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2023-191837Recording Requested By: First American Title Company Hom6builder Services Division 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. 260-131-50-00 DOC# 2023-0191837 Jul 20, 2023 01:00 PM OFFICIAL RECORDS JORDAN Z. MARKS, SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) AFFORDABLE HOUSING AGREEMENT (HOMEBUYER), (Density Bonus and Inclusionary) PAGES: 16 This Affordable Housing Agreement (hereinafter the "AGREEMENT") is made and entered into and, is effective as of this 1 day of 1411 _, 2023 by and between the City of Encinitas, a municipal corporation (hdeinafter the "CITY"), and Jonathan C. Lain and Lisa N. Lain, husband and wife as joint tenants (hereinafter the "OWNER") in connection with that certain residential unit commonly known as 1152 East Cove Place and more particularly described on Exhibit A attached hereto ("RESTRICTED UNIT"). RECITALS A. OWNER is purchasing the RESTRICTED UNIT concurrently with the execution and delivery of this AGREEMENT. Such purchase will be financed pursuant to FHA, Freddie Mac, or Fannie Mae requirements. The RESTRICTED UNIT is governed by, among other items, 'Encinitas Municipal Code Section 30.16.020(C) ("DENSITY BONUS LAW") and an Inclusionary Housing Ordinance, Encinitas Municipal Code Section 30.41 ("INCLUSIONARY ORDINANCE"), which require this AGREEMENT to be recorded against the RESTRICTED UNIT. B. This AGREEMENT shall be recorded as an encumbrance against and shall restrict the sale and occupancy of the RESTRICTED UNIT and imposes covenants, conditions and restrictions on the RESTRICTED UNIT to satisfy the terms requirements of the DENSITY BONUS LAW and the INCLUSIONARY ORDINANCE. NOW, THEREFORE, the parties hereto agree as follows: City of Encinitas - Affordable Housing Agreement Recording Requested By: First American Title Company Homebuilder Services Division 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. 260-131-50-00 (0785 i 33 AFFORDABLE HOUSING AGREEMENT (HOMEBUYER) (Density Bonus and Inclusionary) This Affordable Housing Agreement (hereinafter the "AGREEMENT") is made and entered into and is effective as of this IRiln day of 2023 by and between the City of Encinitas, a municipal corporation (hereinafter the "CITY"), and Jonathan C. Lain and Lisa N. Lain, husband and wife as joint tenants (hereinafter the "OWNER") in connection with that certain residential unit commonly known as 1152 East Cove Place and more particularly described on Exhibit A attached hereto ("RESTRICTED UNIT"). RECITALS A. OWNER is purchasing the RESTRICTED UNIT concurrently with the execution and delivery of this AGREEMENT. Such purchase will be financed pursuant to FHA, Freddie Mac, or Fannie Mae requirements. The RESTRICTED UNIT is governed by, among other items, Encinitas Municipal Code Section 30.16.020(C) ("DENSITY BONUS LAW") and an Inclusionary Housing Ordinance, Encinitas Municipal Code Section 30.41 ("INCLUSIONARY ORDINANCE"), which require this AGREEMENT to be recorded against the RESTRICTED UNIT. B. This AGREEMENT shall be recorded as an encumbrance against and shall restrict the sale and occupancy of the RESTRICTED UNIT and imposes covenants, conditions and restrictions on the RESTRICTED UNIT to satisfy the terms requirements of the DENSITY BONUS LAW and the INCLUSIONARY ORDINANCE. NOW, THEREFORE, the parties hereto agree as follows: City of Encinitas - Affordable Housing Agreement 1. TERM OF AGREEMENT. The term ("TERM") of this AGREEMENT shall commence upon recordation of this AGREEMENT and shall continue in perpetuity in accordance with the requirements of the DENSITY BONUS LAW and the INCLUSIONARY ORDINANCE. This AGREEMENT shall inure to the benefit of, and be binding upon, the parties hereto, and their respective heirs, successors and assigns. OWNER acknowledges and agrees that all of the obligations under this AGREEMENT shall constitute covenants, which shall run with the land and shall be binding upon the RESTRICTED UNIT and upon every person having any interest therein at any time and from time to time during the term of this AGREEMENT. Further, OWNER agrees that, if a court of competent jurisdiction determines that the obligations set forth in this AGREEMENT do not qualify as covenants running with the land, the same shall be enforced as equitable servitudes. 