Housekeys - MOU for BMR Administrator to purchase and sellMEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING (this "MOU ") is entered as of
February 9, 2018 (the "Effective Date ") by and between Nyanda & Associates, LLC d /b /a
HouseKeys ( "Administrator "), and the City of Gilroy, a municipal corporation ( "City "), jointly
referred to herein as the "Parties" and each individually referred to herein as a "Party ".
RECITALS:
A. South County Housing Corporation (the "Corporation ") and Efrain Martinez and
Genevieve Prieto (jointly referred to herein as "Seller ") entered into that certain Option to
Purchase and Resale, Refinance Agreement ( "Resale Restriction Agreement" or
"RRA "), dated March 19, 2011, in connection with 271 Lewis, Gilroy, CA 95020 (the
"Property ") as part of the City's program to provide housing opportunities to low and
moderate income purchasers of homes by financing the gap between the market rate
purchase price of the home and the amount affordable to the qualified purchaser. The
City is the successor agency to the Corporation and elected to assume the housing
functions previously performed by the Corporation.
B. The Administrator administers the City's Below Market Rate (`BMW ")
Ownership, Rental Programs, First -Time Homebuyer Loan Program and related
real estate transactions as an agent for the City through that certain Consultant
Agreement (the "Consultant Agreement ") dated April 1, 2017 by and between the
City and the Administrator, as may be amended from time to time.
C. On or about July 28, 2017, Seller initiated the Property resale process in
accordance with Section 6 of the RRA by providing Administrator, on behalf of the
City, with a Notice of Intent to Transfer the Property. The Administrator, on behalf
of the City, timely responded to the Seller's notice of intent to transfer the Property
and thereafter, on or about October 25, 2017, Administrator provided Seller a
Notice of Intent to Exercise the Option to purchase the Property.
D. The City assigned its option to purchase the Property to the Administrator by
that certain Assignment of Option and Below Market -Rate Affordable Housing
Agreement dated October 31, 2017 and recorded in the Official Records of Santa
Clara County on or about November 21, 2017.
E. As of the Effective Date of this MOU the Parties, hereto, agree that
Administrator shall purchase the Property from Seller for fair market value as
determined by Property appraisal as Four Hundred Fifty -Four Thousand Dollars
($454,000.00). Administrator and the City intend that Administrator shall resell the
Property to a new qualified purchaser, subject to a new resale restriction agreement,
thereby preserving the Property within the City's BMR Program.
F. City has reconveyed certain deeds of trust as described herein and executed a
release of the RRA, collectively to be recorded in the Official Records of the
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County of Santa Clara contemporaneously with the Administrator's close of escrow
for the purchase of the Property. The City and Administrator agree that all sales
proceeds due to the City at the close of escrow from certain loan payoffs and the
Equity Share due under the RRA, shall instead transfer to a new qualified purchaser
as down payment assistance for the purchase of the Property within the City's BMR
Program. The City's issuance of down payment assistance to a new qualified
purchaser is necessary to facilitate the purchase of the Property for approximately
Three Hundred Thirty -Five Thousand Dollars ($335,000) by a low- income
household.
G. City and Administrator contemplate that the new qualified purchaser shall
execute, at the time of purchase, a new resale restriction agreement which shall
include a City first option to purchase the Property at a restricted price in the event
of Owner default, among other terms to be mutually agreed upon by the City and
the qualified purchaser. Additionally, the qualified purchaser, as trustor, and City,
as beneficiary, shall execute a promissory note, or notes, as may be required, for
the principal amount of the down payment assistance provided by the City to the
new qualified purchaser, secured by a performance deed of trust, or deeds of trust,
as may be required, contemporaneously with the purchase of the Property.
NOW THEREFORE, in consideration of the foregoing and other valuable consideration,
the Parties agree as follows:
1. Sale of Property. The City hereby consents to Administrator's purchase of the Property
from Seller for fair market value as determined by appraisal as Four Hundred Fifty -Four
Thousand Dollars ($454,000.00). Administrator shall receive insured title to the Property by
Grant Deed from Seller through an escrow account established at Chicago Title Company, or
similar.
2. Reconveyance of Deeds of Trust. City is the beneficiary under certain deeds of trust
recorded against the Property and has executed a full reconveyance of each deed of trust, as
described more specifically below, to be recorded in the Official Records of the County of Santa
Clara concurrently with the closing for Administrator's purchase of the Property.
a. BEGIN Deed of Trust. On January 17, 2018, City executed a Deed of
Reconveyance for the BEGIN Deed of Trust by and between the Seller and the City, dated
March 6, 2011 and recorded April 11, 2011 in the Official Records of Santa Clara County as
Instrument No. 21141497 ( "City BEGIN Deed of Trust "), securing a "City of Gilroy BEGIN
Promissory Note" for the amount of Twenty Five Thousand Dollars ($25,000.00), executed
pursuant to a BEGIN Program Mortgage Assistance Loan Program.
b. CALHOME Deed of Trust. On January 17, 2018, City, as successor agency to
South County Housing Corporation, executed a Deed of Reconveyance for the Performance
Deed of Trust for the CALHOME Program First -Time Homebuyer Grant Agreement
( "CALHOME Deed of Trust ") by and between the Seller and South County Housing
Corporation, dated March 19, 2011 and recorded in the Official Records of the County of Santa
Clara on April 11, 2011, as Instrument No. 21141496, securing a grant for the amount of Thirty
Thousand Dollars ($30,000).
C. Los Arroyos Deed of Trust. On January 17, 2018, City, as successor agency to
South County Housing Corporation, executed a Deed of Reconveyance for the Deed of Trust for
Loan No. 0271 - 95020 -07 ( "Los Arroyos Deed of Trust ") by and between the Seller and South
County Housing Corporation dated March 2, 2011 and recorded in the Official Records of the
County of Santa Clara on April 11, 2011, as Instrument No. 21141498, securing a loan for the
amount of Six Thousand Four Hundred Thirty Four Dollars ($6,434.00).
d. RRA Performance Deed of Trust. On January 17, 2018, City, as successor agency
to South County Housing Corporation, executed a Deed of Reconveyance for the Deed of Trust
securing certain performance obligations under the RRA ( "RRA Performance Deed of Trust ") by
and between the Seller and South County Housing Corporation dated March 19, 2011 and
recorded in the Official Records of the County of Santa Clara on April 11, 2011, as Instrument
No. 21141505, securing, in relevant part, repayment of an Equity Share, as defined in the RRA,
in the amount of Fifty Thousand One Hundred Eighty Four Dollars ($50,184.00), based on the
Property sale price of Four Hundred Fifty -Four Thousand Dollars ($454,000.00).
3. Release of Resale Restriction Agreement; Recordation of Agreement. City agrees that it
shall cause to be recorded in the Official Records a release and reconveyance of the Resale
Restriction Agreement concurrently with the closing for Administrator's purchase of the
Property, provided that on resale of the Property (a) the new qualified homebuyer executes a new
resale restriction agreement for the benefit of City in the form required by City pursuant to the
BMR Program, and (b) the new resale restriction agreement is recorded against the Property
concurrently with the closing for acquisition of the Property by the new qualified homebuyer.
4. Excess Sales Note & Deed of Trust on Resale. The City and Administrator intend that a
new resale restriction agreement executed by and between the City and a new qualified purchaser
will describe approximately One Hundred Twenty Five Thousand Dollars ($125,000.00) as City
down payment assistance to the new qualified purchaser in the form of a promissory note, or
notes, as may be required, secured by deeds of trust recorded in the Official Records of the
County of Santa Clara whereby the new qualified purchaser shall be the trustor and the City shall
be the beneficiary.
5. Acquisition by Administrator; Property Maintenance. Administrator agrees that it will
acquire the Property and will diligently market the Property and arrange for its sale to a qualified
homebuyer consistent with all requirements of the BMR Program, this MOU, and the provisions
of the Consultant Agreement. Administrator agrees that throughout the period that
Administrator owns the Property, Administrator shall take reasonable steps to ensure that the
Property is protected from vandalism, shall maintain the Property in the same or better condition
as its condition on the date of Administrator acquisition, shall maintain the landscaping on the
Property and ensure that lawns and shrubbery are kept in a trimmed, neat and litter -free
condition, and shall, with the consent of City, undertake any necessary or desirable repairs.
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6. Restrictions on Conveyance of the Property. Administrator acknowledges and agrees that
the Property may only be sold to a qualified homebuyer in accordance with the requirements of
the BMR Program, and Administrator agrees that it shall not, without City's prior written
consent, sell, lease, rent, assign, hypothecate, mortgage or otherwise transfer or convey the
Property or any part thereof.
7. Remedies. Monetary damages may be inadequate to fully compensate the Parties for any
breach of the covenants and agreements set forth in this Agreement. Accordingly, the Parties
agree and acknowledge that any such violation or threatened violation will cause irreparable
injury to the Parties and that in addition to any other remedies that may be available, in law, in
equity or otherwise, the Parties shall be entitled to obtain injunctive relief against the threatened
breach of this MOU or the continuation of any such breach, without the necessity of proving
actual damages.
8. Notice. Notice pursuant hereto shall be deemed effective only if delivered by personal
delivery, certified mail or overnight delivery service to the address of the other Party as listed
below, or to such other address as has similarly been provided to the other Party in writing. The
addresses of the Parties for purposes of notice and otherwise are as follows:
ADMINISTRATOR:
HouseKeys
Attn.: Asset Manager
409 Tennant Station Ste. 495
Morgan Hill, CA 95037
CITY:
Kristi Abrams
Community Development Director
City of Gilroy
Community Development Department
7351 Rosanna Street
Gilroy, CA 95020
9. Modification and Waiver. None of the terms of this MOU may be waived or modified
except by express agreement in writing signed by both Parties. This MOU contains all
understandings of the Parties with respect to the subject matter of this MOU. No prior
agreement or understanding pertaining to the subject matter, and no agreement or understanding
not contained in this MOU shall have any effect, except as otherwise provided herein. There are
no representations, promises, warranties, covenants, or undertakings, other than those contained
in this MOU, which represents the entire understanding of the Parties, except as otherwise
provided herein. The failure of either Party hereto to enforce, or the delay by either Party in
enforcing, any of his rights under this MOU shall not be deemed a continuing waiver or a
modification thereof and either Party may, within the time provided by applicable law,
commence appropriate legal proceedings to enforce any or all such rights.
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10. Attorneys' Fees and Costs. In any action or other proceeding initiated by any Party hereto
for the purpose of interpreting or disputing any of the provisions of the MOU, or for preventing
the implementation or enforcement of this MOU, the prevailing Party shall recover from the
other Party all reasonable expenses incurred thereby, including without limitation reasonable
attorneys' fees and costs.
11. Execution of Documents. The Parties hereto agree to timely execute such other
documents and to take such other action as may be reasonably necessary to further the purposes
of this MOU.
12. Counterparts. This MOU may be executed in counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the same instrument.
13. Time is of the Essence. Time is of the essence as to al l matter set forth in this MOU.
IN WITNESS, WHEREOF, the Parties have entered this MOU as of the Effective Date.
ADMIMSTRATOR:
Julius Nyanda,
Chief Executive Officer
Nyanda & Associates, LLC,
a California limited liability company,
d /b /a Housekeys
"CITY"
By:�
Gabriel A. Gonzalez,
City Administrator
APPROVED AS TO FORM:
By:
Andr w L. Faber,
City Attorney
EXHIBIT A
[Property Legal Description]
All that certain Real Property in the County of Santa Clara, State of California, described as follows:
Lot 31, as shown on that certain map entitled "Tract No. 9867, Alexander Place ", which was filed in the
Office of the Recorder of the County of Santa Clara, State of California on May 2, 2007 in Book 813 of
Maps, Page 31 through 34.
APN: 841 -83 -007
EXHIBIT B
[City BEGIN Deed of Trust]
RECORDING REQUESTED BY
First American Title Company
AND WHEN RECORDED MAIL DOCUMENT TO:
City of Gilroy Housing Development
7351 Rosanna Street
Gilroy, Ca 95020
A.P.N.: 841 -83 -007
NO FEE PER GOVERMENT CODE SECTIONS 6103 & 2783
DOCUMENT: 21141497
Ill 1111,1111111111111111111 I
Pages: 10
Fees— - No Fees
Taxes—
Copies.
AMT PAID
REGINA ALCOMENDRAS RDE 4 012
SANTA CLARA COUNTY RECORDER 4/11/2011
Recorded at the request of 8:00 AM
First American Title Company
Space Above This Line for Recorder's Use Only
File No.: 4331 - 319867 -007 (RS)
DEED OF TRUST
Document Title
This Deed of Trust is third and subordinate to that certian Deed of Trust dated March 19, 2011 in favor of South
County Housing in the amount of $30,000.00 and subordinate to that certain First Deed of Trust dated April 6,
2011, in favor of Guild Mortgage in the amount of $185,000.00 recording concurrently herewith
SEPARATE PAGE PURSUANT TO GOVT CODE 27361.6
Recording requested by And
When recorded return to:
City of Gilroy
Planning Division
Housing & Community Development
7351 Rosanna Street
Gilroy, Ca 95020
NO FEE PER GOVERNMENT CODE
SECTIONS 6103 AND 2783
APN : 841 -83 -007
City of Gilroy
BEGIN PROGRAM
FIRST -TIME HOMEBUYER
DEED OF TRUST
NOTICE TO BORROWER(S)
THIS DEED OF TRUST CONTAINS PROVISIONS
RESTRICTING ASSUMPTIONS
Loan No. BEGIN 2010 -08
This Deed of Trust is made on March 6 , 2011, by Efrain Martinez and Genevieve Prieto (the "Borrower(s)"
or "Trustor(s) ") and First American Title Insurance Company (the "Trustee "), whose business address is
1737 North First Street, Suite 100, San Jose, California 95112 in favor of the City of Gilroy_( "Lender "),
whose address is 7351 Rosanna Street, Gilroy, California 95020 -6141.
1. BORROWER(S), IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST
HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of
sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired in and to the
following: (a) all of that certain real property (the "Property ") located at 271 Lewis Street ,Gilroy, 95020 in the County of Santa
Clara, and the State of California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this
reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and
articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to,
substitutions for, changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged
and assigned, transferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty;
provided, however, that furniture and other personal property of Borrower(s) now or hereafter situated on said real property are not
intended to be included as part of the Property.
21 FOR THE PURPOSE OF SECURING:
2.1. Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrowers) dated
March__-(,_, 2011, and entitled City of Gilroy BEGIN Program First -time Homebuyer Promissory Note "Loan No. BEGIN -2010-
08" (the "Note ") of the Borrower in the principal amount of Twenty five Thousand Dollars ($25,000), together with simple
BEGIN D of T 2009
interest on such indebtedness according to the terms of the Note, and any and all amendments, modifications, extensions or
renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the State of
California BEGIN Program as set for the in the Health and Safety Code section 50860 et seq. and implementing guidelines adopted
by the California Department of Housing and Community Development, all of which are hereby incorporated by reference.
2.2. Payment of such additional sums, with interest thereon:
(a) As may hereafter be borrowed from Lender by the then - record owner of the Property and evidenced by a
promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of
the Note; and
(b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender,
under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and
(c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust,
2.3. Performance of each obligation, covenant, and agreement of Borrower(s) contained in this Deed of Trust, the
Note, or any other document executed by Borrower(s) in connection with the loan(s) secured by this Deed of Trust, and all
amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference.
3. BORROWER(S) COVENANTS:
Borrower(s) hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance
by Borrower(s) of each and every obligation, covenant, and agreement of Borrower(s) under the Note and this Deed of Trust, and as
additional consideration for the obligation(s) evidenced by the Note, Borrower(s) covenants as follows:
3.1. Title. That Borrower(s) is lawfully seized of the estate hereby conveyed and has the right to grant and convey the
Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to
any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring
Lender's interest in the Property.
3.2, Payment of Principal and Interest. That Borrower shall promptly pay, when due, the principal and interest on
the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust.
3.3. Maintenance and Preservation of the Property. (a) To keep the Property in a decent, safe, sanitary, tenantable
condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any
condition causing the Property to become less valuable; (c) remove, demolish or structurally alter any buildings and improvements
now or hereinafter located on the Property; (d) to complete, repair, restore or rebuild promptly and in good and workmanlike
manner any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this
Deed of Trust; (e) to comply with all applicable laws, regulations, standards, ordinances and governmental regulations and
requirements affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of
any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to
initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without
the Lender's written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the
Lender (h) not to create any deed of trust or encumbrance upon the Property subsequent hereto without specifically providing
therein that the same is subject to this Deed of Trust for the full amount of the indebtedness, including extensions, renewals and
future advanced secured hereby, together with interest thereon, and for the full performance of all other obligations secured hereby,
and that the same is subject to all of the terms and provisions hereof,
3.4. Appear and Defend. Borrower(s) shall appear in and defend any action or proceeding purporting to affect the
security hereof or the rights or powers of the Lender or Trustee; and to pay all costs and expenses, including cost of evidence of title
and attorney's fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, and in any
suit brought by the Lender to foreclose this deed.
3.5. Payment of Taxes and Utility Charees. Borrower(s) shall pay, at least ten (10) days before delinquency all
taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances,
charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on
the Property or any part thereof; all costs, fees and expenses of this trust. Borrower(s) shall make such payments when due, directly
BEGIN D of T 2009 2
to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and Borrower(s)
shall promptly furnish to Lender receipts evidencing all such payments made.
3.6. Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire and
such other hazards, casualties and contingencies and by such companies on such forms and in the amount of the replacement cost of
the Property, and to deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender
evidencing payment of the premiums. All such policies provide that the Lender shall be given thirty (30) days advance written
notice of the cancellation. expiration or termination of any such policy or any material change in the coverage afforded by it.
Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the
Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of
accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency
of such insurance, or solvency of any insurer for payment of losses. In the event of loss, the Borrower will give prompt notice to the
insurance carrier and the Beneficiary or its designated agent. All insurance proceeds, subject to the rights of the Senior Lender, will
be applied to the repair or restoration of the insured property provided that such restoration or repair is economically feasible and
the security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security
of this Deed of Trust would be impaired, the insurance proceeds will be used, subject to the rights of the Senior Lender, to repay
any and all sums due under this Deed of Trust, with the excess, if any, paid to the Borrower. If the Property is abandoned by the
Borrower, or if the Borrower fails to respond to the Beneficiary, or its designated agent, within thirty (30) days from the date notice
is mailed by either of them to the Borrower that the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary,
or its designated agent, is authorized, subject to the rights of the Senior Lender, to collect and apply the insurance proceeds at the
Beneficiary's option either to restoration or repair or the Property or to repay the Promissory Note and all sums secured by this
Deed of Trust.
3.7. Payments and Discharge of Liens. Borrower(s) will pay, when due, all claims of every kind and nature which
might or could become a lien on the Property or any part thereof, provided, however, that the following are excepted from this
prohibition: (a) liens for taxes and assessments which are not delinquent although by law are given the status of a lien, and (b) such
of the above claims as are, and only during the time they are, being contested by Borrower(s) in good faith and by appropriate legal
proceedings, and Borrower shall post security for the payment of these contested claims as may be requested by the Lender.
Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is
superior to this Deed of Trust.
4. IT IS MUTUALLY AGREED THAT:
4.1. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and Section 2.1 shall be applied by Lender first to interest payable on the Note and then to the principal due on the Note.
4.2. Future Advances. Upon request by Borrower(s), Lender, at Lender's option, may make future advances to
Borrower. All such future advances, with interest thereon, shall be added to and become a part of the indebtedness secured by this
Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust.
4.3. Disbursements to Protect Lender's Security. All sums disbursed by Lender to protect and preserve the
Property, this Deed of Trust, or Lender's security for the performance of Borrower's obligations under the Note shall be and be
deemed to be an indebtedness of Borrower(s)secured by this Deed of Trust.
4.4. Protection of Lender's Security, If Borrower(s) fails to perform the covenants and agreements contained in this
Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including,
but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent,
foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the
Property, then Lender, at Lender's option, upon notice to Borrower(s), may make such appearance, disburse such sums and take
such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and
entry upon the Property to make repairs.
Any amounts disbursed by Lender pursuant to this Section 4.4, with interest thereon, shall become additional indebtedness
of Borrower secured by this Deed of Trust. Unless Borrower(s) and Lender agree to other terms of payment, such amounts shall be
payable upon notice from Lender to Borrower(s) requesting payment thereof, and shall bear interest from the date of disbursement
at the highest rate permissible under applicable law. Nothing contained in this Section 4.4 shall require Lender to incur any
expense or take any action hereunder.
BEGIN D of T 2009
4.5. Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the
Property. Lender shall give Borrower(s) notice at the time of or prior to any such inspection specifying reasonable cause for the
inspection.
4.6. Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection
with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent
domain, (b) any damage to or destruction of the Property or any pan thereof by insured casualty, and (c) any other injury or damage
to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered
(but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or
obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to
settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds
of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of
the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose
for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not
cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to
Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within
thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option,
either to restoration or repair of the Property or to the sum secured by this Deed of Trust.
4.7. Prohibition on Transfers of Interest. With the exception of the transfers permitted in Section 4.11 below, if all
or any part of the Property or an interest therein is sold or transferred by Borrower without Lender's prior written consent, Lender
may, at Lender's option, declare all the sums secured by this Security Instrument to be immediately due and payable. If Lender
exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such
notices shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums
declared due. If borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or
demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof.
4.8. Sale or Forbearance. No sale of the Property, forbearances on the part of the Lender or extension of the time
for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of
Borrower either in whole or in part.
4.9. The Lender's Rights to Release. Without affecting the liability of any person for payment of any indebtedness
hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or
guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to
time without notice: (a) The Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or
all such indebtedness. (11) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (III)
release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant
to the written request of the Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof,
join in granting any assessment thereon, or join in any such agreement of extension or subordination.
4.10. Reconvevance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to
reconvey the Property and shall surrender this Security Instrument and all notes evidencing indebtedness secured by this Security
Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally
entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or
facts shall be conclusive proof of the truthfulness thereof.
4.11 Subordination to Senior Lender Deeds of Trust. Notwithstanding any other provision hereof, the provisions of
this Deed of Trust shall be subordinate to the lien of the Senior Lender Deed of Trust and shall not impair the rights of the Senior
Lender, or the Senior Lender's successors or assigns, to exercise remedies under the Senior Lender Deed of Trust in the event of
default under the Senior Lender Deed of Trust by the Borrower. Such remedies under the Senior Lender Deed of Trust include the
right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed of
assignment in lieu of foreclosure, this Deed of Trust shall be forever terminate and shall have no further effect as to the Property or
any transferee thereafter; provided, however, if the holder of such Senior Lender Deed of Trust acquired title to the Property
pursuant to a deed or assignment in lieu of foreclosure, this Deed of Trust shall automatically terminate under such acquisition of
title, only if either a notice of default was recorded, (i) the Beneficiary has been given written notice of default under such Senior
Lender Deed of Trust (which requirement shall be satisfied by notice of default required by California Civil Code Section 292 4)
and (ii) the Beneficiary shall not have cured the default within the period provided by law. Borrower agrees to record any
necessary documents to effect such termination, if applicable.
BEGIN D of T 2009 4
4.12 Requirement of Owner - occupancy and Permitted Transfers. Borrower shall occupy the Property as
Borrower's principal place of residence during the term as described in the Note. Notwithstanding any other provision of the Note
or this Deed of Trust, the following transfers shall not be deemed to be a default under the Note or this Deed of Trust:
(a)
The loans are assumable if the home is re -sold to another income- qualifying household after five years
from the recordation of the deed of trust securing the BEGIN loan.
(b)
The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on
the death of a joint tenant.
(c)
A transfer of the Property where the spouse becomes an owner of the property;
(d)
A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from
an incidental property settlement agreement by which the spouse becomes an owner of the Property.
(e)
A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of
the property.
5. EVENTS OF DEFAULT
5.1. Events of Default. Anyone or more of the following events shall constitute a default under this Deed of Trust
(a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof, whether principal, interest or
otherwise, when and as the same become due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of
Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the
Note or this Deed of Trust including but not limited to the occupancy of property by Borrower provision; or (c) the occurrence of
any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the
occurrence of any event which, under the terms of the First Note and First Deed of Trust shall entitle the Senior Lender to exercise
the rights or remedies thereunder.
5.2. Acceleration and Sale.
(a) Acceleration and Payment of Expenses. Except as provided in Section 4.7, upon Borrower's breach of
any covenant or agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured
by this Deed of Trust, upon Borrower's failure to make any payment or to perform any of its obligations, covenants and
agreements pursuant to the Note, Lender shall mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the
breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to
Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in
the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall
further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the
nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before
the date specified in the notice, Lender at Lender's option may declare all of the sums secured by this Deed of Trust to be
immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted
by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and
expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to; reasonable attorney's
fees.
(b) Borrower's Rieht to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this
Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust
discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this
Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all
sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all
reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in
this Deed of Trust, remedies including, but not limited to, reasonable attorneys' fees; and (3) Borrower takes such action as
Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and
Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and
cure by Borrower, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no
acceleration had occurred.
(c) Sale and proceeds of Sale. After delivery to Trustee of a Notice of Default and Demand for Sale and
after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and
BEGIN D of T 2009
without demand on Borrower the Trustee shall sell the Property at the time and place of sale fixed by it in said notice of
sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of
sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of
sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the
preceding postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such
sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or
warranty expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their
truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust,
Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by
the Note or otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed
of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured and to
the payment of all other sums then secured thereby, including interest as provided in this Deed of Trust, the secured
obligations or any other such instrument, in such order as the Lender shall direct; and then the remainder, if any, shall be
paid to the person or persons legally entitled thereto.
(d) Assienment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under
paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed
receiver) shall be entitled to enter upon, take possession of and manage the Property. All rents collected by Lender or the
Receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but
not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured
by this Security Instrument, Lender and the receiver shall be liable to account only for those rents actually received, The
provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the claims of prior lien holders.
5.3. Exercise of Remedies; belay. No exercise of any right or remedy by the Lender or Trustee hereunder shall
constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in
exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the
continuance of any default hereunder.
5.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby
expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefore by filing for record in
the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or
trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of appointment, no
matter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee
or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with
identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the
predecessor in the trust hereunder, with the like effect as if originally names as trustee or as one of the trustees.
5.5. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be
exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in
equity.
6. MISCELLANEOUS PROVISIONS
6.1. Successors in Interest, Assigns, Gender, Number. The covenants and agreements contained in this Deed or
Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors
and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of
any gender shall be applicable to all genders.
6.2. Headings. The headings are inserted only for convenience of reference and in no way define, limit, or describe
the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof.
6.3. Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval,
notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall
be in writing.
6.4. Terms. The words "the Lender" means the present Lender, or any future owner or holder, including pledgee of
the indebtedness secured hereby.
BEGIN D of T 2009
6.5. Oblieations of Borrower(s). If more than one person has executed this Deed of Trust as `Borrower," the
obligations of all such persons hereunder shall be joint and several.
6.6. Incorporation by References. The provisions of the BEGIN Program security instruments and the documents
relating to that program are incorporated by reference as though set out verbatim.
6.7. Severability If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.
6.8. Indemnification. Borrower will indemnify and hold the Lender, its officers and agents harmless against any and
all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of
anything done or omitted in good faith pursuant to or in connection with this Deed of Trust and not assert any claim against the
Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower's expense, defend,
indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages
(general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or
other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages,
losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this
Deed of Trust.
6.9. Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to
Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property Address
or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by
certified mail, return receipt requested, to Lender's mailing address stated herein or to such other address as Lender may designate
by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower
or Lender when given in the manner designated herein.
6.10. Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to
exceed the amount as provided by Section 2943 of the Civi l Code of California.
6.11. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as
a single family residential dwelling.
IN WITNESS WHEREOF, Borrower(s) has executed this Deed of Trust on the day and year set forth above. By signing
below, Borrower agrees to the terms and conditions as set forth above.
MAILING ADDRESS FOR NOTICES:
271 Lewis Street
(Street)
Gilroy. California 95020
(City) (State) (Zip)
BEGIN D of T 2009
Acknowledgements by Notary
Acknowledgement
STATE= OF CALIFORNIA
COUNTY OF Santa lara� SS.
On 1; � before me, Notary Public ,
d
•�- �^
personally appeared -E >�� ,4 r tltl vi r-b" e . LG se K f d ;'G ✓—� who proved to me on the basis of
sa sfgctory e jdencp to be the person(s) whose name (s) Mare subscribed to the within instrument and acknowledged to me
th 4e executed the same i n 16//*tthe ir authorized capacity(ies), and that by*h9t/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 of Notary Public JOEU -E M. P�RTEt�A
Comm. No.1890334
NOTARY pUBLIC • cAUFORNIA a
SANTA CLARA COUNV
Cantu -xp I 22, 2i
t14
BFGIN D of T 2009
Order Number: 4331- 319867 -007
Page Number: 7
LEGAL DESCRIPTION
Real property in the City of Gilroy , County of Santa Clara, State of California, described as follows:
Lot 7, as shown on that certain map entitled 'Tract No. 9867, Alexander Place ", which was filed in the
Office of the Recorder of the County of Santa Clara, State of California on May 2, 2007 in Book 813 of
Maps, Page 31 through 34.
APN: 841 -83 -007
First American Title
EXHIBIT C
[CALHOME Deed of Trust]
RECORDING REQUESTED BY
First American Title Company
AND WHEN RECORDED MAIL DOCUMENT TO:
South County Housing
P.O. Box 1977
Gilroy, Ca 95020
A.P.N.: 841 -83 -007
�iui�liuiiii�Nni'iiiuiiu��
Pages: 9
Fees. 42.00
Taxes
Copies..
AMT PAID 42 00
REGINA ALCOMENDRAS RIDE 4 012
SANTA CLARA COUNTY RECORDER 4/11/2011
Recorded at the request of 8 :00 AM
First American Title Company
Space Above This U ne for Reeorder's Use Only
File No.: 4331 - 319867 -007 (RS)
DEED OF TRUST
Document Tide
This Deed of Trust is second and subordinate to that certian deed of trust dated April 6, 2011 In favor of Guild
Mortgage in the amount of $185,000.00 recording concurrently herewith
SEPARATE PAGE PURSUANT TO GOVT CODE 27361.6
Recording requested by and
When recorded return to:
South County Housing
PO Box 1977
Gilroy CA 95021
SOUTH COUNTY HOUSING CORPORATION
CALHOME PROGRAM
FIRST -TIME HOMEBUYER
DEED OF TRUST
NOTICE TO BORROWER
THIS DEED OF TRUST CONTAINS PROVISIONS
RESTRICTING ASSUMPTIONS
Loan No.111- 00271 -007
This Deed of Trust is made on March _ 2011, by Efrain Martinez and Genevieve Prieto (the
"Borrowers ") and First American Title Company (the "Trustee "), whose business address is 1737 North
First Street Ste. 100, San Jose, Ca 95112 in favor of South County Housing Corporation ( "Lender ") or
Assignee, whose address is PO Box 1977 Gilroy, CA 95021
1. BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST
HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of
sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired in and to the
following: (a) all of that certain real property (the "Property") located at 271 Lewis Street, Gilroy, Ca 95020
(Street) (City and Zip Code)
in the County of Santa Clara, and the State of California, which is more particularly described in Exhibit A (attached) which is
incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all
appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property,
together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; all
of which are hereby pledged and assigned, transferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to
be part of the realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said
real property are not intended to be included as part of the Property.
CalHome D off 2007
South County Housing
Alexander Place
2. FOR THE PURPOSE OF SECURING:
2.1. Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated MarchA2011,
and entitled South County Housing Corporation Cal Home Program First -time Homebuyer Promissory Note "Loan No. l l l -
00271 -007" (the "Note ") of the Borrower in the principal amount of THIRTY THOUSAND DOLLARS ($30,000 , together
with simple interest on such indebtedness according to the terms of the Note, and any and all amendments, modifications,
extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the
State of California CalHome Program as set for the in the Health and Safety Code section 50650 et seq, and implementing
guidelines or regulations adopted by the California Department of Housing and Community Development, all of which are hereby
incorporated by reference.
2.2. Payment of such additional sums, with interest thereon:
(a) As may hereafter be borrowed from Lender by the then- record owner of the Property and evidenced by a
promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of
the Note; and
(b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender,
under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and
(c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust.
2.3. Performance of each obligation, covenant, and agreement of Borrower contained in this Deed of Trust, the Note,
or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to
these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference.
3. BORROWER COVENANTS:
Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by
Borrower of each and every obligation, covenant, and agreement of Borrower under the Note and this Deed of Trust, and as
additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows:
3.1. Title. That Borrower is lawfully seized of the estate hereby Conveyed and has the right to grant and convey the
Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to
any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring
Lender's interest in the Property.
3.2. Payment of Principal and Interest. That Borrower shall promptly pay, when due, the principal and interest on
the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust.
3.3. Maintenance of the Pronelt (a) To keep the Property in a decent, safe, sanitary, tenantable condition and
repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any condition causing
the Property to become less valuable; (c) remove, demolish or structurally alter any buildings and improvements now or hereinafter
located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become
damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and
governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any
violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the
Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the
Property without the Lender's written consent; and (g) not to alter the use of all or any part of the Property without the prior written
consent of the Lender.
3.4. Annear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the
security hereof or the rights or powers of the Lender or Trustee; and to pay all costs and expenses, including cost of evidence of title
and attomey's fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, and in any
suit brought by the Lender to foreclose this deed.
CalHome D of T 2007 2
South County Housing
Alexander Place
3.5. Payment of Taxes and Utility Charges. Borrower shall pay, at least ten (10) days before delinquency all taxes
and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges
and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the
Property or any part thereof; all costs, fees and expenses of this trust. Borrower shall make such payments when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and Borrower shall
promptly furnish to Lender receipts evidencing all such payments made.
3.6. Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire and
such other hazards, casualties and contingencies and by such companies on such forms and in the amount of the replacement cost of
the Property, and to deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender
evidencing payment of the premiums. All such policies provide that the Lender shall be given thirty (30) days advance written
notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it.
Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the
Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of
accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency
of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the
repair or restoration of the insured property. `
3.7. Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which
might or could become a lien on the Property or any part thereof; provided, however, that the following are excepted from this
prohibition: (a) liens for taxes and assessments which are not delinquent although by law are given the status of a lien, and (b) such
of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal
proceedings, and Borrower shall post security for the payment of these contested claims as may be requested by the Lender.
Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is
superior to this Deed of Trust.
4. IT IS MUTUALLY AGREED THAT:
4.1. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
Note and Section 2.1 shall be applied by Lender first to interest payable on the Note and then to the principal due on the Note.
4.2. Future Advances. Upon request by Borrower, Lender, at Lender's option, may make future advances to
Borrower. All such future advances, with interest thereon, shall be added to and become a part of the indebtedness secured by this
Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust.
4.3. Disbursements to Protect Lender's Security. All sums disbursed by Lender to protect and preserve the
Property, this Deed of Trust, or Lender's security for the performance of Borrower's obligations under the Note shall be and be
deemed to be an indebtedness of Borrower secured by this Deed of Trust.
4.4. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including,
but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent,
foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the
Property, then Lender, at Lender's option, upon notice to Borrower, may make,such appearance, disburse such sums and take such
action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry
upon the Property to make repairs.
