ATTACHMENT NO. 1
LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel A: 1744 "1" Street (APN 031-161-001)
The Northeasterly 100 feet of Lot 8, Block 159, according to the map entitled "Supplemental Map to the Town of Merced", filed for record in the Office of the County Recorder of the County of Merced, State of California, in Book 2, Page 12 of Maps, Merced County Records.
Assessor's Parcel No.: 031-161-001-000
ATTACHMENT NO. 1
1 LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel B: 26 West 18th Street (APN 031-163-005)
Lot 3, in Block 158, as shown on the map entitled "Supplemental Map of the Town of Merced", filed for record March 4, 1889, in Book 2 of Official Maps, Page 12.
Assessor's Parcel No.: 031-163-005-000
ATTACHMENT NO. 1
2 LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel C: 49 West 18"h Street (APN 031-084-011)
Lots 22, 23 and 24, in Block 150, as shown on map entitled "Supplemental Map to Town of Merced", filed March 4, 1889 in the Office of the County Recorder of Merced County, in Vol. 2 of Official Plats at Page 12.
Assessor's Parcel No.: 031-084-011-000
ATTACHMENT NO. 1
3 LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel D: 150 West 19*h Street (APN 031-082-002)
The Northwesterly 20 feet of Lot 6 and the Southeasterly 30 feet of Lot 7, Block 149, according to the map entitled "Supplemental Map to the Town of Merced", recorded March 4, 1889 in the Office of the County Recorder of Merced County, Book 1 of Maps, Page 12, originally, and now appearing in Book 2 of Maps, Page 12, Merced County Records.
Assessor's Parcel No.: 031-082-002-000
ATTACHMENT NO. 1
4 - NOTE- Tax Rate Area 31-16
POR. SEC. 30, T.7S., R.I4E., M.D.B.AM.
5-136
Surprof soning or 5-142
w. 18th ST
1S 1S
159 58
(TA)
12: 13
1 ATTACHMENT NO. 2 MAIN ST. Bk.34
189 162 190 164)
NOTE--Assessor's Block Numbers shown in Ellipsos
Assessor's Parcel Numbers shown in Circles
.03.
City a Merced
REVISEO 11/73 TOWN OF MERCED W. 16" sT. Assessor's Map Bk.31 Pg. 16 11-13-07 R.M. VOl.2 Pq.12
Countv of Merced. Calif
DEPICTION OF PROPERTIES ATTACHMENT NO. 2
TOWN OF MERCED 31-08
Tox Rate Area 5-00
R.M. Vol.2 Pg.12 5-47
• NOTE -
his mao is for Assessment purposes only POR. SEC. 30, T.7S.,R.14E., M.D.B.&M.
It is not to be construed os portraying
goi canership or divisions of land for
surposes of zorind er subdivision lav Вк 30
w.20th ST.
ST. мі 13 12! 11 : ST.
20 08 083
2 ATTACHMENT NO. 2 017: 18/19:20 21: 22 23: 24: 25|26 27:28 29|30 31 42 9 19|20 21,22 23|24 25:26 29,30 |3/ 32₴ W. 191h ST.
Bk.34
20 30 120| 30 |
016: 15: 14/15:12
2 082 150 (084
DOCO
18: 19|20:21 23|24|25,26: 27 28 29|30 | 31:328
EViCED 11/74 w. 18th Assessors MAp Bk.31 Pg.08
County of Merced, Calif.
ATTACHMENT NO. 3
FORM OF GRANT DEED
RECORDED AT THE REQUEST OF AND
WHEN RECORDED RETURN TO:
City of Merced
678 W. 18th Street
Merced, CA 95340
Attention: City Manager
WHEN RECORDED MAIL COPY TO:
Fuller Center for Housing of Merced County
P.O. Box 423
1230 Broadway Avenue
Atwater, California 95301
Attn: Lyle Allen
(Above for Recorder's Use Only)
FORM OF GRANT DEED
THE UNDERSIGNED GRANTOR(S) DECLARE(S):
Documentary Transfer Tax is S.
PART ONE
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CITY OF MERCED, a charter city of the State of California, acting in its capacity as the Housing Successor Agency to the former Merced Redevelopment Agency ("Grantor"), hereby grants to FULLER CENTER FOR HOUSING OF MERCED COUNTY a California 501(c)(3) non-profit corporation ("Grantee"), that certain real property located in the City of Merced, County of Merced, State of California, specifically described in Exhibit "A" attached to this Grant Deed ("Property") and made a part of this Grant Deed by this reference.
PART TWO
The conveyance of the Property by the Grantor to the Grantee in Part One is subject to the following community development terms, conditions, covenants and restrictions:
Conveyance Subject to Terms of an Affordable Housing Disposition and Development Agreement. The Property is conveyed subject to that certain Attordable Housing Disposition and Development Agreement (1744 "T" Street, 26 West 18th Street, 49 West 18th Street, 150 West 18th Street), dated as of , 20_, between the Grantor and the Grantee's predecessor-in-interest (the "Agreement"). The provisions of the Agreement are 1 incorporated into this Grant Deed by this reference and are deemed to be a part of this Grant Deed, as though fully set forth in this Grant Deed.
Section 2. Condition of Property. The Grantee acknowledges and agrees that the Property is conveyed by the Grantor to the Grantee in its "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS CONDITION," as of the date of recordation of this Grant Deed, with no warranties, expressed or implied, as to the environmental or other physical condition of the Property, the presence or absence of any patent or latent environmental or other physical condition on or in the Property, or any other matters affecting the Property.
Section 3. Obligation to Refrain from Discrimination. The Grantee for itself, its successors and assigns to all or any part or portion of the Property and/or Project, covenants and agrees that:
3.1. The Developer covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property, or any part thereof, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, source of income, age, marital status, physical or mental handicap, medical condition, ancestry, or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land and shall remain in effect in perpetuity.
3.2. The covenant of this Section 3 shall run with the land of the Property in perpetuity and shall be enforceable against the Grantee and its successors and assigns in perpetuity.