2. DEFINITIONS. The following terms shall have the following meanings: "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. "DEED OF TRUST" means the deed of trust to be executed by the OWNER concurrently herewith, in favor of and in a form acceptable to the CITY, which shall secure this AGREEMENT, as set forth in more detail in Section 3, below. "ELIGIBLE HOUSEHOLD" means persons or families earning not more than fifty percent (50%) of the then current Area Median Income, provided that such persons meet the additional requirements set forth in this AGREEMENT. "INSTITUTIONAL MORTGAGEE" means each of the following: (a) the mortgagee of a first priority mortgage that is a bank, savings and loan association, insurance or mortgage company or other entity or institution chartered under federal and/or state law; or (b) an insurer or governmental guarantor of a first priority mortgage; (c) the mortgagee of a first priority mortgage that is a Federal or State agency. "MAXIMUM SALES PRICE" shall be determined by the CITY, which shall calculate such amount in accordance with the California Health and Safety Code Section §50052.5 and Title 25 of the California Code of Regulations, Section 6920 (or successor provision), for very low income households. The MAXIMUM SALES PRICE shall be the amount that results in a housing cost that does not exceed 30 percent -of 50 percent of AREA MEDIAN INCOME, adjusted for assumed household size. The OWNER'S financing and the financing to be City of Encinitas - Affordable Housing Agreement 2 obtained by any prospective homebuyer shall be a fixed rate loan fully amortized over thirty years. The following parameters shall be applied when determining the MAXIMUM SALES PRICE: I. The calculation shall assume a five percent down payment. 11. 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. III. The calculation shall include all reasonable housing costs, including, 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 then -current Utility Allowance Schedule, published by the Encinitas Housing Authority. "PROMISSORY NOTE" means the promissory note to be executed by OWNER concurrently herewith, in a form acceptable to the CITY. "RESALE" means any or the following: (i) all or any part of the RESTRICTED UNIT or any interest in the RESTRICTED UNIT is sold, conveyed or transferred; (ii) if the OWNER is not a natural person and a beneficial interest in the OWNER is sold, conveyed or transferred; (iii) all or any part of the RESTRICTED UNIT is refinanced, except as otherwise allowed by law; (iv) the OWNER (and all of the OWNERS, if there is more than one OWNER) does not occupy the RESTRICTED UNIT as his, her, or their primary residence; (v) the leasing of all or any part of the RESTRICTED UNIT; (vi) any material breach of this AGREEMENT or the DEED OF TRUST; or (vii) the filing of bankruptcy by the OWNER. Notwithstanding the foregoing, a refinancing of the RESTRICTED UNIT shall not be considered a RESALE, provided either: (A) The new loan is a fixed interest loan and the principal balance of the OWNER's loan after the refinancing, does not exceed the principal balance of the OWNER's loan before the refinancing, plus reasonable closing costs; or (B) All of the following conditions are met, and provided that the CITY provides advance written consent to the refinancing to the OWNER: (A) OWNER receives cash from such refinancing, which does not exceed ten percent (10%) of the principal balance of the OWNER's first loan before the refinancing; (B) such cash is borrowed for the purpose of and is used for improvements to the RESTRICTED UNIT, which improvements are preapproved by the CITY prior to the OWNER obtaining the refinancing; and (C) the total amount of all the loans secured by the RESTRICTED UNIT do not exceed 100% of the