Any amounts disbursed by Lender pursuant to this Section 4.4, with interest thereon, shall become additional indebtedness
of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be
payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at
the highest rate permissible under applicable law. Nothing contained in this Section 4.4 shall require Lender to incur any expense
or take any action hereunder.
4.5. Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the
inspection
CalHome D of T 2007
South County Housing
Alexander Place
4.6.- Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection
with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent
domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage
to all or any part of the Property, are hereby assigned to and shall be paid to the Lender, The Lender is authorized and empowered
(but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or
obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to
settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds
of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of
the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose
for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not
cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to
Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within
thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option,
either to restoration or repair of the Property or to the sum secured by this Deed of Trust.
4.7. Prohibition on Transfers of Interest. With the exception of the transfers permitted in Section 4.11 below, if all
or any part of the Property or an interest therein is sold or transferred by Borrower without Lender's prior written consent, Lender
may, at Lender's option, declare all the sums secured by this Security Instrument to be immediately due and payable. If Lender
exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such
notices shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums
declared due. If borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or
demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof.
4.8. Sale or Forbearance. No sale of the Property, forbearances on the part of the Lender or extension of the time
for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of
Borrower either in whole or in part.
4.9. The Lender's Rights to Release. Without affecting the liability of any person for payment of any indebtedness
hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or
guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to
time without notice: (a) The Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or
all such indebtedness. (II) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (111)
release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant
to the written request of the Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof,
join in granting any assessment thereon, or join in any such agreement of extension or subordination.
4.10. Reconveyanee. Upon payment of all sums secured by this security Instrument, Lender shall request Trustee to
reconvey the Property and shall surrender this Security Instrument and all notes evidencing indebtedness secured by this Security
Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally
entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or
facts shall be conclusive proof of the truthfulness thereof,
4.11. Requirement of Owner - occupancy and Permitted Transfers. Borrower shall occupy the Property as
Borrower's principal place of residence during the term as described in the Note. Notwithstanding any other provision of the Note
or this Deed of Trust, the following transfers shall not be deemed to be a default under the Note or this Deed of Trust:
(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on
the death of a joint tenant.
(b) A transfer of the Property where the spouse becomes an owner of the property;
(c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from
an incidental property settlement agreement by which the spouse becomes an owner of the Property,
(d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of
the property.
CalHomc D of T 2007 4
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5. EVENTS OF DEFAULT
5.1. Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust
(a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof, whether principal, interest or
otherwise, when and as the same become due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of
Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the
Note or this Deed of Trust including but not limited to the occupancy of property by Borrower provision; or (c) the occurrence of
any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the
occurrence of any event which, under the terms of the First Note and First Deed of Trust shall entitle the Lender to exercise the
rights or remedies thereunder. '
5.2. Acceleration and Sale.
(a) Acceleration. Except as provided in Section 4.7, upon Borrower's breach of any covenant or agreement
of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, upon
Borrower's failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the
Note, Lender shall mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action
required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such
breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in
acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower
of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any
other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice,
Lender at Lender's option may declare all of the sums secured by this Deed of Trust to be immediately due and payable
without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender
shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in
pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees.
(b) Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this
Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust
discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this
Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all
sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all
reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in
this Deed of Trust, remedies including, but not limited to, reasonable attorneys' fees; and (3) Borrower takes such action as
Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and
Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and
cure by Borrower, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no
acceleration had occurred.
(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale and after the expiration of
such time and the giving of such notice of default and sale as may then be required by law, and without demand on
Borrower Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to
the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may
postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to
time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding
postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such sale by
Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty
expressed or implied, The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness.
Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall
apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or
otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or
the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured and to the
payment of all other sums then secured thereby, including interest as provided in this Deed of Trust, the secured
obligations or any other such instrument, in such order as the Lender shall direct; and then the remainder, if any, shall be
paid to the person or persons legally entitled thereto.
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(d) Assienment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under
paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed
receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property
(if any) including those past due. All rents collected by Lender or the Receiver shall be applied first to payment of the
costs of management of the Property and collection of rents including, but not limited to, receiver's fees, premiums on
receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Security Instrument. Lender and the
receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and paragraph
(a) of Section 5.2 shall operate subject to the claims of prior lien holders.
5.3. Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall
constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in
exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the
continuance of any default hereunder.
5.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby
expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefore by filing for record in
the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or
trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of appointment, no
matter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee
or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with
identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the
predecessor in the trust hereunder, with the like effect as if originally names as trustee or as one of the trustees.
5.5. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be
exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in
equity.
6. MISCELLANEOUS PROVISIONS
6.1. Successors, Asshms. Gender. Number. The covenants and agreements contained in this Deed or Trust shall
bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of
the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall
be applicable to all genders.
6.2. Headings. The headings are inserted only for convenience of reference and in no way define, limit, or describe
the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof.
6.3. Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval,
notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall
be in writing.
6.4. Terms. The words "the Lender" means the present Lender, or any future owner or holder, including pledgee of
the indebtedness secured hereby.
6.5. Obligations of Borrower. If more than one person has executed this Deed of Trust as `Borrower," the
obligations of all such persons hereunder shall be joint and several.
6.6. Incorporation by References. The provisions of the CalHome Program security instruments and the documents
relating to that program are incorporated by reference as though set out verbatim.
6.7. Severabiiity. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.
6.8. Indemnification. Borrower will indemnify and hold the Lender, its officers and agents harmless against any and
all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of
anything done or omitted in good faith pursuant to or in connection with this Deed of Trust and not assert any claim against the
Cal Home D of T 2007 b
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Alexander Place
Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower's expense, defend,
indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages
(general, punitive or otherwise), causes of action (whether legal or equitable in,nature) asserted by any person, firm, corporation or
other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages,
losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this
Deed of Trust.
6.9. Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to
Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property Address
or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by
certified mail, return receipt requested, to Lender's mailing address stated herein or to such other address as Lender may designate
by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower
or Lender when given in the manner designated herein.
6.10. Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to
exceed the amount as provided by Section 2943 of the Civil Code of California.
6.11. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as
a single family residential dwelling.
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing
below, Borrower agrees to the terms and conditions as set forth above.
MAILING ADDRESS FOR NOTICES:
South County Housing
PO Box 1977
Gilroy, CA 95021
RTA
Acknowledgements Commlssissionl 118911282
Notary Public - California
Santa Clara County
my Comm. Expires Mai 28, 2014+
STATE of CALIFORNIA
County of Santa
On lt,Ptre Clara �1 I �-d betoreme, Notary ry
'�1n ii � l ���a ��( , Public
Personally appeared Efrain Martinez and Genevieve Prieto
(Name of Signer(s))
Proved to me on the basis of satisfactory evidence to be the persono whSexecuted amels id! re
subscribed the within instrument a acknowledged to me hefshee! the same
in+�islkter thei authorized capacity(Uss and that by heir ignatur n the instrument the
person(9cTed, executed the instrument.
certifY under PENALTY OF PER RY under the laws of the State of California that the foregoing paragraph is true and correct.
/ i 64
WITNESS my hand and official seal *�
LOA RZA
OLWORA Q ! 1891282
�128i' IC - California
Ma County
- COW* omm Fxn re, 4o,, IQ X01 a
;SE05� Coosdy it
CalHome D of T 2007
South County Housing
Alexander Place
Exhibit A
(Property Description)
All that certain Real Property in the County of Santa Clara, State of California, described as follows:
Lot 7, as shown on that certain map entitled 'Tract No. 9867, Alexander Place ", which was filed in the
Office of the Recorder of the County of Santa Clara, State of California on May 2, 2007 in Book 813 of
Maps, Page 31 through 34.
APN: 841 -83 -007
CalHome D of T 2007
South County Housing
Alexander Place
EXHIBIT D
[Los Arroyos Deed of Trust]
RECORDING REQUESTED BY
First American Title Company
AND WHEN RECORDED MAIL DOCUMENT TO:
South County Housing
P.O. Box 1977
Gilroy, Ca 95020
A.P.N.: 841 -83 -007
DOCUMENT: 21141498 pages 9
Fees 42 00
Taxes
AMT PAID 42 0_
RDE # 012
REGINA ALCOMENDRAS 4/11/2011
SANTA CLARA COUNTY RE CORDER AM
Recorded at the request
First American Title Company
Space Above This Line for Recorders Use Only
File No.: 4331 - 319867 -007 (RS)
DEED OF TRUST
Document Title
This Deed of Trust is Fourth and subordinate to that certian Deed of Trust dated March 6, 2011 in favor of City of
Gilroy in the amount of $25,000.00 and subordinate to that certain Second deed of trust dated March 19, 2011,
in favor of South County Housing in the amount of $30,000.00 and subordinate to that certain First Deed of
Trust dated April 6, 2011, in favor of Guild Mortgage in the amount of $185,000.00 recording concurrently
herewith
SEPARATE PAGE PURSUANT TO GOVT CODE 27361.6
Recording requested by and
When recorded return to:
South County Housing Corporation
P.O Box 1977
Gilroy, Ca 95021
Attn: Loan Packaging
South County Housing
DEED OF TRUST
NOTICE TO BORROWER
Loan No.0271- 95020 -07
This Deed of Trust is made on March 2, 2011, Efrain Martinez and Genevieve Prieto (the "Borrower ")
and First American Title Corporation (the "Trustee "), whose business address is 1737 North First Street
#100, San Jose, Ca 95112 in favor of South County Housing Corporation, a California nonprofit public
benefit corporation ( "Lender ") or Assignee, whose address is P.O. Box 1977, Gilroy, Ca 95021
1. BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST
HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of
sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired in and to the
following: (a) all of that certain real property (the "Property") located at 271 Lewis Street Gilroy CA 95020, and the State of
California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this reference; and (b) all
buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property
now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for,
changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged and assigned,
transferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty; provided, however,
that furniture and other personal property of Borrower now or hereafter situated on said real property are not intended to be
included as part of the Property.
2. FOR THE PURPOSE OF SECURING:
2.1. Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated March 2, 2011,
and entitled South County Housing Homebuyer Promissory Note "Loan No. 0271- 95020 -07" (the "Note ") of the Borrower in
the principal amount of Six Thousand Four Hundred and Thirty Four Dollars ($6,434 ), together with simple interest on such
indebtedness according to the terms of the Note, and any and all amendments, modifications, extensions or renewals of the Note.
2.2. Payment of such additional sums, with interest thereon:
(a) As may hereafter be borrowed from Lender by the then - record owner of the Property and evidenced by a
promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of
the Note; and
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(b) As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender,
under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and
(c) As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust.
2.3. Performance of each obligation, covenant, and agreement of Borrower contained in this Deed of Trust, the Note,
or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to
these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference.
3. BORROWER COVENANTS:
Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by
Borrower of each and every obligation, covenant, and agreement of Borrower under the Note and this Deed of Trust, and as
additional consideration for the obligations) evidenced by the Note, Borrower covenants as follows:
3.1. Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the
Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to
any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring
Lender's interest in the Property.
3.2. Payment of Principal and Interest. That Borrower shall promptly pay, when due, the principal and interest on
the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust.
3.3. Maintenance of the Property. (a) To keep the Property in a decent, safe, sanitary, tenantable condition and
repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any condition causing
the Property to become less valuable; (c) remove, demolish or structurally alter any buildings and improvements now or hereinafter
located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become
damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to qomply with all applicable laws, ordinances and
governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any
violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the
Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the
Property without the Lender's written consent; and (g) not to alter the use of all or any part of the Property without the prior written
consent of the Lender.
3.4. Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the
security hereof or the rights or powers of the Lender or Trustee; and to pay all costs and expenses, including cost of evidence of title
and attorney's fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, and in any
suit brought by the Lender to foreclose this deed, `
3.5. Payment of Taxes and Utility Charges. Borrower shall pay, at least ten (10) days before delinquency all taxes
and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges
and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the
Property or any part thereof; all costs, fees and expenses of this trust. Borrower shall make such payments when due, directly to the
payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and Borrower shall
promptly furnish to Lender receipts evidencing all such payments made.
3.6. Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire and
such other hazards, casualties and contingencies and by such companies on such forms and in the amount of the replacement cost of
the Property, and to deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender
evidencing payment of the premiums. All such policies provide that the Lender shall be given thirty (30) days advance written
notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it.
Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the
Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of
accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency
of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the
repair or restoration of the insured property.
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3.7. Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which
might or could become a lien on the Property or any part thereof, provided, however, that the following are excepted from this
prohibition: (a) liens for taxes and assessments which are not delinquent although by law are given the status of alien, and (b) such
of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal
proceedings, and Borrower shall post security for the payment of these contested claims as may be requested by the Lender,
Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is
superior to this Deed of Trust.
4. IT IS MUTUALLY AGREED THAT:
4.1. Application of Payments. Unless applicable law provides otherwise, ail payments received by Lender under the
Note and Section 2.1 shall be applied by Lender first to interest payable on the Note and then to the principal due on the Note.
4.2. Future Advances. Upon request by Borrower, Lender, at Lender's option, may make future advances to
Borrower. All such future advances, with interest thereon, shall be added to and become a part of the indebtedness secured by this
Deed of Trust when evidenced by promissory notes) reciting that such note(s) are secured by this Deed of Trust.
4.3. Disbursements to Protect Lender's Security. All sums disbursed by Lender to protect and preserve the
Property, this Deed of Trust, or Lender's security for the performance of Borrower's obligations under the Note shall be and be
deemed to be an indebtedness of Borrower secured by this Deed of Trust.
4.4. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this
Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including,
but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent,
foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the
Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearance, disburse such sums and take such
action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry
upon the Property to make repairs.
Any amounts disbursed by Lender pursuant to this Section 4.4, with interest thereon, shall become additional indebtedness
of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be
payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at
the highest rate permissible under applicable law. Nothing contained in this Section 4.4 shall require Lender to incur any expense
or take any action hereunder.
4.5. Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the
Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the
inspection
4.6.. Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection
with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent
domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage
to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered
(but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or
obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to
settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds
of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of
the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose
for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not
cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to
Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within
thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option,
either to restoration or repair of the Property or to the sum secured by this Deed of Trust.
4.7. Prohibition on Transfers of Interest. With the exception of the transfers permitted in Section 4.11 below, if all
or any part of the Property or an interest therein is sold or transferred by Borrower without Lender's prior written consent, Lender
may, at Lender's option, declare all the sums secured by this Security Instrument to be immediately due and payable. If Lender
4601011574949.1 3
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Los Arroyos Fund OR Neighborworks Fund
exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such
notices shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums
declared due. If borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or
demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof.
4.8. Sale or Forbearance. No sale of the Property, forbearances on the part of the Lender or extension of the time
for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of
Borrower either in whole or in part.
4.9. The Lender's Rights to Release. Without affecting the liability of any person for payment of any indebtedness
hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or
guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to
time without notice: (a) The Lender may, at its sole discretion, (1) release any person now or hereafter liable for payment of any or
all such indebtedness. (11) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (111)
release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant
to the written request of the Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof,
join in granting any assessment thereon, or join in any such agreement of extension or subordination.
4.10. Reconvevance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to
reconvey the Property and shall surrender this Security Instrument and all notes evidencing indebtedness secured by this Security
Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally
entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or
facts shall be conclusive proof of the truthfulness thereof.
4.11. Requirement of Owner - occupancy and Permitted Transfers. Borrower shall occupy the Property as
Borrower's principal place of residence during the term as described in the Note. Notwithstanding any other provision of the Note
or this Deed of Trust, the following transfers shall not be deemed to be a default under the Note or this Deed of Trust:
(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on
the death of a joint tenant.
(b) A transfer of the Property where the spouse becomes an owner of the property;
(c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from
an incidental property settlement agreement by which the spouse becomes an owner of the Property.
(d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of
the property.
5. EVENTS OF DEFAULT
5.1. Events of Default. Anyone or more of the following events shall constitute a default under this Deed of Trust
(a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof, whether principal, interest or
otherwise, when and as the same become due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of
Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the
Note or this Deed of Trust including but not limited to the occupancy of property by Borrower provision; or (c) the occurrence of
any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the
occurrence of any event which, is considered an event of default on any note or deed of trust superior to this Deed of Trust.
5.2. Acceleration and Sale.
(a) Acceleration. Except as provided in Section 4.7, upon Borrower's breach of any covenant or agreement
of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, upon
Borrower's failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the
Note, Lender shall mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action
required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such
breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in
acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower
460\0 1\574949.1 4
7 /22008
Los Arroyos Fund OR Neighborworks Fund
of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any
other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice,
Lender at Lender's option may declare all of the sums secured by this Deed of Trust to be immediately due and payable
without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender
shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in
pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees.
(b) Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this
Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust
discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this
Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all
sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all
reasonable expenses incurred by Lender and Trustee in enforcing the Covenants and agreements of Borrower contained in
this Deed of Trust, remedies including, but not limited to, reasonable attorneys' fees; and (3) Borrower takes such action as
Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and
Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and
cure by Borrower, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no
acceleration had occurred.
(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale and after the expiration of
such time and the giving of such notice of default and sale as may then be required by law, and without demand on
Borrower Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to
the highest bidder for cash in lawful money of the United States of Atherica, payable at time of sale. Trustee may
postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to
time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding
postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such sale by
Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty
expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness.
Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall
apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or
otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or
the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured and to the
payment of all other sums then secured thereby, including interest as provided in this Deed of Trust, the secured
obligations or any other such instrument, in such order as the Lender shall direct; and then the remainder, if any, shall be
paid to the person or persons legally entitled thereto.
(d) Assignment of Rents: Appointment of Receiver; Lender in Possession. Upon acceleration under
paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed
receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property
(if any) including those past due. All rents collected by Lender or the Receiver shall be applied first to payment of the
costs of management of the Property and collection of rents including, but not limited to, receiver's fees, premiums on
receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Security Instrument. Lender and the
receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and paragraph
(a) of Section 5.2 shall operate subject to the claims of prior lien holders.