PART THREE
Section 4. Grantee Covenant to Undertake Project. The Grantee covenants, for itself, its successors and assigns, to and for the exclusive benefit of the City, that the Grantee shall commence and complete the development of the Project on the Property within the time period for such actions set forth in the Schedule of Performance. The Grantee covenants and agrees for itself, its successors, and assigns, that the Property shall be improved and developed with the Project in substantial conformity with the terms and conditions of this Agreement, the Scope of Development, the Schedule of Performance, any and all plans, specifications and similar development documents required by this Agreement, except for such changes as may be mutually agreed upon in writing by and among the Parties, and all applicable laws, regulations, orders and conditions of each Governmental Agency with jurisdiction over the Property or the Project. The covenants of this Section 4 shall run with the land of the Property until each of the Affordable Units is sold to a Qualified Household, at which point this covenant shall expire as to the applicable Affordable Unit.
Section 5. Covenants Run with the Land of the Property. Each of the covenants and agreements contained in this Grant Deed touch and concern the Property and each of them is 2 expressly declared to be a community development covenant that runs with the land for the benefit of the Grantor and such covenants run with the land in favor of the Grantor for the entire period that such covenants are in full force and effect, regardless of whether the Grantor is or remains an owner of any land or interest in land to which such covenants relate. The Grantor, in the event of any breach of any such covenants, has the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings, to enforce the curing of such breach, as provided in the Agreement or by law. The covenants contained in this Grant Deed are for the benefit of and are enforceable only by the Grantor, and shall survive the execution and recordation of this Grant Deed for the time period set forth above for each covenant.
Section 6. Costs and Attorneys' Fees for Enforcement Proceeding. If legal proceedings are initiated to enforce the rights, duties or obligations of any of the covenants set forth in this Grant Deed, then the prevailing party in such proceeding shall be entitled to collect its reasonable attorney fees and costs from the other party in addition to any other damages or relief obtained in such proceedings.
Section 7. Effect of Unlawful Provision; Severability. In the event that any provision of this Grant Deed is held to be invalid or unlawful by a final judgment of a court of competent jurisdiction, such invalidity shall not affect the validity of any other provision of this Grant Deed.
GRANTOR:
THE CITY OF MERCED
a California charter municipal corporation
By:
City Manager
TALL SIGNATURES MUST BE NOTARY ACKNOWLEDGED]
CERTIFICATE OF ACCEPTANCE OF
GRANT DEED
The undersigned hereby acknowledges acceptance by Fuller Center for Housing of Merced County, a California 501(c)(3) non-profit corporation, the Grantee in the within Grant Deed, of the delivery of the subject Property described in the within Grant Deed from the City of Merced.
GRANTEE:
EULLER CENTER FOR HOUSING OF MERCED
COUNTY a California 501(c)(3) non-profit
corporation
on Janie dong
Signature
Janice J. Sorge
Name
President
Title
Lyle Allen
By:
Signature
Lyle Allen
Name
Vice President & Construction Chair
Title
[ALL SIGNATURES MUST BE NOTARY ACKNOWLEDGED]
ATTACHMENT NO.* 3
4 GRANT DEED
EXHIBIT A
LEGAL DESCRIPTIONS
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel A: 1744 "T" Street (APN 031-161-001)
The Northeasterly 100 feet of Lot 8, Block 159, according to the map entitled "Supplemental Map to the Town of Merced", filed for record in the Office of the County Recorder of the County of Merced, State of California, in Book 2, Page 12 of Maps, Merced County Records.
Assessor's Parcel No.: 031-161-001-000
LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel B: 26 West 18th Street (APN 031-163-005)
Lot 3, in Block 158, as shown on the map entitled "Supplemental Map of the Town of Merced", filed for record March 4, 1889, in Book 2 of Official Maps, Page 12.
Assessor's Parcel No.: 031-163-005-000
LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel C: 49 West 18th Street (APN 031-084-011)
Lots 22, 23 and 24, in Block 150, as shown on map entitled "Supplemental Map to Town of Merced", filed March 4, 1889 in the Office of the County Recorder of Merced County, in Vol. 2 of Official Plats at Page 12.
Assessor's Parcel No.: 031-084-011-000
7 LEGAL DESCRIPTION OF PROPERTIES
The Land referred to is situated in the County of Merced, State of California, and is described as follows:
Parcel D: 150 West 19th Street (APN 031-082-002)
The Northwesterly 20 feet of Lot 6 and the Southeasterly 30 feet of Lot 7, Block 149, according to the map entitled "Supplemental Map to the Town of Merced", recorded March 4, 1889 in the Office of the County Recorder of Merced County, Book 1 of Maps, Page 12, originally, and now appearing in Book 2 of Maps, Page 12, Merced County Records.
Assessor's Parcel No.: 031-082-002-000
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.
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Merced
NovemBeR 7,2022 before me, Dawn Mendonca, Notary Public Here Insert Nameland Title of the Officer
personally appeared Janice J: Sorge and Lyle AlleN
Name(s) of Signers)
who proved to me on the basis of satisfactory evidence to be the persor whose namWare subscribed to the within instrument and acknowledged to me that he/ske/they executed the same in Dis/Der/their authorized capacityles) and that by hif/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(Sacted, executed the instrument.
DAWN MENDONCA I certify under PENALTY OF PERJURY under the laws of the Notary Public - California
INA Merced County State of California that the foregoing paragraph is true and correct.
Commission # 2304595
My Comm. Expires Oct 8, 2023 WITNESS my hand and official seal.
Dan Mendenca
Signature
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 3
our polio tirie aline in no eries curay, or ality of that down engened the
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) 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. 1 erit ate at or per part under the any of the.
WITNESS my hand and official seal.
Signature
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 3
2 ATTACHMENT NO. 4
SCHEDULE OF PERFORMANCE
DATE ACTION
Three (3) business days after mutual execution of DDA Opening of escrow on all parcels.
Prior to Closing Payment of Funds. Prior to the Closing, the Developer shall have deposited the Purchase Price and all required costs of the Closing into Escrow in accordance with the Agreement.
Within sixty (60) business days after mutual execution Close of escrow by City and Developer on parcels of DDA ("Closing Date").
Within sixty (60 ) days after the Closing Date Start of construction of first unit.
Five (5) years after the Closing Date Completion of all units.
Promptly after completion of Developer Improvements Release of Construction Covenants. City shall furnis the Developer with a Release of Constructio
Covenants" in the form attached to the Agreement.
