HomeMy WebLinkAboutHABITAT FOR HUMANITY (6) RECORDING REQUESTED BY:
AND WHEN RECORDED MAIL TO.-
Housing Authority of the City of Santa Ana
20 Civic Center Plaza
Santa Ana, California 92702
Attention: Housing Manager
Free Recording pursuant to
Return FULLY EXECUTED Government code 273$3
Copy to City Clerk, M-30
ASSIGNMENT AND ASSUMPTION OF DEED OF TRUST AND AUTHORITY LOAN
DOCUMENTS N-2026-124
THIS Assignment and Assumption of Deed of Trust and Authority Loan Documents
("Assignment"), dated as of May 01, 2026, is made by and among The Estate of Yesenia Gallaga
by Vanessa Villa, as Administrator of the Estate of Yesenia Gallaga, whose address is 10 Thunder
Run, Apt 36F Irvine, CA 92614 ("Assignor"), and Habitat for Humanity of Orange County, a
California nonprofit public benefit corporation("Assignee"),whose address is 2200 South Ritchey
Street, Santa Ana, California 92705, and the Housing Authority of the City of Santa Ana, a public
body, corporate and politic ("Authority"), whose address is 20 Civic Center Plaza, Santa Ana,
California 92701. Assignor, Assignee and Authority are sometimes referred to collectively as the
"Parties" and individually as a"Party"
WHEREAS, Assignor is acting on behalf of the Estate of Yesenia Gallaga, who is
previously acquired the real property commonly known as 4026 West McFadden Santa Ana,
California 92704, and now particularly described on Exhibit A, which together with all
improvements located thereon is referred to in this Assignment as the "Unit".
WHEREAS, Assignor has authority to transfer and convey the Property under Letters of
Administration filed with the Orange County Superior Court on or about December 17,2025 (the
"Letters of Administration"), and, pursuant to such authority, wishes to transfer and convey the
Unit to Assignee in accordance with Assignee's option to purchase the Unit under the Affordable
Housing Agreement entered into on or about May 18,2018 and recorded in the Official Records
for Orange County as Document No. 2018000242195. In consideration of the transfer, Assignor
will assign, and Assignee will assume, the obligations under the following "Authority Loan
Documents":
(i) Promissory Note Secured by Deed of Trust dated on or about .Tune 15, 2018 (the
"Promissory Note"), executed by Yesenia Gallaga, a Widow, Sole and Separate Property,
in the principal amount of$211,000.00 in favor of the Housing Authority of the City of
Santa Ana, a public body, corporate and politic, a copy of which is attached hereto as
Exhibit B and incorporated herein by reference.
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(ii) Deed of Trust dated on or about June 15, 2018, executed Yesenia Gallaga (the "Deed
of Trust"), a Widow, Sole and Separate Property in favor of the Housing Authority of the
City of Santa Ana, a public body, corporate and politic, recorded on July 2, 2018, as
Document No. 2018000242191, with the Orange County Recorder's Office.
(iii) Affordable Housing Resale Restriction dated on or about June 15, 2018 (the
"Affordable Housing Resale Restriction"), by and between Yesenia Gallaga, a Widow,
Sole and Separate Property and the Housing Authority of the City of Santa Ana, a public
body, corporate and politic, recorded on July 2, 2018, as Document No. 2018000242190,
with the Orange County Recorder's Office.
(iv)Homebuyer Loan Agreement dated on or about June 15,2018,by and between Yesenia
Gallaga, a Widow, Sole and Separate Property and the Housing Authority of the City of
Santa Ana, a public body, corporate and politic (the "Homebuyer Loan Agreement").
WHEREAS, Assignee desires to accept title to the Unit and assume Assignor's
obligations under the Authority Loan Documents.
WHEREAS, Assignor has agreed to indemnify Assignee against any loss associated with
any defaults of Assignor's obligations under the Promissory Note, Deed of Trust, Affordable
Housing Resale Restriction and Homebuyer Loan Agreement that arose after Assignor's purchase
of the Unit and prior to the date of recordation of this Assignment in the official records of Orange
County.
