Subordination Agreement Begin Loan 2013-0150078 ��' ' , �
; �ibcnrrling rcquest�d by. �� . L,� � � t} Gl.� I �-� I ��J1.��4
, ��,��,�0 TI'��� fQ�a°n•�Y II I I I I I II I I III I II I II IIIII II II III I III
�� MAR 08, 2013 8:00 AM
And When Recorded 1VIai1 to`.
OFFICIAL RECORDS
Poway Housing Au[hority SAN DIEGO COUNTY fiECORDER'S OFFICE
Emest J. Dronenbu�g,Jr.,COUNTY RECORDER
Attn: ExecutiveDirector FEES: 39.00
13325 Civic Center Drive 1 $ 3 2 PAGES: 9
Poway, CA 92064 II�IIIIIIIII�IIIIIIIIIIIII�IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
SUBORDIN.ATION AGREEMENT
SHOP LOAN
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECU}2ITY
INTEREST IN THE P120PERTY BEGOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUNiENT.
1'HIS AGREEMENT (the "AgreemenY'), is made as of March :8 , 2013; by and among the
POWAY HOUSING AUTHOI2ITY, a public body, corporate and politic, hereinafrer referred
to as "Housing Authority", JIMIVIY A. JOHNSON and MECHELLE S. JOHNSON,
HUSBAND ANll WIFE AS COMMUNITY PROPERTY W1TH RIGHT. OF
SURVNORSffiP, hereinafter referred to as `Borrower" and FIRST NATIONS HOME
FINANCE CORP., a Califomia Corporation, hereinafrer described as the "Senior Lender":
WITNESSETH
WHEREAS, in order to provide funds to the Borrower in connection with the purchase of
a.home located at 12820 DakotaSfreet, Poway; California, which property is legally described'in
Exhibit A attached hereto (the "Property"), the Poway Redevelopment Agency (the
"itedevelopment 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 oP the
Redevelopment Agency dated June 25, 201 Q (the "Note") and secured by a Dee.d of Trust and
Security Agreement in favor of the Redevelopment Agency (the "Su6ordinate Deed of TrusY'),
recorded against the Property in the Official Records of San Diego County on June 25, 2010„as
Instrument No. ,2010-0320652. 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 PropeRy in 1he Official Records oY
San Diego County on June 2�, 2010, as Instrument No. 2010-0320650, and a Notice of
flffoidability Restrictions on 1'ransfer of Property (the "Notice of Restrictions") was recorded
against the Property in the Official Records of San Diego County on June 25, 2010, as
Instrument No. 20T0-0320653. The Subordinate Deed of Trust, the Resale ResViction
Agreement and the Notice of Restrictions, together with any and all amendments and
modifications thereto cecorded in the Official Records of San Diego County in connection with
the Subordinate Loan, are hereinafrer reYerred to as the "Subordinate Encumbrances." The
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Subordinate Encumbrances, tiie :Note, and all other documents evidencing or securing the
Subordinate Loan ai�e collecfively ceferred to as the "Subordinate,Loan Documents."
WHEREAS, pursuant to a Coopecafion A�eement and an Assignment and Assumption
Agreement, both dated March 11;2011, the Rede��elopmen[ Agency has assigned to the Housing
Authority, and the Housing Authority has assumed, among other things, the rights of the
Redevelopment Agencyunder the Subordinate Loan Documents.