ATTACHMENT NO. 4
1 ATTACHMENT NO. 5
SCOPE OF DEVELOPMENT
Developer for itself and any successors in interest hereby covenants and agrees that the Properties will be used for four (4) to five (5) ownership housing units sold to "Very Low Income Households" as defined in HSC Section 50105 (the "Affordable Units") at an "Affordable Housing Cost" as defined in HSC Section 50052.5 for Very Low Income Households. Persons and families meeting the definition of Very Low Income Households, who intend to purchase and reside in an Affordable Unit as their primary residence shall be referred to as "Qualified Homebuyers." Upon sale of each of the Affordable Units to a Qualified Homebuyer, the Qualified Homebuyer and the City shall enter into a Resale Restriction Agreement that restricts subsequent transfers of the Properties to Very Low Income Households and requires that the Qualified Homebuyer live in the Affordable Unit as their primary residence. The Resale Restriction Agreement shall be in a form prepared and approved by the City and shall have a term of forty-five (45) years.
One or two single-family homes on each site.
ATTACHMENT NO. 6
RESERVED
ATTACHMENT NO. 6
Attachment No. 7
RECORDING REQUESTED BY:
City of Merced, a charter city of the State of
California
WHEN RECORDED MAIL TO:
City of Merced
678 West 18th Street
Merced, California 95340
Exempt Recording Per
Gov't Code Section 6103
(Above for Recorder's Use Only)
MERCED, CALIFORNIA
RELEASE OF CONSTRUCTION COVENANTS
WHEREAS, by a Disposition and Development Agreement dated (hereinatter referred to as "Agreement") by and between the City of Merced, a charter city of the State of California, (hereinafter referred to as the "City") and Fuller Center for Housing of Merced County, a California 501(c)(3) non-profit corporation, (hereinafter referred to as the Developer"), the Developer has completed the improvements according to the terms and conditions of said Agreement; and,
WHEREAS, Pursuant to Section 2L. of the Agreement, promptly after construction and development of the Site, the City shall record a Release of Construction Covenants upon written request therefore by the Developer; and,
WHEREAS, The City has conclusively determined that the Developer has satisfactorily completed the construction required by the Agreement.
NOW, THEREFORE:
1. As provided in the Agreement, the City does hereby certify that the Project has been fully and satisfactorily performed and completed, and that the Project is in full compliance with said Agreement as of the date of this Notice of Satisfaction of Certain Obligations.
2. This Release of Construction Covenants shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance the work of rehabilitation, construction, and development of the improvements, or any part thereof. This Release of Attachment No. 7
Construction Covenants is not a Notice of Completion as referred to in Section 3093 of the California Civil Code.
3. Other provisions of the Agreement including, but not limited to, Section 3 of said Agreement, remain in full force and effect.
IN WITNESS WHEREOF, the City has executed this Certificate as of the date first above written.
APPROVED:
City Manager
ATTEST:
, CITY CLERK
BY:
Assistant/Deputy City Clerk
APPROVED AS TO FORM:
City Attorney Date
Attachment No. 7
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the locument to which this certificate is attached and not the truthfulness, accuracy, or validity of that document
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) 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
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 8
RECORDED AT THE REQUEST OF AND
WHEN RECORDED RETURN TO:
City of Merced
678 W. 18th Street
Merced, CA 95340
Attention: City Manager
WHEN RECORDED MAIL COPY TO:
Fuller Center for Housing of Merced County
P.O. Box 423
1230 Broadway Avenue
Atwater, California 95301
Attn: Lyle Allen
Exempt Recording Per
Gor't Code Section 6103
(Above for Recorder's Use Only)
AFFORDABLE HOUSING COVENANT
AND RESTRICTIONS ON SALE
1744 "I" Street (APN 031-161-001)
26 West 18th Street (APN 031-163-005)
49 West 18th Street (APN 031-084-011)
150 West 19th Street (APN 031-082-002)
MERCED, CALIFORNIA
This Affordable Housing Covenant and Restrictions on Sale ("Agreement) is dated _, 20_ and is entered into between the CITY OF MERCED, a charter municipal corporation acting in its capacity as Housing Successor Agency to the former Merced Redevelopment Agency (the "City") and FULLER CENTER FOR HOUSING OF MERCED COUNTY, INC., a California nonprofit corporation ("Developer" and initial "Owner.")
RECITALS
A. The City, in its role as Housing Successor Agency to the former Merced Redevelopment Agency, intends to create affordable home ownership opportunities for persons and families of very low income. Pursuant to that certain Affordable Housing Disposition and Development Agreement between the City and Developer, dated as of _ 20_ (the "DDA"), Developer has acquired certain real properties addresses of 1744 "T" Street, 26 West 18th Street, 49 West 18th Street, and 150 West 19th Street (the "Properties"), as described in Exhibit A attached hereto and incorporated herein, for the purpose of developing four (4) to five (5) for-sale homes for purchase by very low income households.
ATTACHMENT NO. 8
Developer has agreed to construct four (4) to five (5) housing units on the Properties (the "Affordable Units") to sell to persons or families of very low income (the "Very Low Income Units"). Each purchaser of an Affordable Unit is referred to herein as the "Owner". Pursuant to the DDA, the City sold real properties to Developer at below fair market value in order to assist with the cost of constructing the Very Low Income Units ("City Assistance").
C. The City Assistance is evidenced by the DDA and is secured by a Deed of Trust on the Properties.
D. The City and Developer desire by the execution of this Agreement to assure that the Properties and the Affordable Units constructed or to be constructed thereon, will be sold to Qualified Households at an Affordable Housing Cost in accordance with the terms and conditions of the DDA and this Agreement.
NOW THEREFORE, the parties acknowledge and agree as follows:
AGREEMENTS
1. DEFINITIONS
1.1. "Affordable Housing Cost" shall be as defined in Health and Safety Code Section 50052.5 or any successor thereto for Very Low Income Households whose incomes do not exceed 50% of area median income, as adjusted for family size appropriate for the Affordable Unit. If the statute is no longer in effect and no successor statute is enacted, the City shall establish the Affordable Housing Cost for purposes of this Agreement.
1.2. "Affordable Unit" means each of the four (4) to five (5) housing units that shall be constructed on the Properties and sold to Qualified Homebuyers at an Affordable Housing Cost.
1.3. "Very Low Income Units" means the four (4) to five (5) Affordable Units that are set aside to be sold to and occupied by Very Low Income Households.
1.4. "Very Low Income Households" means persons and families whose income does not exceed 50% of area median income, as adjusted for family size appropriate for the Affordable Unit.
1.5. Persons and families meeting the definition under Section 1.4, who intend to purchase and reside in a Very Low Income Unit as their primary residence shall be referred to as "Qualified Homebuyers."