value of the RESTRICTED UNIT. 3. OWNER COVENANTS. OWNER represents and warrants to CITY as follows (if any representation or warranty set forth herein is false or is otherwise breached, City of Encinitas - Affordable Housing Agreement 3 the same shall be a material default hereunder and the CITY shall have all remedies available at law or in equity against OWNER, including without limitation foreclosure of the DEED OF TRUST): A. Annual Gross Income. OWNER's annual gross income, including the income of any co -purchasers, co -occupants or co -tenants, at the time of the execution of this AGREEMENT does not exceed fifty percent (50%) of the AREA MEDIAN INCOME. B. Principal Place of Residence. For so long as OWNER owns the RESTRICTED UNIT during the TERM, OWNER will reside in the RESTRICTED UNIT as OWNER's principal place of residence. The OWNER shall be considered to be occupying the RESTRICTED UNIT as a principal place of residence if the OWNER is living in the RESTRICTED UNIT for at least ten (10) months out of each calendar year. OWNER shall not lease the RESTRICTED UNIT at any time during the TERM. Except for the prohibition on leasing the RESTRICTED UNIT, the restrictions set forth in this Section 3.B., shall not apply to the RESTRICTED UNIT or to an OWNER during any period of time when the RESTRICTED UNIT is owned by an INSTITUTIONAL MORTGAGEE or its assignee pursuant to a foreclosure or pursuant to a deed -in -lieu of foreclosure. C. LIQUID ASSETS. At the time of the execution of this AGREEMENT, OWNER, in the aggregate with any co -purchasers or co -occupants, does not hold, directly or indirectly, "liquid assets", as defined below, whose aggregate value exceeds one hundred percent (100%) of the Area Median Income. As used herein, the term "liquid assets" refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets" shall not include retirement funds which are not readily accessible or which cannot be accessed by the OWNER without the OWNER incurring a penalty. D. No Relationship With Developer. OWNER does not, and none of the co - purchasers or co -tenants of OWNER, have an interest in or are, related to (by blood or marriage): (i) Warmington E14 Associates, LLC, a California limited liability company, and/or any affiliate, parent company or subsidiary of Warmington E14 Associates, LLC, a California limited liability company; (ii) any person employed by Warmington E14 Associates, LLC, a California limited liability company, or any individuals who are members, principals, officers, executives, directors, partners, employees, agents or shareholders of Warmington E14 Associates, LLC, a California limited liability company; or (iii) or any entity having an ownership in Warmington E14 Associates, LLC, a California limited liability company. City of Encinitas - Affordable Housing Agreement 4 E. Maintenance. OWNER shall maintain the RESTRICTED UNIT in a habitable condition and in good repair at all times. OWNER is responsible for maintenance costs, including all repairs, corrections and replacements necessary to maintain and preserve the RESTRICTED UNIT in a safe and sanitary condition in accordance with the U.S. Department of Housing and Urban Development's (HUD) Housing Quality Standards and State Law. Upon written request by the CITY, the OWNER shall provide the CITY's Development Services Director or representative with access to inspect the RESTRICTED UNIT for compliance with this section. Failure by the OWNER to maintain the RESTRICTED UNIT shall constitute a default under this AGREEMENT. 