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2020-371781
t RECD{ZDING REQUESTED BY: First American Title Company-Homebuilder DOC# 2020-0371781 Services Division IllIIIIIIIIIIIIIillllllilllllllllllllllllllllllllllllllllllllllllllli( WHEN RECORDED MAIL DOCUMENT TO: Jul 13, 2020 11:32 AM City of Encinitas OFFICIAL RECORDS -. City Clerk's Office Ernest J. Dronenburg,Jr., 505 S. Vulcan Avenue FEES IE AO OSBARE $0 ER Encinitas, CA 92024 ( 2 z PAGES:20 Space Above This Line for Recorder's Use Only A.P.N.: 254-362-13-00 VJ0 P File No.: DTR-6023975 (ND) Property Address: 923 Moonstone Court, Encinitas, CA 92024 Deed of Trust Title of Document (X) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner- occupier per GC 27388.1 (a) (2), ( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1). �. ( ) Not related to real property GC 27388.1 (a) (1). . r ( )Transfer of real property subject to the imposition of Documentary Transfer Tax -GC 27388.1 (a)(2) j O Transfer of real property that is a residential dwelling to an owner-occupier- GC 27388.1 (a)(2) ( ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to documentary transfer tax which was paid on document recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner- occupier was recorded as document No. of Official Records. (X ) Exempt from fee under GC 27388.1 for the following reasons: No.Fee For Recording Pursuant To Gov. Code Section 27383 THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) RECORDING REQUESTED BY: First American Title Company-Homebuilder Services Division WHEN RECORDED MAIL DOCUMENT TO: City of Encinitas City Clerk's Office 505 S. Vulcan Avenue Encinitas, CA 92024 Space Above This Line for Recorder's Use Only A.P.N.: 254-362-13-00 U JO P File No.: DTR-6023975 (ND) Property Address: 923 Moonstone Court, Encinitas, CA 92024 Deed of Trust Title of Document (X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner- occupier per GC 27388.1 (a) (2). ( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1). ( ) Not related to real property GC 27388.1 (a) (1). Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1 (a)(2) (.)Transfer of real property that is a residential dwelling to an owner-occupier - GC 27388.1 (a)(2) ( ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to documentary transfer tax which was paid on document recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner- occupier was recorded as document No. of Official Records. (X ) Exempt from fee under GC 27388.1 for the following reasons: No Fee For Recording Pursuant To Gov. Code Section 27383 THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) r NO FEE FOR RECORDING PURSUANT TO GOV. CODE SECTION 27383 p Recording Requested By: City of-Encinitas Development Services Department 505 S. Vulcan Avenue Encinitas, CA 92024 And When Recorded Mail To: City of Encinitas City Clerk's Office 505 S. Vulcan Avenue Encinitas, CA 92024 APN: 254-362-13-00 00? DEED OF TRUST J��� THIS DEED OF TRUST is made this � da y of 20D , among the Trustor, Joanne Lupson, an unmarried woman (herein "Borrower"), and FIRST AMERICAN TITLE COMPANY (herein "Trustee"), and the Beneficiary, CITY OF ENCINITAS (herein "CITY"), whose address is 505 S. Vulcan Avenue, Encinitas, California 92024. BORROWER, in consideration of the indebtedness herein recited and the trust herein created, irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the County of San Diego, State of California: Exhibit "A" attached hereto and incorporated herein by this reference which has the address 923 Moonstone Court, Encinitas, California 92024 (herein "Property Address"); TOGETHER with all the improvements now and hereafter erected on the Property, and all easements, rights, appurtenances and rents (subject, however, to the rights and authorities given herein to CITY to collect and apply such rents), all of which shall be deemed to be and remain part of the property covered by this Deed of Trust; and all of the foregoing, together with said property (or the leasehold estate if this Deed of Trust is on a leasehold) are hereinafter referred to as the "Property"; TO SECURE to CITY_the repayment of the indebtedness evidenced by Borrower's Promissory Note dated ���y � � , 202U, and Note Rider, and extensions and renewals thereof (herein collectively referred to as the "Note"), in the principal sum of Nine hundred thirty-five thousand, two hundred fifty-six U.S. Dollars ($935,256.00) with interest thereon, fully deferred with the total indebtedness, if not sooner paid, due and payable upon default by Borrower, or when a Prohibited Transfer occurs as defined in the Deed of Trust. The Note will become null and void on the date which is fifty-five (55) years after the first day of the month after the date the Property is occupied by a qualified purchaser if Borrower has not defaulted or made a Prohibited Transfer of the Property, or any portion thereof, CITY has received the payment of all other sums, with interest thereon, advanced in accordance herewith to protect the security of this Deed of Trust; and CITY has received the full performance of the covenants and agreements of Borrower contained in the Deed of Trust (the "Expiration Date"). For purposes of the Note and this Deed of Trust, such date of occupancy shall be deemed to be'the date this Deed of Trust is recorded. For a replacement deed of trust following an assumption, the Expiration Date of that.replacement deed of trust shall be the same day as the Expiration Date as defined in this Deed of Trust. Borrower.covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that the Property is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS Borrower and CITY covenant and agrees as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest indebtedness evidenced by the Note. The principal loan amount secured in the Deed of Trust herein, evidenced by the Note, is calculated by determining the difference between the Affordable Housing Price, and Market Sales Price, as such terms are defined in paragraph 17 in this Deed of Trust (herein "Subsidy"). 2. Payment of Taxes and Insurance. To protect the security of the Deed of Trust, Trustor agrees to pay, at least ten (10) days before delinquency, all taxes and assessments affecting said property, including assessments on appurtenant .water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; and all costs, fees and expenses of.this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, without obligation to do so and without notice to or Page 2 demand upon Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by CITY under the Note shall be applied by CITY first in payment of amounts advanced by CITY to Borrower, then to interest payable on the Note, and then to the principal of the Note. 4. Prior Mortgages and Deeds of Trust; Charges, Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments, if any. 5. Hazard Insurance. Borrower shall keep the improvement(s) now existing or hereinafter erected on the Property insured against loss by fire, hazards _ included within the terms "extended coverage", and such other hazards as CITY may require and in such amounts and for such periods as CITY may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by CITY, provided that such approval will not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to CITY and shall include a standard mortgage clause in favor of and in a form acceptable to CITY. CITY has the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. In the event of loss, Borrower shall give prompt notice to the insurance carrier and CITY. CITY may make proof of loss if not made promptly by Borrower. If Property is abandoned by Borrower, or if Borrower fails to respond to CITY within thirty (30) days from the date notice is mailed by CITY to Borrower that the insurance carrier offers to settle a claim for insurance benefits, CITY is authorized to collect and apply the insurance proceeds at CITY's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. Page 3 6. Preservation and Maintenance of Property. Borrower will keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property. Borrower shall perform all of Borrower's obligations under the declaration of covenants, conditions and restrictions. 7. Protection of CITY 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 CITY's interest in the Property, the CITY, at CITY's option, upon notice to Borrower, may make such appearances, disburse .such sums including reasonable attorneys' fees, and take such action as is necessary to protect CITY's interest. If CITY's required mortgage insurance is a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and,CITY's written agreement or applicable law. Any amounts disbursed by CITY pursuant to this paragraph, with interest thereon, at the Note rate, will become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and CITY agree to other terms of payment, such amounts will be payable upon notice from CITY to Borrower requesting payment thereof. Nothing contained in this paragraph will require CITY to incur any expense or take any action hereunder. 8. Inspection. CITY may make or cause to be made reasonable entries upon and inspections of the Property, provided that CITY will give the Borrower notice prior to any such inspection, specifying reasonable cause therefor related to CITY's interest in the property. 9. Condemnation. The proceeds of any award of claim for damages, direct or consequential, in connection with any condemnation or other .taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to CITY subject to the terms of any mortgage, deed of trust or.other security agreement with a lien which has priority over this Deed of Trust. 10. Borrower Not Released; Forbearance by CITY Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Dee_d of Trust granted by CITY to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. CITY shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by CITY in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. Page 4 11. Successors and Assigns Bound, Joint and Several Liability; Co- Signors. