faith works to effect a cure
as soon as possible, then Trustor shall have such additional time as is reasonably necessary to
cure the default prior to exercise of any remedies by Beneficiary. In no event shall Beneficiary be
precluded from exercising remedies if its security becomes or is about to become materially
jeopardized by any failure to cure a default or the default is not cured within one hundred eighty
(180) days after the first notice of default is given.
ARTICLE 9. 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 9.01. Acceleration. Beneficiary may declare the entire outstanding Principal, accrued
and unpaid interest 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 Promissory Note and the Agreement.
SECTION 9.03. 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 Promissory Note and the Loan Agreement.
SECTION 9.04. 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 9.05. 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 Promissory 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
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214 Highland Drive Affordable Housing Fund Deed of Trust
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 time 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
Promissory 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.
ARTICLE 10. MISCELLANEOUS
SECTION 10.01. 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 10.02. 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 10.03. Notices. All notices required or permitted to be given under this Deed of Trust
shall be in writing and shall be deemed to have been given upon (i) one business day after being
deposited with Federal Express or another reliable overnight courier service for next day
delivery, or (ii) five (5) business days after being deposited in the United States mail, by first
class or registered or certified mail, postage prepaid, return receipt requested, and addressed as
follows (or at such other address or which said party shall have theretofore notified in writing, as
provided above, the party giving such notice).
To the Beneficiary:
City of San Luis Obispo
919 Palm Street
San Luis Obis o CA 93401
Attn: Community Development Director
To the Trustee:
15070448.1
0
214 Highland Drive Affordable Housing Fund Deed of Trust
Attn:
To the Trustor:
Sharon Wood
214 Hi bland Drive
San Luis Obispo, CA 93405
SECTION 10.04. 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 any kind as security therefor, whether evidenced by deeds of trust,
mortgages, security agreements or any other instruments of security, or (d) alter, substitute or
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 10.05. Inspection. Beneficiary may at any reasonable time or times make or cause to
be made entry upon and inspections of the Property or any part thereof in person or by agent.
SECTION 10.06. Reconveyance. Upon fifteen years or completed repayment required due to a
default, Beneficiary shall request that Trustee reconvey the Property and shall surrender this
Deed of Trust and Promissory Note evidencing indebtedness secured by this Deed of Trust to
Trustee. 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
Promissory Note and this Deed of Trust unless otherwise directed by Beneficiary.
SECTION 10.07. 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
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214 Highland Drive Affordable Housing Fund Deed of Trust
also any future owner and holder, including pledgees, of the Promissory 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. Unless otherwise specified, in computing any period of time
described herein, the term "days" means calendar days, unless the final days of any designated
period of time is not a "business day" (as defined below), in which case the period shall run until
the end of the next business day. A "business day" is any day that is not a Saturday, Sunday or
legal holiday for national banks located in California. The last day of any period of time
described herein shall be deemed to end at 5:00 p.m., Pacific Time.
SECTION 10.08. 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 10.09. 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,
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 Trustor is composed of more
than one party, the obligations, covenants, agreements and warranties contained herein as well as
the obligations arising therefrom are and shall be joint and several as to each such party.
SECTION 10.10. Governing Law. This Deed of Trust shall be governed by and construed under
the laws of the State of California.
SECTION 10.11. 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 10.12. Subordination. This Deed of Trust shall not diminish or affect the rights of
Senior Lender (as defined 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 Senior Financing Documents and to all advances heretofore made or which may hereafter be
made pursuant to any of the Senior Financing Document, including all sums advances for the
purposes of (i) protecting or further securing the lien of any of the Senior Financing Document,
curing defaults by the Trustor under any of the Senior Financing Document or for any other
purpose expressly permitted by any of the Senior Financing Document, or (ii) constructing,
renovating, repairing, furnishing, fixturing or equipping the Project or the Property. The terms
and provisions of the Senior Financing Document are paramount and controlling, and they
superseded any other terms and provisions hereof in conflict therewith. Trustor shall be permitted
to refinance the loans evidenced by the Senior Financing Document, and this Deed of Trust shall
15070448,1 10
214 Highland Drive Affordable Housing Fund Deed of Trust
be subject and subordinate to the liens, terms, covenants and conditions of any such refinancing.
