Subordination Agreement 2012-0084301RECORDED AT THE REQUEST OF
CHICAGO TITLE COWWW
SUBDIVISION DEPT.
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And When Recorded Mail to:
DOC # 20120084301
1111111111111111111111111111111111111111111111111111111111111111 IN
FEB 14, 2012 8:00 AM
Poway Housing Authority SAN DIEGO
OFFICIAL RECORDS
COUNTY RECORDER'S OFFICE
13325 Civic Center Drive Ernest J. Dronenburg, Jr., COUNTY RECORDER
V
Poway, CA 92064 FEES: 81.00 WAYS: 3
y
9888 PAGES: 13
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SUBORDINATION AGREEMENT
THIS AGREEMENT (the "Agreement "), is made as of February 7, 2012, by and among the
POWAY HOUSING AUTHORITY, a public body, corporate and politic, hereinafter
referred to as "Housing Authority ", Michael Norris and Akiko Norris hereinafter referred
to as "Borrower" and First Nations Home Finance, hereinafter described as the "Lender ":
WITNESSETH
WHEREAS, in order to provide funds to the Borrower in connection with the purchase of
a home located at 13936 York Avenue, Poway, California, which property is legally described
in Exhibit A attached hereto (the "Property "), the Poway Redevelopment Agency (the
"Redevelopment Agency ") has made a loan to Borrower in the original principal amount of
$192,454 (the "Subordinate Loan "), evidenced by a Promissory Note in favor of the Housing
Authority dated June 18, 2010 (the "Note ") and secured by a Deed of Trust and Security
Agreement in favor of the Redevelopment. Agency (the "Subordinate Deed of Trust "), recorded
against the Property in the Official Records of San Diego County on June 18, 2010 as Instrument
No. 2010 - 0306325. In addition, in connection with the Subordinate Loan, an Occupancy,
Refinancing, and Resale Restriction Agreement with Option to Purchase (the "Resale
Restriction Agreement ") was recorded against the Property in the Official Records of San
Diego County on June 18, 2010 as Instrument No. 2010 - 0306324, and a Notice of Affordability
Restrictions on Transfer of Property (the "Notice of Restrictions ") was recorded against the
Property in the Official Records of San Diego County on June 18, 2010 as Instrument No. 2010-
0306326. The Subordinate Deed of Trust, the Resale Restriction Agreement and the Notice of
Restrictions, together with any and all amendments and modifications thereto recorded in the
Official Records of San Diego County in connection with the Subordinate Loan, are hereinafter
referred to as the "Subordinate Encumbrances." The Subordinate Encumbrances, the Note, and
all other documents evidencing or securing the Subordinate Loan are collectively referred to as
the "Subordinate Loan Documents."
WHEREAS, pursuant to a Cooperation Agreement and an Assignment and Assumption
Agreement, both dated March 11, 2011, the Redevelopment Agency has assigned to the Housing
Authority, and the Housing Authority has assumed, among other things, the rights of the
Redevelopment Agency under the Subordinate Loan Documents.
Subordination B
11 -30 -11
• •
WHEREAS, pursuant to a Loan Agreement dated as of December 7, 2011, (the "Senior
Lender ") is making a loan to Borrower in the amount of $284,500 (the "Senior Load'). The
Senior Loan is secured by that certain Multifamily Deed of Trust, Assignment of Leases and
Rents, Security Agreement and Fixture Filing dated as of February 3, 2012, which will be
recorded in the Official Records of San Diego County concurrently herewith (the "Senior Loan
Deed of Trust "). The Senior Loan Deed of Trust and any other instruments or documents which
are recorded in connection with the Senior Loan shall be referred to collectively as the "Senior
Loan Encumbrances." The Senior Loan Encumbrances and any and all notes, loan agreements,
and other documents and instruments executed by Borrower in connection with the Senior Loan
shall be collectively referred to as the "Senior Loan Documents."
WHEREAS, it is a condition precedent to the Senior Lender providing the Senior Loan
that the Senior Encumbrances be unconditionally and at all times remain a lien or charge upon
the Property prior and superior to all the rights of the holder of the Subordinate Encumbrances
and that the Housing Authority specifically and unconditionally acknowledge that the
Subordinate Encumbrances are and shall remain subordinate to the lien or charge of the Senior
Encumbrances.