WHEREAS, pursuant to a L.oan Agreement dated as of March 1, 2013, (the "Senior
Lender") is making a loan to Borrower in the amount of $280,000 (the "Senior Loan"). The
Senior L.oan is secured by that certain Multifamily Deed of'Trust, Assignment of L.eases and
Rents, Security Agreement and Fixture Filing dated as of March I; 2013 which will be recorded
in the Official Records of San Diego County concurrently herewith (the "Senior Loan Deed of
TrusY'). The Senior Loan Deed of Trust and any other instruments or documents which aze
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 Bonower in:connection with the Senior Loan
shall be collectively referred to as the"Senior Loan Dowments:"
WHEREP:S, it is a condition precedent to the SeniorL.ender 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 Authoiify specifically and unconditionally acknowledge that the
Subordinate Encumbiances 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 ofthe 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 L,ender to provide the Senior L.oan, it is
hereby declazed, 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 chaige 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 L.oan without this Agreement; and,
(3) That with regard to the priocity of the Subordinate Encumbrances, this Agreement shall
be the sole and only agreement with regazd to the subordination of the lien or chazge 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, thoseprovisions, if any, contained in theSubordinate Deed of Tnist, which
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. I834
� , �
provide for-the subordination_ of the lien or charge thereof to another deed or deeds of
wst, another mortgage or mortgages, or any o[her property use restrictions or covenants.
THE HOUSING AUTHORTTY he;eby declazes, agrees and acknowledges that -
(a) It consents to all provisions of the Senior pocuments and of any and all other agreements,
including but not lunited 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");
(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 p�ovided for in the:Senior pocuments shall not defeat the subordination herein
made in whole or in part;and,
(c) It intentionally and unconditionally subordinates the lien or chazge of the Subordinate
Encumbrances in favor of the lien or charge uporr the PropeRy 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 foteclosure of the Subordinate Deed of Trust, whether by powet 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 L,oan
Documents provided that the Housing Authority or any assignee of its rights ortransferee
of the Property agrees to assume all of Borrower's obligations under the Senior Loan
Documents within ninery (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 defaul[, 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 .4uthority may take any reasonable action it
deems necessazy 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:
3
� -. 183�5
First Nations Home Finance Corp.
A California Corporation,
7330 Engineer Road, #A
San Diego, CA 921 I 1
(� 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 pocuments, Senior Lender shall send a
copy of such notice fo 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 Pioperty during any applicable cure period set forth herein
beginning after the date such notice is given to Senior L,erider, 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 contracy 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 Lendei Deed of Trust or any other Senior pocuments and a notice of deFaultmay
be recorded in the applicable governmental office immediately upon the occui�rence 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 monetazy 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 oE 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 addiess:
Poway Housing Authority
13325 Civic Center Drive
Poway, Califomia 92064
Attention: Development Services,.SHOP Program
(g) After a default under the,Senior pocuments, but p'rior 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 ceplace, 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.
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� � 1836
IN WITNESS WHEREOF, pai-ties hereto.have signed this Agreement-as of the day and
year first above wtitfen.
POWAY HOUSING AUTHORITY: BORROWER:
By: By:
Penny Riley, Exe tive ' •ector Ji A. o on
BORROWER:
By: i 'P ��� d",�_
Mechelle S. Johnson
FIRST NATIONS HOIGIE FINANCE CORP:
By:
�
)ohn �ago��, Vice President
C/ /
ALL SIGNATLJRES MUST BE NOTARIZED
STATE OF CALIFORNIA )
� SS.
COUNTY OF SAN DIEGO )
On ✓ml�f'Gk S , 2013, before me, �� � S • �-Q� , Notary Public, personally
appeared PQ,�Ar�H �t�LN who proved [o me on the basis of
satisfac[ory evidence to be the person(g} whose name(sq is/atQ subsc�ibed ro the within instrumen[ and
acknowledged to me that he/she/thsy exewted the same in k$s/hedt6�ir authorized capacity(i�s), and that by
hg;/hed[hCk signature(�}ou the instrument the person(6}or the entity upon behalf of which the person(sr� acted,
executed the instmment.
I certify under PENALTY OF PERJURY under the laws of the State ofCalifornia that the foregoing
paragraph is true and correct.
Witness my hand and official seal.