ATTACHMENT NO. 8
2 2. AFFORDABILITY RESTRICTIONS
2.1. Affordability Requirements. Developer for itself and any successors in interest hereby covenants and agrees that the Affordable Units shall only be sold to Qualified Homebuyers at an Affordable Housing Cost and that during such period the other requirements of this Article 2 shall apply. Developer shall additionally comply with any current or future policies adopted by the City for selection, qualification, and monitoring of homebuyers who purchase affordable units assisted by the City, provided, however, that in the event that such policies require a material change to Developer's selection, qualification or monitoring practices, the City shall allow Developer a commercially reasonable time to transition its policies. Upon sale of each of the Affordable Units to a Qualified Homebuyer, the Qualified Homebuyer and the City shall enter into a Resale Restriction Agreement that restricts subsequent transfers of the Properties to Very Income Households for the Very Low Income Units and requires that the Qualified Homebuyer live in the Affordable Unit as their primary residence. The Resale Restriction Agreement shall be in a form prepared and approved by the City and shall have a term of forty-five (45) years.
Upon recordation of a Resale Restriction Agreement in the Official Records of Merced County, the applicable Affordable Unit shall be released from the restrictions set forth in this Affordable Housing Covenant.
2.2. OWNER FOR ITSELF AND FOR ANY SUCCESSORS IN INTEREST, HEREBY
COVENANTS AND AGREES THAT THE AFFORDABLE UNITS MAY ONLY BE SOLD TO A QUALIFIED HOMEBUYER (DEFINED IN SECTION 1.5
ABOVE) AT THE PURCHASE PRICE ESTABLISHED IN ACCORDANCE
WITH SECTION 1.1. THERE SHALL BE NO SALE OR OTHER TRANSFER OF
THE SITE WITHOUT THE CERTIFICATION BY THE CITY, OR ITS
DESIGNEE, THAT THE PURCHASER/TRANSFEREE IS A QUALIFIED
HOMEBUYER AND THAT THE SITE IS BEING TRANSFERRED AT AN
AFFORDABLE HOUSING COST. ANY SALE OR OTHER TRANSFER OF THE AFFORDABLE UNITS IN VIOLATION OF THIS COVENANT SHALL BE VOID.
2.3. Household Income Qualifications. Prior to any proposed sale or other transfer of an Affordable Unit, Owner shall submit to the City a copy of the prospective purchaser's income certification and a list of all assets owned by the prospective purchaser or other financial information in a form approved by the City along with the income certification to be provided to any lender making a loan on the Properties. The City may require documentation evidencing and supporting the income and other financial information contained in the certifications. Within ten (10) business days from receipt of the income certifications, the City shall render a decision of eligibility or noneligibility. If the prospective purchaser does not qualify as a Qualified Homebuyer, the City shall notify Owner and Owner shall be obligated to locate another purchaser who qualifies as a Qualified Homebuyer. The City may designate another governmental entity or nonprofit organization to qualify each prospective purchaser as a Qualified Homebuyer. ANY
ATTEMPT TO TRANSFER TITLE OR ANY INTEREST THEREIN IN
VIOLATION OF THESE COVENANTS SHALL BE VOID AND DEEMED A ATTACHMENT NO. 8
3 •
PROHIBITED TRANSFER AND SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 3.2, BELOW.
2.4. Final Procedure. The Owner may sell an Affordable Unit if all of the following conditions are satisfied:
2.4.1. The purchaser must be a Qualified Homebuyer at the income level applicable to the Affordable Unit, and the City must have approved the purchaser as a Qualified Homebuyer in accordance with Section 2.1 above.
2.4.2. The Affordable Unit must be sold at an Affordable Housing Cost, as confirmed by the City.
2.4.3. The purchaser intends to occupy the Affordable Unit as his or her principal place of residence and the transferee(s) must be a Qualified Homebuyer. The City will allow co-signers not meeting the above conditions for purposes of obtaining loans so long as the purchaser of the Affordable Unit meets the conditions set forth above; and
2.4.4. The transferee shall execute a Resale Restriction Agreement and a Disclosure Statement and such other documents as may be required by the City pursuant to which the purchaser shall assume the obligations and duties ensuring that the Affordable Unit shall remain as an Affordable Unit. The Resale Restriction Agreement shall include a right of first refusal to be held by Developer, which shall give Developer the right to repurchase the Affordable Unit, renovate it, and sell it to a Qualified Homebuyer, subject to a new Resale Restriction Agreement
2.5. Disclosure Statement. Each purchaser of an Affordable Unit must sign a Disclosure Statement in the form attached hereto as Exhibit B.
2.6. Termination. The covenants set forth herein shall be covenants running with the land and shall inure to the benefit of the City and its successors and assigns. The City and its accessors and assigns, in the event of any breach by Developer or any Owner of any suc venants contained herein shall have the right to exercise all of its rights and remedi allowed by law and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. The covenants and agreements established in this Agreement, without regard to technical classification and designation, shall be binding upon all parties having any right, title or interest in the Properties or any portion thereof and on their heirs, successors in interest and assigns until the covenants terminate. The provisions set forth in this Agreement relating to the City's right to purchase shall terminate and become void automatically upon termination of this Agreement.
ATTACHMENT NO. 8
4 3. DEFAULTS
3.1. Default and Foreclosure. A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Properties shall be recorded by the City in the Office of the Recorder of the County of Merced.
3.1.1. In the event of default and foreclosure, the City, its designee or assignee, shall have the same right as the Owner to cure defaults and redeem the Properties or any portion thereof prior to foreclosure sale. Such redemption shall be subject to the same fees, charges and penalties which would otherwise be assessed against the Owner. Nothing herein shall be construed as creating any obligation on the part of the City to cure any uch default, nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage.
3.1.2. In the event that the City, its designee or assignee does not elect to cure such default pursuant to the provisions of this Section and the Affordable Unit is sold through judicial or nonjudicial foreclosure or by deed in lieu of foreclosure, the purchaser of the Affordable Unit shall receive title free and clear of the provisions of this Agreement (unless the purchaser at such sale is the Owner).