WHEREAS,Assignor and Assignee shall indemnify Authority against any loss associated
with any defaults of Assignor's obligations Linder the Promissory Note, Deed of Trust,Affordable
Housing Resale Restriction and Homebuyer Loan Agreement that arose after Assignor's purchase
of the Unit and prior to the date of recordation of this Assignment in the official records of Orange
County.
NOW THEREFORE, for good and valuable consideration, the Parties agree as follows:
1. Confirmation of Recitals. The Parties agree that the foregoing recitals are true,
correct, and accurate.
2. Confirmation of Authority Loan Documents. Assignor confirms the Authority
Loan Documents are valid, enforceable obligations of Assignor, acting on behalf of the Estate of
Ycssenia Gallaga,and desires to transfer and convey title to the Property to Assignee in accordance
with Assignor's rights and obligations under the Letters of Administration. Assignor represents
and warrants that it is solely responsible for determining its obligations under the Letters of
Administration.
3. Assignment and Assumption.
a. Assignor hereby assigns to Assignee the Authority Loan Documents, and
all obligations thereunder.
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b. Assignee hereby assumes the Authority Loan Documents, and agrees to be
bound by and subject to the provisions of the Authority Loan Documents.
C. Assignor and Assignee agree that the assignment and assumption is subject
to the terms and conditions set forth herein.
d. This Assignment shall be construed and interpreted in accordance with the
Authority Loan Documents. All defined terms in the Authority Loan Docuuents shall apply to
this Assignment, unless specifically modified herein.
4. Authority Consent.
a. Authority hereby consents to the transfer of title to the Unit to Assignee and
the assignment and assumption of the Authority Loan Documents based on terms and conditions
set forth herein.
b. In consideration for the Authority's consent provided hereunder, Assignee
agrees to comply with all obligations of Assignor, and Assignee shall be considered the
"Homebuyer,"Maker," or"Borrower"under the Authority Loan.Documents,except as specifically
provided for herein.
c. Assignee shall transfer the Property to an eligible"Low Income Household"
or"Moderate Income Household" for an "Affordable Housing Cost," as required by the Authority
Loan .Documents, including but not limited to the requirements of Section 4 of thereof for
"Permitted Transfers."
d. Prior to any such transfer, Assignee shall comply with the transfer process
set forth in the Affordable Housing Resale Restrictions, including but not limited to the notice
required to the Authority. The notice to the Authority shall include a current title report reflecting
all matters of public record encumbering the Property.
e. Assignee shall require the transferee to execute an assignment and
assumption agreement, or new Authority Loan Documents, with recording in accordance with the
Homebuyer Loan Agreement.
f. The failure to complete a transfer to an eligible household within three
hundred sixty (360) days from the date of recording this Assignment shall constitute a default by
Assignee of the Authority Loan Documents.
g. If Assignee fails to complete such transfer within the time period provided,
the Authority shall provide a notice of default("Notice of Default"). If Assignee does not transfer
the Unit pursuant to the Affordable Housing Resale Restrictions within(90)days of the date when
the Notice of Default is delivered, then the Authority shall have the right to pursue any and all
remedies available under the Authority Loan Docuutnents, including acceleration of any amounts
due under the Promissory Note.
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h. Notwithstanding anything to the contrary herein or the Authority Loan
Documents, Assignee shall not be required to occupy the Unit as a residence.
i. Upon recordation of this Assignment, the Assignor shall be released from
the obligations of this Assignment. Notwithstanding the foregoing, the Authority shall not be
required to reconvey or release any of the recorded Authority Loan Documents,which shall remain
an obligation of Assignee and encumbrance upon the Unit, unless and until Assignee, or a
subsequent purchaser, agrees to new Homebuyer Loan Documents (or similar instruments
approved by the City in its sole and absolute discretion), or all obligations of the Authority Loan
Documents have been satisfied.
5. Defense,Indemnity,and Hold Harmless.Assignor and Assignee,for themselves,
their successors, assigns, beneficiaries, employees and agents (collectively, the "Indemnitors")
agree to indemnify and hold harmless the Authority, its successors, assigns, beneficiaries;
employees and agents (collectively, "Indemnitees"), and to defend Indemnitees (with counsel
reasonably acceptable to Indemnitees, for any and all claims,damages, losses, and other liabilities
arising from or related to this Assignment, including but not limited to the approval of this
Assignment,provided, however,to the extent required by law,the obligations provided for herein
do not apply to the.negligence or willful misconduct of Indemnitees.