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of CITY and Borrower, subject to the provisions of paragraph 17 hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who co-signs this Deed of Trust, but does not execute the Note: (a) is co-signing 'this Deed of Trust only to grant and convey that Borrower's interest in the Property to Trustee under the terms of this Deed of Trust; (b) is not personal ly'liable on the Note or under this Deed of Trust; and, (c) agrees that CITY and any other Borrower hereunder may agree to extend, modify, forbear or make any other accommodation with regard to the terms of this Deed of Trust or the Note, without that Borrower's consent and without releasing that Borrower or modifying this Deed of Trust as to that Borrower's interest in the property. 12. 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 delivering it or by mailing such notice by certified mail, addressed to Borrower at the Property address or such other address as Borrower may designate by notice to CITY as provided herein; and, (b) any notice to CITY will be given by certified mail, return receipt requested, to CITY's address stated herein or to such other address as CITY may designate by notice to Borrower as provided herein. Any Notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or CITY when given in the manner designated herein. 13. Governing Law, Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of federal law to this Deed of Trust. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or,the Note which can be given effect without the conflicting provision and, to this end, the provisions of this Deed of Trust and the Note are declared to be severable. As used herein, "costs", "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. Page 5 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and this Deed of Trust at the time of execution or after recordation hereof. 15. Notice to CITY. Borrower agrees that it will give the CITY notice of any prospective transfer, sale, or conveyance not less than forty five (45) days before the proposed sale, transfer, or conveyance by personal delivery of a notice at the address set forth for the CITY on Page 1 of this Deed of Trust. Time is of the essence. 16. Lease of Property Prohibited. During the term of the affordability restrictions as set forth in paragraph 17 of this Deed of Trust, the Borrower shall not rent or sublet the Property, or any part thereof, to any person and/or entity. Leasing of the Property shall be deemed a Prohibited Transfer of the Property, within the meaning of paragraph 18, and shall trigger the right of the CITY to foreclose and/or exercise its First Right of Refusal. Provided however, the CITY may grant temporary waivers of the requirement in the event of hardship affecting Borrower, such as illness in the family, military deployment or re-assignment, need to relocate to obtain employment, and the like. 17. Transfer, Conveyance of Property Restricted for Fifty-Five (55) Years. The sale, transfer and/or conveyance of the Property is restricted as follows: If Borrower sells, transfers or conveys the Property prior to the Expiration Date, then sale, conveyance and/or transfer shall be subject to the following: (a) The Property may only be sold, transferred or conveyed to a • qualified VERY LOW INCOME HOUSEHOLD. (b) The Property must be used only as the principal residence of the subsequent purchaser during the time of ownership. Borrower shall make a good faith effort to obtain.a qualified purchaser residing in the City of Encinitas, prior to considering other qualified purchasers. Such effort shall include, but not limited to, local public advertising, listing in local real estate publications, and CITY suggested marketing. The CITY shall determine if a "good faith" effort has been performed. The CITY shall not unreasonably withhold its approval. (c) The sale price to the subsequent purchaser must be at a price that is "affordable to the subsequent purchaser(s)". "Affordable to the subsequent purchaser(s)" is determined through the calculation 'described below. i. The maximum affordable sales price for the Property shall be calculated in accordance with California Health and Safety Code Section §50052.5 and Title 25 of the California Code of Regulations, Section 6920 (or successor provision), and, in accordance with these provisions, shall result in housing cost that Page 6 does not exceed 30 percent of 50 percent of AREA MEDIAN INCOME, adjusted for assumed household size. "AREA MEDIAN INCOME" is the median income for to San Diego County as published annually by the Department of Housing and Community Development under Title 25 of the California Code of Regulations, Section 6932 (or successor provision), adjusted for actual household size ii. The calculation shall include a five percent down payment. iii. The calculation shall include an interest rate which is based on the current Freddie Mac Monthly Average Commitment Rate on 30- Year Fixed-Rate Mortgages. 'iv. The calculation shall include reasonable housing costs, which includes, but not limited to, principal and interest, property taxes and assessments, property insurance, property maintenance and repairs, Homeowners' Association fees, additional district fees (if applicable), and an allowance for utilities based on the current Utility Allowance Schedule, published by the Encinitas Housing Authority V. Actual financing to be obtained by any prospective homebuyer shall be a fixed rate loan fully amortized over thirty years. (d) In the event that that Borrower is unable to find, despite good faith efforts to do so, a qualified purchaser to purchase the Property, Borrower may sell the Property to a person other than a qualified purchaser by first offering to sell the Property to the CITY for a purchase price equal to that determined through the calculation described in Section 17(c) above. The CITY shall accept or reject the offer to sell the Property to the CITY within thirty (30) days of the date of receipt of the offer to sell. In the event that the CITY declines to purchase the Property, Borrower may proceed to market and sell the Property to a non-qualified buyer above if the Property will be continuously rented to a qualifying VERY LOW INCOME HOUSEHOLD at an affordable rental price. At the time of said sale, the subsequent owner shall execute a new Regulatory Agreement with the CITY. Upon a showing of hardship by the Borrower to the CITY in writing, the CITY may waive any one or combination of the following: the resale restrictions, the Borrower's obligation to sell to the CITY. (e) A transfer of the Property in accordance with the terms hereof must be accompanied by a recordable assignment-and assumption of the Regulatory Agreement executed by the transferee. Page 7 L (f) The affordability requirement shall remain in effect until the Expiration Date. This requirement shall remain in full force and effect against all subsequent purchasers until the Expiration Date. This restriction shall also apply to sales of the Property from the subsequent purchaser to other purchaser(s) until the Expiration Date. (g) If the Borrower fails, refuses or is unable to convey, sell, or transfer the Property to a person or persons meeting the requirements of paragraphs 16 and 17(a) through 17(c), inclusive, before the Expiration Date, but nevertheless conveys, sells or transfers the Property in violation of paragraph 18 hereof, then such transfer shall be deemed a Prohibited Transfer as defined in paragraph 18 hereof. These provisions of paragraph 17 shall bind the heirs, successors and assigns of the Borrower. 18. Prohibited Transfer. If Borrower sells, agrees to sell, conveys, rents, refinances, and/or transfers the Property in violation of the terms of paragraph 2 and 5 of the Note, or paragraphs 16, 17 or 30 of this Deed of Trust (a "Prohibited Transfer"), then CITY may, at its option, in addition to any and all other remedies available to it,, require immediate payment in full of all sums secured by this Deed of Trust. In the instance of a Prohibited Transfer, the Transferor shall pay to the CITY the amount of this Deed of Trust, including any interest, as described in the Note. As an alternative, CITY may, at its option, purchase the Property for a purchase price equal to the highest purchase price at which a qualified purchaser could qualify to purchase the Property at an Affordable Housing Cost. However, these options shall not be exercised by CITY if such exercise is prohibited by federal law as of the date of the Deed of Trust or if the CITY has executed a separate written waiver of these options. If CITY exercises any of these options, CITY shall give Borrower Notice of Acceleration or, in the alternative, Notice of Exercise of First Right of Refusal Option. The notice shall provide a period of not less than thirty (30) days from the date that the notice is delivered or mailed within which Borrower.must pay all sums secured by the Deed of Trust or must enter into an escrow to convey the Property to CITY, depending upon the option exercised by CITY. If Borrower fails to pay these sums or enter into an escrow prior to the expiration of this period, CITY may invoke any remedies permitted by the Deed of Trust without further notice or demand on Borrower. The escrow contemplated by this paragraph 18 must close not more than ninety (90) days after CITY receives notice of such sale, agreement to sell, conveyance, rental or transfer of the Property in violation hereof. NON-UNIFORM COVENANTS Page 8 Borrower and CITY further covenant and agree as follows: 19. Acceleration, Remedies. 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, and those contained in paragraphs 16, 17 and 18 hereof, CITY, prior to acceleration, shall give notice to Borrower as provided in paragraph 12 hereof specifying: (a) the breach; (b) the action required to cure such breach; (c) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and, (d) 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, CITY, at CITY's option, may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand a and may invoke the power of sale and any other remedies permitted by applicable law. CITY shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph 19, including, but not limited to, reasonable attorneys' fees. If CITY invokes power of sale, CITY shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of CITY's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located. CITY or Trustee shall mail copies of such notice in the manner prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. CITY or CITY's designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in Page 9 the Trustee's deed shall be rp ima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (1) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys' fees and costs of title evidence; (2) to all sums secured by this Deed of Trust; and, (3) the excess, if any, to the person or persons legally entitled thereto. 