4. PROMISSORY NOTE AND DEED OF TRUST. Prior to or concurrently with the closing of the sale of the RESTRICTED UNIT to the OWNER, OWNER shall execute the PROMISSORY NOTE in favor of the CITY and deliver the same to the CITY. The original principal amount of the PROMISSORY NOTE shall be the amount equal to the difference between the unrestricted fair market value of the RESTRICTED UNIT at the time of its acquisition by the OWNER (as determined by the CITY) minus the actual purchase price paid by the OWNER for the RESTRICTED UNIT. Which amounts (the original principal amount and the actual purchase price) shall be approved by the CITY in writing, in the CITY's sole discretion, prior to the OWNER's execution and delivery of the PROMISSORY NOTE. The PROMISSORY NOTE and this AGREEMENT shall be secured by the DEED OF TRUST executed by OWNER in favor of the CITY. Concurrently with the execution and delivery of this AGREEMENT, OWNER shall execute the DEED OF TRUST in favor of the CITY and deliver the same to escrow. The DEED OF TRUST shall be recorded against the RESTRICTED UNIT with the closing of the sale of the RESTRICTED UNIT to OWNER. The DEED OF TRUST shall be recorded subordinate to a first lender deed of trust and this AGREEMENT and shall automatically be subordinate to any first lender deed of trust recorded in the future against the RESTRICTED UNIT and shall also be subordinate to this AGREEMENT. Upon a foreclosure or deed in lieu of foreclosure of such first lender deed of trust, such first lender shall receive title free and clear of the provisions of this AGREEMENT. 5. TRANSFER, CONVEYANCE RESTRICTED. RESALES of the RESTRICTED UNIT are restricted as follows: A. Any RESALE of the RESTRICTED UNIT may only be to a qualified ELIGIBLE HOUSEHOLD. The ELIGIBLE HOUSEHOLD'S financing and the financing to be obtained by any prospective ELIGIBLE HOUSEHOLD shall be a fixed rate loan fully amortized over thirty years. City of Encinitas - Affordable Housing Agreement 5 B. OWNER 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. No RESALE of the RESTRICTED UNIT occur prior to the CITY verifying that the prospective purchaser is an ELIGIBLE HOUSEHOLD, and the sales price of the RESTRICTED UNIT does not exceed the MAXIMUM SALES PRICE. OWNER may not receive any amount of money and/or other consideration upon the transfer or sale of the RESTRICTED UNIT in excess of the MAXIMUM SALES PRICE. D. In the event that OWNER is unable to find, despite good faith efforts to do so, an ELIGIBLE HOUSEHOLD to purchase the RESTRICTED UNIT, OWNER may offer to sell the RESTRICTED UNIT to the CITY for a purchase price equal to the MAXIMUM SALES PRICE. E. Upon a showing of hardship by the OWNER to the CITY in writing, the CITY may waive any requirement of OWNER set forth in this AGREEMENT. F. Notwithstanding the foregoing, the following limited circumstances are acknowledged by the CITY to be permitted transfers: a transfer that results from the death of a spouse, and the transfer is to the surviving spouse who is also a member of the OWNER's household. a transfer to a spouse when the spouse becomes, by such a transfer, a co -Owner of the RESTRICTED UNIT; III. a transfer of the RESTRICTED UNIT resulting from a decree of dissolution of the marriage or legal separation or from a RESTRICTED UNIT settlement agreement incidental to such a decree and by which a spouse who is already an OWNER becomes the sole Owner of the RESTRICTED UNIT; and/or IV. a transfer by the OWNER to an inter vivos trust in which the OWNER is the sole current beneficiary; V. a transfer of the RESTRICTED UNIT in accordance with the terms hereof must be accompanied by a recordable assignment and assumption of this AGREEMENT executed by the transferee. G. QUALIFICATION OF ELIGIBLE HOUSEHOLD City of Encinitas - Affordable Housing Agreement 6 Except as otherwise provided herein, any RESALE of the RESTRICTED UNIT shall only be to an ELIGIBLE HOUSEHOLD. II. The OWNER shall verify the income of all adult members of any proposed ELIGIBLE HOUSEHOLD. For the purposes of determining the household gross annual income, all adult (18 years of age and over) members of the 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. 