3.2. Notice of Prohibited Transfer. Upon receiving notification of a Prohibited Transfer under the provisions of Article 2 hereof, the City will give written notice to the Owner specifying the nature of the Prohibited Transfer. If the violation is not corrected to the satisfaction of the City within ten (10) days after the date of the notice, or within such further time as the City determines is necessary to correct the violation, the City may declare a default under this Agreement. Upon the declaration of a default, the City may apply to a court of competent jurisdiction for specific performance of the Agreement, for an injunction prohibiting a proposed sale or transfer in violation of this Agreement, for a declaration that the Prohibited Transfer is void, or for any such other relief as may be appropriate. In addition, the City shall have the right to exercise its rights and remedies under the Deed of Trust.
.3. Attorneys' Fees and Costs. If any action is brought to enforce the terms of this Agreemen he prevailing party shall be entitled to reasonable attorneys' fees and costs
4. GENERAL
4.1. Notices. Notices required to be sent to the City hereunder shall be sent by certified mail, return receipt requested, to the following address:
City of Merced
678 West 18th Street
Merced, CA 95340
Attn: City Manager
ATTACHMENT NO. 8
5 Notices required to be sent to the Owner hereunder shall be sent by certified mail, return receipt requested, to the following address:
Fuller Center for Housing of Merced County
P.O. Box 423
1230 Broadway Avenue
Atwater, California 95301
Attn: David Snell
5. Duration. The covenants set forth herein shall be covenants running with the land, and shal inure to the benefit of the City and its successors and assigns enforceable by the City or its successors or assigns, until each of the Affordable Units is sold to a Qualified Homebuyer, unless sooner terminated as provided herein. The City and such aforementioned parties, in the event of any breach of any such covenants contained herein, shall have the right to exercise all of its rights and remedies allowed by law and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. The covenants and agreements established in this Agreement, without regard to technical classification and designation, shall be binding upon all parties having any right, title, or interest in the Properties, or any portion thereof and on their heirs, successors in interest and assigns until the covenants terminate. The parties agree that all future deeds or transfers of interest shall show the restrictions of this Agreement and, during the duration of this Agreement, any transfer of the Properties shall be subject to the terms and conditions of this Agreement. Upon expiration of this Agreement, this Agreement shall no longer be a lien on the Properties and shall automatically be reconveyed without the need for further action by either party.
6. Successors and Assigns. The Owner, by and for itself and each successor to any interest in the Properties, hereby specifically acknowledges and agrees to be bound by the covenants contained herein. Any successor to Owner shall execute the Disclosure Statement and Resale Restriction Agreement in a form as approved by the City, or an Affordable Housing Covenant in substantially the same form as this Agreement, or such other agreements or documents as may be reasonably requested by the City.
7. THE PARTIES AGREE THAT ALL FUTURE DEEDS OR TRANSFERS OF
INTEREST SHALL SHOW THE RESTRICTIONS OF THIS AGREEMENT AND
DURING THE DURATION OF THIS AGREEMENT, ANY TRANSFER OF THE
AFFORDABLE UNITS SHALL BE SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT.
8. Subordination. The City agrees to subordinate the terms and conditions of the Resale Restriction Agreements to be recorded against the Affordable Units to permanent mortgage financing obtained by the Qualified Homebuyers in an amount acceptable to the City, upon terms and conditions approved by the City. As a condition to any such subordination, to the extent any such permanent first mortgage financing is not provided pursuant to an adopted federal or state program, the lender must agree, and the applicable loan documents must obligate the lender, to send written notice of any default by the Owner to the City, must permit ATTACHMENT NO. 8
6 the City to cure any default within forty-five (45) days following notice of the default, allow the City to foreclose under its Deed of Trust without the lender accelerating its debt, and permit the City to transfer the Properties to a Qualified Homebuyer, any other governmental agency or a nonprofit organization (as the case may be) without the lender accelerating its debt.
9. Amendment. This Agreement may be amended only in writing by the City and Developer.
ATTACHMENT NO. 8
7 IN WITNESS WHEREOF, the City and the Developer have executed this Agreement as of the date first above written.
"CITY"
CITY OF MERCED
BY:
ATTEST:
BY: ]
APPROVED AS TO FORM:
(Signatures continued on next page)
ATTACHMENT NO. 8
8 "DEVELOPER"
Fuller Center for Housing of Merced County,
a California 501(c)(3) non-profit corporation
J. Sorge
Its: President
By: Lyle Aller.
LYLE ALLEN
Is: VICE PRESIDENT
Taxpayer ID. No. 77-0341589
ADDRESS:
P.O. Box 423
Atwater, Ca 95301
TELEPHONE: 209-726-0850
FACSIMILE:
E-MAIL: [email protected]
ATTACHMENT NO. 8
9 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the locument to which this certificate is attached and not the truthfulness, accuracy, or validity of that document
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Merced
On NovemBeR 7,2022 before me, Dawn Mendonca • Notary Tublic.
Here Insert Name and Title of the Office
personally appeared Janice D. Sorge and Lyle Aller
Name(s) of Signers)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name Mare subscribed to the within instrument and acknowledged to me that He/she/they executed the same in s/ber/their authorized capacity(les), and that by biş/her their signature(s)/on the instrument the person s),Jor the entity upon behalf of which the person(s) acted, executed the instrument.
DAWN MENDONCA
Notary Public - California I certify under PENALTY OF PERJURY under the laws of the Merced County State of California that the foregoing paragraph is true and correct.
Commission # 2304595
My Comm. Expires Oct 8, 2023 WITNESS my hand and official seal.
Signature Daun Mendenca
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 8
10 notary public or other officer completing this certificate verifies only the identity of the individual who signed th ocument to which this certificate is attached and not the truthfulness, accuracy, or validity of that documen
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) 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
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 8
11 AFFORDABLE HOUSING COVENANT AND RESTRICTIONS ON SALE
EXHIBIT A
LEGAL DESCRIPTIONS
Legal Description
1744 "T" Street (APN 031-161-001)
ATTACHMENT NO. 8
12 Legal Description
26 West 18t Street (APN 031-163-005)
ATTACHMENT NO. 8
13 Legal Description
49 West 18" Street (APN 031-084-011)
ATTACHMENT NO. 8
14 Legal Description
150 West 19*h Street (APN 031-082-002)
ATTACHMENT NO. 8
15 ATTACHMENT NO. 9
FORM OF DEED OF TRUST
RECORDING REQUESTED BY:
City of Merced, a charter city of the State of California WHEN RECORDED MAIL TO:
City of Merced
678 West 18th Street
Merced, California 95340
Exempt Recording Per
Gov't Code Section 6103
CITY OF MERCED
FORM OF DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING This Deed of Trust is made as of _ 20_, among FULLER CENTER FOR HOUSING OF MERCED COUNTY, a California 501(c)(3) non-profit corporation "TRUSTOR"), whose address is P.O. Box 423, 1230 Broadway Avenue, Atwater, California 95301, TransCounty Title Company, located at 635 W 19th St, Merced, CA 95340, Attn: Tami Fournier ("TRUSTEE"); and the CITY OF MERCED acting in its capacity as the Housing Successor Agency to the former Merced Redevelopment Agency ("BENEFICIARY"), whose address is 678 West 18th Street, Merced, California 95340.
