Subordination Agreement 2012-0269180DOC # 2012-0269180
11111111111111111111111111111111111111111111111111111111111111111111111
MAY 08, 2012 8:00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 48.00
6172 PAGES: 12
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R300?,& 303- vlZ
SUBORDINATION AGREEMENT
THIS AGREEMENT (the "Agreement "), is made as of May 3, 2012, by and among the
POWAY HOUSING AUTHORITY, a public body, corporate and politic, as successor in interest
to the Poway Redevelopment Agency, pursuant to Part 1.85 to Division 24 of the California
Health & Safety Code, Section 34176, hereinafter referred to as "Housing Authority ", David L.
Rose and Lydia M. Rose, 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 12984 Choctaw Way, Poway, California, which property is legally described
in Exhibit A attached hereto (the "Property "), the Poway Redevelopment Agency (the
"Agency ") has made a loan to Borrower in the original principal amount of $29,602 (the
"Subordinate Loan "), evidenced by a Promissory Note in favor of the Agency dated December
11, 2009 (the "Note ") and secured by a Deed of Trust and Security Agreement in favor of the
Agency (the "Subordinate Deed of Trust "), recorded against the Property in the Official
Records of San Diego County on December 11, 2009 as Instrument No. 2009 - 0685923. 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 December 11,
2009 as Instrument No. 2009 - 0685921, 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 December 11, 2009 as Instrument No. 2009 - 0685924. 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, as a result of AB IX 26, the Agency has dissolved and the Housing
Authority has succeeded to the interest of the Agency in all of its housing assets and functions,
including the Subordinate Loan Documents.
Subordination A I
wormo AT THE REQUEST OF
CHICAGO TITLE COMPANY
SUBDIVISION DEPT.
ton* When Recorded Mail to:
Poway Housing Authority
t
Box 789
Poway, CA 92074
1
DOC # 2012-0269180
11111111111111111111111111111111111111111111111111111111111111111111111
MAY 08, 2012 8:00 AM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Ernest J. Dronenburg, Jr., COUNTY RECORDER
FEES: 48.00
6172 PAGES: 12
------------------------
R300?,& 303- vlZ
SUBORDINATION AGREEMENT
THIS AGREEMENT (the "Agreement "), is made as of May 3, 2012, by and among the
POWAY HOUSING AUTHORITY, a public body, corporate and politic, as successor in interest
to the Poway Redevelopment Agency, pursuant to Part 1.85 to Division 24 of the California
Health & Safety Code, Section 34176, hereinafter referred to as "Housing Authority ", David L.
Rose and Lydia M. Rose, 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 12984 Choctaw Way, Poway, California, which property is legally described
in Exhibit A attached hereto (the "Property "), the Poway Redevelopment Agency (the
"Agency ") has made a loan to Borrower in the original principal amount of $29,602 (the
"Subordinate Loan "), evidenced by a Promissory Note in favor of the Agency dated December
11, 2009 (the "Note ") and secured by a Deed of Trust and Security Agreement in favor of the
Agency (the "Subordinate Deed of Trust "), recorded against the Property in the Official
Records of San Diego County on December 11, 2009 as Instrument No. 2009 - 0685923. 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 December 11,
2009 as Instrument No. 2009 - 0685921, 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 December 11, 2009 as Instrument No. 2009 - 0685924. 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, as a result of AB IX 26, the Agency has dissolved and the Housing
Authority has succeeded to the interest of the Agency in all of its housing assets and functions,
including the Subordinate Loan Documents.
Subordination A I
6173
WHEREAS, pursuant to a Loan Agreement dated as of May 2, 2012, First Nations Home
Finance (the "Senior Lender ") is making a loan to Borrower in the amount of $282,800 (the
"Senior Loan "). 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 May 2,
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
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6174
disbursement of the proceeds of Senior Loan that have been submitted to Housing
Authority for its review (collectively, "Disbursement Provisions ");
(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 or at any time that Borrower would have a right to cure it,
whichever is greater. The Senior Lender will not exercise any of its remedies against
Subordination A 3
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6175
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. During such cure period, both the Housing Authority and the Lender shall have
the right to negotiate with the party giving the notice of default, provided that,
notwithstanding (a) any discussions or negotiations between the parties, (b) any other
provisions of this Agreement, or (c) any claim of any party to the contrary. Lender has
not waived, and does not waive, any of its rights or remedies under the Senior Documents
and Lender expressly reserves all of its rights and remedies under the Senior Documents
whether or not any such negotiations or discussions are taking place. No consent shall be
required of any Lender for the Housing Authority or any other party to exercise rights to
cure a default. 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
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 A 4
4 -02 -12
6176
IN WITNESS WHEREOF, parties hereto have signed this Agreement as of the day and
year first above written.
