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2023-191839Recording 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 DOC# 2023-0191839 III II Iflll 1111111111 IIII llllll ����� IIIII Il 11IIIII ����� � 111 ��� ���( Jul 20, 2023 01:00 PM OFFICIAL RECORDS JORDAN Z. MARKS, SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) PAGES: 11 (SPACE ABOVE LINE FOR RECORDER'S USE ONLY) Cs79 3733 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. i- This SUBORDINATION AGREEMENT (this "Agreement') made this 18l' day Of IA% , 2023, by and among (i) the CITY OF ENCINITAS ("City'), (ii) Jonathan C. Lain nd Lisa N.,Lain, husband and wife as joint tenants ("Borrower"), and (iii) First American Title Company ("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. Concurrently with recordation of this Subordination Agreement, the Lender is making a loan ("Lender Loan") which will be secured by a deed of trust ("Lender Deed of Trust"), executed by the Trustor in favor of the Lender, which Lender Deed of Trust is being recorded against the Property in the Office of the Recorder of the County of San Diego, State of California. C. Concurrently with recordation of this Subordination Agreement, the Borrower is causing the following to be recorded against the Property in the Office of the Recorder of ----------- -- — - - - ------ ---------- Page 1 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 APN: 260-131-50-00 (SPACE ABOVE LINE FOR RECORDER'S USE ONLY) (,7g 3733 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 IItY day Of J IA %, , 2023, by and among (i) the CITY OF ENCINITAS ("City'), (ii) Jonathan C. Lain -'and Lisa N. Lain, husband and wife as joint tenants ("Borrower"), and (iii) First American Title Company ("Lende►"). 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. Concurrently with recordation of this Subordination Agreement, the Lender is making a loan ("Lender Loan") which will be secured by a deed of trust ("Lender Deed of Trust"), executed by the Trustor in favor of the Lender, which Lender Deed of Trust is being recorded against the Property in the Office of the Recorder of the County of San Diego, State of California. C. Concurrently with recordation of this Subordination Agreement, the Borrower is causing the following to be recorded against the Property in the Office of the Recorder of Page 1 the County of San Diego, State of California: (i) an Affordable Housing Agreement ("Affordable Housing Agreement") by and between the City and Borrower; and (ii) a Deed of Trust ("City Deed of Trust"), executed by the Borrower in favor of the City. D. City, Borrower and Lender all agree and desire to execute this Agreement to, among other things, (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 Deed of Trust shall unconditionally be and remain at all times a lien, claim and charge on the Property prior and superior to the City Deed of Trust. NOW, THEREFORE, in consideration of the foregoing 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 City 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 Deed of Trust. The Lender Deed of Trust will be and remain at all times liens, claims or charges on the Property prior and superior to the City 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 Affordable Housing Agreement. 2. Consent to Loan. City hereby consents to the making of the Lender Loan to Borrower by Lender and to the encumbrance of the Property with the Lender Deed of Trust. City hereby further consents to any transfer of the Property, or any interest or rights therein, in connection with Lender's exercise of any of its rights and remedies under the documents evidencing the Lender Loan, 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 evidencing the Lender Loan, 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 City Deed of Trust and Affordable Housing Agreement. 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: Page 2 If to Borrower: Jonathan C. Lain and Lisa N. Lain 1152 East Cove Place Encinitas, CA 92024 If to Lender: Attention: If to City: City of Encinitas 505 S. Vulcan Avenue Encinitas, California 92024 Attention: Development Services Director 4. Entire Agreement. This Agreement shall be the entire agreement with regard to the priority of the liens, claims and charges of the Lender Deed of Trust and the City Deed of Trust and shall supersede and cancel any prior agreements as to such priority. 5. Governing Law. This Agreement will be governed by, and construed and enforced in accordance with, the laws of the State of California. 6. 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. 7. 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 3 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above. "CITY" ClT F ENCINITAS B. Name: Pamela Antil Its: City Manager (Notarization of signature must be attached) Signature Page I of 3 to Subordination Agreement "BORROWER" J a n C. Lain (Npta �ization of signature must be attached) Lisa N. Lain (Notarization of signature must be attached) Signature Page 2 of 3 to Subordination Agreement 111154090-N By: Name: Its: (Notarization of signature must be attached) /,/r -ic " oll 3 :1g,�vl,1;?"i'hl 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 c� \1,,�V� � ��� 2023, be me, , notary publiC,Orsonally appeared bks4 e\C". �A�Vv' 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 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 JT ay lq , 2023, before me, D - A- /� a e q I e re notary publid, personally appeared J o a tha r- C • Li J who proved to me on the basis of satisfactory evidence to be the person(s) whose name( re subscribed to the within instrument and acknowledged to me tha *Ishe/they executed the same in i G er/their authorized capacity(ies), and that by hls%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. �s,,L °-`..44F 0. A. RUGGIERO WITNESS my hand and official seal. - _= Notary Public - California Orange County n " Commission k 2305493 —'° My Comm. Expires Oct 12, 2023 Signature ''� (Seal) 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 ct q, 2023, before me, l� - PLC notary public, personally appeared Li'SGC IV , Ui411 � who proved to me on the basis of satisfactory evidence to be the person(s) whose name(sre subscribed to the within instrument and acknowledged to me that he�they executed the same in his/their authorized capacity(ies), and that by his er heir 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. �5 °`.rF D.A.RUGGIERO �" = Notary Public . California WITNESS my hand and official seal. _ :rt-�= Orange County Commission M 2306493 Fo^ My Comm. Expires Oct 12, 2023 Signature (Seal) 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 PARCEL 1: 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 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. Exhibit A PARCEL 2: 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. 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. Commonly known as: 1152 East Cove Place, Encinitas, CA 92024 APN #: 260-131-50-00 Exhibit A