111. Prior to opening escrow to sell the RESTRICTED UNIT, OWNER shall provide the CITY with the prospective ELIGIBLE 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. Development Services Director shall confirm or deny eligibility based on the documentation provided. IV. Any subsequent ELIGIBLE HOUSEHOLD must certify that they will occupy the RESTRICTED UNIT as owner -occupant and principal residence; and that the household does not own or have an interest in any real RESTRICTED UNIT. H. NOTICE TO CITY. OWNER agrees that it will give the CITY notice of any prospective transfer, sale, or conveyance of the RESTRICTED UNIT not less than forty-five (45) days before the proposed RESALE by personal delivery of a notice at the address set forth for the CITY in paragraph 16 of this AGREEMENT. Time is of the essence. 6. FAILURE TO OCCUPY IS A NON -CURABLE BREACH. A. Failure to Occupy/Renting Out the Property is a Violation of Law. OWNER hereby acknowledges that the DENSITY BONUS LAW, the INCLUSIONARY ORDINANCE, this AGREEMENT, the DEED OF TRUST and the PROMISSORY NOTE require OWNER to occupy the RESTRICTED UNIT as the OWNER's principal residence. Renting out the RESTRICTED UNIT and/or OWNER's failure to occupy the RESTRICTED UNIT as OWNER's principal residence is a violation of the DENSITY BONUS LAW and the INCLUSIONARY ORDINANCE (in addition to being a violation of the PROMISSORY NOTE, DEED OF TRUST and this AGREEMENT). The CITY is obligated to enforce certain provisions of the DENSITY BONUS LAW and the INCLUSIONARY City of Encinitas - Affordable Housing Agreement 7 ORDINANCE, failure to do so would jeopardize the CITY's ability to help other families to obtain affordable housing. B. Failure to Occupy/Renting Out the Property Materially Impairs the CITY's Security. OWNER hereby acknowledges and agrees that renting out the RESTRICTED UNIT and/or OWNER's failure to occupy the RESTRICTED UNIT as OWNER's principal residence, materially impairs the CITY's security and the CITY's ability to help other families to obtain affordable housing. OWNER further acknowledges that if the RESTRICTED UNIT is rented out and/or OWNER fails to occupy the RESTRICTED UNIT as OWNER's principal residence, then during any such period the RESTRICTED UNIT will not qualify as "affordable housing" and the OWNER will be in breach of OWNER's obligations under the DENSITY BONUS LAW and the INCLUSIONARY ORDINANCE, the PROMISSORY NOTE, DEED OF TRUST and this AGREEMENT and therefore the CITY's security will be materially impaired. C. Failure to Occupy/Renting Out the Property is a Non -Curable Breach. OWNER hereby acknowledges and agrees that renting out the RESTRICTED UNIT and/or OWNER's failure to occupy the RESTRICTED UNIT as OWNER's principal residence, will be a non -curable breach and the CITY shall have the right to accelerate the amounts due and foreclose on the RESTRICTED UNIT as provided herein and in the DEED OF TRUST. Notwithstanding anything to the contrary set in this AGREEMENT or in the DEED OF TRUST, OWNER agrees that in the event OWNER rents out the Property and/or fails to occupy the RESTRICTED UNIT as OWNER's principal residence, OWNER shall not have the right to cure the breach and reinstate the PROMISSORY NOTE, DEED OF TRUST or this AGREEMENT or the obligations secured hereby. D. OWNER's Waiver. OWNER hereby knowingly waives and relinquishes any and all legal and/or contractual rights OWNER may have to cure or otherwise reinstate the PROMISSORY NOTE, DEED OF TRUST or this AGREEMENT or the obligations secured hereby, in the event that the RESTRICTED UNIT is rented out and/or OWNER fails to occupy the RESTRICTED UNIT as OWNER's principal residence. E. Representation of Comprehension. OWNER acknowledges and agrees that the CITY has advised OWNER (and each of them if there is more than one OWNER) to retain an attorney to represent OWNER with respect to the purchase of the RESTRICTED UNIT and execution and recordation of the PROMISSORY NOTE, DEED OF TRUST and this AGREEMENT. By executing this AGREEMENT, OWNER (and each of them if there is more than one OWNER) represents that: (i) OWNER fully understands and accepts the terms of the PROMISSORY NOTE, DEED OF TRUST and this AGREEMENT. By executing this AGREEMENT; (ii) OWNER has relied upon the legal advice of OWNER's attorneys or that OWNER has freely and independently chosen not seek the City of Encinitas - Affordable Housing Agreement 8 advice of an