CAROL S. LEGG �� JQ� �L��
Commission # 1934186 Z, Notary Public
a -o � Nolary Pobiic-Califomia z
Z ' a
Sen Diego County
My Comm. EzO��es:Apr 28,2015�
5
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, T8�3�7
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
.�Oa��'� � 'J 2013, before m�ui� '1��'�OOL1 , Notary Public, personally
appeared )'1 M 1'h\i /'� � )U Y111 S'LZ%1 who proyed to me on the 6asis of
_ satisfactory evidence to be th,e person� whose name �i re subsc_ribed to the within instrument and
acknowledged to me that�fie/they ezecuted the same i" i er/their autfiorized capacity(3es), and that by
, his/her/their signaiure(� oo the,iustniment tlie.person� or the entity upon behalf of wfiich the person� acted,
executed the instrument.
I cenify underPENALTY OF PERJiJRY under the laws of the State of California thacthe foregoing
paragraph is true and correct.
Witness my hand and official seal,
Notary Pu61ic
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
On 3 ' �1" �:� , 2013'; before me,1�('��-u:^ �2-'eI,W�OL, , Notary Public, personally
appeared 1 I i?C�-e� �� S� �j'Yl n S�t�l,� who proved to me on the basis of
satisfactory evide�be to be [he pe�son(� whose �ame(s)�aie 'subscribed to the within i�strument and
acknowledged to me�that�he�they ezecuted the same in hi er fieic authoiized capacity(�s), and that by
his/her/their signature(`s�on the instrument the person�or the entity upodtiehalf ofwhich tfie person�acted,
executed the instrument.
I certify under'PENALTY QF PERJURY under tfie laws`of ttie State of California that,tfie foregoing
paragraph is true and correct:
Wimess myhand and official seal..
, �d
Notary Public
� 1. 838
; Stateof California ) �ALIFORNIAALL-PURPOSE
' County of �L�-�Lo� ) CERTIFICATE OF ACKNOWLEDGMENT �
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On �J' —�0—l3 beforema, C.�uz �l�12 'LY7d.�p�+-�•YU �1,�7�'iC. , s
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(here insert name�nd tide o(the �ficer)
personallyappeared���_m_��-_��h "S'p�.� 11..�.P� IY 12C�'1P� ��-S' .� ��115'Ulti E
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who proved to me on the basis of satisfactory evidence to be the pe on(s)whose name(s) is at subscrib to ?
the within instrument and acknowledged me that he/she he executed the same in his/her their �
authorized capacity(ies), and that by his/her�r signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted,executed the instrument. €
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I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and corred. !
DAWN HATELWOOD � £
COMM. fi1988607 p ;
WITNESS m hand and official seal. ° �'�. Notary Publ¢•Califomia o ;
Y � . San Dieqo Coumy �
; I Camm.Ex ires Au .20.2016 �
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Signature �� `
(Seap
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OPTIONAL INFORMATION
Although the information in this section is not required by low,it could prevent(rnudulent removol and rea[mchmen(o(this .�
acknowledgment;o an unpufhoiized document and may prove useful ro peisons relying on rhe attached documenf. '
3
Description of Attached Document '
� The preceding Cer[ificate of Acknowledgment is a[tached to a document Method of Signer identification ;
titled/fofthepulpoSeOf Provedtomeonthebasisofsatisfaaoryevidence: '
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; c� — 1 LQ form(s)ofldennfication Q credible witness(es) �
�l,..bvr�t.�c�l'1��w' i1-�5v_�.e.K,-]' :
[ — — ' No[arlal event is detailed in nocary joumal ore �5
con2aining _J� pages, and dated aage u enr�y�
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The signer(s) capacity or authoriry is/are as: No�a�y mncacc
� Individual(s) Other j
❑ Attorney-imFaCt ;
[� Addluonal5igner(s) � Signer(51Thumbprinq5) .