Beneficiary shall execute instruments further evidencing such subordination upon request.
SECTION 10.13. 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. Notwithstanding the forgoing, Trustor shall have the right to
sell, convey, transfer or dispose of the Property or any part thereof or any interest therein, or the
enter into an agreement to do so, without the prior written consent of Beneficiary, and provided
that such transferee agrees to assume all of the obligations of Trustor under this Deed of Trust,
the Note and the Affordability Agreement, Trustor shall be permitted to assign its rights, duties,
liabilities and obligations under this Deed of Trust, the Note and the Affordability Agreement to
the transferee, and the Note shall not become due and payable.
In addition, and notwithstanding anything to the contrary in this Deed of Trust or the other
documents evidencing and/or securing the Loan (the "Loan Documents"), (a) the withdrawal,
removal and/or replacement of a general partner of the Trustor (the "General Partner") by the
limited partner of Trustor for cause pursuant to the terms of the Trustor's amended and restated
agreement of limited partnership shall not constitute a default under any of the Loan Documents,
and any such actions shall not accelerate the maturity of the Loan, provided that any substitute
general partner that is not an affiliate of the limited partner is reasonably acceptable to
Beneficiary and is selected with reasonable promptness (it being agreed that no consent of
Beneficiary shall be required if the substitute general partner is an affiliate of the Limited
Partner), and (b) all or a portion of the interests of Trustor's limited partners shall be transferable
without the consent of the Beneficiary except that, prior to payment in full of all capital
contributions, the interest the limited partners in the Trustor shall be transferable to a non -
affiliate of the limited partners only with the consent of the Beneficiary, which consent shall not
be unreasonably withheld.
SECTION 10.14 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.
15070445.1 11
214 Highland Drive Affordable Housing Fund Deed of Trust
IN WITNESS WHEREOF, the undersigned have executed this Deed of Trust as of the
day and year first above written.
BORROWER:
Owner, 214 Highland Drive
J'/' , e'� ".(
Sharon Wood
LENDER
City of San Luis
0
Michael Codron
z— /L, /�'
ALL SIGNATURES MUST BE NOTARIZED!
15070448 1
Date
Date
214 Highland Drive Affordable Housing Fund Deed of Trust
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document
to which this certificate is attached and not the truthfulness, accuracy, or validity of that document.
State of California }
County of San Luis Obispo
On before me, , f L E UROC
f
Date h Name and Title of IM Officer
personally appeared, i C f•
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed
to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Signature IhA
Signarure of Notary Public
DIANE DOSTALEIt
Commission # 2138341
aNotary Public - California
_`
San Luis Obispo County
My Comm. Wires Doe 25,2019__ j
Place Notary Seal Above
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document
to which this certificate is attached and not the truthfulness, accuracy, or validity of that document.
State of California }
County of San Luis Obispo
On—acute W, 1, ZQIio , before me,Tp-eyo b+)l"folk HOIT(&IL- &07-+49-4 FuI�NC
Date[r Name and Title of tete Officer
personally appeared, INAi��I� Z ,��00
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed
to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.,
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
TREVOR MLLIAM MITCHELL
Corso slon N 2050470
WITNESS my handan7fficial :s..NOWY Public - Californis
Z Sm Luis Obispo County
Comm. E Wes Noy 26 2017
Signatu
Signature of Notary Public Place Notary Seal Above
IF11➢LOMMI
214 Highland Drive Affordable Housing Fund Deed of Trust
Exhibit A
Legal Description
Real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, described
as:
Lot 9 in Block D of Tract No. 104 (Ferrini Heights No. 1), in the City of San Luis Obispo, County of
San Luis Obispo, State of California, according to map recorded June 12, 1956 in Block 5 Page 98 of
Maps, in the Office of the County Recorder of said County. Also Known as: 214 Highland Drive, San
Luis Obispo, 93405
APN: 052-433-009
15070448.1
14
END OF DOk'—XIAEh1T