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HomeMy WebLinkAboutMINUTES - 01152008 - C.46 „s____L Contra TO: REDEVELOPMENT AGENCY - `s CQSt', FROM: John Cullen, Executive Director ._ ;arc cC o u n Y DATE: January 15, 2008 SUBJECT: AUTHORIZATION TO NEGOTIATE PURCHASE OF AFFORDABLE HOUSING UNIT, INSTITUTE LEGAL ACTION AND CEQA DETERMINATION SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION Recommended Action: A. DIRECT the Director of the Contra Costa County Redevelopment Agency(the"Agency")to execute and record the Notice of Intent to Exercise Option to purchase the affordable housing unit located at 100 Harris Circle,Bay Point,California(the"Property")from Jeannie Denise Harris(the"Owner"), pursuant to the Resale Restriction Agreement and Option to Purchase dated as of June 23, 1994, between the Owner of the Property and the Agency (the "Agreement"); and B. AUTHORIZE the Director of the Agency or his designee to negotiate with the Owner of the Property for the purchase of the Property in an amount not to exceed the current fair market value as determined pursuant to the Agreement; and C. AUTHORIZE the Director to institute all necessary legal action against (i) the Owner of the Property to compel the Owner to sell the Property to the Agency pursuant to the terms and conditions of the Agreement in the event the Owner will not voluntarily sell the Property to the Agency, and (ii) any lien holders seeking to preempt the purchase of the Property through foreclosure actions or otherwise; and D. FIND that this project is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3); and E. DIRECT the Director,or his designee,to file a Notice of Exemption for this project with the County Clerk and to arrange for payment of the$50 handling fee to the County Clerk for filing such Notice of Exemption. CONTINUED ON ATTACHMENT: ® YES SIGNATURE: RECOMMENDATION OF EXECUTIVE DIRECTORC MENDATIO OF AGENCY COM TEE ►PPROVE ❑ OTHER SIGNATURE(S): t \7 ACTION OFA CVY ON 8 h LG!�y 161 2WW APPROVED AS RECOMMENDED �kj'OTPER ❑ VOTE OF COMMISSIONERS: I HEREBY CERTIFY THAT THIS IS A TRUE AND p� CORRECT COPY OF AN ACTION TAKEN AND y UNANIMOUS(ABSENT X/ ) ENTERED ON THE MINUTES OF THE AYES: NOES: REDEVELOPMENT AGENCY ON THE DATE SHOWN. ABSENT: ABSTAIN: ATTESTED wary Contact: Maureen Toms(335-7230) JOHN CULLEN,AGENCY SECRETARY Orig: Redevelopment Agency cc: CAO / County Counsel ,v'} Redevelopment Agency By. Deputy PW Real Property-Karen Laws SUBJECT: AUTHORIZATION TO NEGOTIATE PURCHASE OF AFFORDABLE HOUSING UNIT, INSTITUTE LEGAL ACTION AND CEQA DETERMINATION DATE: January 16, 2008 PAGE: 2 Fiscal Impact: None. No General Fund revenues are involved. Redevelopment Agency Housing Set-Aside funds (Fund 289301/Org 7885) will be used to purchase, hold, and resell the Property. It is anticipated that most, if not all, of these funds will be repaid by the proceeds from the sale of the Property to a new eligible purchaser. Reasons for Recommendations and Background: In the 1990's the Agency provided deferred interest loans to 15 low income first-time homebuyers in Bay Point. In exchange for Agency assistance, homebuyers, including the Owner, signed the Agreement. The purpose of the Agreement is to provide the Agency with an opportunity to maintain the affordability of the units for another low- income household when a unit is sold or transferred. The Agreement provides that the Agency may exercise its option to purchase the Property from the Owner in the event the Owner is in default under the terms of the Agreement. The Owner has defaulted on a loan secured by the Property and is therefore in default under the terms of the Agreement. Pursuant to the Agreement, the Agency may now exercise its option to purchase the property at an amount not to exceed the fair market value. The Agency expects to close escrow no later than March 26, 2008. The Property Owner refinanced the first mortgage and borrowed additional funds with subordinate loans. The Agency allows refinancing under certain, limited conditions. The Agency was not contacted when the borrower refinanced the first mortgage. A Notice of Default and Election to Sell Under Deed of Trust dated November 13,2007,has been recorded against the