❑ Corporate Officeds) G
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❑ GwrdiaNConsenamr `
❑ Par[ner-LimitediGeneral
- ❑ Trusree(s) ;
❑ other,
represencing:
Name(s)of Person(sl orEmiry(iesl Si9ner Is Pep�eseming
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9 Copyi i9ht l00)QO�IFNOtarY Fo[nry^I nrx PO flox 4140q Des4MOines.IA 50311 YUSOZ All fllahts Bese�ved Item Numhei 101]]2�nPlease mncaa your Amhorlmd Peseller lo purchase mpies of ehls form,
. � 1839
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� State of California ) CALIFORNIA ALL-PURPOSE
Countyof�r-�C�i�e',�i ) CERTIFICATE OF ACKNOWLEDGMENT �
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On �— L�I `�j before��--�'✓� 2C,1 l.t:CJOC�'i E� RU�LW�� L ,
� (here insen name and title of rhe Ricer) -
personally appeared �� �'1 y� I\��0 YS�
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who proved to me on the basis of satisfactory evidence to be the personFs)whose name(s is are subscribed to ` �
the within instrument and acknowledged to me tha�she/they executed the same i is her/their `
authorized capacity(iL�, and that b hi her/their signatur�on the instrument the persorl{�, or the entiry ;
upon behalf of which the person�acted,executed the instrument. `
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` I certify under PENALTY OF PERJURY under the laws of the �
State of California that the foregoing paragraph is true and correct. :
DAYIN HAZElW00D
WITNE55 m hand and official seaL o COMM. at988607 � €
y Q rp � t,� Notary PuDI¢•Catifarma o
= i San Oieqo Coun�y �
•� A Camn.Ex rtes Au .20.2016 =
Signature �
(Seal)
i
OPTIONAL INFORMATION t
�
AI[hough the infoimation in this section is not�equired by law,it muld pievent hpudulent�emoval anArectmchment of fhis
acknowledgmen[ :o an unaurhoiized document and mpy prove useful ro persons relying on the armched document. -
:
' Description of Attached Document �
The precediny Certificate of Acknowledgment Is attached to a document Method of Signer ldentification ;
tIC�Bd/fOf Th2 pUfpOSe Of Proved to me on[he basis of satis(actory evidence'. �
LQtorm(s)ofidentification Qcrediblewimess(es) ;
�, ,�'�(� ,(',�� p �'' s
�"`="'-Y"'-"������`� �r��"n-�'-" ' Notarial event is detailed in no[aryjoumal on: j
containing S pages,anddated Paqea enerya s
f
The signer(s) capacity or authoriry is/are as: Noeary con�ace :
�Individual(s) Other j
❑ AI[orney-in-Fact ;
� AdtllCional Signer(s) � Slgner(s)Thumbpnn[(s)
❑ Corporate0fficer(s) [
ii;le(s) ❑ �
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❑ Guardian/Conservator !
❑ Partner-Limited/General
� ❑ Trustee(s) ;
❑ Othec i
representing: �
Namep)ol Peuon(5)oi Entlty(les)Slgnerls ftepreseniing 4
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a�COpY�9hI 200)-201�I No�ary Po:ary.Ine GO 6ox 41400,Des Molnes,IA 5031 I-O50]. All Riqh�s ftPServed�Item Numbm 101]J].��Please mntac[yom Au.hor¢ed Rezelle�lo purchase mpies of th15 lo�m
. ,
. . . . 1840
EXHIBIT A
LEGAL DESCRIPTION
That.certain property situated in the State of California, County of San Diego, City of Poway,
described as foliows: � �
LOT 14 OF CITY OF POWAY TRACi'NO. 06,06 THE MEADOWS, IN THE CTfY OF POWAY, ;
COUNTY OF SAN DIEGO,:STATE�OF CALIFORNIA, ACCORDING TO MAP THEREOF NO.
15743,FII.ED IN TFIE OFFICE OF TIIE COUNTY RECORDER OF Se1N DIEGO COUNTYMARCH
5,2009.