WHEREAS, it is to the benefit of all the parties herein that the Senior Loan be made to
the Borrower; and the Housing Authority is willing that the Senior Encumbrances shall, when
recorded, constitute a lien or charge upon the Property which is unconditionally prior and
superior to the lien or charge of the Subordinate Encumbrances.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the. parties
hereto and other valuable consideration, the receipt and sufficiency of which consideration is
hereby acknowledged, and in order to induce the Senior Lender to provide the Senior Loan, it is
hereby declared, understood and agreed as follows:
(1) That Senior Encumbrances, and any renewals, modifications or extensions thereof, shall
unconditionally be and remain at all times a lien or charge on the Property described,
prior and superior to the lien or charge of the Subordinate Encumbrances;
(2) That the Senior Lender would not provide the Senior Loan without this Agreement; and,
(3) That with regard to the priority of the Subordinate Encumbrances, this Agreement shall
be the sole and only agreement with regard to the subordination of the lien or charge of
the Subordinate Encumbrances to the lien or charge of the Senior Encumbrances and
shall supersede and cancel any prior agreements as to such subordination including, but
not limited to, those provisions, if any, contained in the Subordinate Deed of Trust, which
provide for the subordination of the lien or charge thereof to another deed or deeds of
trust, another mortgage or mortgages, or any other property use restrictions or covenants.
THE HOUSING AUTHORITY hereby declares, agrees and acknowledges that:
(a) It consents to all provisions of the Senior Documents and of any and all other agreements,
including but not limited to any escrow instructions or agreements, relating to the
disbursement of the proceeds of Senior Loan that have been submitted to Housing
Authority for its review (collectively, "Disbursement Provisions ");
Subordination B 2
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(b) The Senior Lender, in approving any disbursements pursuant to any such Disbursement
Provisions, is under no obligation or duty to, nor has the Senior Lender represented that it
will, see to the application of such proceeds by the person or persons to whom the
proceeds are disbursed and any application or use of such proceeds for purposes other
than those provided for in the Senior Documents shall not defeat the subordination herein
made in whole or in part; and,
(c) It intentionally and unconditionally subordinates the lien or charge of the Subordinate
Encumbrances in favor of the lien or charge upon the Property of the Senior
Encumbrances and understands that in reliance upon, and in consideration of, this
subordination, specific loans and advances are being and will be made and, as part and
parcel thereof, specific monetary and other obligations are being entered into which
would not be made or entered into but for said reliance upon this subordination.
(d) Upon any event of foreclosure of the Subordinate Deed of Trust, whether by power of
sale or by court action, or upon a transfer of the Property in lieu of foreclosure, such
foreclosure shall not be deemed an event of default under any of the Senior Loan
Documents provided that the Housing Authority or any assignee of its rights or transferee
of the Property agrees to assume all of Borrower's obligations under the Senior Loan
Documents within ninety (90) days of such foreclosure and thereafter complies with all
terms of the Senior Loan Documents.
(e) Notwithstanding anything to the contrary contained in the Subordinate Loan Documents,
prior to the Housing Authority declaring any default or taking any remedy permitted
against the Borrower under the Subordinate Loan Documents or applicable law based
upon an alleged default under the Subordinate Loan Documents, the Housing Authority
shall give notice to the Senior Lender of such alleged default, and the Senior Lender shall
have a period of not less than ninety (90) days to cure such alleged default.