20. Borrower's Right to Reinstate. Notwithstanding CITY's acceleration of the sums secured by this Deed of Trust due to Borrower's breach, Borrower shall have the right to have any proceedings begun by CITY to enforce this Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property 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) Borrower pays CITY all sums which would be then due under this Deed of Trust and the Note had no acceleration occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Deed of Trust; (c) Borrower pays all reasonable expenses incurred by CITY and Trustee. in enforcing the covenants and agreements of Borrower continued in this Deed of Trust and in enforcing Trustee's remedies as provided in paragraph 19 hereof, including, but not limited to, reasonable attorneys' fees; and, (d) Borrower takes such action as CITY may reasonably require to assure that the lien of this Deed of Trust, CITY'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 shall remain in full force and effect as if no acceleration had occurred. 21. Assignment of Rents; Appointment of Receiver; CITY in Possession. As additional security hereunder, Borrower hereby assigns to CITY the rents of the Property, provided that Borrower shall, prior to acceleration under paragraph 19 hereof or abandonment of the Property, have the right to collect and retain such rents as they become due and payable. Page 10 l - - Upon acceleration under paragraph 19 hereof or abandonment of the Property, CITY, 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 including those past due. All rents collected by CITY or the receiver shall be applied first to payment of the cost of management of the Property and collection or rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Deed of Trust. CITY and the receiver shall be liable to account only for those rents actually received. 22. Reconveyance. Upon payment of all sums secured by this Deed of Trust, CITY shall request Trustee to reconvey the Property and will surrender this Deed of Trust and all Notes evidencing indebtedness secured by this Deed of Trust 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. 23. Substitute Trustee. CITY, at CITY's option, may from time to time appoint a successor trustee to any Trustee appointment hereunder by an instrument executed and acknowledged by CITY and recorded in the office of the Recorder of the county where the Property is located. The instrument shall contain the name of the _ original lender, Trustee and Borrower, the book and page where this instrument is recorded, and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 24. Request for Notices. Borrower requests that copies of the notice of sale be sent to Borrower's address which is the Property Address. 25. Statement'of Obligation. CITY may charge a fee not to exceed Sixty Dollars ($60.00) for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Deed of Trust Rider. The Deed of Trust Rider executed by Borrower is attached hereto and made part of this Deed of Trust. 27. Covenants, Conditions and Restrictions. If the. Property is subject to Covenants, Conditions and Restrictions [Affordability Restrictions] ("Affordability Restrictions") between CITY and Borrower, which are not attached hereto, Borrower acknowledges receipt thereof and agrees, for itself, its heirs, successors and assigns to be bound by the same. 28. Warranties of Borrower. Borrower warrants to CITY as follows: Page 11 i (a) Borrower certifies that they will occupy the Property as owner- occupant and principal residence; and that the Borrower does not own or have an interest in any real property. 29. Subordinate to Senior Deed of Trust. This Deed of Trust is subordinate to any deed of trust or mortgage ("First Mortgage"), if any, on the Property made by or held by an institutional lender or investor ("First Lender Loan"). 30. Refinance of First Lender Loan. The outstanding principal on the Note shall not be due upon prepayment and refinancing of the First Lender Loan, and this Deed of Trust shall be subordinated to the refinanced First Lender Loan by way of a Subordination Agreement, provided that (i) such refinancing is approved by the CITY, (ii) the amount refinanced does not exceed the outstanding principal balance of the First Mortgage at the time of refinance plus reasonable costs of refinance,.and (iii) the refinance does not result in higher monthly payments on the First Lender Loan than were due prior to the refinance. Mortgage loans or equity lines of credit junior in lien priority to this Deed of Trust are not permitted. The CITY and the Borrower agree that the requirements of this paragraph are necessary to ensure the continued affordability of the Property to Borrower and to minimize the risk of loss of the Property by Borrower through default and foreclosure of mortgage loans. Borrower further acknowledges that violation of the provisions of this paragraph shall constitute a Prohibited Transfer under this Deed of Trust. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST CITY will request that copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be sent to CITY's address, as set forth on page 1 of this Deed of Trust, as provided by Section 2924b of the Civil Code of California. Page 12 NOTICE TO BORROWER: Do not sign this Deed of Trust if it contains blank spaces. All spaces should be completed before you sign. IN WITNESS WHEREOF, Bo ower has executed this Deed of Trust. Date: 20 Borrower oanne Lupson I Page 13 DEED OF TRUST RIDER THIS DEED OF TRUST RIDER (herein "Rider") is attached to and made a part of the Deed of Trust dated 7:,Ay 9t� , 202D made between the CITY OF ENCINITAS, a municipal corporation (herein "CITY") and executed by Joanne Lupson, a single woman, as Borrowers. Borrower agrees to the provisions of this Deed of Trust Rider in addition to those of the Deed of Trust. THE LANGUAGE OF THIS RIDER PREVAILS OVER THE DEED OF TRUST IN THE EVENT OF A CONFLICT. 1. Borrower agrees that the Property being purchased is affordable as described in this Deed of Trust, and that the continued use of the Property must be in accordance with the Declaration of Covenants, Conditions and Restrictions recorded JUNE 4, 2019, as Document No. 2019-0215212 and that no transfer of the Property will be permitted and no successor-in-interest to the Borrower(s) will be.permitted to assume the Note secured by this Deed of Trust Rider, unless the written consent of CITY to the transfer has been first obtained. No such consent-will be given by CITY except in the following limited circumstances: (a) the transfer results from the death of a spouse, and the transfer is to the surviving spouse who is also a member of the HOMEBUYER HOUSEHOLD. (b) a transfer to a spouse when the spouse becomes, by such a transfer, a co-owner of the PROPERTY; (c) a transfer of the PROPERTY resulting from a decree. of dissolution of the marriage or legal separation or from a property settlement agreement incidental to such a decree and by which a spouse who is already an OWNER becomes the sole owner of the PROPERTY; and/or (d) a transfer by the OWNER to an inter vivos trust in which the OWNER is the sole current beneficiary. (e) a transfer in accordance with the, ownership restrictions contained in paragraphs 16, 17 and 18 of the Deed of Trust. 2. This Deed of Trust is subordinate to any first deed of trust or mortgage on the Property made by or held by an institutional lender or investor pursuant to a Subordination Agreement. Page 14 NOTICE TO BORROWER: Do not sign this Deed of Trust Rider if it contains blank spaces. All spaces should be completed before you sign. Date: 1 orrower Joanne Lupson Page 15 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate Is attached,and not the ACKNOWLEDGMENT truthfulness,accuracyor validity of that document. State of California ) County of San Diego ) -A*ERINE R;AGUINALD0 On / , 209b b of r me, -.NOTARY PUBLIC personally appeared, who ved to me on the basis of satisfactory evid a to be the person(s) who oe 'ame(s /are subscribed to the within instrument and cknowledged to me that Veheir they executed the same in his/ r/ heir authorized capacity(ies), and that by his/ signature(s) on the instrume he person(s), or the entity upon behalf of which persons) 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. NALDO CATHERUYE R.AGU COMM.# 65238 �J�( NOTARY PUBLIC-CALIFORNIA W SAN DIEGO COUNTY fa7 flAy Commission Expires OCTOBER 17,2020 Signature (Seal) Page 16 .iHM. ._. REQUEST FOR RECONVEYANCE TO TRUSTEE: The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all other indebtedness secured by this Deed of Trust, have been paid-in full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. Dated: By: Page 17 Exhibit "A" Legal Description Real property in the City of Encinitas, County of San Diego, State of California, described as follows: PARCEL 1: LOT 13 OF CITY OF ENCINITAS TENTATIVE MAP NO. 14-069, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16347, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA,JUNE 7, 2019 ("MAP'S; RESERVING THEREFROM,ALL EASEMENTS DESCRIBED IN THE DECLARATION (DESCRIBED BELOW), THE MAP AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF; FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION (DEFINED BELOW),A NON-EXCLUSIVE EASEMENT IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS AN ASSOCIATION MAINTENANCE AREA, IF ANY, FOR THE PURPOSE OF MAINTENANCE AND REPAIR,TOGETHER SUCH RIGHTS OF ACCESS NECESSARY TO PERFORM SUCH MAINTENANCE AND REPAIR,AS MORE FULLY PROVIDED IN THE DECLARATION; FURTHER RESERVING THEREFROM,A NON-EXCLUSIVE EASEMENT FOR THE BENEFIT OF AND APPURTENANT TO EACH OTHER LOT OF THE MAP THAT IS SUBJECT TO A CROSS LOT DRAINAGE EASEMENT AREA, IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS A CROSS LOT DRAINAGE EASEMENT AREA FOR PURPOSES DESCRIBED IN THE DECLARATION; FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION AND ALL MEMBERS OF THE ASSOCIATION,A NON-EXCLUSIVE EASEMENT ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS A PRIVATE WALKWAY, FOR THE PURPOSE OF INGRESS AND EGRESS OVER THE WALKWAYS LOCATED THEREIN,AS MORE FULLY PROVIDED IN THE DECLARATION. PARCEL 2: A NON-EXCLUSIVE EASEMENT FOR PEDESTRIAN ACCESS, INGRESS AND EGRESS OVER, UPON AND ACROSS THAT PORTION OF LOTS 1 THROUGH 7 OF THE MAP, SHOWN AND DESCRIBED IN THE DECLARATION AS A PRIVATE TRAIL, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1. PARCEL 3: A NON-EXCLUSIVE EASEMENT OVER THOSE PORTIONS OF THE REAL PROPERTY ENCUMBERED BY THE DECLARATION THAT SHARE THE SAME SYSTEM OF CROSS LOT DRAINAGE FACILITIES LOCATED ON THE LOT DESCRIBED IN PARCEL 1 ABOVE (IF ANY) FOR THE PURPOSE OF DRAINAGE THROUGH THE CROSS LOT DRAINAGE FACILITIES AS PROVIDED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1. PARCEL 4: Page 18 A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS, IN,TO,OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY DESCRIBED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1 ABOVE. THESE EASEMENTS ARE GRANTED SUBJECT TO: A. THE EASEMENT AND OTHER RIGHTS RESERVED IN THE DECLARATION IN FAVOR OF GRANTOR FOR MARKETING AND DEVELOPMENT, INCLUDING, WITHOUT LIMITATION, GRANTOR'S RIGHT TO MAINTAIN MODEL HOMES IN THE LOTS OWNED BY GRANTOR,AS WELL AS THE RIGHT OF ACCESS, INGRESS,AND EGRESS FOR VISITORS TO THE SALES OFFICE AND MODEL HOMES AND THE RIGHT TO MAINTAIN SIGNS OR OTHER.MARKETING MATERIALS WITHIN THE ASSOCIATION PROPERTY OF THE COMMUNITY(DEFINED IN THE DECLARATION); B. GRANTOR'S EASEMENT FOR INGRESS AND EGRESS, IN, ON, OVER,THROUGH AND ACROSS THE ASSOCIATION PROPERTY TO PERMIT GRANTOR TO INSTALL IMPROVEMENTS THEREON; AND C. GRANTOR'S RIGHT TO PREVENT ACCESS OVER PORTIONS OF ASSOCIATION PROPERTY BY PLACING A CONSTRUCTION FENCE OR OTHER BARRIER THEREON PRIOR TO COMPLETION OF CONSTRUCTION OF ALL IMPROVEMENTS WITHIN THE COMMUNITY, PROVIDED THAT GRANTEE HAS AT LEAST ONE ROUTE OF ACCESS BETWEEN THE LOT DESCRIBED IN PARCEL 1 ABOVE AND A PUBLIC STREET. THE REAL PROPERTY CONVEYED IN THIS GRANT DEED (-PROPERTY') IS CONVEYED TOGETHER WITH A MEMBERSHIP IN THE ALIA HOMEOWNERS ASSOCIATION, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION'S AND ACCEPTED SUBJECT TO THE FOLLOWING DOCUMENTS ALL OF WHICH ARE INCORPORATED HEREIN BY REFERENCE WITH THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN: 1. DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND ESTABLISHMENT OF EASEMENTS OF ALIA RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON AUGUST 13, 2019 AS DOCUMENT NO. 2019-0339401, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,-DECLARATION' 2. SUPPLEMENTAL DECLARATION OF COVENANTS AND RESTRICTIONS AND AGREEMENT ESTABLISHING DISPUTE RESOLUTION PROCEDURES FOR ALIA RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON AUGUST 13, 2019 AS DOCUMENT NO. 2019-0339402, AND ANY AMENDMENTS AND SUPPLEMENTS THERE (COLLECTIVELY, THE-ADR DECLARATION' Commonly known as: 923 Moonstone Court, Encinitas, CA 92024 APN #: 254-362-13-00 UJd® I I Page 19 1 RECORDING REQUESTED BY: First American Title Company-Homebuilder DOC# 2020-0371780. Services Division IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII WHEN RECORDED MAIL DOCUMENT TO: Jul 13, 2020 11:32 AM City of Encinitas OFFICIAL RECORDS City Clerk's Office Ernest J. Dronenburg,Jr., 505 S. Vulcan Avenue SAN D$59000 OUN ARE $RDOOR Encinitas, CA 92024 PAGES: 16 i Space Above This Line for Recorder's Use Only A.P.N.: 254-362-13-00 WnP File No.: DTR-6023975 (ND) Property Address: 923 Moonstone Court, Encinitas, CA 92024 First Amended and Restated Affordable Housing Regulatory Agreement (Density Bonus) Title of Document (X } Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently]'in connection with a transfer of real property that is residential dwelling to an owner- occupier per GC 27388.1 (a) (2). ( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1). ( ) Not related to real property GC 27388.1 (a) (1). ( )Transfer of real property subject to the imposition of Documentary Transfer Tax- GC 27388.1 (a)(2) ( )Transfer of real property that is a residential dwelling to an owner-occupier- GC 27388.1 (a)(2) ( ) Exempt from fee,under GC 27388.1 due to being recorded in connection with a transaction that was subject to documentary transfer tax which was paid on document recorded as Document No. of Official Records O Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling o an owner-occupier. The recorded document transferring the dwelling to the owner- 9 P g 9 occupier was recorded as document No. of Official Records. (X) Exempt from fee under GC 27388.1 for the following reasons: No Fee For Recording Pursuant To Gov. Code Section 27383 THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) RECORDING REQUESTED BY: First American Title Company-Homebuilder Services Division WHEN RECORDED MAIL DOCUMENT TO: City of Encinitas City Clerk's Office 505 S. Vulcan Avenue Encinitas, CA 92024 I Space Above This Line for Recorder's Use Only A.P.N.: 254-362-13-00 VJO File No.: DTR-6023975 (ND) Property Address: 923 Moonstone Court, Encinitas, CA 92024 First Amended and Restated Affordable Housing Regulatory Agreement(Density Bonus) Title of Document (X ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner- occupier per GC 27388.1 (a) (2). ( ) Maximum fee of$225 has been reached per GC 27388.1 (a) (1). ( ) Not related to real property GC 27388.1 (a) (1). Transfer Tax - GC 27388.1 a 2 Transfer of real roe subject to the imposition of Documentary ( )( ) ( ) property�Y ( )Transfer of real property that is a residential dwelling to an owner-occupier - GC 27388.1 (a)(2) ( ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to documentary transfer tax which was paid on document recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded as Document No. of Official Records 1 due t it being recorded in connection with a transfer of real property that ( ) Exempt from fee under GC 27388 d o g P . The recorded document transferring the dwelling is aresidential dwelling to an owner occupier 9 9 to the owner- occupier was recorded as document No. of Official Records. (X ) Exempt from fee under GC 27388.1 for the following reasons: No Fee For Recording Pursuant To Gov. Code Section 27383 THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) NO FEE FOR RECORDING PURSUANT TO GOV. CODE SECTION 27383 Recording Requested By: City of Encinitas Development Services Department 505 S. Vulcan Avenue Encinitas, CA 92024 And When Recorded Mail To: City of Encinitas City Clerk's Office 505 S. Vulcan Avenue Encinitas, CA 92024 A.P.N. 254-362-13-00 FIRST AMENDED AND RESTATED AFFORDABLE HOUSING REGULATORY AGREEMENT (Density Bonus) This First Amended and Restated Affordable Housing Regulatory Agreement (hereinafter the "REGULATORY AGREEMENT") is made and entered into and is effective as of this day of Jury , 20'10 by and between the City of Encinitas (hereinafter the "CITY"), and Joanne Lupson, an unmarried woman (hereinafter the "OWNER" or "HOMEBUYER HOUSEHOLD"). RECITALS A. Whereas, the CITY has adopted a Density Bonus Ordinance, Encinitas Municipal Code Section 30.16.020(C), to conform with state density bonus law (Government Code Sections 65915 — 65918) (together "DENSITY BONUS LAW"). DENSITY BONUS LAW allows a density bonus, concessions, and other regulatory incentives when a developer proposes to provide affordable housing meeting the standards of DENSITY BONUS LAW. B. Whereas, the OWNER is the owner of real property (hereinafter the " described in EXHIBIT A attached hereto and made a art PROPERTY ) p hereof; C. Whereas, the CITY approved Tentative Map 14-069 by Planning Commission Resolution (Reso. 2018-23) on June 21, 2018. As part of the City of Encinitas-Affordable Housing Agreement 1 Tentative Map application, the DEVELOPER has sought and agreed to construct one unit (7.7% of the total units shown on the Tentative Map) to be affordable to VERY LOW INCOME HOUSEHOLDS. The affordable unit(s) is hereinafter the "UNIT(s)". D. Whereas, the DEVELOPER has designated Lot Number Thirteen (13) of TM 14-069 (hereinafter the "AFFORDABLE UNIT PROPERTY") as the site of the required affordable UNIT, and the DEVELOPER has constructed the UNIT on the AFFORDABLE UNIT PROPERTY; E. Whereas, the UNIT was previously subject to a certain Affordable Housing Agreement dated May 16, 2019 and recorded in the Official Records of the County of San Diego on June 4, 2019 with document number 2019- 0215213 (the "ORIGINAL AGREEMENT") and were an agreement made between the CITY and Shea Homes Limited Partnership, a California limited partnership (hereinafter the "DEVELOPER"); F. Whereas, the DEVELOPER has fulfilled the obligations and requirements under the ORIGINAL AGREEMENT; G. Whereas, the ownership of the UNIT has changed since the ORIGINAL AGREEMENT was entered into and recorded, and the UNIT has been conveyed to the OWNER, necessitating a partial release from the ORIGINAL AGREEMENT pertaining to the UNIT, and replacement of the ORIGINAL AGREEMENT with this REGULATORY AGREEMENT specific to the PROPERTY; and, H. Whereas, in order to restrict use oflthe affordable UNIT, the OWNER is bound by this REGULATORY AGREEMENT and has consented to be regulated and restricted as provided herein. NOW, THEREFORE, the parties hereto agree as follows: 1. TERM OF AGREEMENT. The term of this REGULATORY AGREEMENT shall commence on the issuance of a certificate of occupancy for the UNIT and shall continue for a period of fifty- five (55) years in accordance with Encinitas Municipal Code 30.16.020(C)(9). All references to the Municipal Code in this REGULATORY AGREEMENT refer to the Municipal Code in effect on the date of this REGULATORY AGREEMENT. 2. MAINTENANCE OF THE AFFORDABLE UNIT. City of Encinitas-Affordable Housing Agreement 2 A. The exterior appearance of the affordable UNIT shall be compatible with units in the surrounding neighborhood, including units within TM 14-069. The interior appearances, finishes, and amenities of the UNIT shall be comparable to new units in the community. B. The UNIT shall be a minimum of 1,601 square feet of living space, with a minimum of 3 bedrooms and 2 bathrooms and a 2-car garage. C. The UNIT shall be provided with an adequate usable yard area comparable to new units in the community. 