Trustor irrevocably grants, conveys, transfers, and assigns to Trustee 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 following properties (collectively, the "Properties"): (a) the real properties in Merced County, California, described on Exhibit A attached hereto and incorporated herein by this reference, together with all existing and future easements and rights affording access to it (the "Land"'), (b) together with all buildings, structures, and improvements now existing or hereafter constructed thereon (the "Improvements"
or hereater attached to tarpon or an in one it alece operator and and/or Improvements, together with all goods and other property that are, or at any time become, so related to the Properties that an interest in them arises under real estate law, or they are otherwise adjudged to be a "fixture" under applicable law (each a "Fixture," collectively "Fixtures"), (d) together with all other property and interests of any kind or character which may be reasonably ATTACHMENT NO. 9
necessary or desirable to promote the present and future beneficial use and enjoyment of such real property and improvements.
1. Secured Obligations. Trustor makes the grant, conveyance, transfer, and assignment herein for the purpose of securing the following obligations (the "Secured Obligations"): (a) performance of each agreement and obligation of Trustor under that certain Affordable Housing Disposition and Development Agreement executed by Trustor and Beneficiary dated _ 20_ _ (the "Agreement"), providing for the construction of improvements on the Properties and operation of the Properties and improvements thereon as affordable housing (the "Project"); and (e) obligations under the Affordable Housing Covenant and Restrictions on Sale dated of even date herewith (the "Affordable Housing Covenant") recorded against the Properties on even date with this Deed of Trust. This Deed of Trust shall secure the Beneficiary against any default under the Affordable Housing Covenant for the term of the Affordable Housing Covenant.
2. Maintenance and Repair. Trustor shall (a) keep the Properties in good condition and repair and not remove or demolish any building; (b) complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed; (c) pay when due all claims for labor performed and materials furnished; (d) comply with all laws affecting the Properties or requiring any alterations or improvements to be made; (e) not commit or permit waste; and (f) cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which from the character or use of the Properties may be reasonably necessary.
3. Insurance. Trustor shall maintain insurance for which Beneficiary requires as set forth in the Agreement. The insurance carrier and the insurance policies and amounts of coverage shall comply with the terms of the Agreement or shall otherwise be acceptable to Beneficiary, the policies shall name Beneficiary as a loss payee or an additional insured, as applicable, the policies shall include Beneficiary as an additional insured, as applicable.
4. Defense of Security. Trustor shall appear in and defend any action or proceeding purporting to affect the security or the rights or powers of Beneficiary or Trustee. Trustor shall pay all costs and expenses, including costs of evidence of title and attorneys' fees, in any such action or proceeding in which Trustee or Beneficiary may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
Payment of Taxes and Liens. Trustor shall pay (a) at least 10 days before delinquency, all non-abated taxes and assessments affecting the Properties, including water stock assessments; (b) when due, all encumbrances, charges, and liens, with interest, on the Properties, which are or appear to be prior or superior to this Deed of Trust; and (c) upon demand all reasonable and documented costs, fees, and expenses of this Deed of Trust. If Trustor fails to make any payment or to do any act provided for in this Deed of Trust after written notice of such failure by Beneficiary and a reasonably opportunity to cure, then Beneficiary or Trustee may, without obligation to do so, and with or without notice to or demand upon Trustor, and without releasing Trustor from any obligation under this Deed of Trust: (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security, Beneficiary or Trustee being authorized to enter upon the Properties for such purposes; (b) appear in or commence ATTACHMENT NO. 9
2 any action or proceeding purporting to affect the security, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest or settle any encumbrance, charge or lien which in the judgment of either appears to be senior to this Deed of Trust; and (d) in exercising any such powers, pay allowable expenses, including attorneys' fees.
Reimbursement of Costs. Trustor shall pay upon demand all reasonable and documented sums expended by Beneficiary or Trustee provided for in this Deed of Trust or allowed by law, with interest from date of expenditure at the maximum rate provided in the Note.
7. No Waiver. By accepting payment of any sum after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums or declare a default for failure to pay.
8. Reconveyance. Ihat upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said note or notes to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals of such reconveyance of any matters or 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."
9. Assignment of Rents. Subject to the rights of senior lenders, Trustor hereby absolutely and unconditionally assigns to Beneficiary all of the rents, issues, profits, royalties, revenues, income, and other benefits (collectively, the "Rents") derived from the Properties, whether now due, past due or to become due, and hereby gives to and confers upon Beneficiary, either directly or through a receiver, the right, power, and authority, but not the obligation, to collect the Rents, and to sue, either in the name of Trustor or Beneficiary, for all such Rents and to apply the same to the indebtedness secured hereby in such order as Beneficiary may determine in its sole discretion. This assignment of Rents is intended to create and shall be construed to create an absolute assignment to Beneficiary of all of Trustor's right, title, and interest in the Rents.