5.3. Exercise of Remedies: Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall
constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in
exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the
continuance of any default hereunder.
5.4. Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby
expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefore by filing for record in
the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or
trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of appointment, no
matter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee
or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with
identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the
predecessor in the trust hereunder, with the like effect as if originally names as trustee or as one of the trustees.
460101\574949.1 5
7/2/2008
Los Arroyos Fund OR Neighborworks Fund
5.5. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended io be
exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in
equity. .
6. MISCELLANEOUS PROVISIONS
6.1. Successors, Assigns, Gender, Number. The covenants and agreements contained in this Deed or Trust shall
bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of
the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall
be applicable to all genders.
6.2. Headings. The headings are inserted only for convenience of reference and in no way define, limit, or describe
the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof.
6.3. Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval,
notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall
be in writing.
6.4. Terms. The words "the Lender" means the present Lender, or any future owner or holder, including pledgee of
the indebtedness secured hereby.
6.5. Obligations of Borrower. If more than one person has executed this Deed of Trust as "Borrower," the
obligations of all such persons hereunder shall be joint and several.
6.6. Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.
6.7. Indemnification. Borrower will indemnify and hold the Lender, its officers and agents harmless against any and
all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of
anything done or omitted in good faith pursuant to or in connection with this Deed of Trust and not assert any claim against the
Lender, its officers or agents by reason of any action so taken or omitted. Borrpwer shall, at Borrower's expense, defend,
indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages
(general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or
other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages,
losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this
Deed of Trust.
6.8. Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to
Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property Address
or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by
certified mail, return receipt requested, to Lender's mailing address stated herein or to such other address as Lender may designate
by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower
or Lender when given in the manner designated herein.
6.9. Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to
exceed the amount as provided by Section 2943 of the Civil Code of California.
6.10. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as
a single family residential dwelling.
460 \011574949.1
7/212008
Los Arroyos Fund OR Neighborworks Fund
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing
below, Borrower agrees to the terms and conditions as set forth above.
MAILING ADDRESS FOR NOTICES:
South County Housing Corporation
P.O. Box 1977
Gilroy CA 95021
Acknowledgements
STATE of CALIFO�jNIA /�
County of ,5�4nZ (,. 4 ry-
On 94reuh 20 .%O! I before me, /�(• �S� '' Notary Public
Personally appeared Efrain Martinez and Genevieve Prieto
(Name of Signe
Proved to me on the basis of satisfactory evidence to be the person@ whose name(@ is/are
subscribed to the within instrument and acknowledged tome that f /the executed the same
in hi twl their authorized capacity e0, and that by his hw /their signatureaon the instrument the
personQ) 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
STATE of CALIFORNIA
County of
On
before me,
Personally appeared
(Name of Signer(s))
M.ISRADE
Commission # 1884528
Notary Public - California
Santa Clara County
Comm. Expires A r 25, 2014 +
,Notary Public
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) acted, executed the instrument.
1 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
460 \01 \574949.1
7/2/20os
Los Arroyos Fund OR Neighborworks Fund
Exhibit A
(Property Description)
All that certain Real Property in the County of Santa Clara, State of California, described as follows:
Lot 7, as shown on that certain map entitled 'Tract No. 9867, Alexander Place ", which was filed in the
Office of the Recorder of the County of Santa Clara, State of California on May 2, 2007 in Book 813 of
Maps, Page 31 through 34.
APN: 841 -83 -007
4601011574949.1
7/2/2008
Los Arroyos Fund OR Ncighborworks Fund
EXHIBIT E
[RRA Performance Deed of Trust]
10
R�CORDINQ REQUESTED BY
FIRST AMERICAN TIT
ESCROW # 4331 = a.1a &'7"cV 7
Recording Requested and
When Recorded Mail To:
South County Housing Corporation
7455 Carmel Street
Gilroy, California 95020
Attn: Loan Processing Manager
NOTE TO BORROWER:
THIS DEED OF TRUST CONTAINS
PROVISIONS RESTRICTING ASSUMPTIONS
DOCUMENT: 21141505
Pages: 10
Fees 45 00
Taxes .
Copies
AMT PAID 45 00
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
First American Title Company
DEED OF TRUST
AND SECURITY AGREEMENT
RDE 0 012
4/11/2011
8:00 AM
THIS DEED OF TRUST AND SECURITY AGREEMENT ( "Deed of Trust ") made as of
this March 11 , 2011, among Efrain Martinez and Genevieve Prieto ( "Borrower ") as trustor, and
FIRST AMERICAN TITLE INSURANCE COMPANY ( "Trustee "), and the South County Housing
Corporation, a California nonprofit public benefit corporation (the "Corporation "), as "Beneficiary".
The Borrower, in consideration of the promises herein recited and the trust herein created,
irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with power of sale, the
property located in the City of Gilroy, State of California, described in the attached Exhibit "A"
(the "Property ").
TOGETHER with all the improvements now or hereafter erected on the property, and all
easements, rights, appurtenances, and all fixtures now or hereafter attached to the property, all of
which, including replacements and additions thereto, shall be deemed to be and remain a part of the
property covered by this Deed of Trust; and
TOGETHER with all articles of personal property or fixtures now or hereafter attached to or
used in and about the building or buildings now erected or hereafter to be erected on the Property
which are necessary to the complete and comfortable use and occupancy of such building or
buildings for the purposes for which they were or are to be erected, including all other goods and
chattels and personal property as are ever used or furnished in operating a building, or the activities
conducted therein, similar to the one herein described and referred to, and all renewals or
replacements thereof or articles in substitution therefore, whether or not the same are, or shall be
attached to said building or buildings in any manner; and all of the foregoing, together with the
Property, is herein referred to as the "Security "; -
To have and to hold the Security together with acquittances to the Trustee, its successors
and assigns forever;
TO SECURE to the Beneficiary the performance of the covenants and agreements of
Borrower obtained in that certain Option to Purchase and Resale, Refinance Agreement of even date
herewith and between the Corporation and Borrower, and recorded on the same date as this Deed of
4601011469248.2AP 9.06.09
Trust (the "Resale Agreement ") and to secure the payment of the Corporation's Equity Share (as
defined in the Resale Agreement) that may become due by Borrower to Corporation;
TO SECURE to the Corporation the repayment of the Corporation's Equity Share
evidenced by a promissory note executed by the Borrower to the Corporation dated March Lt,
2011 (the "Promissory Note ");
TO SECURE to the Corporation the payment of all other sums with interest thereon,
advanced in accordance herewith to protect the security of this Deed of Trust; and the
performance of the covenants and agreements of the Borrower herein contained; and
TO SECURE the performance of any obligations of Borrower in any other agreements with
respect to the financing of the Property or the Security the failure of which would adversely affect
Beneficiary, whether or not Beneficiary is a party to such agreements.
BORROWER AND BENEFICIARY COVENANT AND AGREE AS FOLLOWS:
1. Borrower's Estate. That Borrower is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Security, that other than this Deed of
Trust, the Security is encumbered only by: (a) those deeds of trust executed by Borrower in
connection with a loan made to Borrower by Guild Mortgage (collectively, the "Senior
Lender ") securing a promissory note executed by Borrower in favor of the MSC
Advantage /Guild Mortgage (collectively, the "Senior Lender Note "), to assist in the purchase
of the Property (the "Senior Lender Deed of Trust "), and; (b) the Resale Agreement. The
Borrower agrees to warrant and defend generally the title to the Security against all claims and
demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to
coverage in any title insurance policy insuring the Beneficiary's interest in the Security.
2. Repayment of Equity Share. The Borrower will promptly repay, when due the
amount required by the Promissory Note and pay any Equity Share due under the Resale
Agreement.
3. Assumption of Promissory Note. The Promissory Note contains the following
provisions concerning repayment of the loan under certain conditions:
- "Borrower(s) acknowledge(s) that this Promissory Note is given in connection with the
purchase of the Home as part of an effort by the Corporation to assist in the purchase of homes by
low income households. Consequently, this Promissory Note is assumable only by, the spouse or
domestic partner of Owner who inherits the Home from Owner (and who occupies the Home),
Inheriting Owners, and Non - Relative Inheriting Owners pursuant to Section S of the Resale
Agreement, The Equity Share shall be due from Borrower upon notice from the Corporation. The
Promissory Note is due in full upon all other Repayment Transfers. Before a Inheriting Owner, or
Non - Relative Inheriting Owners assumes this Promissory Note, such persons shall execute (i) a
new note, which shall be in an amount equal to the Equity Share owed by Borrower, (ii) a new deed
of trust to be recorded in the same position as the existing Deed of Trust and (iii) a new Resale
Agreement with a new thirty (30) year term in forms provided by the Corporation. Before a spouse
or domestic partner of Owner who inherits the Home from Owner (and who occupies the Home)
2
460 \01 \469248.2AP 9.06.09
assumes this Promissory Note, such persons shall execute (i) a new note, which shall be in an
amount equal to the Equity Share owed by Borrower, (ii) a new deed of trust to be recorded in the
same position as the existing Deed of Trust and (iii) a new option to purchase and resale, refinance
agreement with a term that is equal to the remaining number of years in the term of the Owner's
Resale Agreement."
4. Resale Agreement. Borrower will observe and perform all of the covenants and
agreements of the Resale Agreement.
S. Senior Lender Loans. The Borrower will observe and perform all of the Senior
Lender Deed of trust, the promissory note(s) secured by the Senior Lender Deed of trust (the "Senior
Lender Note ").
6. Charges; Liens. The Borrower will pay all taxes, assessments and other charges,
fines and impositions attributable to the Security which may attain a priority over this Deed of Trust,
by the Borrower making any payment, when due, directly to the payee thereof. The Borrower will
promptly furnish to the Beneficiary all notices of amounts due under this paragraph, and in the event
the Borrower makes payment directly, the Borrower will promptly discharge any lien which has
priority over this Deed of Trust; provided, that,the Borrower will not be required to discharge the
lien of the Senior Lender Deed of trust and the Resale Agreement or any other lien described in this
paragraph so long as the Borrower will agree in writing to the payment or performance of the
obligation secured by such lien in a manner acceptable to the Beneficiary, or will, in good faith,
contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to
prevent the enforcement of the lien or forfeiture of the Security or any part thereof.
7. Hazard Insurance. The Borrower will keep the Security insured by a standard fire
and extended coverage insurance policy in at least such amounts and for such periods as the
Beneficiary may require, which amounts shall be the lesser of (1) the sum of the loan amount under
the Promissory Note and the Senior Lender Note, or (2) the replacement cost of the Security, but in
no event less than (3) the amount necessary to prevent the Borrower from becoming a co- insurer
under the terms of the policy.
The insurance carrier providing this insurance shall be licensed to do business in the State of
California and be chosen by the Borrower subject to approval by the Beneficiary; provided, that
such approval will not be withheld if the insurer is also approved by the beneficiaries of the Senior
Lender Deed of trust (the "Senior Lender "), the Federal Home Loan Mortgage Corporation
( "FHLMC "), the Federal National Mortgage Association ( "FNMA "), the United States Department
of Housing and Urban Development ( "HUD "), the United States Department of Veterans Affairs
(the "VA "), the California Housing Finance Agency or successors thereto.
(As used in this Deed of Trust, the term "Senior Lender" shall include all successors and assigns of
any Senior Lender.)
All insurance policies and renewals thereof will be in a form acceptable to the Beneficiary
and will include a standard mortgagee clause with standard lender's endorsement in favor of the
holder of the Senior Lender Note and the Beneficiary as their interests may appear and in a form
acceptable to the Beneficiary. The Beneficiary shall have the right to hold, or cause its designated
460 \01\469248.2AP 9.06.09
agent to hold, the policies and renewals thereof, and the Borrower shall promptly furnish to the
Beneficiary, or its designated agent, the original insurance policies or certificates of insurance, all
renewal notices and all receipts of paid premiums. In the event of loss, the Borrower will give
prompt notice to the insurance carrier and the Beneficiary or its designated agent. The
Beneficiary, or its designated agent, may make proof of loss if not made promptly by the
Borrower. The Beneficiary shall receive thirty days advance notice of cancellation of any
insurance policies required under this Section.
Unless the Beneficiary and the Borrower otherwise agree in writing, insurance proceeds,
subject to the rights of the Senior Lender, will be applied to restoration or repair of the Security
damaged, provided such restoration or repair is economically feasible and the Security of this Deed
of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the
security of this Deed of Trust would be impaired, the insurance proceeds will be used, subject to the
rights of the Senior Lender, to repay the Promissory Note and pay all sums secured by this Deed of
Trust, with the excess, if any, paid to the Borrower. If the Security is abandoned by the Borrower,
or if the Borrower fails to respond to the Beneficiary, or its designated agent, within thirty (30) days
from the date notice is mailed by either of them to the Borrower that the insurance carrier offers to
settle a claim for insurance benefits, the Beneficiary, or its designated agent, is authorized, subject to
the rights of the Senior Lender, to collect and apply the insurance proceeds at the Beneficiary's
option either to restoration or repair of the Security or to repay the Promissory Note and all sums
secured by this Deed of Trust.
If the Security is acquired by the Beneficiary, all right, title and interest of the Borrower in
and to any insurance policy and in and to the proceeds thereof resulting from damage to the
Security prior to the sale or acquisition will pass to the Beneficiary to the extent of the sums
secured by this Deed of Trust immediately prior to such sale or acquisition, subject to the rights of
the Senior Lender,
8. Preservation and Maintenance of Security. The Borrower will keep the Security in
good repair and will not commit waste or permit impairment or deterioration of the Security.
9. Protection of the Beneficiary's Security. If the Borrower fails to perform the
covenants and agreements contained in this Deed of Trust, the Senior Lender Note, the Senior
Lender Deed of trust, or the Resale Agreement, or if any action or proceeding is commenced which
materially affects the Beneficiary's interest in the Security, including, but not limited to, default
under any Senior Lender Deed of trust, any Senior Lender Note, the Resale Agreement, or any other
deed of trust encumbering the Property, eminent domain, insolvency, code enforcement, or
arrangements or proceedings involving a bankrupt or decedent, then the Beneficiary, at the
Beneficiary's option, upon notice to the Borrower, may make such appearances, disburse such sums
and take such action as it determines necessary to protect the Beneficiary's interest, including but
not limited to, disbursement of reasonable attorneys' fees and entry upon the Security to make
repairs.
Any amounts disbursed by the Beneficiary pursuant to this paragraph, with interest thereon,
will become an indebtedness of the Borrower secured by this Deed of Trust. Unless the Borrower
and Beneficiary agree in writing to other terms of payment, such amount will be payable upon
notice from the Beneficiary to the Borrower requesting payment thereof, and will bear interest from
4
460N01\469248.2AP 9.06.09
the date of disbursement at the rate payable from time to time under the Promissory Note following
default, unless payment of interest at such rate would be contrary to applicable law, in which event
such amounts will bear ,interest at the highest rate permissible under applicable law. Nothing
contained in this paragraph will require the Beneficiary to insure any expense or take any action
hereunder.
10. Inspection, The Beneficiary may make or cause to be made reasonable entries upon
and inspections of the Security; provided that the Beneficiary will give the Borrower reasonable
notice of inspection.
11. Forbearance by the Beneficiary Not a Waiver. Any forbearance by the Beneficiary in
exercising any right or remedy will not be a waiver of the exercise of any such right or remedy. The
procurement of insurance or the payment of taxes or other liens or charges by the Beneficiary will
not be a waiver of the Beneficiary's right to accelerate the maturity of the indebtedness secured by
this Deed of Trust.
12. Remedies Cumulative. All remedies provided irl this Deed of Trust are distinct and
cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded
by law or equity, and may be exercised concurrently, independently or successively.
13. Successors and Assigns Bound. The covenants and agreements herein contained
shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the
Beneficiary and the Borrower subject to the provisions of this Deed of Trust.
14. Joint and Several Liability. All covenants and agreements of the Borrower shall be
joint and several.
15. Notice. Except for any notice required under applicable law to be given in another
manner, all notices required in this Deed of Trust shall be sent by certified mail, return receipt
requested or express delivery service with a delivery receipt, or personally delivered with a delivery
receipt obtained, and shall be deemed to be effective as of the date shown on the delivery receipt as
the date of delivery, the date delivery was refused, or the date the notice was returned as
undeliverable as follows:
To the Owner:
Efrain Martinez and Genevieve Prieto
271 Lewis Street
Gilroy, Ca 95020
To the Corporation:
If by express or personal delivery:
South County Housing Corporation
7455 Carmel Street
Gilroy, California 95020
Attn: Housing Development Director
4601011469248.2AP 9.06.09
If by mail:
South County Housing Corporation
P.O. Box 1977
Gilroy, California 95021
Attn: Housing Development Director
The parties may subsequently change addresses by providing written notice of the change in
address to the other parties in accordance with this Section.
16. Controlling Law. This Deed of Trust shall be construed in accordance with and be
governed by the laws of the State of California.
17. Invalid Provisions. If any one or more of the provisions contained in this Deed of
Trust or the Promissory Note shall for any reason be held to be invalid, illegal or unenforceable in
any respect, then such provision or provisions shall be deemed severable from the remaining
provisions, and this Deed of Trust and the Promissory Note shall be construed as if such invalid,
illegal or unenforceable provision had never been contained in this Deed of Trust or the Promissory
Note.
18. Captions. The captions and headings in this Deed of Trust are for convenience only
and are not to be used to interpret or define the provisions hereof.
19. Indemnity. Borrower agrees to defend, indemnify, and hold the Corporation and its
board members, officers, agents and employees harmless from all losses, damages, liabilities,
claims, actions judgments, costs and reasonable attorneys fees that Corporation and its board
members, officers, agents and employees may incur as a direct or indirect consequence of:
a. the making of the loan evidenced by the Promissory Note to Borrower;
b. Borrower's failure to perform any obligations as and when required by the
Promissory Note and Deed of Trust; or
C. the failure at any time of any Borrower's certifications, representations, or
warranties to be true and correct.