Property. As of December 12, 2007, the total amount outstanding on the defaulted loan was $151,020.55. In addition,the current amount due to the Agency is approximately$125,000. In order to preserve the Property in the Agency affordable housing program, the Agency needs to proceed to purchase the Property in advance of the Property being sold at a foreclosure auction.In the past,owners have not been responsive to the Agency's efforts to purchase their property.Therefore,it may be necessary to institute an action to compel the Owner to sell the Property to the Agency. Relevant law provides that the Agency's title to the Property shall relate back to the date the Agency was issued its purchase option (June 23, 1994),and the Agency should,in theory,be able to obtain title free of the defaulted mortgage liens. IV. CONSEQUENCES OF NEGATIVE ACTION: If the Agency does not purchase the Property from the Owner, it is likely that the Property will be sold at a foreclosure auction. The Agency will then have to enforce its rights under the Agreement to compel whomever purchased the Property at foreclosure to sell the Property to the Agency. This will be an expensive and time- consuming process that would likely involve litigation. Although the Agency could purchase the Property at a foreclosure sale, this is also a more expensive alternative to the purchase option. Attachment: Exhibit A: Notice of Intent to Exercise Option Notice of Exemption Exhibit B: Resale Restriction Agreement and Option to Purchase is on file with the County Clerk RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Contra Costa County Redevelopment Agency 2530 Arnold Drive, Suite 190 Martinez, CA 94553-8611 Attention: Redevelopment Director NOTICE OF INTENT TO EXERCISE OPTION This NOTICE OF INTENT TO EXERCISE OPTION is executed on January 15, 2008, by the Contra Costa County Redevelopment Agency (the "Agency"). The Agency hereby provides notice of its intent to exercise its option to purchase the property located in Contra Costa County, California and described in Exhibit A attached hereto (the "Property"). The Agency entered into that certain document titled, "Resale Restriction Agreement and Option to Purchase" (the "Agreement") with Jeannie Denise Harris (the "Owner"), dated as of June 23, 1994, and recorded against the property as Instrument No. 171083-00 in the Official Records of Contra Costa County, and attached hereto as Exhibit B. The Agency has received a Notice of Default and Election to Sell Under Deed of Trust, recorded on November 13, 2007, as Instrument No. 313788-00 in the Official Records of Contra Costa County, a copy of which is attached hereto as Exhibit C. The Agency received this notice on December 17, 2007. As owner is in default under a deed of trust recorded against the Property, the Agency gives notice in accordance with Section 16.13 of the Agreement that it intends to exercise its option to purchase the Property. The Agency intends to close escrow on the purchase of the Property no later than March 26, 2008, at the option price calculated pursuant to Section 13 of the Agreement. IN WITNESS WHEREOF, the Agency has executed this Notice of Intent to Exercise Option as of the date first written above. James Kennedy, Redevelopment Director Contra Costa County Redevelopment Agency I STATE OF CALIFORNIA ) )ss COUNTY OF ) On , 2008, before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct. WITNESS my hand and official seal. 8ffiBIT 'A' The land referred to is situated in the State of California, County of Contra Costa, in the unincorporated area, and is described as follows: Lot 1, as shown on the Map of Subdivision 7021, filed for record on July 5, 1989, in Book 335 of Maps, page 4, Contra Costa County Records. RESERVING THEREFROM: All oil, gas, casinghead gas, asphaltum and other hydrocarbons and all chemical gas, now or hereafter found, situated or located in all or any part or portion of the lands described herein lying more than five hundred feet (500' ) below the surface thereof, together with the right to slant drill for and remove all or any of said oil, gas, casinghead gas, asphaltum and other hydrocarbons and chemical gas lying below a depth of more than five hundred feet (500' ) below the surface thereof; including the right to grant leases for all or any of said purposes but without any rights whatsoever to enter upon the surface of said land or upon any part of said lands within five hundred feet (500' ) vertical distance below the surface thereof. (Being APN 095-420-001) I � ' CALIFORNIA ENVIRONMENTAL QUALITY ACT Notice of Exemption Contra Costa County Community Development Department 651 Pine Street, 4th Floor - North Wing, McBrien Administration Building Martinez, CA 94553-0095 Telephone: (925) 335-7230 Contact Person: Maureen Toms. Project Location/Description: Real Property Transaction for 100 Harris Circle, Bay Point. The activity consists of executing and recording the Notice of Intent to Exercise Option to purchase the affordable housing unit, pursuant to the Resale Restriction Agreement and Option to Purchase, negotiating with the Owner of the Property for the purchase of the Property in an amount not to exceed the current fair market value as determined pursuant to the Agreement; instituting all necessary legal action against (i) the Owner of the Property to compel the Owner to sell the Property to the Agency pursuant to the terms and conditions of the Agreement in the event the Owner will not voluntarily sell the Property to the Agency, and (ii) any lien holders seeking to preempt the purchase of the Property through foreclosure actions or otherwise. This project is exempt from CEQA as a: Ministerial Project ,Sec. 15268) Other Statutory Exemption, Section _ Declared Emergency(Sec. 15269(a)) X General Rule of Applicability (Section 15061(b)(3) Emergency Project (Sec. 15269(b) or (c)) Categorical Exemption, for the following reason(s): This activity is not subject to the California Environmental Quality Act (CEQA) pursuant to Article 5, Section 15061 (b) (3) of the CEQA Guidelines. It can be seen with certainty that there is no possibility that the activity may have a significant adverse effect on the environment. Date: By: Community Development Department Representative AFFIDAVIT OF FILING AND POSTING I declare that on I received and posted this notice as required by California Public Resources Code Section 21152(c). Said notice will remain posted for 30 days from the filing date. Signature Title Applicant: Maureen Toms Community Development Department 2530 Arnold Drive, Suite 190 Martinez, CA 94553 County Clerk Fee $50 Due Exhibit B RECORDED AT REOUEST OF JUN 3 0 1994 OLD F"EPUBLIC TITLE COMPANY RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 J'I��d 3 0 1994 When Rec -44 orded �� h n R cord d Mail To: AT (Y acLoch M. CONTRA COSTA COUNTY RECORDS STEPHEN L.WEIR Contra Costa. County Redevelopment Agency FEES COUNTYRECORDER 651 Pine Street Martinez, CA 94553 Attn: JIM KENNEDY RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE Owner: JEANNIE DENISE HARRIS Residence: 100 HARRIS CIRCLE BAY POINT. CA 94565 This Resale Restriction Agreement and Option to Purchase (the "Agreement") is entered into as of this 23RDday of JUNE -, 19 94, by and between the Redevelopment Agency of the County of Contra Costa (the "Agency") and JEANNIE DENISE HARRIS (the "Owner") . RECITALS A. The Agency has determined that it would be desirable to stimulate the purchase of homes by low and moderate income first- time homebuyers (the "Homes") ; and 32001S.PS0 12/14/93 -1- B. In order to further its plan to assist in the purchase of homes by low and moderate income households , the Agency has developed a second mortgage program (the "First Time Homebuyer tb Program" designed to assist qualified purchasers (defined as those households with a combined income between sixty-five percent and one hundred percent of Median Income adjusted for L� actual household size) by financing the gap between the market rate purchase price of the home and the amount affordable to low and moderate income households; C. The Homes will be financed by one or more fully amortized loans from conventional mortgage lenders to each of the qualified purchasers (the "Lenders") which will be secured by a deed(s) of trust recorded on each dwelling unit; and D. The financing of the Homes will also be assisted by the Agency which is providing a deferred loan towards the