3. GENERAL CONDITIONS. A. OWNER shall only rent or sell the UNIT to a VERY LOW INCOME HOUSEHOLD. A "VERY LOW INCOME HOUSEHOLD" is a household with household income that does not exceed the very low income limits applicable to San Diego County as published annually by the Department of Housing and Community Development under Title 25 of the California Code of Regulations, Section 6932 (or successor provision), adjusted for actual household size. B. OWNER shall advertise the availability of the UNIT for a minimum of two consecutive weeks in a local newspaper. The OWNER may employ additional marketing methods that are in accordance with professional standards. The CITY may also advertise the UNIT to provide contact information to interested households. OWNER shall make applications available for a minimum of two weeks during the advertisement period. OWNER shall maintain a record of all • interested households and applications. OWNER must provide such documentation to the CITY. C. OWNER shall provide CITY with notice of not less than 60 days prior to advertising the availability of the UNIT of their intent to rent or sell the UNIT. D. OWNER shall comply with the Fair Housing Act and California Fair Employment and Housing Act and not discriminate against any prospective tenant or homebuyer on the basis of race, color, religion, sex, national origin, familial status, disability, or other individuals protected under State and Federal fair housing laws. E. OWNER is prohibited from renting or selling the UNIT to a family member, relative, employee, or any pre-determined household. A 'pre-determined household' is any household with a pre-existing relationship with the OWNER, such as a friend, associate, or any other household that has an existing relationship with the OWNER, and whose occupancy of the UNIT would decrease its availability to the general public as intended by DENSITY BONUS LAW. City of Encinitas-Affordable Housing Agreement 3 F. OWNER may sell the UNIT or the AFFORDABLE UNIT PROPERTY with the prior written approval of the DIRECTOR to a non-qualifying household, if the UNIT will be continuously rented to a qualifying VERY LOW INCOME HOUSEHOLD at an affordable rental price as calculated in Section 5.13 below. At the time of said sale, the subsequent owner shall execute a new REGULATORY AGREEMENT with the CITY. G. During the term of this agreement, the UNIT shall be utilized for residential use only in accordance with applicable local ordinances and regulations; any commercial use or transient habitation (of less than thirty days) is specifically prohibited. H. Occupancy of the UNIT shall be appropriate to the number of bedrooms in the UNIT. As a general rule and policy, an appropriately sized household is no less than one person per bedroom, unless a reasonable accommodation must be made under federal or state fair housing laws. I. The OWNER has received the regulatory incentives described in Recital D of the ORIGINAL AGREEMENT from the CITY under the DENSITY BONUS LAW. The incentives are a form of assistance specified in Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code. Sections 1954.52(b) and 1954.53(a)(2) of the Costa-Hawkins Act provide that, where a developer has received such assistance, certain provisions of the Costa-Hawkins Act do not apply if a developer has so agreed by contract. The OWNER hereby agrees to limit rents and sales prices as provided in this Agreement in consideration of the OWNER's receipt of the incentives described in Recital D and further agrees that any limitations on rents imposed on the UNIT are in conformance with the Costa-Hawkins Act. 4. OPTION TO SELL. A. QUALIFICATION OF ELIGIBLE HOMEBUYER HOUSEHOLD i. Except as provided in Section 3.F, the UNIT shall only be sold to a qualifying VERY LOW INCOME HOUSEHOLD. ii. The DEVELOPER shall verify the income of all adult members of any proposed HOMEBUYER HOUSEHOLD. For the purposes of determining the HOMEBUYER HOUSEHOLD gross annual income, all adult (18 years of age and over) members of household shall provide recent (within a year) source documentation to verify income. Source documentation includes, but not limited to, tax returns, paystubs, wage statements, W2s, bank statements, social security documents, and employment verification. City of Encinitas-Affordable Housing Agreement 4 I iii. Prior to opening escrow to sell the UNIT, DEVELOPER shall provide CITY with HOMEBUYER HOUSEHOLD'S recent income qualifying source documentation, including, but not limited to, tax returns, W2's, paystubs, social security statements, bank statements, etc. The CITY may require additional documentation to verify eligibility. DIRECTOR shall confirm or deny eligibility based on the documentation provided. iv. HOMEBUYER HOUSEHOLD must certify that they will occupy the UNIT as owner-occupant and principal residence; and that the household does not own or have an interest in any real property. B. CALCULATION OF AFFORDABLE HOUSING COST i. The maximum affordable sales price for the UNIT shall be calculated in accordance with California .Health and Safety Code Section §50052.5 and Title 25 of the California Code of Regulations, Section 6920 (or successor provision), and, in accordance with these provisions, shall result in housing cost that does not exceed 30 percent of 50 percent of AREA MEDIAN INCOME, adjusted for assumed household size. "AREA MEDIAN INCOME" is the median income for to San Diego County as published annually by the Department of Housing and Community Development under Title 25 of the California Code of Regulations, Section 6932 (or successor provision), adjusted for actual household size. The following conditions shall also be applied when determining the maximum affordable sales price: a. The calculation shall include a five percent down payment. b. The calculation shall include an interest rate which is based on the current Freddie Mac Monthly Average Commitment Rate on 30- Year Fixed-Rate Mortgages. c. The calculation shall include reasonable housing costs, which includes, but not limited to, principal and interest, property taxes and assessments, property insurance, property maintenance and repairs, Homeowners' Association fees, additional district fees (if applicable), and an allowance for utilities based on the current Utility Allowance Schedule, published by the Encinitas Housing Authority d. Actual financing to be obtained by any prospective homebuyer shall be a fixed rate loan fully amortized over thirty years. ii. Prior to opening escrow, the sale price of the UNIT shall be approved by the DIRECTOR. City of Encinitas-Affordable Housing Agreement 5 C. ADDITIONAL REQUIREMENTS i. At the time of initial sale, HOMEBUYER HOUSEHOLD shall execute a new REGULATORY Agreement with the CITY in accordance with Encinitas Municipal Code 30.16.020(C)(9). ii. HOMEBUYER HOUSEHOLD shall submit a report to the DIRECTOR at initial occupancy and annually thereafter, on a form prescribed by the DIRECTOR. The report shall certify that the HOMEBUYER HOUSEHOLD occupies the UNIT as their primary residence. The HOMEBUYER HOUSEHOLD shall provide source documentation verifying the occupancy status of the HOMEBUYER HOUSEHOLD. D. NOTICE TO CITY. HOMEBUYER HOUSEHOLD agrees that it will give the CITY notice of any prospective transfer, sale, or conveyance of the PROPERTY not less than forty five (45) days before the proposed sale, transfer, or conveyance by personal delivery of a notice at the address set forth for the CITY in paragraph 16 of this REGULATORY AGREEMENT. Time is of the essence. E. LEASE OF PROPERTY PROHIBITED. During the term of this REGULATORY AGREEMENT, HOMEBUYER HOUSEHOLD shall not rent or sublet the PROPERTY, or any part thereof, to any person and/or entity. Provided however, the CITY may grant temporary waivers of this requirement in the event of hardship affecting HOMEBUYER HOUSEHOLD, such as illness in the family, military deployment or re-assignment, need to relocate to obtain employment, and the like. F. TRANSFER, CONVEYANCE OF PROPERTY RESTRICTED. The sale, transfer and/or conveyance of the PROPERTY is restricted as follows: i. The PROPERTY may only be sold, transferred or conveyed to a qualified VERY LOW INCOME HOUSEHOLD. ii. The PROPERTY must be used only as the principal residence of the subsequent purchaser during the time of ownership. HOMEBUYER HOUSEHOLD shall make a ,good faith effort to obtain a qualified purchaser residing in the City of Encinitas, prior to considering other qualified purchasers. Such effort shall include, but not limited to, local public advertising, listing in local real estate publications, and CITY City of Encinitas-Affordable Housing Agreement 6 suggested marketing. The CITY shall determine if a "good faith" effort has been performed. The CITY shall not unreasonably withhold its approval. iii. The sale price to the subsequent purchaser must be at a price that is "affordable to the subsequent purchaser(s)". "Affordable to the subsequent purchaser(s)" is determined through the calculation described in Section 4.13 above. iv. In the event that HOMEBUYER HOUSEHOLD is unable to find, despite good faith efforts to do so, a qualified purchaser to purchase the PROPERTY, HOMEBUYER HOUSEHOLD may sell the PROPERTY to a person other than a qualified purchaser by first offering to sell the PROPERTY to the CITY for a purchase price equal to that determined through the calculation described in Section 4.13 above. The CITY shall accept or reject the offer to sell the PROPERTY to the CITY within thirty (30) days of the date of receipt of the offer to sell. In the event that the CITY declines to purchase the PROPERTY, HOMEBUYER HOUSEHOLD may proceed to market and sell the PROPERTY to a non-qualified buyer as described in section 3.F above if the UNIT will be continuously rented to a qualifying VERY LOW INCOME HOUSEHOLD at an affordable rental price. At the time of said sale, the subsequent owner shall execute a new Regulatory Agreement with the CITY. Upon a showing of hardship by the HOMEBUYER HOUSEHOLD to the CITY in writing, the CITY may waive any one or combination of the following: the resale restrictions, the HOMEBUYER HOUSEHOLD's obligation to sell to the CITY. v. Notwithstanding the foregoing, the following limited circumstances are acknowledged by the CITY to be permitted transfers: a) the transfer results from the death of a spouse, and the transfer is to the surviving spouse who is also a member of the HOMEBUYER HOUSEHOLD. b) a transfer to a spouse when the spouse becomes, by such a transfer, a co-owner of the PROPERTY; c) a transfer of the PROPERTY resulting from a decree of dissolution of the marriage or legal separation or from a property settlement agreement incidental to such a decree and by which a spouse who is already an OWNER becomes the sole owner of the PROPERTY; and/or d) a transfer by the OWNER to an inter vivos trust in which the OWNER is the sole current beneficiary. City of Encinitas-Affordable Housing Agreement 7 vi. A transfer of the PROPERTY in accordance with the terms hereof must be accompanied by a recordable assignment and assumption of this REGULATORY AGREEMENT executed by the transferee. 