20. Default; Remedies. Upon the Borrower's breach of any covenant or agreement of the
Borrower in this Deed of Trust, including, but not limited to, the covenants to pay, when due, any
sums secured by this Deed of Trust, the Beneficiary, prior to acceleration, will send, in the manner
set forth in Section 15 of this Deed of Trust, notice to the Borrower specifying: (1) the breach; (2)
the action required to cure such breach; (3) a date, not less than thirty (30) days from the date the
notice is effective as set forth in Section 15 of this Deed of Trust, by which such breach is to be
cured; and (4) that failure to cure such breach on or before the date specified in the notice may result
in acceleration of the sums secured by this Deed of Trust and sale of the Security. The notice will
also inform the Borrower of the Borrower's right to reinstate after acceleration and the right to.bring
a court action to assert the nonexistence of default or any other defense of the Borrower to
acceleration and sale. If the breach is not cured on or before the date specified in the notice, the
460 \01\469248.2AP 9,06.09
Beneficiary, at the Beneficiary's option, may: (a) declare all of the sums secured by this Deed of
Trust to be immediately due and payable without further demand and may invoke the power of sale
and any other remedies permitted by California law; (b) either in person or by agent, with or
without bringing any action or proceeding, or by a receiver appointed by a court, and without regard
to the adequacy of its security, enter upon the Security and take possession thereof (or any part
thereof) and of any of the Security, in its own name or in the name of the Trustee, and do any acts
which it deems necessary or desirable to preserve the value or marketability of the Security, or part
thereof or interest therein, increase the income therefrom or protect the security thereof. The
entering upon and taking possession of the Security shall not cure or waive any breach hereunder or
invalidate any act done in response to such breach and, notwithstanding the continuance in
possession of the Security, the Beneficiary shall be entitled to exercise every right provided for in
this Deed of Trust, or by law upon occurrence of any uncured breach, including the right to exercise
the power of sale; (c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a
receiver, or specifically enforce any of the covenants hereof; (d) deliver to the Trustee a written
declaration of default and demand for sale, pursuant to the provisions for notice of sale found at
California Civil Code Sections 2924, et seq., as amended from time to time; or (e) exercise all other
rights and remedies provided herein, in the instruments by which the Borrower acquires title to any
Security, or in any other document or agreement now or hereafter evidencing, creating or securing
all or any portion of the obligations secured hereby, or provided by law.
The Beneficiary shall be entitled to collect all reasonable costs and expenses incurred in
pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorneys'
fees.
21. Acceleration. Upon the occurrence of a default under the Promissory Note or this
Deed of Trust, the Beneficiary shall have the right to declare the full amount of the principal along
with any interest under the Promissory Note immediately due and payable. Any failure by the
Beneficiary to pursue its legal and equitable remedies upon default shall not constitute a waiver of
the Beneficiary's right to declare a default and exercise all of its rights under the Promissory Note
and this Deed of Trust. Nor shall acceptance by the Beneficiary of any payment provided for in the
Promissory Note constitute a waiver of the Beneficiary's right to require prompt payment of any
remaining principal and interest owed.
22. Borrower's Right to Reinstate. Notwithstanding the Beneficiary's acceleration of the
sums secured by this Deed of Trust, the Borrower will have the right to have any proceedings begun
by the Beneficiary to enforce this Deed of Trust discontinued at any time prior to five (5) days
before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any
time prior to entry of a judgment enforcing this Deed of Trust if: (a) the Borrower pays Beneficiary
all sums which would be then due under this Deed of Trust and no acceleration under the
Promissory Note has occurred; (b) the Borrower cures all breaches of any other covenants or
agreements of the Borrower contained in this Deed of Trust; (c) the Borrower pays all reasonable
expenses incurred by Beneficiary and the Trustee in enforcing the covenants and agreements of the
Borrower contained in this Deed of Trust, and in enforcing the Beneficiary's and the Trustee's
remedies, including, but not limited to, reasonable attorney's fees; and (d) the Borrower takes such
action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust,
Beneficiary's interest in the Security and the Borrower's obligation to pay the sums secured by this
Deed of Trust shall continue unimpaired. Upon such payment and cure by the Borrower, this Deed
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460 \01 \469248.2AP 9.06.09
of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration
had occurred.
23. Reconveyance. Upon payment or forgiveness of all sums secured by this Deed of
Trust and upon the expiration of the term of the Resale Agreement, if the Borrower owns and
occupies the Property and is not in violation of any provisions of the Note, this Deed of Trust or the
Resale Restriction Agreement, the Beneficiary will request Trustee to reconvey the Security and will
surrender this Deed of Trust and the Resale Restriction Agreement to Trustee. Trustee will
reconvey the Security without warranty and without charge to the person or persons legally entitled
thereto. Such person or persons will pay all costs of recordation, if any.
24. Substitute Trustee. The Beneficiary, at the Beneficiary's option, may from time to
time remove the Trustee and appoint a successor trustee to any trustee appointed hereunder. The
successor trustee will succeed to all the title, power and duties conferred upon the Trustee herein
and by applicable law.
25. Subordination to Senior Lender Deeds of Trust. Notwithstanding any other provision
hereof, the provisions of this Deed of Trust shall be subordinate to the lien of the Senior Lender
Deed of trust and shall not impair the rights of the Senior Lender, or the Senior Lender's successors
or assigns, to exercise remedies under the Senior Lender Deed of trust in the event of default under
the Senior Lender Deed of trust by the Borrower. Such remedies under the Senior Lender Deed of
trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure.
After such foreclosure or acceptance of a deed or assignment in lieu of foreclosure, this Deed of
Trust shall be forever terminated and shall have no further effect as to the Property or any transferee
thereafter; - provided, however, if the holder of such Senior Lender Deed of trust acquired title to the
Property pursuant to a deed or assignment in lieu of foreclosure, this Deed of Trust shall
automatically terminate upon such acquisition of title, only if either a notice of default was recorded
under the applicable Senior Lender Deed of Trust, or, if no notice of default was recorded, (i) the
Beneficiary has been given written notice of default under such Senior Lender Deed of trust (which
requirement shall be satisfied by notice of default required by California Civil Code Section 2924)
and (ii) the Beneficiary shall not have cured the default within the period provided by law.
Borrower agrees to record any necessary documents to effect such termination, if applicable.
26. Attorney. If any action or proceeding is brought to enforce this Deed of Trust
or any provision of this Deed of Trust, or the Promissory Note, the prevailing party shall be entitled
to its attorneys' fees and the cost of such action or proceeding.
27. Nonliability. Borrower acknowledges, understands and agrees that the relationship
between Borrower and the Beneficiary is solely that of an Borrower and the administrator of an
affordable housing program, and that the Beneficiary does not undertake or assume any
responsibility for or duty to Borrower to select, review, inspect, supervise, pass judgment on, or
inform Borrower of the quality, adequacy or suitability of the Security or any other matter. The
Beneficiary owes no duty of care to protect Borrower against negligent, faulty, inadequate or
defective building or construction or any condition of the Security and Borrower agrees that neither
Borrower, or Borrower's heirs, successors or assigns shall ever claim, have or assert any right or
action against the Beneficiary for any loss, damage or other matter arising out of or resulting from
8
460 \01 \46924&2AP 9.06.09
any condition of the Security and will hold Beneficiary harmless from any liability, loss or damage
for these things.
28. Exhibits. Any exhibits referred to in this Deed of Trust are incorporated by such
reference.
IN WITNESS WHEREOF, the Borrower has executed this Deed of Trust as of the date
first written above.
STATE of CA RNI /� }}
County of K (_".101dA
On 1"NAtr.J C\A kcl, Z0 (t before me, n_ O V la„ �_J`� ��' Notary Public
Personally appeared_ Efrain Martinez and Genevieve Prieto
(Name of Signer(s))
Proved to me on the basis of satisfactory evidence to be the persorQ w e name@ We
subscribed he within instrument and acknowledged to mgAlAt th xecuted the same
.kr't�i T r heir uthorized capacity es and that by i their ignatur s n the instrument
the perso ed, executed the ins rument.
I certi under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
I �ZJ
WIT NE S
C my hand and official seal
• C811110tA111
t County
GLORIA ORTA
Commiaalon # 1891282
Notary Public - Cailforrds
Santa Ctara County
My Comm. Ex irea May 26, 201 �
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460 \01 \469248.2AP 9.06.09
EXHIBIT A
Property Description
All that certain Real Property in the County of Santa Clara, State of California, described as follows:
Lot 7, as shown on that certain map entitled 'Tract No. 9867, Alexander Place ", which was filed in the
Office of the Recorder of the County of Santa Clara, State of California on May 2, 2007 in Book 813 of
Maps, Page 31 through 34.
APN: 841 -83 -007
A -1
4601011469248.2 7.30.2007
EXHIBIT F
[Resale Restriction Agreement]
11
Recording Requested By
First American Tit! qv-O 1
� l
Esorow No. � � �i
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
South County Housing Corporation
7455 Carmel St
Gilroy, CA 95020
Attention: Loan Processing Manager
DOCUMENT: 21141494
Pages 34
1 Fees . 216 00
Taxes...
1
AMT PAID 2 61 00
REGINA ALCOMENDRAS 4/} RDE 0 012
012
SANTA CLARA COUNTY RECORDER g:00 AM
Recorded at the request of
First American Title Company
NOTICE TO SELLERS, PURCHASERS, LENDERS, TITLE COMPANIES:
THE RECORDED RESTRICTIONS ON THIS PROPERTY REGULATE
AND LIMIT ITS VALUE AND USE FOR THIRTY (30) YEARS
Your purchase of the property subject to this Option to Purchase and Resale, Refinance
Agreement (Agreement) was made possible due to a financial contribution in the form of a
Below Market Financing that you received through the assistance of South County Housing
Corporation. In return for the Below Market Financing, South County requires that you enter
into this Agreement that limits the amount of equity you will receive when you resell your home
and provides the Corporation with an option to purchase the Home. Affected parties include,
but are not limited to, the property Owner, the potential purchaser, lenders, title companies and
related businesses and individuals
The purpose of the Agreement is to ensure that these homes will be maintained in good condition
and that South County Housing recovers the Below Market Financing invested in the Home and
a portion of the appreciation, the Equity Share, with the intention of providing the opportunity
for the Home to remain affordable to future purchasing households who do not exceed low -
income.
Please read these Restrictions carefully before selling, purchasing, making a loan secured by
the property or insuring the title of the property. If you have any questions, contact South
County Housing.
Summary: Option to Purchase and Resale, Refinance Agreement
IMPORTANT NOTICE TO BUYER: You are about to purchase a home that is being made
affordable to you. Making the home affordable to low - income households, such as yours was
made possible with the assistance of Below Market Financing obtained by South County Housing.
The purpose of the following Option to Purchase and Resale, Refinance Agreement
( "Agreement ") is to ensure that homes like yours will be maintained in good condition, that
South County has the opportunity to recover the Below Market Financing and the Equity Share
and the opportunity to keep the Home affordable to future low income home buyers.
The restrictions in this Agreement:
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100109 - 04706012
1) Require that,you share the equity you receive upon resale of the Home with South
County Housing. The amount of equity required to be paid to South County Housing is set forth
in the formula in the Promissory Note.
2) Limit your ability to refinance first mortgage loan(s) and borrow against
your home.
3) Limit your ability to rent out your home.
4) Require you to maintain your home.
Finally, by signing this Agreement you are giving South County Housing Corporation (the
"Corporation ") an Option to purchase your home. This means that if you decide to sell your
home, and the Corporation wants to buy it, you must sell your home to the Corporation and to
no one else.
Please read this entire Agreement carefully and ask questions as needed before signing it to be
sure you thoroughly understand the restrictions and your obligations.
ACKNOWLEDGMENT UNDER PENALTY OF PERJURY: I/We certify, under penalty of
perjury that: (1) I/We have read and had explained to me /us the entire Option to Purchase and
Resale, Refinance Agreement prior to signing; and, (2) I/We have had sufficient time to consult
my financial, legal or other advisers concerning its contents and terms, and have consulted such
advisers to the extent I/We had any uncertainty about its meaning; and, (3) I/We understand
and agree to all the terms of the Option to Purchase and Resale, Refinance Agreement and
signify that understanding by my /our signature below.
Prieto
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Date
OPTION TO PURCHASE AND RESALE, REFINANCE AGREEMENT
PREAMBLE
This Option to Purchase and Resale Refinance Agreement (the "Agreement ") is entered into
as of this 11 day of March, 2011, by and between the South County Housing Corporation, a
California nonprofit public benefit corporation (the "Corporation ") and Efrain Martinez and
Genevieve Prieto (the "Owner ").
Recitals below refer to and utilize certain capitalized terms which are defined in Section 1 of this
Agreement. The Parties intend to refer to those definitions in conjunction with the use of capitalized
terms in these Recitals and throughout this Agreement.
RECITALS
The Home, as described in Attachment l is a part of the Alexander Place Development;
2. The Corporation has made Below Market Financing (as defined in Section 1, below)
available to Owner, which has made it possible for the Owner to purchase a home (the "Home ") in the
Alexander Place Project (the "Development "). The Below Market Financing represents Twenty -Four
and Six Tenths Percent (24.6 %) of the Original Purchase Price of the Home (the "BMR Percentage ").
3. The parties agree that, to reimburse Corporation for making Below Market Financing
available to Owner, Corporation will receive its Equity Share (as defined herein and in the Promissory
Note) from any Repayment Transfer pursuant to a formula further set forth herein and in the Promissory
Note executed by Owner in favor of Corporation..
4. The Corporation will share in a portion of the sales proceeds ( "Equity Share ") upon
Repayment Transfer of the Home in the first fifteen years after close of escrow on sale of the home to
the Owner (the "Closing ") which portion shall be equal to one hundred percent (100 %) the BMR
Percentage. Beginning on the day after the fifteenth (15`h) anniversary after close through the thirtieth
(30`h) anniversary of close, the Equity Share percentage paid to Corporation shall be fifty percent (50 %)
of the BMR Percentage. After the thirtieth (30`h) anniversary of the Closing, the Corporation shall not
be entitled to any Equity Share upon the occurrence of a Repayment Transfer.
5. The Corporation desires to protect the amount provided to Owner as Below Market
Financing in order to provide affordable homes to other low income households in the future.
6. The Corporation desires to ensure that the long term physical condition and structural
integrity of the Home is maintained, through the covenants and restrictions contained in this Agreement
that address the long term maintenance of the Home.
7. The Owner has qualified for purchase of the Home with the Owner's combined
household income at or below eighty percent (80 %) of median income and both the purchase price and
the monthly housing cost have been determined by the Corporation to be at a level that is affordable to
low- income home buyers.
4
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8. The Home is being purchased by the Owner with full knowledge of the requirements of
this Agreement.
9. This Agreement and the accompanying note ("Promissory Note ") is secured by a deed of
trust recorded against the Home ( "Deed of Trust "). This Agreement and the Deed of Trust shall be
subordinate to the lien of the Senior Lender Deed of Trust.
Owner acknowledges the public and charitable purpose of the Agreement. Owner further acknowledges
that Owner could not purchase this home without assistance from the Corporation in the form of Below
Market Financing. Owner therefore agrees to purchase the Home pursuant to the requirements of this
Agreement and agrees to execute and comply with this Agreement in consideration for being given the
opportunity to purchase the Home with the benefit of the Below Market Financing. Owner agrees that
if Owner wishes to sell this Home in the future the Owner has granted to the Corporation or the
Corporation's assignee the Option to Purchase the Home in accordance with the terms of this Agreement
and that further upon resale of the Home, the Corporation is entitled to a share of the sales proceeds in
accordance with the terms of this Agreement and the Note.
SECTION 1. DEFINITIONS
The following terms are specially defined for this Agreement:
Agreement shall mean this Option to Purchase and Resale, Refinance Agreement.
Area Median Income shall mean the yearly median income adjusted for a household size in
Santa Clara County, as established by HUD and as updated annually and periodically published by the
State of California Department of Housing And Community Development (HCD).
Assignee shall mean the person or persons, governmental agency or nonprofit organization that
is assigned the right to purchase the Home by the Corporation.
Below Market Financing shall mean financing with below market interest rates and /or terms
provided or secured by Corporation for the benefit of Owner and other low income Owners.
City shall mean the City of Gilroy, a municipal corporation.
Corporation shall mean South County Housing Corporation, a California nonprofit public
benefit corporation.
Deed of Trust shall mean the deed of trust which secures this Agreement and the Promissory
Note, and which is to be executed by the Owner in favor of the Corporation and recorded at the time of
purchase against the title of the Home in the Recorder's Office of the County of Santa Clara, California.
Down payment shall have the meaning set forth in Section 2.
Effective Date shall mean the date of execution of this Agreement.
Equity Share shall mean the portion of the sales proceeds upon a Repayment Transfer to be paid
to the Corporation. In the first fifteen (15) years after the Closing, the Equity Share shall be equal to one
WPAPP1801978.5
10010904706012
hundred percent (100 %) the BMR Percentage. Beginning on the day after the fifteenth (15`h) anniversary
after close through the thirtieth (30`h) anniversary of close, the Equity Share shall be fifty percent (50 %)
of the BMR Percentage. After the.thirtieth (30`h) anniversary of the Closing, the Corporation shall not be
entitled to any Equity Share upon the occurrence of a Repayment Transfer.
Escrow shall mean an escrow established with a title company for the purpose of providing title
insurance and transferring the title of the property from the Owner to the Corporation or the Assignee.
Home shall mean the real property described in Attachment 1 consisting of one unit in the
Alexander Place Development.
Inheriting Owner shall mean the child, sibling or parent of the Owner who shall succeed to the
Owner's interest and obligations under this Agreement, the Promissory Note and Deed of Trust.