6. Notices. Any approval, disapproval, demand, document or other notice ("Notice)
which any party may desire to give to the other party under this Assignment or the Authority Loan
Documents must be in writing and delivered personally or by deposit within the United States
Postal Service for mailing,postage prepaid,registered or certified mail,return receipt requested to
the following address, or at any other address as that party may later designate by notice.
To Assignor: Vanessa Villa,Administrator Estate of Yesenia Gallaga
10 Thunder Run Apt. 36F
Irvine, CA 92614
To Assignee: Habitat for Humanity of Orange County
2200 S.Ritchey Street
Santa Ana,CA 92705
Attention: Rita Ross
To Authority City of Santa Ana Horsing.Authority
20 Civic Center Plaza
Santa Ana, California 92701
Attention: Housing Manager
Any written notice, demand or communication shall be deemed received upon
delivery or refusal to accept delivery if delivered by hand, shall be deemed delivered on the next
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business day if delivered by reputable overnight delivery service, and shall be deemed received on
the third day from the date it is postmarked if delivered by registered or certified mail.
7. Changes to Notice.Any Party may,by notice given at any time,require subsequent
notices to be given to another person or entity, whether a party or an officer or representative of a
party, or to a different address, or both. Notices given before actual receipt of notice of change
shall not be invalidated by the change.
8. Severability.If any term,provision,covenant or condition of this Assignment shall
be determined invalid, void or unenforceable, the remainder of this Assignment shall not be
affected thereby to the extent such remaining provisions are not rendered impractical to perfoiln,
taking into consideration the purposes of this Assignment.
9. Time is of the Essence.Time is of the essence in the performance of the provisions
of this Assignment as to which time is an element.
10. Calculating Days. Unless otherwise specified in this Assignment or any Exhibit
attached hereto,use of the term "days" shall mean calendar days, For purposes of this Assignment
and all Exhibits attached hereto; "business days" shall mean every day of the week except
Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a)
or successor statute, and any days in which Santa Ana City Hall is closed for business.
11. No Waiver. Failure by a Party to insist upon the strict performance of any of the
provisions of this Assignment by the other Party, or the failure by a Party to exercise its rights
upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and
demand strict compliance by the other Party with the terms of this Assignment thereafter.
12. Jurisdiction and Venue. Any action at law or in equity under this Assignment or
brought by a Party hereto for the purpose of enforcing, construing or determining the validity of
any provision of this Assignment shall be filed and tried in the Superior Court of the County of
Orange, State of California, or to the extent allowed by law, in the federal court district covering
the City, and the Parties hereto waive all provisions of law providing for the filing, removal or
change of venue to any other court.
13. Attorneys' Fees and Costs. If any Party to this Assignment commences an action
against the other Party to this Assignment arising out of or in connection with this Assignment,
the prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees,
costs of investigation, and costs of suit from the losing Party.
14. Recording. This Assignment shall be recorded in the Official Records for Orange
County (the "Official Records") concurrently with a transfer of the Property to Assignee, subject
to only those matters of record which the Authority approves in writing prior to the transfer.
Following recordation of this Assignment,Assignee shall, at its own cost and expense,provide the
Authority with evidence, reasonably acceptable to the Authority, that this Assignment has been
duly recorded.
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15. Authority to Execute.The person or persons executing this Assignment on behalf
of each Party warrants and represents they have the authority to execute this Assignment
individually or on behalf of another person or entity and warrants and represents that they have the
authority to bind the Party to the performance of its obligations hereunder.
16. Governing Law. This Assignment and any dispute hereunder shall be governed
and interpreted in accordance with the laws of the State of California without regard to conflict of
law principles. This Assignment shall be construed as a whole according to its fair language and
common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of
construction to the effect that ambiguities are to be resolved against the drafting Party shall not be
employed in interpreting this Assignment.
17. Binding on Successors. This Assignment shall inure to the benefit of, and shall be
binding upon, the assigns, successors in interest, personal representatives, estates, heirs and
legatees of each of the parties hereto.
18. Modifications, Amendments, Etc. No modification, amendment, supplement, or
waiver of this Assignment shall be valid or binding unless made in writing and signed by each
party and consented to by the Parties in writing.