5. INTENTIONALLY OMITTED. 6. NON-DISCRIMINATION. OWNER shall not discriminate against any prospective tenant or homebuyer on the basis of race, color, religion, sex, national origin, familial status, disability or other individuals protected under state and federal fair housing law. 7. CERTAIN ACTS PROHIBITED. OWNER shall not make any sale, encumbrance (except for a purchase money first Deed of Trust associated with mortgage financing), assignment or conveyance, or transfer in any other form, of the PROPERTY or of its entire interest therein other than in accordance with the terms of this REGULATORY AGREEMENT. 8. VIOLATION OF REGULATORY AGREEMENT BY THE OWNER. In the event of the violation of any of the provisions of this REGULATORY AGREEMENT by the OWNER, the CITY may give written notice thereof to the OWNER by registered or certified mail addressed to the OWNER at the address stated in Section 16 below, or to such other address as may have been designated by the OWNER, and if such violation is not corrected to the satisfaction of the CITY within thirty (30) days after the date such notice is mailed (or within such further time as the CITY, in its reasonable discretion, may permit), the CITY may, without further prior notice, declare in writing a default under this REGULATORY AGREEMENT effective on the date of such declaration of default, and upon any such declaration of default the CITY may apply to any court, state or federal, for specific performance of this REGULATORY AGREEMENT; for an injunction against any violation by the OWNER of this REGULATORY AGREEMENT; for the appointment of a receiver to take over and operate the UNIT in accordance with the terms of this REGULATORY AGREEMENT; or for such other relief as may be appropriate, it being agreed by the OWNER that the injury to the CITY arising from a default under any of the terms of this REGULATORY AGREEMENT would be irreparable and that it would be extremely difficult to ascertain the amount of compensation to the CITY which would afford adequate relief, in light of the purposes of DENSITY BONUS LAW. 9. AMENDMENT. City of Encinitas-Affordable Housing Agreement 8 This REGULATORY AGREEMENT shall not be altered or amended except by writing executed between the parties. 10. SEVERABILITY. In the event that any provision or covenant of this REGULATORY AGREEMENT is held by a court of competent jurisdiction to be invalid or unenforceable, then it shall be severed from the remaining portions of this REGULATORY AGREEMENT, which shall remain in full force and effect. 11. BINDING ON SUCCESSORS. This REGULATORY AGREEMENT shall inure to the benefit of and be binding upon the successors and assigns of the OWNER and the heirs, personal representatives, grantees, tenants, successors-in-interest or assigns of the owners. This REGULATORY AGREEMENT shall bind, and the benefits thereof shall inure to, the respective parties hereto, their legal representatives, executors, administrators, successors in the office or interest, and assigns; provided, however, that the OWNER may not assign this REGULATORY AGREEMENT or any of its obligations hereunder, voluntarily or by operation of law, without the prior approval of the CITY, excluding an assignment to an affiliate. As used herein, "affiliate" means any entity in which OWNER holds an ownership interest, or any person or entity that holds an ownership interest in the PROPERTY. 12. GENDER. The use of the plural in this REGULATORY AGREEMENT shall include the singular and the singular shall include the plural; and the use of one gender shall be deemed to include all genders. 13. ELECTION OF REMEDIES: EVENT OF DEFAULT. The remedies of the CITY hereunder or under any other instrument providing for or evidencing the financial assistance provided herein are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by the CITY of any one or more of its other remedies. 14. WAIVER. No waiver by the CITY of any breach of or default under this REGULATORY AGREEMENT shall be deemed to be a waiver of any other or subsequent breach or default hereunder. City of Encinitas-Affordable Housing Agreement 9 i 15. GOVERNING LAW. This REGULATORY AGREEMENT shall be construed in accordance with and governed by the laws of the State of California. 16. NOTICES. Written notices and other written communications by and between the parties hereto shall be addressed as follows unless and until a party hereto has in writing, communicated a different address to the other party hereto. CITY OWNER City of Encinitas Joanne Lupson 505 S. Vulcan Ave. 923 Moonstone Ct. Encinitas, CA 92024 Encinitas, CA 92024 Attn: Development Services Director IN WITNESS WHEREOF, OWNER has executed this REGULATORY AGREEMENT as of the day and year first above-written. OWNER Joanne Lupson, an unmarried woman By: Date: )_/0/Z2_0 Joanne Lupson (Notarization of signature must be attached) City of Encinitas-Affordable Housing Agreement 10 CITY City of Encinitas, a municipal corporation By: A4 0 . C212a Date: L020 ity anag (Notarization of signature must be attached) APPROVED AS TO FORM: City Attorney Date City of Encinitas-Affordable Housing Agreement 11 A notary public or other officer completing this certificate verifies only the Identity of the Individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy or validity of that document. STATE OF 1 ) COUNTY OF CATHERINE.R AGUINAl:pQ On L01 , before me, NOTARY PU8LIC , a Notary Public, personally appeared , who proved to on the basis of satisfactory v deuce to be the persons) whose ame(s) is oare� subscribed to the thin instru t, and acknowledged to me that he/ hthey executed the same in his/ a /their authorized capacity(ies), and that by his/ r heir signature(s) on the instrumen a person(s), or the entity upon behalf of which 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. CATHERINE R.AGUINALDo COMM.#2165238 0 RS o NOTARY PUBLIC-CALIFORNIA 0 CO SAN DIEGO COUNTY My CGmmission Expires No ary Public _ OCTOBER 17,2020 STATE OF ) COUNTY OF ) On , before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Notary Public CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California 1 County of 5,*,3 D/elo J} On ���4 �.Z�2 O before me, bYAl�l L. L P�tJ%5 �a fdt�L/ �a.�l i C Date (( Here Insert Name and Title o the Officer personally appeared :Te—hrn bew Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing BRANDI L.LEWIS paragraph is true and correct. QMy Notary Public-California San Diego County WITNESS my hand and official seal. Commission k 2242688 Comm.Expires May 14,2022 Signature Place Notary Seal and/or Stamp Above Signature of Nota blic OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to on unintended document. Description of Attached Document Title or Type of Document: AgorAl„r I-e— 1/a rna YLGmprr4 Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer—Title(s): ❑ Corporate Officer—Title(s): ❑ Partner— ❑ Limited ❑ General ❑ Partner— ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Trustee ❑ Guardian or Conservator ❑ Other: ❑ Other: Signer is Representing: r'i �y o EnGI n i4&9 Signer is Representing: ©2019 National Notary Association �'°' .. ,.-._Y.�_.I.�;.y,......s".:: _. �..._i.:.�':.i.="..,,..rte/-._<.Z EXHIBIT A LEGAL DESCRIPTION Real property in the City of Encinitas, County of San Diego, State of California, described as follows: PARCEL 1: LOT 13 OF CITY OF ENCINITAS TENTATIVE MAP NO. 14-069, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,ACCORDING TO MAP THEREOF NO. 16347, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA,JUNE 7, 2019 ("MAP'O; RESERVING THEREFROM,ALL EASEMENTS DESCRIBED IN THE DECLARATION (DESCRIBED BELOW), THE MAP AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF; FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION (DEFINED BELOW),A NON-EXCLUSIVE EASEMENT IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS AN ASSOCIATION MAINTENANCE AREA, IF ANY, FOR THE PURPOSE OF MAINTENANCE AND REPAIR,TOGETHER SUCH RIGHTS OF ACCESS NECESSARY TO PERFORM SUCH MAINTENANCE AND REPAIR,AS MORE FULLY PROVIDED IN THE DECLARATION; FURTHER RESERVING THEREFROM,A NON-EXCLUSIVE EASEMENT FOR THE BENEFIT OF AND APPURTENANT TO EACH OTHER LOT OF THE MAP THAT IS SUBJECT TO A CROSS LOT DRAINAGE EASEMENT AREA, IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS A CROSS LOT DRAINAGE EASEMENT AREA FOR PURPOSES DESCRIBED IN THE DECLARATION; FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION AND ALL MEMBERS OF THE ASSOCIATION,A NON-EXCLUSIVE EASEMENT ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS A PRIVATE WALKWAY, FOR THE PURPOSE OF INGRESS AND EGRESS OVER THE WALKWAYS LOCATED THEREIN, AS MORE FULLY PROVIDED IN THE DECLARATION. PARCEL 2: A NON-EXCLUSIVE EASEMENT FOR PEDESTRIAN ACCESS, INGRESS AND EGRESS OVER, UPON AND ACROSS THAT PORTION OF LOTS 1 THROUGH 7 OF THE MAP, SHOWN AND DESCRIBED IN THE DECLARATION AS A PRIVATE TRAIL, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1. PARCEL 3: A NON-EXCLUSIVE EASEMENT OVER THOSE PORTIONS OF THE REAL PROPERTY ENCUMBERED BY THE DECLARATION THAT SHARE THE SAME SYSTEM OF CROSS LOT DRAINAGE FACILITIES LOCATED ON THE LOT DESCRIBED IN PARCEL 1 ABOVE (IF ANY) FOR THE PURPOSE OF DRAINAGE THROUGH THE CROSS LOT DRAINAGE FACILITIES AS PROVIDED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1. PARCEL 4: A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS, IN,TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY City of Encinitas-Affordable Housing Agreement 12 c DESCRIBED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1 