purchase of each home; and E. - The Agency wishes to establish resale controls to protect its financial interest in the residences and to provide for the continued availability of the residences to low and moderate income households; and F. The Owner has qualified for Agency financing under the First Time Homebuyer Program with the Owner ' s combined household SIXTY SEVEN income at oz. below POTNT ETVR percent (67_50) of Median Income , adjusted for actual household size (the "Owner ' s Income Level") ; 320015.PSO 12/14/93 -2- G. In order to protect its financial interest and its program of providing housing for low and moderate income households, the Agency has required the Owner to execute a Lb promissory note ("Note") in its favor in addition to this Agreement; H. This Agreement and the Note shall be secured by a deed of trust in a second lien position (the "Deed of Trust") tj subordinate to the lien of that certain deed of trust dated JUNE 23 , 1994 , executed by the Owner in favor of DIRECTORS MORTGAGE LOAN CORPORATION , as beneficiary (the "First Lender") , and recorded in the County of Contra Costa on U J U :_, 19jY, and assigned Recorder ' s Serial No. (the "First Lender's Deed of Trust") , securing a loan made by the First Lender to the Owner (the "First Lender ' s Loan") , and is likewise subordinate to any deed of trust or mortgage made by or held by an institutional lender or invester which is given in connection with any refinancing of the First Lender's Loan, provided the loan amount of such refinancing does not exceed 'the then outstanding balance (plus refinancing and closing costs) of the existing senior loan; and I. The purpose of this Agreement is to place resale controls on the residence, provide eligibility requirements for subsequent purchasers, and reserve to the Agency an option to purchase the residence. 32001S.PS0 12/14/93 -3- NOW, THEREFORE, in consideration of the benefits received by the Owner and the Agency, the Owner and the Agency agree, as follows: 1 . DEFINITIONS The following terms are specially defined for this Agreement N and their definitions can be found in the sections indicated below: A. "Agency" - First sentence of the Agreement on page 1 B. "Agreement" - First sentence of the Agreement on page 1 C. "C:HFA" - Section 21 D. "Deed of Trust" - Recital H E. "Eligible Purchaser" - Section 12B F. "Eligible Transfer" - Section 12A G. "Fair Market Value" - Section 8 H. "First Lender" - Recital H I . "first Lender' s Deed of Trust") - Recital H J. "First Lender ' s Loan" - Recital H K. "FNMA" - Section 21 L. "First Time Homebuyer" - Section 12B M. "First Time Homebuyer Program" - Recital B N. "Homes" - Recital A O. "HUD" - Section 13A P. "Increased. Base Price" - Section 13A Q. "]:,enders" - Recital C R. "Median Income" - Section 13A 32001S.P50 12/14/93 -4- S. "Note" - Recital G T. "Option" - Section 7 W U. "Owner" - First sentence of the Agreement on rage 1 V. "Owner' s Income Level" - Recital F W. "Proposed Purchaser" - Section 11 X. "Residence" - Section 2 Y. "Sales Price" - Section 13 Z . ":tellable Condition" - Section 13B AA. "Transfer" - Section 5 AB. "VA" - Section 21 2 . DESCRIPTION OF PROPERTY This Agreement concerns the real property commonly known as 100 HARRIS CIRCLE , BAY POINT , California 94565 , which is more fully described in Exhibit A attached hereto and incorporated herein by reference (the "Residence") . 3 . OWNER CERTIFICATIONS The Owner certifies that (a) the financial and other information previously provided in order to qualify to purchase the Residence is true and correct as of the date first written above, (b) the Owner is a First Time Homebuyer (as defined in Section 12B below) , (c) the Owner currently lives or works in Contra Costa County, and (d) the Owner shall occupy the Residence as the Owner ' s principal place of residence. The Owner shall be considered as occupying the Residence if the Owner is living in the unit for at least ten (10) months out of each calendar year. 3200IS.PSO 12/14/93 -5- The Agency :may grant a temporary waiver of this occupancy requirement for good cause in its sole discretion. 