19. Counterparts. This Assignment may be executed in one or more counterparts,all
of which together shall constitute a single instrument.
(Signatures on following page)
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ASSIGNOR: ASSIGNEE:
Habitat for Hu anity f Ora ge County
Michael Valentine
Vanessa Villa,Administrator President and Chi Executive Officer
Estate of Yesenia Gallaga
Signatures above require notary acknowledgment
IN WITNESS WHEREOF,the parties hereto have executed this Agreement the date and year first
above written.
ATTEST: HOUSING AUTHORITY OF THE CITY
_ OF SANTA ANA
ennifer 11 _ Michael L. Garcia
Recordi retar Secretary/Executive Director
APPROVED AS TO FORM:
SONIA R. CARVALHO
General Counsel
f
By: 14 1 f,( h1,4 A
Andrea N. Garcia
Sr. Assistant Counsel
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CALIFORNIA ALL-PURPOSE 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 }
) ss.
County of Orange }
On �/� g`� 1 , 2026, before me, Rita A. Ross, a Notary Public, personally
(Here insert the name and title of the officer)
appeared Vanessa Villa
who proved to me on the basis of satisfactory evidence to be the person(g) whose name(-&) is/aTe
subscribed to the within instrument and acknowledged to me that /she executed the
same in 4x/her/imir authorized capacity(ks), and that by /her/their signatures) on the
instrument the person), or the entity upon behalf of which the person(g) 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
RiTAA.ROSS
Witness my hand and official seal. Notary Public-California
Orange County
Commission#2441637
Comm.Expires Apr 15,2027
S' nature [Seal]
Attached to: Assignment and Assumption, City of Santa Ana re 4026 W. McFadden Santa Ana
CA 92704
CALIFORNIA ALL-PURPOSE 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 )
) ss.
County of Orange )
On 2026, before me, Rita A. Ross, a Notary Public, personally
(1-1—insert the name and Ud.of the officer)
appeared Michael Valentine who proved to me
on the basis of satisfactory evidence to be the person(-} whose name( is/tee subscribed to the
within instrument and acknowledged to me that he/ .y executed the same in his/fir
authorized capacity(i�s}, and that by his/fir signature( ) on the instrument the person(s),
or the entity upon behalf of which the person(-) acted, executed the instrument.
I certify under PENALTY OF PERJURY tuider the laws of the State of California that the
foregoing paragraph is true and correct.
*my
` RITAA.ROSS
Witn S and and official s Notary Public-California
Orange County
Commission#2441b3J2027
Comm.Expires Apr 15,
Signature [Seall
Attached to: Assignment and Assumption, City of Santa Ana re 4026 W. McFadden Santa Ana
CA 92704
EXHIBIT A
Real property in the City of Santa Ana, County of Orange, State of California, described as
follows:
PARCEL I:
UNIT I AS SHOWN AND DESCRIBED N TIIE CONDOMINIUM PLAN FOR MCFADDEN
COMMONS (THE "PLAN")RECORDED ON APRIL 10, 2018,AS INSTRUMENT NO.
20t8000126661, OF OFFICIAL RECORDS OF ORANGE COUNTY ("OFFICIAL
RECORDS"), WHICH PLAN AFFECTS LOT 1 OF TRACT NO. 17715 AS SHOWN ON A
SUBDIVISION MAP ("MAP")FILED N BOOK 963, AT PAGES 8 TO 10, INCLUSIVE, OF
MISCELLANEOUS MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER.