Low - Income Household shall mean a household whose annual income is no more than eighty
percent (80 %) of Area Median Income.
Market Value shall mean the value of local homes on the open real estate market, and which are
similar in size, location and other factors to the Home, but which are not restricted by the terms of this
Agreement. The Market Value shall be determined in accordance with Section 7 below.
Notice of Intent to Exercise Option shall mean the written notice from the Corporation -to
Owner in the form as attached to this Agreement as Attachment 6 of the Corporation's intent to exercise
the Option to Purchase the Home. The Notice of Intent to Exercise Option shall be delivered in
accordance with Section 21.
Notice of Intended Transfer shall mean the written notice from the Owner to the Corporation in
the form as attached to this Agreement as Attachment 3, and delivered in accordance with Section 21 of
this Agreement, evidencing the Owner's desire to Transfer the Home.
Option to Purchase (also "Option ") shall mean the Option to Purchase the Home pursuant to
Section 6 of this Agreement.
Original Purchase Price shall mean the price being paid for the Home by the Owner, more
particularly described in Section 2.
Other Deed of Trust shall mean any deed of trust recorded against title to the Home that is
recorded after the Deed of Trust and that is junior in lien priority to the Deed of Trust.
Other Transfer shall mean a transfer (i) to an existing spouse or domestic partner who is also an
obligor under the Promissory Note; (ii) by a Owner to a spouse or domestic partner where the spouse or
domestic partner either inherits the Home from the Owner or becomes the co -owner of the Home; (iii)
between spouses as part of a marriage dissolution proceeding, (iv) by the Owner into an inter vivos trust
in which the Owner is the beneficiary; (v) by recordation of an Other Deed of Trust.
Owner shall mean the person or persons so named in the preamble of this Agreement.
Parties shall mean the parties to this Agreement, the Owner and the Corporation
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Promissory Note shall mean the promissory note executed by the Owner in favor of the
Corporation evidencing the Owner's obligation to pay the Equity Share upon certain circumstances.
Qualified Purchaser shall mean a household (i) who has been selected or approved by the
Corporation to purchase the Home (ii) who has been verified by the Corporation to meet the definition
of "Low Income Household" as defined elsewhere in the Agreement (iii) no member of which has had
an ownership interest in residential real estate at any time during the three (3) years prior to the date of
this Agreement (iv) who will occupy the Home as their principal residence and (v) who will agree to
execute a new promissory note (or notes), deed (or deeds) of trust and resale, refinance and option to
purchase in forms provided by the Corporation.
Refinance shall mean the act of obtaining any new loan and discharging any Senior
Lender Loan, in whole or in part, with the proceeds from such new loan.
Repairs shall mean those items the Corporation wants replaced, repaired or otherwise corrected
or deferred maintenance on the Home that the Corporation wants repaired, and the Corporation's
estimate of the costs of the items, for the purpose of selling the Home. Repairs may include, but are not
limited to, cleaning, painting, replacing worn carpeting, making necessary structural, mechanical,
electrical and plumbing repairs and repairing or replacing built -in appliances.
Repayment Transfer shall mean any sale, assignment or transfer, voluntary or involuntary, of
any interest in the Home, including, but not limited to, a fee simple interest, a joint tenancy interest, a
life estate, or an interest evidenced by a land contract by which possession of the Home is transferred
and Owner retains title. A Repayment Transfer shall not include an Other Transfer.
Request for Refinance shall mean the written notice from the Owner to the Corporation in the
form attached to this Agreement as Attachment 8, requesting approval of a Refinance. The Owner shall
deliver the Request for Refinance in accordance with Section 21 of this Agreement.
Response Notice shall mean the notice sent to Owner upon the Corporation's receipt of the
Notice of Intent to Transfer in the form attached to this Agreement as Attachment 3. The Corporation
shall deliver the Response Notice in accordance with Section 21 of this Agreement. The form of
Response Notice is attached to this Agreement as Attachment 4.
Senior Lender shall mean any lender of a Senior Lender Loan. There may be more than one
Senior Lender.
Senior Lender Deed of Trust shall mean a deed of trust that shall secure a Senior Lender
Loan and that shall be recorded against the Home senior to and prior to the Deed of Trust. There
may be more than one Senior Lender Deed of Trust.
Senior Lender Loan shall mean the first mortgage or any other purchase money loan that is
secured by a Senior Deed of Trust.
Term shall mean the term of this Agreement as defined in Section 2.
7
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SECTION 2. DESCRIPTION OF PROPERTY; TERM OF AGREEMENT
This Agreement concerns the real property commonly known as 271 Lewis Street Gilroy,
California, APN: 841 -83 -007, which is more fully described in Attachment 1 of this Agreement
(the "Home ").
The Term of this Agreement shall start as of the Effective Date and shall expire on the
earliest of: (i) thirty (30) years after the Effective Date or (ii) the date the Owner makes a
Repayment Transfer of the Home in compliance with the terms of this Agreement.
The Original Purchase Price for the Home is Two Hundred and Fifty Thousand Dollars
($250,000) which amount includes the down payment amount, exclusive of closing costs, paid by
the Owner upon purchase. Said down payment shall be Two Thousand Six Hundred Dollars
($2,600) ( "Down Payment ").
SECTION 3. OWNER CERTIFICATIONS
The Owner certifies that:
The financial and other information previously provided by Owner to the Corporation in order
to qualify as a Qualified Purchaser is true and correct as of the Effective Date.
Owner does not own any other residential property as of the Effective Date.
Owner will occupy the Home as the Owner's principal place of residence.
Owner has not, and will not, execute any other agreement with provisions contradictory to or in
opposition to the provisions of this Agreement and agrees that this Agreement is controlling as to the
rights and obligations between and among Owner, the Corporation and their respective successors.
The Owner agrees to fully cooperate with the Corporation in promptly providing information
requested by the Corporation to assist in monitoring the Owner's compliance with this Agreement.
Owner agrees to cooperate with the annual certification of Owner's occupancy of the Home and will
provide a copy of the Owner's hazard insurance policy to the Corporation annually.
Throughout the Term of this Agreement, Owner shall be in default in the event that any of the
above certifications made by Owner are not or are no longer true or correct.
SECTION 4. OWNER OCCUPANCY; LEASING
Owner shall occupy and use the Home only for residential purposes in accordance with all
applicable laws and regulations. Owner shall occupy the Home as Owner's principal place of residence.
Owner shall be considered as occupying the Home if Owner is living in the Home for at least ten (10)
months out of each calendar year. On or before July 1 of each calendar year, the Owner shall provide
an annual written certification to the Corporation in the form shown as Attachment 2, that the Owner is
occupying the Home as his or her principal place of residence.
Any rental or lease of the Home in violation of this Agreement is prohibited, and shall be a
8
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100109- 04706012
default under this Agreement and the Deed of Trust.
SECTION 5. OTHER TRANSFERS AND INHERITANCES
A. Transfers of the Home must comply with the terms and provisions of this Agreement.
Owner shall provide the Corporation with written notice of an Other Transfer no later than thirty (30)
days before the Other Transfer occurs except where the Other Transfer is by inheritance after death of
the Owner in which event notice shall be provided as required pursuant to subsection (B) below.
In the event of an Other Transfer, Owner shall continue to occupy the Home as his or her
principal place of residence except if the Other Transfer is between spouses as part of a marriage
dissolution proceeding or by inheritance from Owner to owner's spouse or domestic partner. If the
Other Transfer is between spouses as part of a marriage dissolution proceeding or the spouse or
domestic partner of the Owner inherits the Home from the Owner, the transferee shall owner - occupy the
Home and assume Owner's obligations under the Promissory Note and Deed of Trust and this
Agreement. In order to evidence the assumption of the Owner's obligations under the Promissory Note,
Deed of Trust and the Agreement, the Corporation may require the transferee to execute a new note and
a new deed of trust, and a new Option to Purchase and Resale, Refinance Agreement, and/or an
assumption agreement.
B. Inheritance. In the event a transfer occurs by devise or inheritance due to death of the
Owner, the administrator of the Owner's estate, the trustee of Owner's trust or the person inheriting the
Home shall provide written notice to the Corporation of the Owner's death within thirty (30) days of the
date of death and the following procedures shall apply:
(1) If the person inheriting the Home is an Inheriting Owner , the Inheriting Owner
shall succeed to the Owner's interest and obligations under this Agreement, the Promissory Note and the
Deed of Trust. In order to evidence the assumption of the Inheriting Owner's obligations under the
Promissory Note, Deed of Trust and the Agreement, the Corporation may require the transferee to
execute a new note and a new deed of trust, and a new Option to Purchase and Resale, Refinance
Agreement, and/or an assumption agreement. The new resale restrictions agreement and option to
purchase between Inheriting Owner and Corporation shall have a thirty (30) year term that shall
commence upon the recordation of such new agreement. Notwithstanding the foregoing, nothing
herein shall be deemed to obligate Corporation or any other lender to continue to offer a Below Market
Financing to such Inheriting Owner, if such Inheriting Owner would not otherwise qualify for such
loan.
(2) If the person inheriting the Home is not an Inheriting Owner ( "Non- Relative
Inheriting Owner "), the Corporation shall have the right to exercise its Option pursuant to Section 6.
The Non - Relative Inheriting Owner shall cooperate with the Corporation exercising its Option to
Purchase and completing the process as outlined in the Sales Process described in the following
Sections 7 and 8.
(3) Failure of an Inheriting Owner to follow the procedures and file the notices
described in this Section shall constitute a Default under this Agreement and the Corporation may then
exercise any of the remedies set forth in Section 13 below, including, without limitation, exercise of the
Option upon Default set forth in Section 14.
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SECTION 6. CORPORATION HAS OPTION TO PURCHASE
Owner grants to the Corporation or its Assignee and the City (as a third party beneficiary) an
Option to Purchase the Home, at the Market Value (as calculated in the manner set forth in Section 7 of
this Agreement) under the terms of this Agreement. This option to purchase is given in consideration
of the economic benefits received by the Owner resulting from purchase and ownership of the Home.
Owner further agrees that the Corporation or its Assignee shall have the right to exercise the Option to
Purchase and purchase the Home upon the occurrence of the following events:
A. Receipt by the Corporation of "Notice of Intent to Transfer" which is a request from
Owner that the Corporation or Assignee purchase the Home (in accordance with Section 7).
B. The Corporation's declaration of an uncured default of this Agreement in accordance
with Section 13 of this Agreement.
C. The Corporation's receipt of a notice of default on a Senior Lender Loan or Other Loan.
D. If upon the death of the Owner, the Home is inherited by a Non - Relative Inheriting
Owner.
E. When the Corporation learns of a pending or actual sale or conveyance of the Home by
Owner and Owner has not previously provided the Corporation with a Notice of Intent to Transfer as
required pursuant to Section 7.
The Corporation agrees that it shall only exercise the Option to Purchase for the purposes of
retaining the Home as affordable housing in furtherance of the Corporation's charitable purpose and
affordable housing requirements. In addition, the Home may only be resold by the Corporation as an
affordable housing unit to a Qualified Purchaser for the purposes set forth in the preceding sentence.
SECTION 7. INITIATING THE SALE PROCESS
Owner Obtains Appraisal of Home. If the Owner intends to make a Repayment Transfer of
the Home, the Owner shall first obtain an appraisal of the Market Value of the Home from an appraiser
on a list of appraisers to be maintained by the Corporation ( "Owners Appraisal "). The Corporation shall
provide the Owner with the list of appraisers upon request by the Owner.
Owner Notice of Intended Transfer. If the Owner intends to make a Repayment Transfer, the
Owner shall, as soon as possible, notify the Corporation in writing by sending to the Corporation the
Notice of Intended Transfer attached to this Agreement as Attachment 3 which Notice shall include a
copy of the Owners Appraisal, which appraisal shall be dated not earlier than thirty (30) days prior to
the date of the Notice of Intended Transfer. The Owner shall provide all of the information identified in
Attachment 3 and include a fee set by the Corporation, which fee shall not exceed the Corporation's
administrative costs in processing the Repayment Transfer. The Owner shall send the Notice of
Intended Transfer to the Corporation in accordance with Section 21 of this Agreement. The Owner
acknowledges and understands that the sales process pursuant to this Agreement may take six (6)
months.
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Corporation Response Notice. Within fifteen (15) days after the date that the Corporation
receives the Notice of Intended Transfer, the Corporation shall notify the Owner that the Corporation is
reviewing the Owner's Appraisal determining Market Value and determining the Corporation's Equity
Share as defined in the Note and requesting an appointment to inspect the Home by sending a Response
Notice to the Owner. The form of Response Notice is attached to this Agreement as Attachment 4. The
Corporation shall send the Response Notice in accordance with Section 21 of this Agreement.
Broker Services. The Owner may not wish to contract with a real estate broker to list and sell
the Home on the open marketplace as the services of a listing broker to procure a market purchaser or
buyer will not be required in the event the Corporation exercises the Option to Purchase the Home.
Corporation Inspect Home. The Owner shall cooperate in providing access to the Home, in
providing information and other assistance as needed. If, after inspection of the Home by *the
Corporation, the Corporation determines that the Home has damage or deferred maintenance, then the
Corporation shall provide Owner with a list of necessary Repairs. Owner shall complete the Repairs in
a manner consistent with area trade standards, and acceptable to the Corporation, unless the Corporation
and Owner mutually agree to an alternative arrangement to pay for cost of Repairs, including deducting
the costs of Repairs from the Market Value as provided for in Section 8.
Determination of Market Value and Corporation Response Notice. Within thirty (30) days
after the date the Corporation has received Notice of Intended Transfer; the Corporation shall provide
the Owner with a Response to Owner's Notice of Intended Transfer in the form of Attachment 5 which
response will (i) accept the determination of the Market Value based on the Owner's Appraisal and
either include a Notice of Intent to Exercise Option in the form attached as Attachment 6 or Notice to
Sell in the form of Attachment 7 or (ii) notify the Owner that the Corporation is disputing the
determination of Market Value and obtaining it own appraisal of the Home ( "Corporation's Appraisal ").
If the Corporation determines to obtain its own appraisal of the Home, it shall do so at its own cost
within sixty days of receipt of the Notice of Intended Transfer and shall provide the Owner with a copy
of the Corporation's Appraisal. If the Corporation's Appraisal of the Home is within ten percent of the
Owner's appraisal of the Home, the Market Value of the Home shall be the average of the two
appraisals. If the Corporation's Appraisal differs from the Owner's Appraisal by more than 10 %, the
Corporation and the Owner shall mutually agree upon an appraiser from the list of appraisers
maintained by the Corporation. The third appraiser shall appraise the Home and that appraisal shall
determine the Market Value of the Home. In the event the Corporation obtains its own appraisal, within
thirty (30) days of determination of the appraised value of the Home, the Corporation shall provide the
Owner with a Notice of Intent to Exercise Option in the form of Attachment 6 or a Notice to Sell in the
form of Attachment 7. The Corporation shall deliver the Corporation's Response Notice to Owner in
accordance with Section 21 of this Agreement.
The forty -five (45) day period within which the Corporation has to respond to the Notice of
Intent to Transfer shall be extended if the Owner fails to cooperate in a timely manner, to provide access
to the Home, to make Repairs required by the Corporation, or to provide needed information to
calculate the Market Value of the Home.
Not more than ninety (90) days shall elapse between the date the Corporation delivers a Notice
of Intent to Exercise Option and the completion of the purchase of the Home for its Market Value by the
Corporation or its Assignee. The ninety (90) day time period within which the Corporation, or Assignee
must complete the purchase shall be extended if the Owner fails to cooperate in providing access to the
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Home, to provide information needed to sell the Home or to perform tasks necessary to complete the
sale in a timely manner. The Corporation will notify the Owner, in accordance with Section 21 of this
Agreement in the event of such delays, and shall provide the Owner with the extended date anticipated
for completion of the sale.
The Home may only be resold by the Corporation to a Qualified Purchaser. The primary
indicator of affordability for a Qualified Purchaser will be that the total monthly housing cost to be paid
by the purchaser shall be affordable evidenced by not exceeding forty percent (40 %) of the gross
income level of the purchaser's household. The Corporation will provide down payment assistance to a
proposed purchaser including the value of the Equity Share to be paid to the Corporation by the Owner
pursuant to the Promissory Note upon transfer of the home. The Corporation will execute a new Option
to Purchase and Resale Refinance Agreement, promissory note and deed of trust with the purchaser of
the Home.
Corporation Does Not Exercise Option. In the event the Corporation does not exercise or
assign its Option, the Corporation shall notify the City, which shall have forty-five (45) calendar days to
determine whether it will exercise the option in place of the Owner. If the City declines to exercise such
option in place of the Owner, the Corporation shall notify the Owner that Owner may sell the Home for
the Market Value subject to recapture by the Corporation of the Equity Share as required pursuant to the
Note and any Below Market Financing that may have been received by Owner from Corporation by
sending to Owner a Notice to Sell attached to this Agreement as Attachment 7. Upon receipt of such
notice, the Owner shall proceed to sell the Home at the Market Value pursuant to the procedure set forth
below.
In the event the Corporation provides a Notice to Sell to the Owner, the Owner may proceed to
sell the Home in compliance with the following requirements:
Marketing. The Owner shall use bona fide good faith efforts to sell the Home to a
Qualified Purchaser, including listing the Home on the Multiple Listing Service, keeping the Home in
an orderly condition, making the Home available to show to agents and prospective buyers.
Corporation shall assist Owner in such marketing by making available or identifying, funds or down
payment assistance programs (including funds available from the Equity Share sales proceeds that
would be recouped by Corporation from the sale of the home) that would make the Home affordable to
Low - income households.