So long as no default exists by Trustor in the payment of any indebtedness secured hereby, or in or in the paymen of any nd here. any other covenant contained herein, or in said note or notes or in any other document evidencing or securing such indebtedness, Trustor shall have the right to collect all Rents from the Properties and to retain, use, and enjoy the same. Upon the occurrence of such a default beyond any applicable notice and cure periods, without the necessity of demand or other notice to Trustor or any other act to enforce Beneficiary's interest pursuant to this assignment, Trustor shall have no interest whatsoever in the Rents that are received by Trustor after a default, and all such Rents shall be received and held by Trustor in constructive trust for Beneficiary and delivered promptly to Beneficiary, or to a court-appointed receiver for the Properties, without the necessity for further notice to, or demand upon, Trustor. Upon the occurrence of such a default, beyond any applicable notice and cure periods, and at any time thereafter during the continuance thereof, Beneficiary may, at its option, send any tenant of the Properties a notice to the effect that: (a) a default has occurred; (b) Beneficiary has elected to exercise its rights under this assignment; and (c) such tenant is thereby directed to thereafter make all payments of Rents to or for the benefit of Beneficiary or as Beneficiary shall direct. Any such tenant shall be entitled to rely upon any notice ATTACHMENT NO. 9
3 from Beneficiary and shall be protected with respect to any payment of Rents made pursuant to such notice, irrespective of whether a dispute exists between Trustor and Beneficiary with respect to the existence of a default or the rights of Beneficiary hereunder. Any such tenant shall not be required to investigate or determine the validity or accuracy of such notice or the validity or enforceability of this assignment. Trustor hereby agrees to indemnify, defend, and hold any such tenant harmless from and against any and all losses, claims, damages or liabilities arising from or related to any payment of Rents by such tenant made in reliance on and pursuant to such notice.
10. Default and Foreclosure. Upon default by Trustor in payment or performance of any Secured Obligation, subject to any applicable notice and cure period, Beneficiary may declare all sums secured immediately due and payable by delivery to Trustee of a declaration of default and demand for sale and of a notice of default and of a notice of sale, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, said note or notes, and all documents evidencing expenditures secured by this Deed of Trust. Upon default of any obligation secured by this Deed of Trust and acceleration of all sums due, Beneficiary may instruct Trustee to proceed with a sale of the Properties under the power of sale granted in this Deed of Trust, noticed and held in accordance with California Civil Code Sections 2924, et seq., as such statutes may be amended from time to time. Trustor waives all rights it may have to require marshaling of assets or to require sales of assets in any particular order, including any rights under California Civil Code Sections 2899 and 3455.
Distribution of Foreclosure Proceeds. The proceeds generated by any Foreclosure ("Proceeds") shall be distributed as follows: (i) First, senior liens and encumbrances (if any) on the Project shall be fully paid from the Proceeds; (ii) Second, City shall be fully paid any amounts owing under the Secured Obligations; (iii) Third, City shall be paid the difference between the appraised value of the completed Project (applicable portion thereof) as restricted by the Affordable Housing Covenant ("Restricted Value") and the Proceeds ("Differential"); (ili) Fourth, any remaining Proceeds shall be distributed in accordance with California Civil Code Section 2924(k). The Differential shall be deposited in City's low and moderate income housing fund. Developer expressly acknowledges and agrees that the Agreement and this Deed of Trust constitutes a lien against the Project and the Differential, including in accordance with California Civil Code Sections 2872, 2924 to 2924h, inclusive ("Differential Lien"). In the event of a Foreclosure, for purposes of distribution of the Differential only, the Differential Lien shall be considered a junior lien or encumbrance within the meaning of California Civil Code section 2924k(a)(3). Developer hereby irrevocably instructs any holder of the Differential or similar proceeds generated by Foreclosure to immediately disburse the Differential to City, and agrees to defend, indemnify and hold City and such holder harmless from any and all claims related to such distribution. As used herein, "Foreclosure" means any judicial or non-judicial foreclosure, trustee's sale, deed-in-lieu transfer, short sale, or similar transaction.
Substitution of Trustee. Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where the Properties is situated, shall be conclusive proof of proper ATTACHMENT NO. 9
4 substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers, and duties. Said instrument must contain the name of the original Trustor, Trustee, and Beneficiary hereunder, the book and page where this Deed of Trust is recorded, and the name and address of the new Trustee.
Successors and Assigns. This Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgees, of the secured note or notes, whether or not named as Beneficiary herein.
Trustee Acceptance. Trustee accepts this trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee.
Further Assurances. Trustor shall, at its own cost and expense, do, execute, acknowledge, and deliver all and every such further acts, deeds, conveyances, mortgages, assignments, notices of assignments, transfers, and assurances as Trustee or Beneficiary shall from time to time reasonably require, for better assuring, conveying, assigning, transferring, and confirming unto Trustee the Properties and rights hereby conveyed or assigned or intended now or hereafter so to be, or which Trustor may be or may hereafter become bound to convey or assign to Trustee, or for carrying out the intention or facilitating the performance of the terms of this Deed of Trust, or for filing, registering, or recording this Deed of Trust. Trustor shall, on demand, execute and deliver, and hereby authorizes Trustee and Beneficiary, or either of them, to execute in the name of Trustor, to the extent it may lawfully do so, one or more financing statements, chattel mortgages, or comparable security instruments, to evidence more effectively the lien hereof. Immediately upon the execution and delivery of this Deed of Trust, and thereafter from time to time, Trustor shall cause this Deed of Trust, and any security instruments creating a lien or evidencing the lien hereof upon any personal property and each instrument of further assurance, to be filed, registered, or recorded in such manner and in such places as may be required by any present or future law in order to publish notice of and fully to protect the lien hereof upon, and the title of Trustee to, the Properties encumbered hereby.