EXCEPTING THEREFROM, TO THE EXTENT NOT ALREADY RESERVED BY
INSTRUMENT OF RECORD; TOGETHER WITH THE RIGHT TO GRANT AND
TRANSFER ALL OR A PORTION OF THE SAME:
A. ALL OIL RIGHTS, MINERAL RIGHTS,NATURAL GAS RIGHTS AND RIGHTS TO
ALL OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, TO ALL
GEOTHERMAL HEAT AND TO ALL PRODUCTS DERIVED FROM ANY OF THE
FOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES");AND
B. THE PERPETUAL RIGHT TO DRILL,MINE, EXPLORE AND OPERATE FOR AND
TO PRODUCE, STORE AND REMOVE ANY OF THE SUBSURFACE RESOURCES ON
OR FROM TIIE PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK OR
DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THE PROPERTY,
WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE
OF THE PROPERTY,AND TO BOTTOM SUCII WHIPSTOCKED OR DIRECTIONALLY
DRILLED WELLS, TUNNELS AND SHAFTS WITHIN OR BEYOND THE EXTERIOR
LIMITS OF THE PROPERTY, AND TO REDRILL, RETUNNEL, EQUIP,MAINTAIN,
REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES, BUT WITHOUT THE
RIGIIT TO DRILL, MINE,EXPLORE, OPERATE, PRODUCE, STORE OR REMOVE ANY
OF THE SUBSURFACE RESOURCES THROUGH OR IN THE SURFACE OR THE UPPER
FIVE HUNDRED (500)FEET OF THE SUBSURFACE OF THE PROPERTY.
FURTHER EXCEPTING THEREFROM, TO THE EXTENT NOT ALREADY EXCEPTED
OR RESERVED BY INSTRUMENTS OF RECORD, ANY AND ALL WATER RIGHTS, IF
ANY,WITHIN AND UNDERLYING THE PROPERTY,
PARCEL 2:
AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT N COMMON N AND TO THE
CONDOMINIUM COMMON AREA DESCRIBED IN THE PLAN, WHICH INTEREST IS
II
EXPRESSED AS A FRACTION, THE NUMERATOR OF WHICH IS ONE (1)AND THE
DENOMINATOR OF WHICH IS THE NUMBER OF UNITS SHOWN IN THE PLAN.
PARCEL 3:
NONEXCLUSIVE EASEMENTS FOR ACCESS, EGRESS, INGRESS, USE,ENJOYMENT,
DRAINAGE, ENCROACHMENT, SUPPORT,MAINTENANCE,REPAIRS,AND FOR
OTHER PURPOSES,ALL AS DESCRIBED AND RESERVED IN THE DECLARATION OF
COVENANTS, CONDITIONS,RESTRICTIONS AND RESERVATION OF EASEMENTS
FOR MCFADDEN COMMONS,RECORDED ON APRIL 10, 2018, AS INSTRUMENT NO.
2018000126662 (AS FURTHER AMENDED FROM TIME TO TIME, COLLECTIVELY, THE
'DECLARATION"), OF OFFICIAL RECORDS,THE PLAN AND THE MAP.
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EXHIBIT B
[SQL FOLLOWING PAGES]
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PROMISSORY NOTE SECURED BY DEL' D OF TRUST
$211,000.00 Santa Ana, California
Ame 15,2018
Property Address: 4026 W. McFadden, Santa Ana, CA 92704
FOR VALUE RECEIVE,D, the undersigned YESENIA GALLA.GA, A. Widow, Sole
and Separate Property, (the "Maker" or "Tlornebuyer") promises to pay to the HOUSING
AUTHORITY OF THE CITY OF SA.N`i'A ANA, a public body, corporate and politic (the
"Holder"Iolder" or"Authority") at 20 Civic Center Plaza, Santa Ana., California 92701, or at such other
address as the Holder tray direct :from time to time in writing, the surrrs specified in the terms
and provisions of this Promissory Note as the`dote Amotmf I
1. Loan Agreement. This Promissory Note Secured by Deed of
2. 'Trust (this "Note") is made and delivered pursuant to and in implementation of
the Hotnebuyer Loan Agreement entered into by and between the Holder and the
Maher dated concurrently herewith("Agreement"), a copy of which is on file as a
public record with the Holder. The Agreement is incorporated herein by this €
reference. The Maker acta-iowledges that but for the execution of this Note, the I
Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein,
each term shall have the same definition as set forth in the Agreement.
2. Term. The term of the Note shall be forty-five (45) years from. the Homebuyer
Loan Date("Term').
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3. Mote Amount. The surns due and payable pursuant to the terms and provisions of j
this Note consists of the Homebuyer Loan Amount(the`Mote Amount"). Maker shall pay to the j
Authority the principal amount of Seventy-Three Thousand Six Hundred Dollars ($211,000,00) �
(the"Homebuyer Loan.Amount"), with zero percent(0%)interest thereon.