Notwithstanding the foregoing, other than the appointment of a receiver to collect monies
owing from the Borrower, the Housing Authority may take any reasonable action it
deems necessary or appropriate in good faith to protect its security. Notices of any
default by the Borrower under the Subordinate Loan Documents shall be given to the
Senior Lender at the following address:
First Nations Home Finance
7330 Engineer Road, Suite A
San Diego, CA 92111
(f) Concurrently with a notice from the Senior Lender to the Borrower that a default or
breach exists under the terms of any of the Senior Documents, Senior Lender shall send a
copy of such notice to the Housing Authority and the Housing Authority shall have thirty
(30) days to cure such default. The Senior Lender will not exercise any of its remedies
against Borrower or the Property during any applicable cure period set forth herein
beginning after the date such notice is given to Senior Lender, except that Senior Lender
may take any reasonable action it deems necessary or appropriate in good faith to protect
its security. Notwithstanding anything to the contrary in this Agreement, any
indebtedness and any other amounts secured by the Senior Encumbrances may be
accelerated and become immediately due and payable in accordance with the terms of the
Subordination B 3
11 -30 -11
• 0 •
Senior Lender Deed of Trust or any other Senior Documents and a notice of default may
be recorded in the applicable governmental office immediately upon the occurrence of a
default and expiration of any applicable notice and cure periods set forth in the Senior
Documents, provided, however, that if the underlying default giving rise to such
acceleration is a monetary default, the Housing Authority and Borrower shall be deemed
to have cured the default by tendering payment of all amounts then due as if no
acceleration of any indebtedness had occurred. Notices of any default by the Borrower
under the Senior Loan Documents shall be given to the Housing Authority at the
following address:
Poway Housing Authority
13325 Civic Center Drive
Poway, California 92064
Attention: SHOP Program
(g) After a default under the Senior Documents, but prior to a foreclosure sale or deed in lieu
assignment of the Property, the Housing Authority shall have the right to purchase the
Property from the Borrower and pay all amounts due and owing under the Senior
Documents.
(h) The provisions of the foregoing paragraph are intended to supplement, and not to limit,
waive, modify or replace, those provisions of law pertaining to notice and cure rights of
Subordinate lenders including, without limitation, those set forth in California Civil Code
§§ 2924b and 2924c.
Subordination B 4
11 -30 -11
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
POWAY HOUSING AUTHORITY
Lo
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination B 5
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9893
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On February 7, 2012, before me, Carol S. Legg, Notary Public, personally appeared
Penny Riley, who proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that she executed the
same in her authorized capacity, and that by her signature on the instrument the person, or the
entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
CAROL S. LEGG
Arc Commission # 1934186
i Notary Public - California z
San Diego County
My Comm. Ex lees Ur 28, 2015
OPTIONAL
l
Title or type of document: Subordination Agreement relating to 13936 York Avenue, Poway,
CA. Poway Housing Authority, First Nations Home Finance, Michael and Akiko Norris.
Penny Riley signed as Executive Director of Poway Housing Authority.
Document Date: February 7, 2012
Number of Pages: 3, plus signature pages and Exhibit.
Signers Other Than Named Above: The Borrower and The Lender
THE BORROWER:
[BORROWER'S SIGNATURE BLOCK]
By: ZY/Z
M r -h %ae,) NorcoS
By:
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination B
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9895
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of �`1t n+ D\— C 9,Q
On`� - l�l4.before me
t Here Insert Name and Title of the Officer
personally appeared
SHARON K. SMITH
Commission # 1801468
.® Notary Public - California
San Diego County
My
Expires Jun 13, 2012
who proved to me on the basis of satisfactory evidence to
be the person(s) whose name(sy4s4a�subscribed to the
within instrument and acknowledged to me that