POWAY HOUSING AUTHORITY
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination A
4 -02 -12
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
1,; `j i 11
On I/01/1LIZU!
personally appeared
before me, �✓��''�� iS J�'iiU.✓
' ,'Ll �" ^P if L
6177
Notary Public,
proved to me on the basis
of satisfactory evidence to be the person() whose name(! is /4k subscribed to the within
instrument and aclanowledged to me that �6/she /tl* executed the same in 1,-�(s /her /tl�6r
authorized capacity(i O, and that by f* /her /tHVr 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.
Notary P1zb 'c
I L
' PHYlLI' SNINN
CD"V MSSion ! 1956215
Notary Public • California
San Diego County
amycornm. Ex in: Nov 9, 2015
6178
THE BORROWER:
[BORROWER'S SIGNATURE BLOCK]
Bye
P. A.K.A. David 9,015e,
By: C--A- /l e
�! (.ydta M. ODSe-
A.k.A. Lydtq JC&Se-
SIGNATURES MUST BE NOTARIZED
[signatures continue on following page]
Subordination A
4 -02 -12
State of California
County of "
Li
6179
CALIFORNIA ALL - PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
On Q before me, �. ems- t�
(here insert name and title of the officer)
personally appeared
who proved to me on the basis of satisfactory evidence to be the personbmhose nam (s • are subscribe o
the within instrument and acknowledged to me that h /s e /t�e executed the same in ih � /Kier eir
authorized capaci (ies and that by /hr/ (heir signatur s) n the instrument the person ), Q /rtFte- errtitq-
xecuted 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---_
OPTIONAL INFORMATION
=Public 5141 Z
alifornia Z ` unty r. 5, 2014
(Seal)
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknowledgment is attached to a document
titled /for the purpose of
containing pages, and dated
The signer(s) capacity or authority is /are as:
❑ Individual(s)
❑ Attorney -in -Fact
❑ Corporate Officer(s)
❑ Guardian /Conservator
❑ Partner - Limited /General
❑ Trustee(s)
❑ Other:
representing:
Fitle(s)
Name(s) of Person(s) or En Uty(ies) Signer is Representing
Method of Signer Identification
V Copyright 2007 Notary Rotarv, Inc 925 29th St., Des Moines, IA 50312 -3612 Form ACK03 10107 To re- order, call toll -flee 1- 877 - 349 -6583 or visit us on the Internet at http 11- notaryrotary com
6130
THE LENDER:
[SIGNATURE BLOCK OF SENIOR LENDER]
r�
f
By:
/ John Nq ?of-*;
v
ALL SIGNATURES MUST BE NOTARIZED
Subordination A
4 -02 -12
6181
Stateof'California j� CALIFORNIA ALL - PURPOSE
County of . `, ) CERTIFICATE OF ACKNOWLEDGMENT
On I before me, ` L h& VIA t
(here insert name an title of the offic )
personally appeared I v
- t
who proved to me on the basis of satisfactory evidence to be the person(6whose name()' is /af - subscribed to
the within instrument and acknowledged to me that he /s4ef#4ey executed the same in his /hef*ll
authorized capacity(ies}, and that by his /horAheir signatul on the instrument the person(', or the entity
upon behalf of which the person(,Fr1 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 correc RIKKI L. BAKER
Commission #E 1915706 =
•� Notary Public - California Z
WIT my hand and official seal. San Diego county
M Comm. Expires Dec 7, 2014
Signatur
(Seal)
OPTIONAL INFORMATION
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknowledgment is attached to a document Method of signer Identification
titled /for the purpose Of fli��li t6 Proved to me on the basis of satisfactory evidence:
L form(s) of identification 0 credible witness(es)
Notarial event is detailed in notary journal on:
containing pages, and dated Page # Entry #
The signers) capacity or authority is /are as: Notary contact:_
❑ Individual(s) Other
❑ Attorney -in -Fact ❑ Additional signer(s) ❑ signer(s)Thumbprint(s)
❑ Corporate Officer(s)
Title(s) ❑ -- _ -
❑ Guardian /Conservator
❑ Partner - Limited /General
❑ Trustee(s)
❑ Other:
representing:
i of Person(s) or Entity(ies) Signer is Representing
0 Copyright 2007 Notary Rotary, Inc 925 29th St, Des Moines, IA 50312 -3612 Form ACK03 10/07. to re- order, call toll -tree i -rsii- say -bsux or visit us on the ',—r ei ar n Ll� /rw Y11-1 v
6182
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 A
4 -02 -12
EXHIBIT'W'
LEGAL DESCRIPTION 6183
PARCEL l: APN 317- 350 -61
LOT 22 OF CITY OF POWAY TRACT NO. 06 -06 THE MEADOWS, IN THE CITY OF POWAY,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS SHOWN BY MAP NO. 15743, FILED IN
THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON
MARCH 5, 2009.
PARCEL 2:
EASEMENTS REFERRED TO IN ARTICLE X OF THE DECLARATION RELATED TO COMMON
STRUCTURES WHICH IS RESERVED FOR THE BENEFIT OF PARCEL 1 ABOVE.
END OF LEGAL DESCRIPTION