16. Condemnation and Insurance Proceeds. Immediately upon obtaining knowledge of the institution of any proceedings for the condemnation or other taking of all or any portion of the Properties, or knowledge of any casualty damage to the Properties, or damage in any other manner, Trustor shall immediately notify Beneficiary thereof. Trustor hereby authorizes and empowers Beneficiary as attorney-in-fact for Trustor to make proof of loss, to adjust and compromise any claim under the insurance policies covering the Properties, to appear in and prosecute any action arising from such insurance policies, to collect and receive insurance proceeds, and to deduct therefrom Beneficiary's expenses incurred in the collection of such proceeds; provided, however, that nothing contained in this Section shall require Beneficiary to incur any expense or take any action hereunder. Trustor hereby authorizes and empowers Beneficiary, at Beneficiary's option, as attorney-in-fact for Trustor, to commence, appear in, and prosecute, in Beneficiary's or Trustor's name, any action or proceeding relating to any ATTACHMENT NO. 9
5 condemnation or other taking of all or any part of the Properties, whether direct or indirect, and to settle or compromise any claim in connection with such condemnation or other taking. The proceeds of any award payment or claim for damages, direct or consequential, in connection with any condemnation or other taking, whether direct or indirect, of the Properties, or any part thereof, or for conveyances in lieu of the Properties, or any part thereof, shall be paid to Beneficiary. The foregoing powers of attorney are coupled with an interest and are irrevocable. Trustor hereby authorizes Beneficiary to apply such awards, payments, proceeds or damages relating to condemnation of the Properties and insurance covering the Properties, after the deduction of Beneficiary's expenses incurred in the collection of such amounts, subject to the requirements of applicable law and the provisions hereof, to restoration or repair of the Properties or to payment of the sums secured by this Deed of Trust. Beneficiary shall be under no obligation to question the amount of any compensation, awards, proceeds, damages, claims, rights of action, and payments relating to condemnation or other taking of the Properties or insured casualty affecting the Properties, and may accept the same in the amount in which the same shall be paid. Trustor shall execute such further evidence of assignment of any awards, proceeds, damages or claims arising in connection with such condemnation or taking or such insurance as Beneficiary may require. Notwithstanding the above, the Beneficiary shall release all insurance and condemnation proceeds to Trustor to be used to reconstruct the improvements on the Properties provided that Beneficiary reasonably determines that such restoration, repair or rebuilding is economically feasible. If such insurance proceeds shall be insufficient for such purposes, Trustor shall make up the deficiency. If the Project is subject to a partial condemnation or taking, then the proceeds received therefrom shall be applied to restore the Project taken, provided the Beneficiary determines that such restoration is economically feasible and no default exists under the Loan Documents following the expiration of all applicable cure periods. If the Project is subject to a total condemnation, or if Beneficiary determines that restoration of the Project is not feasible following a partial condemnation, or if a default exists then the proceeds from any condemnation award or claim for damages shall be used first to repay all sums under the Note, with the excess, if any, paid to Trustor, subject to the rights of the senior lender.
17. Severability. If 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 provisions of this Deed of Trust, but this Deed of Trust shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein or therein, but only to the extent of such invalidity.
Estoppel Certificate. Trustor shall, within thirty (30) days of a written request from Beneficiary, furnish Beneficiary with a written statement, duly acknowledged, setting forth the sums secured by this Deed of Trust and any right of set-off, counterclaim or other defense which exists against such sums and the obligations of this Deed of Trust.
19. California Uniform Commercial Code Security Agreement; Fixture Filing.
Trustor hereby grants Beneficiary a security interest in all personal property of Trustor located on the Properties and wherever located and used in any way in connection with or in any way relating to the Properties, and whether now owned or hereafter in existence, acquired or created (including equipment, inventory, goods, documents, instruments, general intangibles, chattel paper, accounts, ATTACHMENT NO. 9
6 accounts receivable, deposit accounts, and contract rights), and all fixtures of Trustor now owned or hereafter in existence, acquired or created on, of or relating to the Properties, and all substitutions, replacements, additions, accessions, and proceeds (including insurance proceeds) of all of the foregoing (collectively, the "Personal Property"). Beneficiary may file this Deed of Trust, or a reproduction hereof, in the real estate records or other appropriate index, as a financing statement for the Personal Property. Any reproduction of this Deed of Trust or of any other security agreement or financing statement shall be sufficient as a financing statement. In addition, Trustor shall execute and deliver to Beneficiary, upon Beneficiary's request, any financing statements, as well as extensions, renewals, and amendments thereof, and reproductions of this Deed of Trust in such form as Beneficiary may require to perfect a security interest with respect to the Personal Property. Trustor shall pay all costs of filing such financing statements and any extensions, renewals, amendments, and releases thereof, and shall pay all reasonable costs and expenses of any record searches for financing statements Beneficiary may reasonably require.
Upon Trustor's breach of any covenant or agreement of Trustor contained in this Deed of Trust, including the covenants to pay when due all sums secured by this Deed of Trust, Beneficiary shall have the remedies of a secured party under the California Uniform Commercial Code and, at Beneficiary's option, may also invoke any remedies provided in this Deed of Trust as to the Personal Property. In exercising any of such remedies, Beneficiary may proceed against the Properties and any of the Personal Property separately or together and in any order whatsoever, without in any way affecting the availability of Beneficiary's remedies under the California Uniform Commercial Code or the remedies provided in the Deed of Trust. This Deed of Trust also covers goods which are or which are to become fixtures on the Properties and constitutes and is filed as a fixture filing under the California Uniform Commercial Code.
Due-On-Sale or Encumbrance. If all or any part of the Properties, or any interest therein, or any beneficial interest in Trustor (if Trustor is not a natural person or persons but is a corporation, partnership, trust, limited liability company or other legal entity), is sold, transferred, mortgaged, assigned, pledged, or further encumbered, whether directly or indirectly, whether voluntarily or involuntarily, or by operational law, Beneficiary may, at Beneficiary's option, declare all of the sums secured by this Deed of Trust to be immediately due and payable, and Beneficiary may invoke any remedies permitted by this Deed of Trust. [CONTINUED ON NEXT PAGE]
ATTACHMENT NO. 9
of Sale hereunder be mailed to Trustor at Trustor's address hereinbefore set forth. The undersigned Trustor requests that a copy of any Notice of Default and of any Notice TRUSTOR:
FULLER CENTER FOR HOUSING OF MERCED COUNTY
a California 501(c)(3) non-profit corporation
3s: panice forge
President
ATTACHMENT NO. 9
8 DEED OF TRUST
EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of Merced, County of Merced, State of California, described as follows:
To be inserted
ATTACHMENT NO. 9
9 4 notary public or other officer completing this certificate verifies only the identity of the individual who signed th locument to which this certificate is attached and not the truthfulness, accuracy, or validity of that document
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of Merced
on NovemBeR 7,2022 before me,
personally appeared Janice J. Songe spares
who proved to me on the basis of satisfactory evidence to be the person whose name is ake subscribed to the within instrument and acknowledged to me that Ae shelthey executed the same in sher/beir authorized capacity (les), and that by Asher/thet signatureff) on the instrument the personal. or the entity upon behalf of which the persont) acted, executed the instrument.
DAWN MENDONCA
Notary Public - California I certify under PENALTY OF PERJURY under the laws of the Merced County State of California that the foregoing paragraph is true and correct.
Commission # 2304595
My Comm. Expires Oct 8, 2023
WITNESS my hand and official seal.
Daun Mendonca
Signature
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 9
10 A lay public or other efie compering in eire verie only be eir othere devin send e
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of
On before me,
Date Here Insert Name and Title of the Officer
personally appeared
Name(s) of Signers)
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 capacityies), 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
Place Notary Seal Above Signature of Notary Public
ATTACHMENT NO. 9
11