ABOVE.THESE EASEMENTS ARE GRANTED SUBJECT TO: A.THE EASEMENT AND OTHER RIGHTS RESERVED IN THE DECLARATION IN FAVOR OF GRANTOR FOR MARKETING AND DEVELOPMENT, INCLUDING, WITHOUT LIMITATION, GRANTOR'S RIGHT TO MAINTAIN MODEL HOMES IN THE LOTS OWNED BY GRANTOR,AS WELL AS THE RIGHT OF ACCESS, INGRESS,AND EGRESS FOR VISITORS TO THE SALES OFFICE AND MODEL HOMES AND THE RIGHT TO MAINTAIN SIGNS OR OTHER MARKETING MATERIALS WITHIN THE ASSOCIATION PROPERTY OF THE COMMUNITY(DEFINED IN THE DECLARATION); B. GRANTOR'S EASEMENT FOR INGRESS AND EGRESS, IN, ON, OVER,THROUGH AND ACROSS THE ASSOCIATION PROPERTY TO PERMIT GRANTOR TO INSTALL IMPROVEMENTS THEREON; AND C. GRANTOR'S RIGHT TO PREVENT ACCESS OVER PORTIONS OF ASSOCIATION PROPERTY BY PLACING A CONSTRUCTION FENCE OR OTHER BARRIER THEREON PRIOR TO COMPLETION OF CONSTRUCTION OF ALL IMPROVEMENTS WITHIN THE COMMUNITY, PROVIDED THAT GRANTEE HAS AT LEAST ONE ROUTE OF ACCESS BETWEEN THE LOT DESCRIBED IN PARCEL 1 ABOVE AND A PUBLIC STREET. THE REAL PROPERTY CONVEYED IN THIS GRANT DEED (-PROPERTY'S IS CONVEYED TOGETHER WITH A MEMBERSHIP IN THE ALIA HOMEOWNERS ASSOCIATION,A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION ("ASSOCIATION'S AND ACCEPTED SUBJECT TO THE FOLLOWING DOCUMENTS ALL OF WHICH ARE INCORPORATED HEREIN BY REFERENCE WITH THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN: 1. DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND ESTABLISHMENT OF EASEMENTS OF ALIA RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON AUGUST 13, 2019 AS DOCUMENT NO. 2019-0339401,AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,"DECLARATION'j 2. SUPPLEMENTAL DECLARATION OF COVENANTS AND RESTRICTIONS AND AGREEMENT ESTABLISHING DISPUTE RESOLUTION PROCEDURES FOR ALIA RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON AUGUST 13, 2019 AS DOCUMENT NO.-2019-0339402,AND ANY AMENDMENTS AND SUPPLEMENTS THERE (COLLECTIVELY, THE"ADR DECLARATION'l Commonly known as: 923 Moonstone Court, Encinitas, CA 92024 APN #: 254-362-13-00 u16� City of Encinitas-Affordable Housing Agreement 13 RECORDING REQUESTED BY, First American Title Company-Homebuilder DOC## 2020-0372714 Services Division Illllllllllllllll lllllllllllllllllll III[llllllll lllllllll lllllllil WHEN RECORDED MAIL DOCUMENT TO: Jul 13, 2020 02:57 PM City of Encinitas ` OFFICIAL RECORDS City Clerk's Office, Ernest J. Dronenburg,Jr., 505 S. Vulcan Avenue SAN DIEGO COUNTY RECORDER Encinitas, CA 92024 FEES: $53.00 (SB2 Atkins: $0.00) PAGES: 14 Space Above This Line for Recorder's Use Only A.R.N.: 254-362-13-00 wop File No.: DTR=6023975 (ND) Property Address: 923 Moonstone Court, Encinitas, CA 92024 Subordination Agreement Title of Document ( ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ).Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner- occupier per GC 27388.1 (a) (2). O Maximum fee of$225 has been reached per GC 2738$.1 (a) (1). O Not related to real property GC 27388.1 (a).(1). O Transfer of real property subject to the imposition of Documentary Transfer Tax- GC 27388.1 (a)(Z) ( )Transfer of real property that is a residential dwelling to an owner-occupier- GC 27388.1 (a)(2) (X) Exempt from fee under GC 27388.1 due to being recorded 'in connection with a transaction that was subject to documentary transfer tax which was paid on document recorded 7/13/2020 as Document No. 2020-0371778 of Official Records ( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner- occupier was recorded as document No. of Official Records. (X) Exempt from fee under GC 27388.1 for the following reasons: No'Fee For Recording Pursuant To Gov. Code Section 27383 THIS PA_GE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2;.AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) RECORDING REQUESTED BY: First American Title Company-Homebuilder Services Division WHEN RECORDED MAIL DOCUMENT TO: City of Encinitas ` City Clerk's Office 505 S. Vulcan Avenue Encinitas, CA 92024 Space Above This Line for Recorder's Use Only A.P.N.: 254-362-13-00 wop File No.: DTR-6023975 (ND) Property Address: 923 Moonstone Court, Encinitas, CA 92024 Subordination Agreement Title of Document ( ) Recorded [concurrently] in connection with a transfer of real property subject to the imposition of Documentary Transfer Tax per GC 27388.1 (a) (2). ( ) Recorded [concurrently] in connection with a transfer of real property that is residential dwelling to an owner- occupier per GC 27388.1 (a) (2). ( ) Maximum fee of$225 has been reached per GC 2738$.1 (a) (1). ( ) Not related to real property GC 27388.1 (a) (1). ( )Transfer of real property subject to the imposition of Documentary Transfer Tax - GC 27388.1 (a)(2) ( )Transfer of real property that is a residential dwelling to an owner-occupier - GC 27388.1 (a)(2) (X ) Exempt from fee under GC 27388.1 due to being recorded in connection with a transaction that was subject to documentary transfer tax which was paid on document recorded 7/13/2020 as Document No. 2020-0371778 of Official Records ( ) Exempt from fee under GC 27388.1 due to the maximum fees having been paid on document(s) recorded as Document No. of Official Records ( ) Exempt from fee under GC 27388.1 due to it being recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier. The recorded document transferring the dwelling to the owner- occupier was recorded as document No. of Official Records. (X ) Exempt from fee under GC 27388.1 for the following reasons: No Fee For Recording Pursuant To Gov. Code Section 27383 THIS PAGE ADDED TO PROVIDE EXEMPTION INFORMATION FOR THE BUILDING HOMES AND JOBS ACT FEE (SB-2; AFFORDABLE HOUSING FEE) ($3.00 Additional recording fee applies) NO FEE FOR RECORDING PURSUANT TO GOV. CODE SECTION 27383 Recording Requested By: City of Encinitas Development Services Department 505 S. Vulcan Avenue Encinitas, CA 92024 And When Recorded Mail To: City of Encinitas City Clerk's Office 505 S. Vulcan Avenue Encinitas, CA 92024 APN: 254-362-13-00 wo? (SPACE ABOVE LINE FOR RECORDER'S USE ONLY) SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. This SUBORDINATION AGREEMENT (this "Agreement') made this 9+k day of ���� 202v, by and among (i) the CITY OF ENCINITAS ("City'), (ii) Joanne Lupson, an unmarried woman ("Borrower"), and (iii) CROSSCOUNTRY MORTGAGE, LLC. ("Lender"). _ Hereafter, City, Borrower and Lender are sometimes referred to as a "Party" and collectively as the "Parties". RECITALS A. Borrower is the owner of certain real property located in the City of Encinitas, County of San Diego, State of California (the "Property'), as more particularly described in Exhibit A attached hereto and incorporated herein by this reference. B. The rights of Borrower in the Property are subject to, among other matters, that certain Deed of Trust, dated as of Jily 'it" 2o2U , executed by Borrower in favor of City, and.recorded on Sly Wk 2020 in the official records of San Diego County, California (the "Official Records") as Instrument No. 207-0-o2,0 n g 1 (the "Affordability Deed of Trust'). The Affordability Deed of Trust secures, among other obligations, the obligations of Borrower under that certain Promissory Note executed . Page 1 qf� Sv(� VZO in initial principal amount of Nine hundred thirty-five thousand, two hundred fifty-six Dollars ($935,256.00) (the "Note"), together with performance of all terms, covenants and conditions to be performed by Borrower under a First Amended and Restated Affordable Housing Regulatory Agreement dated .k/ly 11'' ZOZO and recorded J&t j t3 ` 202-15 in the Official Records as Document Number 7020-6311Ig0 (as amended, the "Regulatory Agreement' and, together with the Note, the "Other Affordability Documents"). C. Lender intends to make a loan (the "Loan") to Borrower, which Loan will be evidenced by a Promissory Note (the "Note") executed by Borrower in favor of Lender, and secured by; among other things, (i) a Deed of Trust (the "_Lender Deed of Trust'), executed by Borrower in favor of Lender and recorded in the Official Records, (ii) an Assignment of Rents (the "Lender Assignment of Rents"), executed by Borrower in favor of Lender and recorded in the Official Records and (iii) a UCC Financing Statement recorded in the Official Records (the "Lender Fixture Filing' and, together with the Lender Deed of Trust and the Lender Assignment of Rents, the "Lender Security Documents"). The Note, the Lender Security Documents, and any and all other documents, agreements and instruments now or hereafter evidencing, securing or delivered to Lender in connection with the Loan, are hereinafter referred to as the "Loan Documents". D. City, Borrower and Lender all agree and desire to execute this Agreement to, among other things, (i) document City's consent to the making of the Loan to Borrower by Lender and the encumbrance of the Property with the Lender Security Documents and.(ii) memorialize their understanding and agreement with regard to the respective priorities of each of the above-referenced .documents. It is the intention of the parties that the Lender Security Documents shall unconditionally be and remain at all times liens, claims or charges on the Property prior and superior to the Affordability Deed of Trust. NOW, THEREFORE, in consideration of the foregoing Recitals, which Recitals are incorporated herein by this reference, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and for the mutual covenants contained herein, the Parties hereby agree as follows: 1. Agreement to Subordinate. Subject to the terms of this Agreement, City and Borrower agree. to unconditionally subject and subordinate the lien, claim and charge of the Affordability Deed of Trust, and all present and future indebtedness and obligations secured thereby, in favor of the liens, claims and charges upon the Property of the Lender Security Documents. The Lender Security Documents will be and remain at all times liens, claims or charges on the Property prior and superior to the Affordability Deed of Trust, and to all rights and privileges of City and Borrower thereunder. The Parties hereby acknowledge that this Agreement only subordinates the Affordability Deed of Trust and does not subordinate the City's Regulatory Agreement. 