Final Sales Price. The purchase price for the sale of the Home by the Owner shall not be
less than the Market Value determined pursuant to Section 7 above unless the Owner demonstrates to
the Corporation that it has made diligent efforts to sell the Home at the Market Value but after sixty (60)
days of marketing has been unable to do so. In the event the home does not sell after sixty (60) days,
the Final Sales Price will be set at the highest offer made to Owner by prospective buyers.
Owner Identifies a Qualified Purchaser. In the event the Owner identifies a Qualified
Purchaser, the Home may only be sold in such a manner that it is affordable to such Qualified
Purchaser. The primary indicator of affordability for a Qualified Purchaser will be that the total
monthly housing cost to be paid by the Qualified Purchaser shall be affordable, which shall mean that
the total monthly housing cost shall not exceed forty percent (40 %) of the gross income level of the
purchaser's household. The Corporation will provide down payment assistance in the form of Below
Market Financing to the Qualified Purchaser in an amount equal to the Equity Share proceeds to be paid
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to the Corporation by the Owner upon transfer of the home. Prior to close of escrow, the Corporation
will execute a new Option to Purchase and Resale, Refinance Agreement, promissory note and deed of
trust with the purchaser of the Home.
Owner Does Not Locate a Qualified Purchaser. The Owner shall use good faith efforts to sell
the Home to a Qualified Buyer at the Market Value for no less than sixty (60) days. In the event the
Owner does not locate a Qualified Purchaser willing to purchase the Home for the Market Value after
marketing the home for sixty (60) days as described above, the Owner may sell the home on the open
market with no restrictions. The Owner shall repay to the Corporation the Equity Share due at the time
of resale as required by the Promissory Note.
Disclosure and Submittals. The Owner and the proposed purchaser shall provide the
following information and documents to the Corporation:
(a) The name, address and telephone number in writing of the proposed purchaser.
(b) The proposed sales contract and all other related documents which shall set forth all
the terms of the sale of the Home. Said documents shall include at least the following terms: (a) the
sales price; and (b) the price to be paid by the proposed purchaser for the Owner's personal property, if
any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any.
(c) A written certification, from the Owner and the proposed purchaser in a form
acceptable to the Corporation that the sale shall be closed in accordance with the terms of the sales
contract and other documents submitted to and approved by the Corporation. The certification shall
also provide that the proposed purchaser or any other party has not paid and will not pay to the Owner,
and the Owner has not received and will not receive from the proposed purchaser or any other party,
money or other consideration, including personal property, in addition to what is set forth in the sales
contract and documents submitted to the Corporation. The written certification shall also include a
provision that in the event a Repayment Transfer is made in violation of the terms of this Agreement or
false or misleading statements are made in any documents or certification submitted to the Corporation,
the Corporation shall have the right to foreclose on the Home or file an action at law or in equity as may
be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the
proposed purchaser for the return of any moneys paid or received in violation of this Agreement or for
any of the Owner's and/or the proposed purchaser's costs and legal expenses, shall be borne by the
Owner and /or the proposed purchaser and they shall hold the Corporation harmless and reimburse the
Corporation's expenses, legal fees and costs for any action they reasonably take in good faith in
enforcing the terms of this Agreement.
(d) The name of the title company escrow holder for the sale of the Home, the
escrow number, and name, address, and phone number of the escrow officer.
(e) Upon the close of the proposed sale, a copy of the final sales contract, HUD -1
settlement statement for owner and buyer, escrow instructions, and any other documents which the
Corporation may reasonably request.
SECTION 8. COMPLETING THE SALE
Escrow. In the event the Corporation or the City exercise their Option, the Corporation, the
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City and/or their Assignee shall prepare escrow instructions with conditions or contingencies of the
type and nature commonly included within residential purchase escrows. The escrow instructions
shall include, but not be limited to, financing contingencies, inspection rights, and preliminary title
report approvals.
Sale Costs. Owner agrees that, to limit liability and provide timely professional services, a
California state licensed real estate broker, or a California state licensed real estate agent working for a
California state licensed broker must be utilized and paid for solely by the Owner for sales transactions,
except for those in which the Corporation is actually taking title to the Home.
Owner agrees that the following normal and reasonable costs are associated with the sale and
purchase of the Home and that the following parties will be responsible for the listed expenses.
Owner shall be responsible for:
• Real estate commissions for representing the Owner only (required) Standard
owner's policy of title insurance issued to Corporation or Assignee, Repairs to the
home as required by Corporation or the inspection reports.
• One year warranty coverage for such fixtures such as appliances included in the
home that have expired warranty and are not covered under SB800 or Title 7 law.
• Pro rata share of Owners Home Owners Association Fees and property taxes.
• Attorney /Advisory Fees (if necessary).
• Fifty percent (50 %) each of the title and escrow fee.
• Fifty percent (50 %) of the Corporation's administrative fee.
• Obtaining from Purchaser an executed and recordable Option to Purchase
Agreement and Resale, Refinance Agreement, promissory note and deed of trust
(also in recordable form) provided by Corporation or City.
Purchaser shall be responsible for:
• Housing Inspection Report if required by Lender or Corporation. Real estate
appraisal costs.
• Lender fees and costs incurred for loan approval. Fee for Homeowners
Association.
• Legal document preparation and report on condition of the common area. Pro
rata share of purchaser Home Owners Association Fees and property taxes.
• Attorney /Advisory Fees including real estate consultation fee if Purchaser
chooses to use such services.
• Fifty percent (50 %) each of the title and escrow fee.
• Fifty percent (50 %) of the Corporation's administrative fee.
• Executing all documents necessary to complete closing on the Purchaser's
acquisition of the Property, including an new Option to Purchase Agreement and
Resale, Refinance Agreement, promissory note and deed of trust for a Qualified
Purchaser.
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SECTION 9. PAYMENT TO CORPORATION OF EQUITY SHARE.
The Corporation's Equity Share will transfer to the Qualified Purchaser (as part of the
Qualified Purchaser's down payment) upon recordation of (i) a new Option to Purchase Agreement
and Resale, Refinance Agreement, (identical or substantially similar to this Agreement), executed by
the Qualified Purchaser; and (ii) deed of trust, securing a promissory note evidencing Qualified
Purchaser's obligation to repay the Corporation's Equity Share. At such time as the aforementioned
documents are recorded, Corporation shall reconvey the existing Deed of Trust to Owner and
terminate this Agreement.
In the event no Qualified Purchaser is identified after all efforts are made to locate a Qualified
Purchaser, the Corporation, upon the completion of a Repayment Transfer, shall release the Home
from this Agreement and reconvey the Deed of Trust upon repayment to the Corporation of the Equity
Share (and any amounts due under any other loan and/or deed of trust made by Corporation to Owner
related to purchase of the Home) due at time of resale.
SECTION 10. REFINANCING THE HOME
The Corporation must approve of all Refinances. In the event the Owner desires to Refinance,
the Owner shall comply with the provisions of this Section 10 and shall provide all of the information
identified in Attachment 8 and pay a fee, which fee shall not exceed the Corporation's administrative
costs.
A Refinance shall only be approved by the Corporation if (i) the amount of the proposed new
loan does not cause the principal and interest payments to be made by the Owner on all outstanding debt
secured against the Home to increase, (ii) the proposed new loan is a thirty (30) year fixed -rate loan (or
an adjusted loan with a rate that is fixed for the first three (3) years of the new loan term and then
converts to a fixed rate loan in the following years), (iii) the proposed new loan is for an amount not
more than ninety five percent (95 %) of the Market Value of the Home minus the amount of the
Corporation's Equity Share and all other debt secured against the Home as determined at the time of
refinancing, including lender and title fees, if being financed, and (iv) if the proposed new loan is from
an institutional lender approved by the Corporation. Mortgages which utilize stated income and /or
include negative amortization are prohibited. The current underwriting guidelines for the Corporation's
loan approval of the refinance will be sent to the lender for its review and compliance. An underwriter's
written approval from the lender must be submitted to the Corporation for review prior to approval.
Cash out. Owner may not take "cash out" from the refinancing proceeds unless approved by
the Corporation for education, medical expenses, or hardship circumstances.
Owner Requests Refinance. At least ninety (90) days before the Owner intends to Refinance,
the Owner shall notify the Corporation in writing by sending to the Corporation, in accordance with
Section 21 of this Agreement, the Request for Refinance attached to this Agreement as Attachment 8
and made a part of this Agreement. The Owner shall provide the Corporation all of the information
identified in Attachment 8, and include all documents required by Attachment 8, including the loan
documents that the Owner intends to execute in connection with the Refinance.
Corporation Responds to Request for Refinance. Within forty -five (45) days of the date
that Corporation receives the Request for Refinance, the Corporation shall determine if the Owner's
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proposed terms of Refinance satisfy the Refinance requirements imposed by this Agreement. In the
event the Corporation approves the terms of the Refinance, this Agreement and the Deed of Trust
shall be subordinated to the new loan resulting from the approved Refinance.
The forty -five (45) day time period within which the Corporation must make a determination
regarding the Refinance, shall be extended if the Owner or lender for the refinance fails to cooperate in
providing information needed to determine the terms of the Refinance. The Corporation will notify the
Owner, in accordance with Section 21 of this Agreement in the event of such delays, and shall provide
the Owner with the extended date anticipated for determination regarding the approval or disapproval of
the Refinance.
SECTION 11. OTHER LOANS SECURED BY THE HOME
In the event Owner desires to obtain any additional loan that does not comply with Section 10
which is secured by an Other Deed of Trust, Owner shall notify the Corporation in writing of such
intent . Owner shall also provide a copy of this Agreement to the proposed lender of the funds. At any
time the Owner enters into a new loan secured against the Home, including junior mortgages,
consolidation loans or equity lines of credit, the Owner shall cause to be recorded in the Official
Records in Santa Clara County against title to the Home, a request for notice of default under such loan
to be delivered to the Corporation.
An additional loan shall only be approved by the Corporation if the proposed new loan (i) is
for an amount not more than ninety five percent (95 %) of the Market Value of the Home minus the
amount of the Corporation's Equity Share and all other debt secured against the Home including
lender and title fees, if being financed, and (ii) is from an institutional lender approved by the
Corporation.
Cash out. Owner may not take "cash out" from junior mortgages, consolidation loans or equity
lines of credit unless approved by the Corporation for education, medical expenses, or hardship
circumstances.
SECTION 12. MAINTENANCE AND CARE OBLIGATIONS
The Owner:
Agrees to maintain the Home in good, saleable condition at all times.
Agrees to keep the Owner's garage organized, well maintained and free of any obstacles that
could prevent parking of two vehicles in the garage. Owner agrees to regularly park owned vehicles in
the Owner's garage.
Agrees to park only vehicles legally owned by the Owner or the Owner's immediate family
members living in the Home on the property.
Agrees to keep the exterior of the Home free from trash, inoperable automobiles, stored
personal items and any such other items commonly considered to detract from the value of the Home,
and to contribute to a general neighborhood nuisance.
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Agrees to maintain a standard all risks property insurance policy equal to the replacement value
of the Home (adjusted every five (5) years by appraisal) naming the Corporation, and its employees,
agents, officers, board members as additional insureds. Additional insurance requirements maybe set
forth in the Deed of Trust.
Agrees to, annually, on July 1 of each year certify in writing to the Corporation and the City
that (i) the Owner occupies the Home as the Owner's principal place of residence as required by
Section 4 and (ii) that the Home is in good repair by sending in the form attached to this Agreement as
Attachment 2.
SECTION 13. DEFAULTS AND REMEDIES UNDER THIS AGREEMENT
The Owner has agreed to comply with all the provisions of this Agreement and with the
provisions of the documents regulating the Owner's Senior Lender Loan.
Upon the Corporation's discovery (i) that the Owner has made a misrepresentation to obtain the
benefits of purchase of the Home in connection with its obligations under this Agreement; (ii) Owner's
failure to comply with this Agreement; (iii) Owner's failure to comply with the provisions of or default
under a Senior Lender Loan, or other lien; (iv) recordation of a lien not otherwise permitted by the
Agreement or (v) commencement of a proceeding or action in bankruptcy, whether voluntary or
involuntary, pursuant to Title 11 of the United States Code or other bankruptcy status, or any other
insolvency, reorganization, arrangement, assignment for the benefit of creditors, receivership or
trusteeship, in which the Owner is the debtor, Corporation may notify the Owner pursuant to Section 21
of this Agreement, specifying the action needed by the Owner to establish compliance with this
Agreement. Owner may provide a remedy acceptable to the Corporation, thereby avoiding a default.
However, there shall be no right to cure on the part of the Owner if a failure to comply with this
Agreement recurs within a three (3) year period in a substantially similar manner. If the Owner fails to
remedy the issue to the satisfaction of the Corporation within thirty (30) days from the date the
Corporation's notice was received by Owner or within such additional time as the Corporation
determines is necessary to cure the default, then the Corporation may declare a default of this
Agreement.
Upon declaration of a default of this Agreement:
A. The Corporation may exercise its Option to Purchase as specified in Section 14 of this
Agreement.
B. Corporation may apply to a court of competent jurisdiction for relief at law or equity as
may be appropriate.
C. The Corporation may apply to a court for an injunction prohibiting a proposed
Repayment Transfer or Other Transfer in violation of this Agreement or for a declaration that the
Repayment Transfer or Other Transfer in violation of this Agreement is void.
D. The Corporation may declare a default under the Promissory Note and pursue all
remedies under the Promissory Note.
E. The Corporation may declare a default under the Deed of Trust and pursue all remedies
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under the Deed of Trust.
F. The Corporation may declare the amount owed under the Promissory Note immediately
due and payable including any Excess Rents or Equity Share and may invoke the power of sale under
the Deed of Trust.
Upon declaration of default of this Agreement, the Corporation shall notify the Senior Lender, at
the address provided by the Senior Lender to the Corporation in accordance with Section 21 of this
Agreement. The notice to Senior Lender and Owner shall indicate that the Corporation may exercise its
Option to Purchase the Home as specified in Section 6 and in accordance with Sections 13 and 14 of
this Agreement.
SECTION 14. OPTION UPON DEFAULT
As specified in Section 13 and the Option provided to the Corporation in Section 6, the Owner
grants to the Corporation the option to purchase the Home following written notice by the Corporation
to the Owner of the declaration of a default by the Corporation under this Agreement. This option to
purchase is given in consideration of the economic benefits received by the Owner resulting from
purchase and ownership of the Home.
The Corporation shall have thirty (30) days after a Default is declared by the Corporation to
notify the Owner and the Senior Lender of its decision to exercise its option to purchase under this
Section 14. Not later than ninety (90) days after the notice is given by the Corporation to the Owner of
the Corporation's intent to exercise its option under this Section 14, the Corporation or the Assignee
shall purchase the Home for the Market Value based on an appraisal obtained from an appraiser on the
list of appraisers maintained by the Corporation. The cost of the appraisal shall be deducted from the
Owner's share of sales proceeds.
SECTION 15. SENIOR LOAN DEFAULT
A request for notice of default or sale under any Senior Lender Deed of Trust shall be recorded
by the Corporation in the Office of the Recorder of Santa Clara County for the benefit of the
Corporation. The Corporation may declare a Default under this Agreement upon receipt of any notice
given to the Corporation pursuant to Civil Code Section 2924b, and the Corporation may exercise its
rights as provided in Sections 13 and 14.
Owner shall provide to the Corporation in the manner set forth in Section 21, notice of any
default of Owner under a Senior Lender Deed of Trust or Other Deed of Trust. Notice shall be
delivered to the Corporation by the Owner within three (3) days of Owner's receipt of notice of the
default from the Senior Lender or holder of the Other Deed of Trust.
In the event of default and foreclosure, the Corporation shall have the same right as the Owner
to cure defaults and redeem the Home prior to the foreclosure sale. Nothing herein shall be construed as
creating any obligation of the Corporation to cure any such 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.
If the Corporation fails to file the request for notice of default, the Corporation's right to
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purchase the Home shall commence from the date of notice of default it given by the Corporation to
Owner.
SECTION lb. SENIOR LENDER ASSURANCES
Regardless of any other provision in this Agreement, this Agreement shall not diminish or affect
the rights of the Senior Lender under the Senior Lender Deed of Trust or any subsequent Senior Lender
deeds of trust hereafter recorded against the Property in compliance with Section 21 of this Agreement.
The provisions of this Agreement and the Deed of Trust shall be subordinate to the lien of the
Senior Lender Deed of Trust and shall not impair the rights of the Senior Lender, or such lender's
assignee or successor in interest, to exercise its remedies under the Senior Lender Deed of Trust in the
event of default under the Senior Lender Deed of Trust by the Owner. Such remedies under the Senior
Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of
foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Agreement and
the Deed of Trust shall be forever terminated and shall have no further effect as to the Home or any
transferee thereafter; provided, however, if the holder of such Senior Lender Deed of Trust acquires title
to the Home pursuant to a deed or assignment in lieu of foreclosure, this Agreement and the Deed of
Trust shall automatically terminate upon such acquisition of title, only if either a notice of default was
recorded under the applicable Senior Lender Deed of Trust, or, if no notice of default was recorded (i)
the Corporation has been given written notice of default under such Senior Lender Deed of Trust (which
requirement shall be satisfied by notice of default required by California Civil Code Section 2924) and
(ii) the Corporation shall not have cured the default within the period provided by law.
This Agreement shall not diminish or affect the rights of the Corporation under the Deed of
Trust; and this Agreement shall not diminish or affect the rights of the California Housing Finance
Agency, HUD or the Veterans Administration ( "VA ") under the Senior Lender Deed of Trust or any
subsequent Senior Lender deeds of trust hereafter recorded against the Home in compliance with
Section 9 above.
SECTION 17. DISTRIBUTION OF CONDEMNATION, INSURANCE AND
FORECLOSURE PROCEEDS
The Corporation shall be named as additional insured or loss payee on the fire and casualty
insurance policy issued to Owner insuring loss to the Corporation.