-h>I ' e executed the same initfsf�ir uthorized
capacity(ies), and that by+41h #heI ignature(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.
Signatu '
Place Notary Seal Above Signature of Notary ublic
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Individual
❑ Corporate Officer —Title(s): —
El Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing:
RIGHTTHUMBPRINT
OF SIGNER
.p of
Number of Pages:
Signer's Name:
❑ Individual
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing
RIGHTTHUMBPRINT
OF SIGNER
02007 National Notary Association - 9350 De Soto Ave., P.O. Box 2402 - Chatsworth, CA 91313 -2402 - www.NationaiNotary.org Item #5907 Reorder: Call Toll -Free 1 -800- 876 -6827
THE LENDER:
[SIGNATURE BLOCK OF SENIOR LENDER]
36hr Nac�ofSl�iU ,�ra� H��Stn�y Fls or�cy
ALL SIGNATURES MUST BE NOTARIZED
Subordination B 7
11 -30 -11
CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT
State of California
County of
On l i --2012
Date
personally appeared
before me, rt a- A-Bc� . A .,'�*e7kAAct x, NcTAxy f IL
Here Insert Name and Title of the Officef
ELIZABETH A. SHOEMAKER
Commission # 1891297
Notary Public - California Z
San Diego County
M Comm. Ex Tres Jun 25, 2014
Place Notary Seal Above
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Name(s) of Signer(s)
who proved to me on the basis of satisfactory
evidence to be the person(o whose name(g) is /ar4
subscribed to the within instrument and acknowledged
to me that he /safe /t"y executed the same in
hi Dyer /th,eir authorized capacity(iAl and that by
his /or /thgfr signature(A on the instrument the
person(�!' or the entity upon behalf of which the
person(�acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS d o
Signatur
Si ature of Notary Public
Description of Attached Document
Title or Type of Document:
Document Date:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Individual
❑ Partner— ❑ Limited ❑ General
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing
RIGHT THUMBPRINT
OF SIGNER
Number of Pages:
Signer's Name:
❑ Corporate Officer— Title(s):
❑ Individual
•
❑ Partner— ❑ Limited ❑ General Top of thumb here
❑ Attorney in Fact
❑ Trustee
❑ Guardian or Conservator
❑ Other:
Signer Is Representing
0 2009 National Notary Association • National Notary.org • 1- 800 -US NOTARY (1 -600- 876 -6827) Item #5907
N 0 • 0
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EXHIBIT A
That certain property situated in the State of California, County of San Diego, City of Poway,
described as follows:
[TO BE PROVIDED]
Subordination B 8
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EXHIBIT 'T
LEGAL DESCRIPTION 9899
ASSESSORS PARCEL NO. 314-213-50
PARCEL A:
PARCEL `A' AS SHOWN AND DESCRIBED ON THAT CERTAIN BOUNDARY ADJUSTMENT
CERTIFICATE OF COMPLIANCE, BA NO. 07 -01, RECORDED SEPTEMBER 8, 2008 AS
INSTRUMENT NO. 2008 - 0478020 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY
(`BOUNDARY ADJUSTMENT NO. 07 -01 ").
EXCEPTING THEREFROM 25 PERCENT OF ALL OIL, GAS AND MINERALS BENEATH SAID
LAND AS RESERVED IN BOOK 6014, PAGE 23 OF OFFICIAL RECORDS.
EXCEPTING THEREFROM ONE -HALF OF ALL OIL, GAS AND MINERALS BENEATH SAID
LAND, AS RESERVED IN DEED RECORDED SEPTEMBER 16, 1955 IN BOOK 5795, PAGE 494
OF OFFICIAL RECORDS.
PARCEL A 1:
A NON - EXCLUSIVE EASEMENT, FOR THE BENEFIT OF AND APPURTENANT TO PARCEL `A'
ABOVE, FOR A SHARED DRIVEWAY OVER, UNDER, ALONG AND THROUGH THAT
PORTION OF PARCEL `B' OF BOUNDARY ADJUSTMENT NO. 07 -01, DESCRIBED AS
FOLLOWS:
SHARED DRIVEWAY EASEMENT
COMMENCING AT THE MOST EASTERLY NORTHEAST CORNER OF PARCEL `C' OF
BOUNDARY ADJUSTMENT NO. 07 -01, SAID POINT ALSO BEING ON THE CENTERLINE OF
YORK AVENUE (VACATED TO PUBLIC USE), SAID POINT BEARS NORTH 0 °21'08" WEST
20.00 FEET FROM THE MOST EASTERLY SOUTHEAST CORNER OF SAID PARCEL `C';
THENCE ALONG THE NORTHERLY LINE OF SAID PARCEL `C', SOUTH 89038'52" WEST
170.17 FEET; THENCE ALONG THE EASTERLY LINE OF SAID PARCEL `C' AND SAID
PARCEL `B', NORTH 0 020'08" WEST 28.54 FEET TO THE TRUE POINT OF BEGINNING OF
THIS DESCRIPTION; THENCE LEAVING SAID EASTERLY LINE OF PARCEL `B', SOUTH
89 037'09" WEST, 30.00 FEET; THENCE PARALLEL WITH SAID EASTERLY LINE OF PARCEL
`B', NORTH 0 °20'08" WEST, 68.78 FEET TO. THE NORTHERLY LINE OF SAID PARCEL `B',
THENCE ALONG SAID NORTHERLY LINE, NORTH 89 038'52" EAST, 30.00 FEET TO THE
NORTHEASTERLY CORNER OF SAID PARCEL `B'; THENCE SOUTHERLY ALONG THE
EASTERLY LINE OF SAID PARCEL `B', SOUTH 0 °20'08" EAST, 68.75 FEET TO THE TRUE
POINT OF BEGINNING.