2. Consent to Loan. City hereby consents to the making of the Loan to Borrower by Lender.and to the encumbrance of the Property with the Lender Security Documents. City hereby further consents to any transfer of the Property, or any interest Page 2 or rights therein, in connection with Lender's exercise of any of its rights and' remedies under the Loan Documents, including, without limitation, the sale of the Property pursuant to a judicial or non-judicial foreclosure, the transfer of the Property by deed in lieu thereof, the appointment of a receiver to operate and manage the Property, and the appointment of a professional management company to operate and manage the Property from and after the date upon which Lender or any affiliate of Lender, or any of their respective successors and assigns as holders of the Note, acquires title to the Property through foreclosure or deed in lieu thereof. 3. Notices. City and Borrower agree to give Lender copies of all notices of default under the Affordability Deed of Trust and Other Affordability Documents. All notices under this Agreement shall be in writing and shall be delivered to the appropriate party at the address set forth below (subject to change from time to time by written notice to all other parties to this Agreement). All notices demands or other communications shall be considered as properly given upon receipt or rejection. Notices shall be delivered personally, by certified mail United States Postal Service mail, postage prepaid return receipt requested, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid with proof of delivery. For purposes of notice, the address of the Parties shall be as follows: If to Borrower: loo.^ L,►poson 13G MoonSAzne Cdurk Attention: 3oopnne Lopon If to Lender: &05s(_'Jr' 'ry cc L LG ag5o AA Iles &, Ares 5v;I)v_ { W414� Attention: �Ckg r If to City: City of Encinitas 505 S. Vulcan Avenue Encinitas, California 92024 Attention: Development Services Director 3. Entire Agreement. This Agreement shall be the entire agreement with regard to the priority of the liens, claims and charges of the Lender Security Documents and the Affordability Deed of Trust and shall supersede and cancel any prior agreements as to such priority. 4. Governing Law. This Agreement will be governed by, and construed and enforced in accordance with, the laws of the State of California. 5. Binding Effect. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties hereto and their respective heirs, legal representative, successors, and assigns. Page 3 i I 6. Counterparts. This Agreement may be signed in multiple counterparts with the same effect as if all signatories had executed the same instrument. [signatures to follow] Page 4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above. "CITY" CITY OF ENCINITAS Name: 4T4K n I Signature Page 1 of 3 to Subordination Agreement CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California 1 County of .S4ri7 Dl-'e-1 O J} On 9141U before me, BY t L. Lzwl S, molt-M E41 iG Date r- — Here Insert Name and Title of the Officer personally appeared 171-41111 t CA V11(0e11 Nome(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing *My BRAND L.LEwls paragraph is true and correct. Notary F'uWic-California San Dion#22 2 WITNESS m hand and official seal. Commission M 22�Iit6 y Comm.Expires May 1 4,2022 Signature Place Notary Seal and/or Stamp Above Signature of Notary Qblic OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document ( n Title or Type of Document:A-gvwAzbU, RoUAri -zA- Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer-Title(s): ❑ Corporate Officer-Title(s): ❑ Partner- ❑ Limited ❑ General ❑ Partner- ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Trustee ❑ Guardian or Conservator ❑ Other: ❑ Other: Signer is Representing: ;Ji of Vinci ni4t g- Signer is Representing: 02019 National Notary Association I -- --- NOTARY SEAL CERTIFICATION (Government Code 27361.7) I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS. Name of the Notary: rz+nra L• Lew cs Commission Number: 22 E-0)8 Date Commission Expires: MaA y 2UZ2 County Where Bond is Filed:. SUn L1 e1 6 Manufacturer or Vendor Number: hl(�rl (Located on both sides of the notary seal borders) Signature: SYNRGO Agent Place of Execution: San Diego Date: a1 / 13 / 2020 "BO OWER" oanne Lupson Signature Page 2 of 3 to Subordination Agreement A notary public or other officer completing this certificate verifies only the Identity of the A rotary public or other officer completing this certificate verifies Individual who signed the document to only the identity of the individual who signed the doament to which this certificate is attached,and not which this certificate is attached, and not the truthfulness, the truthfulness,accuracy,or validity accuracy or validity of that document of that document. STATE OF CALIFORNIA ) COUNTY OF �l �CATHERINE,R:AGUINALDO. On 7 W9-ba , before me, NOTARY PUBLIC , a Notary Public, personally eippeared 42MMMF L VrYV N , who proved to me on the basis of satisfactory Oid6n6e to be the person(s) whose name(s) re subscribed to a within instru ent, and acknowledged to me that h / he/they executed the same in is her/their authorized capacity(ies), and that by h' / /their signature(s) on the instr ant the person(s), or the entity upon behalf of whic 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. N otwubrlc CATHERWE R.AGUINALDO V- COMM.#2165238 NOTARY PUBLIC-CALIFORNIA CO SAN DIEGO COUNTY My Ccmmission Expires OCTOUn 17,2090 I "LENDER" i LA f LL C i By: 11 Name: r6 SGT+ Its: c �Q� CAF o I: Signature Page 3 of 3 to Subordination Agreement A notary public or other offlcer completing this certificate verifies only the'Identity,of the Individual who signed the document to which this certificate Is attached,and not the truthfulness,accuracy,or validity of that document. STATE OF CW10 ) COUNTY OF L'c-l` 0G ) _ L On , before me, �'�'° V� , a Notary ! Public, personally appeared S�liFrF� . who proved to me on the basis of satisfactory evidence to .be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my ha nd official sea[. i� i 6lotdY, Public ALEX J. RADON s ATTORNEY-AT-LAW NOTARY PUBLIC-STATE OF OHIO LIFETIME COMMIASION ! I Exhibit "A" Legal Description . Real property in the City of Encinitas, County of San Diego, State of California, described as follows: PARCEL 1: LOT 13 OF CITY OF ENCINITAS TENTATIVE MAP NO. 14-069, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16347, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA,JUNE 7, 2019 ("MAP'S; RESERVING THEREFROM,ALL EASEMENTS DESCRIBED IN THE DECLARATION (DESCRIBE_D BELOW), THE MAP AND ALL OTHER EASEMENTS OF RECORD AS OF THE DATE HEREOF; FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION (DEFINED BELOW),A NON-EXCLUSIVE EASEMENT IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS AN ASSOCIATION MAINTENANCE AREA, IF ANY, FOR THE PURPOSE OF MAINTENANCE AND REPAIR,TOGETHER SUCH RIGHTS OF ACCESS NECESSARY TO PERFORM SUCH MAINTENANCE AND REPAIR, AS MORE FULLY PROVIDED IN THE DECLARATION; FURTHER RESERVING THEREFROM, A NON-EXCLUSIVE EASEMENT FOR THE BENEFIT OF AND APPURTENANT TO EACH OTHER LOT OF THE MAP THAT IS SUBJECT TO A CROSS LOT DRAINAGE EASEMENT AREA, IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS A CROSS LOT DRAINAGE EASEMENT AREA FOR PURPOSES DESCRIBED IN THE DECLARATION; y FURTHER RESERVING THEREFROM, FOR THE BENEFIT OF THE ASSOCIATION AND ALL MEMBERS OF THE ASSOCIATION, A NON-EXCLUSIVE EASEMENT ACROSS THAT PORTION OF THE ABOVE REFERENCED LOT DESIGNATED IN THE DECLARATION AS A PRIVATE WALKWAY, FOR THE PURPOSE OF INGRESS AND EGRESS OVER THE WALKWAYS LOCATED THEREIN, AS MORE FULLY PROVIDED IN THE DECLARATION. PARCEL 2: A NON-EXCLUSIVE EASEMENT FOR PEDESTRIAN ACCESS, INGRESS AND EGRESS OVER, UPON AND ACROSS THAT PORTION OF LOTS 1 THROUGH 7 OF THE MAP, SHOWN AND DESCRIBED IN THE DECLARATION AS A PRIVATE TRAIL, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1. PARCEL 3: A NON-EXCLUSIVE EASEMENT OVER THOSE PORTIONS OF THE REAL PROPERTY ENCUMBERED BY THE DECLARATION THAT SHARE THE SAME SYSTEM OF CROSS LOT DRAINAGE FACILITIES LOCATED ON THE LOT DESCRIBED IN PARCEL 1 ABOVE (IF ANY) FOR THE PURPOSE OF DRAINAGE THROUGH THE CROSS LOT DRAINAGE FACILITIES AS PROVIDED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1. PARCEL 4: A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS, IN,TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY Exhibit A r . r DESCRIBED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1 ABOVE. THESE EASEMENTS ARE GRANTED SUBJECT TO: A. THE EASEMENT AND OTHER RIGHTS RESERVED IN THE DECLARATION IN FAVOR OF GRANTOR FOR MARKETING AND DEVELOPMENT, INCLUDING, WITHOUT LIMITATION, GRANTOR'S RIGHT TO MAINTAIN MODEL HOMES IN THE LOTS OWNED BY GRANTOR,AS WELL AS THE RIGHT OF ACCESS, INGRESS, AND EGRESS FOR VISITORS TO THE SALES OFFICE AND MODEL HOMES AND THE RIGHT TO MAINTAIN SIGNS OR OTHER MARKETING MATERIALS WITHIN THE ASSOCIATION PROPERTY OF THE COMMUNITY(DEFINED IN THE DECLARATION); B. GRANTOR'S EASEMENT FOR INGRESS AND EGRESS, IN, ON, OVER,THROUGH AND ACROSS THE ASSOCIATION PROPERTY TO PERMIT GRANTOR TO INSTALL IMPROVEMENTS THEREON; AND C. GRANTOR'S RIGHT TO PREVENT ACCESS OVER PORTIONS OF ASSOCIATION PROPERTY BY PLACING A CONSTRUCTION FENCE OR OTHER BARRIER THEREON PRIOR TO COMPLETION OF CONSTRUCTION OF ALL IMPROVEMENTS WITHIN THE COMMUNITY, PROVIDED THAT GRANTEE HAS AT LEAST ONE ROUTE OF ACCESS BETWEEN THE LOT DESCRIBED IN PARCEL 1 ABOVE AND A PUBLIC STREET. THE REAL PROPERTY CONVEYED IN THIS GRANT DEED (°PROPERTY'l IS CONVEYED TOGETHER WITH A MEMBERSHIP IN THE ALIA HOMEOWNERS ASSOCIATION, A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION (°ASSOCIATION'S AND ACCEPTED SUBJECT TO THE FOLLOWING DOCUMENTS ALL OF WHICH ARE INCORPORATED HEREIN BY REFERENCE WITH THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN: 1. DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND ESTABLISHMENT OF EASEMENTS OF ALIA RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON AUGUST 13, 2019 AS DOCUMENT NO. 2019-0339401, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,-DECLARATION'S 2. SUPPLEMENTAL DECLARATION OF COVENANTS AND RESTRICTIONS AND AGREEMENT ESTABLISHING DISPUTE RESOLUTION PROCEDURES FOR ALIA RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON AUGUST 13, 2019 AS DOCUMENT NO. 2019-0339402,AND ANY AMENDMENTS AND SUPPLEMENTS THERE (COLLECTIVELY, THE"ADR DECLARATION' Commonly known as: 923 Moonstone Court, Encinitas, CA 92024 APN #: 254-362-13-00 Exhibit A