attorney; (iii) that neither the CITY nor its attorneys represents OWNER; (iv) that OWNER has had a full and ample opportunity to consult with any other professionals of OWNER's choice in connection with the rights and liabilities created by the PROMISSORY NOTE, DEED OF TRUST and this AGREEMENT; (v) that OWNER does not have any questions with regard to the legal import of any term, word, phrase, or portion of the PROMISSORY NOTE, DEED OF TRUST or this AGREEMENT, or any of the PROMISSORY NOTE, DEED OF TRUST or this AGREEMENT in their entireties; and (vi) OWNER accepts the terms of the PROMISSORY NOTE, DEED OF TRUST and this AGREEMENT as written. 7. NON-DISCRIMINATION. OWNER shall not discriminate against any prospective tenant or homebuyer on the basis of race, color, religion, sex, gender (including gender identity and sexual orientation), national origin, familial status, disability or other individuals protected under state and federal fair housing law. 8. VIOLATION OF HOUSING AGREEMENT BY THE OWNER. In the event of the violation of any of the provisions of this 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 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 AGREEMENT; for an injunction against any violation by the OWNER of this AGREEMENT; for the appointment of a receiver to take over and operate the RESTRICTED UNIT in accordance with the terms of this 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 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. In the event of any litigation for the enforcement or interpretation of this AGREEMENT, whether an action -at -law, arbitration or any manner of non -judicial dispute resolution agreed to by both parties by reason of the breach of any condition or covenant, representation or warranty in this AGREEMENT or otherwise arising out of this AGREEMENT, the prevailing party in such action, arbitration or proceeding shall be entitled to recover from the other reasonable attorneys' fees to be fixed by the court which shall render a judgment, as well as the costs of suit. 9. AMENDMENT. City of Encinitas - Affordable Housing Agreement 9 This 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 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 AGREEMENT, which shall remain in full force and effect. 11. GENDER. The use of the plural in this 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 AGREEMENT shall be deemed to be a waiver of any other or subsequent breach or default hereunder. 15. GOVERNING LAW. This 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 Jonathan C. Lain and Lisa N. Lain 505 S. Vulcan Ave. 1152 East Cove Place Encinitas, CA 92024 Encinitas, CA 92024 Attn: Management Analyst City of Encinitas - Affordable Housing Agreement 10 IN WITNESS WHEREOF, OWNER has executed this AGREEMENT as of the day and year first above written. OWNER Jonathan C. Lain and Lisa N. Lain, husband and wife as joint tenants By: Date: !/, i23 Jo e�� .Lain J ongT rAv, C. Lc - (Notarization of signature must be attached) -71 By: Date: �cl i a N. Lain (Notarization of signature must be attached) CITY City of Encinitas, a municipal corporation c Pamela Antil, City Manager (Notarization of signature must be attached) APPROVED AS TO FORM: Tarqu'in Pr, ziosi; City Attorney Date Date:I City of Encinitas - Affordable Housing Agreement 11 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego 0n ���, j , 2023, before me, C rCk� 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. Signature \� (Seal) *my DEANA GAY Notary Public . California San Diego County Commission # 2396124 Comm. Expires Mar 8, 2026 City of Encinitas - Affordable Housing Agreement 12 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On ,�T�(�� (�� 2023, before me, () A - t��q notary public, personally appeared `1 �I n 6ctl'i ccn 0- who prove to me on the basis of satisfactory evidence to be the person(s) whose name(s) 'sure subscribed to the within instrument and acknowledged to me that 5h she/they executed the same i /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. D. A. RUGGIERO �= Notary