4. Homebuyer Loan. Amount; Interest Deferred Until Acceleration. The
Homebuyer,Assistance Loan Amount shall accrue zero percent (0%) interest unless and until an
event of acceleration occurs as set forth in Section 6, i
51 Homebuyer Loan Amount; Time of Payment. In the event that the Homebuyer. �
Loan Amount sloes not become due and payable prior to the forty-fifth (45") Anniversary
("Maturity Date") as set forth below in Section 6, the (fill amount of the Promissory Note shall I
be considered mature and the obligation to pay shall be extinguished as of the Maturity Date. �
6. Acceleration. The whole of the Note Amount and all other payments due
hereutider and under the Agreement shall become due and be immediately payable to the Holder 1
by the Maker upon the occurrence of any one of the following events of acceleration:
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(a) the sale or transfer of the Property (or arty part thereof) by any means,
including, without limitation, the lease, exchange or other disposition of the Property or any
interest therein, whether voluntary or involuntary, except (A) a sale of the Property to a qualified
Low/Moderato Income Household at an Affordable Housing Cost with the Authority's prior
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written approval accomplished in strict conformity with Section 4 of the Agreement, or (13) the
transfer of the Property solely as a result of the marriage, divorce, incompetence or death of one
or more individuals constituting the Homebuyer, so long as the transferee(s) give written notice
supported by reasonable evidence of such event to the Authority within thirty (30) days of its
occurrence and the transferees) assume(s) the Homebuyet's. obligations under the Agreement,
by execution of an assignment and assumption agreement to be provided by the Authority, or
(C) a sale or transfer which under federal law would not, by itself, permit the Authority to !
exercise a due on sale or due on encumbrance clause; !�
(b) the Maker refinances any purchase money lien or encumbrance to which
the Authority Deed of Trust is subordinate (each such lien, a "First Lien") for a loan amount in
excess of the then cut-rent loalt balance secured by such lien or encumbrance and loan closing
costs; and/or
(c) the Maker (and all co-signors and co-mortgagors, if any) fails to own and
occupy the Property as their principal residence pursuant to Section 7 of the Agreement or is in
Ownership Default as defined in Section 18 of the Agreement.
At the request of the :[Maker, and for a specific occasion, the Holder may, in its
sole and absolute discretion, in writing waive the requirements of these subparagraphs and defer
repayment and/or extend the term of this Note. Any waiver or deferment shall be on a case by
case basis, and no future rights for waiver or deferment shall arise or be implied.
Notwithstanding the foregoing, the Maker may, upon prior written approval by the .Holder,
refinance any First Lien for a loan amount equal to or less than the then current loan balance
secured by such First Lion.
7. Reserved.
8. Right of First Refusal. Homobuyer shall notify the Holder of any desire to sell
the Property immediately. Homebuyer shall also immediately notify Developer (Habitat for
Humanity of Orange County) as required by the terms of the Agreement and documents executed
between Homebuyer and Developer provide Developer an option and the tight of first refusal to
purchase the Property.
9, Sale to Low/Moderate Income Household at Affordable Housing Cost.
During the Affordability Period., the Note will not become due and payable in connection with
such sale, if the Maker sells or otherwise conveys the Property to Eligible Persons and Families,
and the purchaser assumes this Note and the Agreement by an assignment and assumption
agreement which is reasonably acceptable to the Holder.
9.1 Affordable Housing Cost—Low/Moderate Income Household, The Maker has
qualified as and each eligible and qualified successor-in4riterest to the Maker shall be a person
or fai nily of Low/Moderate Income. The term"Affordable Housing Cost"as used herein and for
each Low income Homebuyer (and all successors thereto during the Affordability Period) shall
be as defined. in Health & Safety Code Section 50079.5 (or its successor statute) and for the
Moderate Income Homebuyer (and all successors thereto during the Affordability Period) shall
be as defined in Health & Safety Code Section 50052.5 (or its successor statute) gild the
implementing regulations thereto promulgated by the Housing and Community Development
Department of the State of California,provided,however, that the tern?Affordable Housing Cost
shall include Monthly Housing Cost as defined in Section 6924 of Title 25 of the Legislations.