PARCEL A2:
A NON - EXCLUSIVE EASEMENT, FOR THE BENEFIT OF AND APPURTENANT TO PARCEL .`A'
ABOVE, FOR A PRIVATE DRIVEWAY OVER, UNDER, ALONG AND THROUGH ALL THOSE
PORTIONS OF PARCELS `B' AND `C' OF BOUNDARY ADJUSTMENT NO. 07 -01, DESCRIBED
AS FOLLOWS:
PRIVATE DRIVE EASEMENT
LEGAL DESCRIPTION 9900
(continued)
BEGINNING AT THE MOST EASTERLY NORTHEAST CORNER OF PARCEL `C' OF
BOUNDARY ADJUSTMENT NO. 07 -01, SAID POINT ALSO BEING A POINT ON THE
CENTERLINE OF YORK AVENUE (VACATED TO PUBLIC USE), SAID POINT BEARS NORTH
0 021'08" WEST 20.00 FEET FROM THE MOST EASTERLY SOUTHEAST CORNER OF SAID
PARCEL `C'; THENCE SOUTH 89 138'52" WEST 170.17 FEET ALONG THE NORTHERLY LINE
OF SAID PARCEL `C'; THENCE ALONG THE EASTERLY LINE OF PARCEL `C', NORTH
0 020'08" WEST, 9.29 FEET TO THE SOUTHEASTERLY CORNER OF SAID PARCEL `B' OF
BOUNDARY ADJUSTMENT NO. 07 -01; THENCE CONTINUING NORTHERLY, ALONG THE
EASTERLY LINE OF SAID PARCEL `B', NORTH 0 020'08" WEST, 19.25 FEET, THENCE
LEAVING SAID LINE, SOUTH 89 °37'09" WEST, 48.50 FEET TO THE BEGINNING OF A NON -
TANGENT, 28.00 -FOOT RADIUS CURVE, CONCAVE NORTHWESTERLY, THE CENTER OF
WHICH BEARS SOUTH 89 037'09" WEST; THENCE SOUTHWESTERLY ALONG THE ARC OF
SAID 28 -FOOT RADIUS CURVE, THROUGH A CENTRAL ANGLE OF 43 °17'40 ", AN ARC
DISTANCE OF 21.16 FEET TO THE SOUTHERLY LINE OF SAID PARCEL `B'; THENCE ALONG
SAID SOUTHERLY LINE, SOUTH 89 °39'52" WEST, 20.38 FEET; THENCE LEAVING SAID
SOUTHERLY LINE, SOUTH 0 020'08" EAST, 29.31 FEET TO THE INTERSECTION OF THE
WESTERLY PROLONGATION OF A PORTION OF THE SOUTHERLY LINE OF THE AFORESAID
PARCEL `C', SAID POINT OF INTERSECTION BEARS SOUTH 89 038'52" WEST 246.66 FEET
FROM THE SOUTHEAST CORNER OF SAID PARCEL `C', ALSO BEING A POINT ON THE
CENTERLINE OF YORK AVENUE (VACATED TO PUBLIC USE); THENCE EASTERLY ALONG
SAID PROLONGATION LINE, NORTH 89 038'52" EAST 246.66 FEET TO SAID SOUTHEAST
CORNER OF PARCEL `C'; THENCE ALONG THE MOST EASTERLY LINE OF SAID PARCEL `C'
AND SAID CENTERLINE OF YORK AVENUE (VACATED TO PUBLIC USE) NORTH 0 °21'08"
EAST 20.00 FEET TO THE POINT OF BEGINNING.
PARCELA3:
A NON - EXCLUSIVE EASEMENT, FOR THE BENEFIT OF AND APPURTENANT TO PARCEL `A'
ABOVE, FOR ROAD AND PUBLIC UTILITY PURPOSES, IN, OVER, UNDER AND ACROSS THE
WESTERLY 40.00 FEET OF PARCELS 1, 2 AND 3 AND THE NORTHERLY 30.00 FEET OF
PARCEL 1 OF PARCEL MAP NO. 1775, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY ON JULY 26, 1973, BEING A PORTION OF THE SOUTHWEST
QUARTER OF THE SOUTHEAST QUARTER OF SECTION 12, TOWNSHIP 14 SOUTH, RANGE 2
WEST, SAN BERNARDINO MERIDIAN, ACCORDING TO OFFICIAL PLAT THEREOF.
END OF LEGAL DESCRIPTION