Public - California WITNESS my hand and official seal. __ _a �' Orange County Commission ' 2306493 `' as My Comm. Expires Oct 12, 2023 Signature�(Seal) City of Encinitas - Affordable Housing Agreement 13 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On J—('k 1 L/ 1,9 , 2023, before, me, JD - 4 - (� t,c 9�I I -e r o , notary public, personally appeared LI S; q I\j L ci n who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) s' re subscribed to the within instrument and acknowledged to me that he/sfi6they executed the same in histheir authorized capacity(ies), and that by his/ er/ eir 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. %my D. A. RUGGIERO WITNESS my hand and official seal. Notary angeCoual;fornia z Oran e County " 2306493 Commission Comm. Expires Oct 12, 2023 Signature t �^ (Seal) City of Encinitas - Affordable Housing Agreement 14 EXHIBIT A LEGAL DESCRIPTION Real property in the City of Encinitas, County of San Diego, State of California, described as follows: LOT 8 OF TRACT 16488 LOT 8 ("PROPERTY") OF THE CITY OF ENCINITAS TM 18-001, ACCORDING TO MAP THEREOF NO. 16488, FILED ON DECEMBER 20, 2021 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA ("MAP") RESERVING THEREFROM, FOR THE BENEFIT OF GRANTOR, ITS SUCCESSORS IN INTEREST, ASSIGNS AND OTHERS, WITH THE RIGHT TO GRANT AND TRANSFER SAME EASEMENTS FOR ACCESS, INGRESS, EGRESS, UTILITIES, ENCROACHMENT, PRIVATE YARD, SUPPORT, MAINTENANCE, DRAINAGE, REPAIR AND FOR OTHER PURPOSES, ALL AS MAY BE SHOWN ON THE MAP, OR AS DESCRIBED AND/OR DEPICTED IN THE DECLARATION HEREINAFTER REFERRED TO. IN THE EVENT GRANTOR HAS CONVEYED A LOT BENEFITTED BY SAID EASEMENT(S) AND THEREBY GRANTED SAID EASEMENT(S) PRIOR TO THE CONVEYANCE OF THE HEREIN PROPERTY, THEN THIS PARCEL L SHALL BE SUBJECT TO SAID EASEMENT(S). FURTHER RESERVING THEREFROM ALL EASEMENTS, RIGHTS, DUTIES AND OBLIGATIONS AS SET FORTH IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS EAST COVE COTTAGES MAINTENANCE CORPORATION RECORDED JANUARY 31, 2022, AS DOCUMENT NO. 2022- 0045353, IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER, TOGETHER WITH ANY AMENDMENTS OR SUPPLEMENTS THERETO (COLLECTIVELY, THE "DECLARATION") FOR THE BENEFIT OF "DECLARANT" AS THEREIN DEFINED. RESERVING THEREFROM UNTO THE GRANTOR, THE RIGHT TO ENTER THE PROPERTY FOR TWELVE YEARS FOLLOWING RECORDATION DATE OF THIS GRANT DEED TO COMPLETE AND REPAIR ANY IMPROVEMENT OR LANDSCAPING LOCATED THEREON AND/OR TO CORRECT ANY DEFICIENCIES IN THE RESIDENTIAL CONSTRUCTION, DESIGN, SPECIFICATIONS, SURVEYING, AND PLANNING ASSOCIATED WITH THE PROPERTY, AS DETERMINED NECESSARY BY GRANTOR, IN ITS SOLE DISCRETION, AND/OR TO COMPLY WITH THE REQUIREMENTS FOR THE RECORDATION OF THE MAP, THE GRADING OF SAID PROPERTY, AND/OR TO COMPLY WITH THE REQUIREMENTS OF APPLICABLE WARRANTIES, LAWS, AND GOVERNMENTAL AGENCIES. THE City of Encinitas - Affordable Housing Agreement 15 PROPERTY IS ALSO SUBJECT TO A RIGHT OF ENTRY BY GRANTOR OR GRANTOR'S AGENT UNTIL THE EXPIRATION OF ALL APPLICABLE STATUTES OF LIMITATIONS FOR THE FILING OF A COMPLAINT OR SUIT OR OTHER LEGAL REMEDIES AGAINST GRANTOR IN ANY WAY RELATING TO OR ARISING OUT OF THE DEVELOPMENT, CONSTRUCTION, SALE AND/OR TRANSFER OF THE PROPERTY BY GRANTOR. SUCH ENTRY BY GRANTOR SHALL BE PRECEDED BY REASONABLE NOTICE TO GRANTEE BEFORE SUCH ENTRY. IF THIS RESERVATION OF RIGHT OF ENTRY IS NOT COMPLIED WITH BY GRANTEE, GRANTOR MAY ENFORCE THIS RIGHT OF ENTRY IN A COURT OF LAW. GRANTEE SHALL BE RESPONSIBLE FOR ALL DAMAGES ARISING OUT OF SAID BREACH (E.G., REFUSING TO ALLOW ENTRY) INCLUDING ATTORNEYS' FEES, COSTS AND EXPENSES. A PRIVATE YARD EASEMENT OVER THE ADJACENT LOT(S) AS DESCRIBED AND DEPICTED IN THE DECLARATION HEREINAFTER REFERRED TO. SAID EASEMENT IS APPURTENANT TO PARCEL 1 ABOVE. I` �L'ZrI:41" NONEXCLUSIVE EASEMENTS FOR ACCESS, INGRESS AND EGRESS, USE, DRAINAGE, ENCROACHMENT, SUPPORT AND FOR OTHER PURPOSES, AS SET FORTH IN THE DECLARATION OR ON THE MAP. THESE EASEMENTS ARE APPURTENANT TO PARCEL 1 ABOVE. APN: 260-131-50-00 City of Encinitas - Affordable Housing Agreement 16