Notwithstanding the provisions of this Section 9.1, if the Property is sold during
the Affordability Period by the Maker to a Low/Moderate Income Household, and the Sales
Price does not exceed an "Affordable Housing Cost"to such Buyer, then so long as the Maher is
not in default (either Ownership Default and/or Maintenance Default) of the Agreement, this
Note may be assumed by the eligible buyer by an assigmnent and assumption agreement which
is reasonably acceptable to the Holder. Upon the effective date of such assignment and
the assi ain Maker shall no longer be liable for an further obligations under the
assumption, � g g y g
Agreement or this Note that accrue after the date of such assignment and assumption. In order to
verify the Buyer's status as a Low/Moderate; Income Household, the Maker shall submit to the
Holder the identity of the proposed Buyer and adequate infortnation evidencing the income and
household size of the proposed Buyer. Said income information shall be submitted together with
the notice of proposed sale pursuant to Section 2 of the Agreement not less than thirty (30) days
prior to opening of escrow for the proposed sale and shall include original or true copies of pay
stubs, income tax records or other financial documents in order that the Holder may verify the
household income of the proposed Buyer to determine whether the Buyer is a Low/Moderate
Income Household, and whether the Property is being transferred to such Buyer at an Affordable i
Housing Cost. If the Bolder is unable to verify the Buyer's income as provided herein prior to
the proposed We, then the Buyer's income shall be deemed to exceed the maximum allowable j
income limit for Eligible Persons and Families.
I.Q. security for Note. This Note shall be secured by a subordinate deed of trust and
rider thereto of even date herewith encumbering the Property (the ".Authority Deed of Trust"),
executed)by the.Maker, as Trustor,in favor of the Holder,as beneficiary.
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11. Prepayment of Note. The Maher may prepay this Note to the Holder, provided j
that any prepayment must be in full and not in part. Prepayment shall be treated in the same
manner as refinancing of the Property. In any event, the Affordable Housing Resale Restrictions �
shall continue in full force and effect,notwithstanding such prepayment.
.12. Holder May Assign. The Holder may, at its option, assign its right to receive
payment under this Note without necessity of obtaining;the consent of the Maker.
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13. Maker Assignment Prohibited. In no event shall the Maker assign or transfer �
any portion of this Note;, the Note Amount and/or the Agreement without the prior express �
written consent of the Holder, as provided in Section 9.
14. Joint and several. The undersigned, if more than one, shall be jointly and
severally liable hereunder.
15. Attorneys' Fees and Costs. In the event that any action is instituted to enforce
payment under this Norte, the parties agree the non-prevailing party shall be responsible for and
shall pay to the prevailing party all court costs and all attorneys' fees incurred in enforcing this
Note.
16. Amendments. This Note may not be modified or amended except by an `
instrm-nent in writing expressing such intention executed by the parties sought to be bound
thereby, which writing must be so firmly attached to this Note so as to become a permanent part
thereof.
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17. Maker's Waivers. The Maker waives any rights to require the Holder to:
(a) demand payment of amounts due (known as "presentment"), (b) give notice that amounts due
have not been paid (known as "notice of dishonor"), and (c) obtain an official certification of
nonpayment(known as "protest").
18. Notice. Any notice that must be given to the Maker under this Note shall be
given by personal delivery or by mailing it by certified mail addressed to the Maker at the
Property address above or such other address, as Maker shall direct from time to time in writing.
Failure or delay in giving any notice required hereunder shall not constitute a waiver of any
default or late payment, nor shall it change the time for any default or payment. Any notice to
the Holder shall be given by certified mail at the address stated above.
19. Successors Bound. This Note shall be binding upon the parties hereto and their
respective heirs, successors and assigns.
20. Effect of Foreclosure. if title to the Property is transferred by foreclosure or
acceptance of a deed in lieu of foreclosure, or assignment of the First Lien to the Secretary of the
Department of Housing and Urban Development, the Agreement, the Affordable Housing Resale
Restriction executed pursuant to the Agreement, Notice of Affordability Restrictions and the
Authority Deed of trust shall be automatically terminated and shall have no further effect as to
the Property or any transferee thereafter.
IN WITNESS WHEREOF, Maker has executed this Note as of the date set forth below.
MAKER d HOME UYER.
By:
YESENIA GAIVLAA,