In the event the Home is destroyed and insurance proceeds are distributed to Owner instead of
being used to rebuild the improvements on the Home or, in the event of condemnation, or in the event
of a judicial foreclosure, a trustee's deed upon a non judicial foreclosure, a deed in lieu of foreclosure or
any other involuntary Repayment Transfer to the holder of a secured interest in the Home (collectively
"Foreclosure "), if proceeds thereof are distributed to Owner, any surplus of proceeds so distributed
remaining after payment of encumbrances of the Home shall be distributed as follows:
Corporation shall receive its Development Subsidy and its Equity Share as determined
pursuant to the Promissory Note. Owner shall receive the remainder of the proceeds after payment
to the Corporation of the above amounts.
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SECTION 18. COVENANTS RUN WITH THE LAND
Owner hereby declares its express intent that the provisions of this Agreement shall be deemed
covenants running with the land and shall pass to and be binding upon all parties having any interest in
the Home. Each and every contract, deed, lease or other instrument covering, conveying or otherwise
transferring the Home or any interest therein, as the case may be shall conclusively be held to have
been executed, delivered and accepted subject to this Agreement regardless of whether the other party
or parties have actual knowledge of this Agreement.
All covenants and restrictions contained herein, without regard to technical classification or
designation, shall be binding upon Owner for the benefit of the Corporation and any third party
beneficiary specifically named in this Agreement and shall run in favor of such parties for as long as
this Agreement shall be in force and effect, without regard to whether the Corporation or such third
party beneficiary has an interest in the land to which this Agreement relates.
SECTION 19. OWNER'S ACKNOWLEDGEMENT OF RESALE RESTRICTION
Owner hereby acknowledges and agrees that
A. Owner hereby subjects the Home to certain restrictions. The restrictions and other
provisions contained in this Agreement, restrict the full benefits of owning the Home. Owner may not
enjoy the same economic or other benefits from owning the Home that Owner would enjoy if this
Agreement did not exist.
B. Absent the provisions of this Agreement, the Home could not be made available to
Owner at an affordable price.
C. Owner understands all of the provisions of this Agreement. In recognition of the
acknowledgments and agreements stated in this Section 19, Owner accepts and agrees to the provisions
of this Agreement with the understanding that this Agreement will remain in full force and effect as to
the Home throughout the term of this Agreement.
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[initial d by O er(s)]
SECTION 20. THIRD PARTY BENEFICIARY
The City of Gilroy approved the development of the Home pursuant to the City of Gilroy's
Zoning Ordinance, Section 50.62 (b)(3) and (4), and helped to provide the financing for said
development. The City is requiring the affordability and resale restrictions included in this Agreement.
The Owner and the Corporation agree that the City is the intended third party beneficiary to this
Agreement and the City shall have the right to enforce the terms and conditions of this Agreement
against either party to this Agreement by invoking any of the remedies set forth in this Agreement,
including those set forth in Sections 13 and 14. Other than the City, there are no other third party
beneficiaries to this Agreement.
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The City of Gilroy shall not be liable to Owner, Corporation or any successor -in- interest to
Owner or Corporation by reason of its third party beneficiary status under this Agreement and the
Owner agrees to indemnify, defend, and hold harmless the City, its council members, officers, agents,
and employees from any and all claims, demands, liability, costs, and expenses of whatever nature
related to this Agreement. The indemnity provisions set forth in this Section 16 shall survive the
termination of this Agreement.
SECTION 21. GENERAL PROVISIONS
Notices. All notices required herein shall be sent by certified mail, return receipt requested or
express delivery service with a delivery receipt, by personal delivery with delivery receipt and shall be
deemed to be effective as of the date received, the date the notice was returned as undeliverable, or the
date delivery was refused as indicated on the return receipt or delivery receipt as follows:
To Owner:
Efrain Martinez and Genevieve Prieto
271 Lewis Street
Gilroy, Ca 95020
To the Corporation:
If by express or personal delivery:
South County Housing Corporation
7455 Carmel Street
Gilroy, California 95020
Attn: Loan Packaging and Services Department
If by mail:
South County Housing Corporation
P. O. Box 1977
Gilroy, California 95021
Attn: Loan Packaging and Services Department
The parties may subsequently change addresses by providing written notice of the change in
address to the other party in accordance with this section.
Information and Entry by Corporation. The Owner shall provide any information
reasonably requested by the Corporation in connection with the Home. The Owner hereby grants to the
Corporation and its duly authorized representatives the right to enter the Home at reasonable times and
in a reasonable manner for purposes of inspecting the Home to determine compliance with this
Agreement.
Non Discrimination. The Owner covenants by and for itself and its successors and assigns that
there shall be no discrimination against or segregation of a person or of a group of persons on account
21
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100109-04706012
of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national
origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Owner or
any person claiming under or through the Owner establish or permit any such practice or practices of
discrimination or segregation with reference to the use, occupancy, or transfer of the Property. The
foregoing covenant shall run with the land.
No Liability of the Corporation. In no event shall the Corporation become in any way liable or
obligated to Owner or any successor -in- interest to Owner by reason of its Option to Purchase under this
Agreement, nor shall the Corporation be in any way obligated or liable to Owner or any successor -in-
interest to Owner for any failure to exercise its Option to Purchase.
Indemnification. Nothing in this Agreement shall be construed by the Corporation, or by
Owner or by any third party to create the relationship of principal and agent, or of partnership, joint
venture or association with the Corporation and Owner. Owner agrees to indemnify, defend, and hold
harmless the Corporation, its board members, officers, agents, and employees agents and employees
from any and all claims, demands, liability, costs, and expenses of whatever nature, including but not
limited to, court costs, damages and counsel fees accruing or resulting to any and all contractors,
subcontractors, material providers, laborers, and any other person, firm, or corporation furnishing or
supplying work in connection with this Agreement, and from any and all claims and losses accruing or
resulting to any person, firm, or corporation who may be injured or damaged by Owner in the
performance of this Agreement or default under this Agreement. The indemnity provisions set forth in
this Section shall survive the termination of this Agreement.
Controlling Law. The terms of this Agreement shall be interpreted under the laws of the State of
California.
Waiver. No waiver by the Corporation of the right to exercise the Option to Purchase the Home
or of any breach by Owner of any covenant, restriction or condition herein contained shall be effective
unless such waiver is in writing signed by the Corporation and delivered to the Owner. The waiver by
the Corporation of any such breach or breaches, or the failure by the Corporation to exercise any right or
remedy with respect to any such breach or breaches, shall not constitute a waiver or relinquishment for
the future of any such covenant or condition or bar any right or remedy of the Corporation with respect
to any such subsequent breach.
Invalid Provisions. If any one or more of the provisions contained in this Agreement shall for
any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or
provisions shall be deemed severable from the remaining provisions contained in this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein.
Amendment. The parties agree that this instrument, the Promissory Note and the Deed of Trust
contain all of the provisions of the Agreement between the parties hereto. No alteration or variation of
the terms of this Agreement shall be valid unless made in writing in the form of an amendment and
signed by the parties hereto. No oral understanding or Agreement not incorporated herein shall be
binding on any of the parties hereto.
Interpretation of Agreement. This Agreement shall be construed in accordance with and be
governed by the laws of the State of California.
22
IVPAPP4801978.5
100109-04706012
Exhibits and Attachments. Any exhibits and attachments referred to in this Agreement are
incorporated in this Agreement by such reference.
Counterparts. This Agreement may be executed in counterparts, each of which shall be
considered an original.
Assignment by Corporation. The Corporation may assign their rights to under this Agreement
to any person upon consent from each other and upon notice to the Borrower. The Corporation may
assign their rights under this Agreement without the Borrower's consent. The Corporation may not
transfer or assign this Agreement to a profit- making entity without first obtaining approval of the Senior
Lender Loans lender(s).
Drafting Party. The Owner acknowledges and agrees that, although this Option to Purchase
and Resale Agreement has been drafted by the Corporation's legal counsel, Owner and/or its legal
counsel have reviewed, or had an opportunity to review, the terms hereof. Consequently, the doctrine
that ambiguities in an agreement should be resolved against the drafting party shall not be employed in
connection with this Agreement and this Agreement shall be interpreted in accordance with its fair
meaning.
[SIGNATURES ON THE NEXT PAGE]
23
WPAPP1801978.5
100109 - 04706012
•
1.A
IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first
written above.
l,unun :on a 1891282
Not Pubtic California z
San lara County
Comm Exni May ?8 70141
County E of C�attto,Y -Cu
On YAn.x -kA la - D 11 before me, _
Personally appeared "r t,:, , V\ACY-
I certify under PENALTY OF
STATE CALIFORNIA
County of
On
Personally appeared_
certify under PENALTY OF
my
WPAPP1801978.5
100109.04706012
CORPORATION:
SOUTH COUNTY HOUSING CORPORATION,
a California nonprofit public benefit corporation
By:
Its: C
V Efrain Martinez
OWN � �•
C \Genevieve Prieto
Notary Public
-)r . v\kL
(Name of Signer(s))
Proved to me on the basis of satisfactory evidence to be the persons whose nam4 * re
subscribed to the within instrumen and acknowledged to me that hefshefthey executed the same in
4i<hel their authorized capaci ies , and that by W/bet /their signatureff on the instrument the
perso s) acted, executed the instrument.
RJU,RY under the laws of the State of California that the foregoing paragraph is true and correct.
JLID' V� vlls SS Ir- i V-,o- ^ 0- � O � L U 0.7
RTA — t
GLORIA DATA
1lwim Commlaalon 1891282
liforni a Notary Public - Californla
IOU* sartta cr,ra County ila 28, 2014 ' Comm. raa Ma 28.2014
and official seal
before me,
(Name of Signer(s))
Notary Public
Proved to me orn s isfactory evidence to be the person(s) whose name(s) islare
subscribed to the ins ent and acknowledged to me that helshe /they executed the same in
his /her/ the orized capacity(ie that by his /herftheir signature(s) on the instrument the
pers acted, executed the instrument.
under the laws of the State of California that the foregoing paragraph is true and correct.
24
CALIFORNIA • ACKNOWLEDGMENT
State of California
County of Santa Clara
On March 19, 2011 before me, Gloria Orta, Notary Public
Date Hers insert Name and Title of the officer
personally appeared Efrain Martinez and Genevieve Prieto
Nam of Stgne
GLORIA ORTA
Commlasion # 1891282
Notary Public • CaOfomia
Banta Clara County
My Comm, Expirn Ma 28, 2014
who proved to me on the basis of satisfactory evidence to
be the persons � whose nam ' are ubscribed to the
within instrument and acknowledged to me that
he executed the same in t�hre ei authorized
capaci fes and that by4e theD signatures) on the
instrument the personQ, or the entity upon behalf of
which the person(D 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 ( _L'ct�' Q —
Place Notary Seal Above Signature of Notary Public
OPTIONAL
Though the information below 1s not required by law, it may prove valuable to persons retying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document Alexander Place Lot 7 — 271 Lewis Street, Gilroy CA
Title or Type of Document: Option to Purchase and Resale, Refinance Agreement (Equity Share)
Document Date: March 19, 2011
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Number of Pages: 33 pages plus ACK's
Signer's Name: Efrain Martinez Signer's Name: Genevieve Prieto
X Individual
Al Individual
• Corporate Officer — Title(s):
❑ Corporate Officer — Title(s):
• Partner — ❑ Limited O General _
❑ Partner — D Limited ❑ General
• Attorney in Fact
•
❑Attorney in Fact
❑ Trustee
Top of thumb here
p Trustee
Top of thumb here
❑ Guardian or Conservator
E) Guardian or Conservator
❑ Other:
❑ Other:
Signer Is Representing: I I Signer Is Representing:
02007 National Notary Association- 9350 Do Soto Ave., PO.Box 2402 • Chatsworth, CA 91313.2402 • www NaumalNotaryorg Item «5907 Reorder. Call TotiFree t.806$7rr8827
CALIFORNIA • ACKNOWLEDGMENT
?:in =i •ii..aat: s .i qtr �. -it.� .sis_ns_�i�ti' si�sgs..�it,.�s��s!� .ate is.�it.�s4�sis ���: i ,s.�3S �t� ' 1 Wit..= .�L� �ois.� �t� i
State of California
County of Santa Clara
On 3 ZZ Zo(r before me, M. lsrade, Notary Public
Date Here Insert Name and Tale of the Officer
personally appeared To � n CeSR re,
Name of Signer
M.ISRADE
Commission i 1884528 =
Notary Public - California
Santa Clara County
My Comm, Ex Iran A r 25, 2014
Place Notary Seal Abwo
who proved to me on the basis of satisfactory evidence to
be the person(s) whose name{are subscribed to the
within instrument and acknowledged to me that
(9/she /they executed the same i hi lth& authorized
capacity(iesj, and that b his /their signatures) on the
instrument the person(,a), or the entity upon behalf of
which the person( 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 '/Z. c�" 0e,
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document Alexander Place Lot 7 – 271 Lewis Street, Gilroy CA
Title or Type of Document: Ption t�o7 Purchase and Resale, Refinance Agreement (Equity Share)
Document Date: /76in2n //' ,20// [ Number of Pages: 33 pages plus Ack's
�
Signer(s) Other Than Named Above: CV [t/e �t�r eTD 4if F�Qrn A�4/ nez-
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Individual
t( Corporate Officer— Title(s): GU
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing
Top of thumb here
Signer's Name:
❑ Individual
• Corporate Officer — Tiile(s):
• Partner — ❑ Limited ❑ General
• Attorney in Fact
• Trustee Top of thumb here
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
02007 National Notary Association • 9350 De Soto Ave., PO Box 2402 • Chatsworth, CA 913132402 • www.NationalNotary org Item #5907 Reorder CaIITdI•Ree 11- 800- 870•61Q7
ATTACHMENT 1
(Property Description)
All that certain Real Property in the County of Santa Clara, State of California, described as follows:
Lot 7, as shown on that certain map entitled 'Tract No. 9867, Alexander Place ", which was filed in the
Office of the Recorder of the County of Santa Clara, State of California on May 2, 2007 in Book 813 of
Maps, Page 31 through 34.
APN: 841 -83 -007
25
WPAPP1801978.5
100109-04706012
ATTACHMENT
Owner Occupancy and Maintenance Certification
Date:
To: If by express or personal delivery:
South County Housing Corporation
7455 Carmel Street
Gilroy, California 95020
Attention: Loan Packaging and Services Department
If by mail:
South County Housing Corporation
P. O. Box 1977
Gilroy, California 95021
Attn: Loan Packaging and Services Department
NOTE: This notice must be sent by certified mail, return receipt requested, express delivery
service with a delivery receipt or personally delivered with delivery receipt and shall be deemed to be
effective as of the date received, the date returned as undeliverable or the date delivery is refused as
indicated on the return receipt or the delivery receipt.
Re: Alexander Place Development
Owner Occupancy Certification
Home located at:
(Street address)
(City, State, Zip Code)
(Horne telephone no.)
(Work telephone no.)
By signature below, I /we [insert name or names of Owner] hereby certify
to South County Housing Corporation under penalty of perjury that I /we occupy the home located at
[insert address] (the "Home ") as my /our principal
place of residence and that I /we have occupied the Home for [insert number]
months of the calendar year [insert previous calendar year]. Attached to this letter is
a copy of ]insert utility bill or driver's license] showing my place of residence and a copy
of current homeowner's insurance policy.
I /we also certify the Home is in good repair and saleable condition and that I /we are continuing to
meet the conditions of Section 12 of the Option to Purchase and Resale, Refinance Agreement.
This Owner Occupancy and Repair Certification are signed on 20_, under
penalty of perjury.
Owner Signature
Print Name
Owner Signature Print Name
Due Date: July of each calendar year.
Attach copy of utility bill that is within sixty (60) days of the date of this notice or driver's
license showing address of Home.
26
WPAPM8019785
100109-04706012
ATTACHMENT 3
Notice of Intended Transfer
Date:
To: If by express or personal delivery:
South County Housing Corporation
7455 Carmel Street
Gilroy, Califomia 95020
Attention: Loan Packaging and Services Department
If by mail:
South County Housing Corporation
P. O. Box 1977
Gilroy, California 95021
Attn: Loan Packaging and Services Department
NOTE: This notice must be sent by certified mail, return receipt requested, express delivery service with a delivery
receipt or personally delivered with delivery receipt and shall be deemed to be effective as of the date received, the date
returned as undeliverable or the date delivery is refused as indicated on the return receipt or the delivery receipt.
RE: Development
Notice of Intended Transfer
Home located at:
(Street address)
(City, State, Zip Code)
(Home telephone no.)
(Work telephone no.)
Date of Purchase
Purchase Price paid by me /us ( "Original Purchase Price):
Original Down payment Amount at time of purchase:
NOTE: Down payment does not include closing costs expenses
Date I intend to vacate the Home:
Name and Phone Number for to contact to schedule inspection:
(name)
(work phone number)
(home phone number)
To Whom It May Concern
In accordance with the terms and conditions of the Option to Purchase and Resale, Refinance Agreement (the "Agreement') recorded
against our Home, Ihvc ( "Owner ") of the above referenced Home, provide this notice to South County I lousing Corporation (the
"Corporation ") as notice of our intention to transfer the Home. Attached to this Notice a copy of an appraisal of the Home prepared by
(Appraiser must be on the Corporation's list of approved appraisers, which list is available from the Corporation)
and dated (Appraisal must be dated within thirty days of the date of notice).
1/We understand that, we must provide the Corporation or its agents reasonable access to the Home to do a full and
complete inspection of the Home to determine the condition of the Home. Enclosed is a copy of the HUD-{ Settlement
Statement or equivalent documents from the close of escrow ol'my purchase of the Home and copies of receipts from any
improvements I have made to the Horne.
Enclosed is a Dollar ($__) check or money order made out to South County Housing for the Corporation's
administrative costs.
Sincerely,
Owner Signature
Owner Signature
27
IWAPP1801978.5
100109-04706012
Print Name
Print Name