4 . LEASING OF RESIDENCE The Owner shall not lease the Residence for more than two tz (2) months 'without the written consent of the Agency during any twelve (12) month period and shall not lease the Residence 114" without providing the Agency with a copy of the lease . Any lease J G� in violation of this Agreement is prohibited. C..; 5 . SALE RESTRICTIONS Any Transfer of the Residence will be subject to the provisions of this Agreement. "Transfer" means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Residence, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest (other than a lease permitted pursuant to Section 4 above) , or an interest evidenced by a land contract by which possession of the Residence is transferred and Owner retains title. Any Transfer without satisfaction of the provisions of this Agreement is prohibited. Transfers by gift, devise, or inheritance to an existing spouse , domestic partner, child, surviving joint tenant, or a spouse as part of a dissolution proceeding, or in connection with marriage shall not be considered a Transfer for the purposes of this Agreement. 3200IS.P50 12/14/93 -6- 6 . NOTICE OF INTENDED TRANSFER w In the event the Owner intends to Transfer or vacate the Residence, the Owner shall promptly notify the Agency in writing of such intent. The written notice shall be given in accordance with Section 25 of this Agreement at least ninety (90) days prior to the actual date of the Transfer or vacation of the Residence. Said notice from the Owner shall be sent by certified mail, return receipt requested. Following receipt of such notice, the Agency may notify prospective eligible purchasers of the Residence that the Residence is available for purchase, or the Agency may purchase the Residence. 7 . AGENCY PURCHASE OPTION The Owner agrees that the Agency shall have the option to purchase the Residence (the "Option") for an amount equal to the lesser of the fair market value of the Residence or the offered sales price in the manner set forth in this Agreement. If the Agency decides to exercise its Option to purchase the Residence, it shall within thirty (30) days of receipt of the notice specified in Section 6 above, notify the Owner in accordance with Section 25 of this Agreement that it chooses to exercise the Option. If the Agency exercises the option to purchase, it shall purchase the Residence within ninety (90) days of the date it receives the notice specified in Section 6 above at the Sales Price calculated pursuant to the formula set out in Section 10. The Agency may, instead of purchasing the Residence itself, 32001S.P50 IZ/14/93 -7- assign its aright to purchase the Residence to a person who meets the criteria established by the Agency or to a governmental agency or nionprofit organization which is devoted to developing affordable :housing. � 8 . FAIR MARKET VALUE If it is necessary to determine the fair market value of the ;�► a Residence (the "Fair Market Value") , it shall be determined by a G: real estate appraiser. The appraisal shall be made by an independent residential appraiser selected by the Owner, from a list of appraisers provided by the Agency. Each appraiser on the Agency ' s list shall have been previously approved by the Federal National Mortgage Association or the Federal Housing Administration and placed on their list of approved single family housing appraisers. If possible, the appraisal shall be based upon the sales prices of comparable properties sold in the market area during the preceding three-month period. The cost of the appraisal shall be shared equally by the Agency and the Owner. In the event that the Owner has made capital improvements to the Residence which have increased the value of the Residence or if damage or deferred maintenance has occurred while the Owner owned the Residence which has decreased the value of the Residence, the appraisal shall specifically ascribe a value to these adjustment factors anti state what the fair market value of the Residence would be without such adjustments . Nothing in this section shall preclude the Owner and the Agency from establishing the Fair 32001S.P50 12/14/93 -8- Market Value of the Residence by mutual agreement in lieu of an appraisal pursuant to this section. 9 . REPAYMENT OF AGENCY NOTE UPON TRANSFER BY OWNER zz If the Agency exercises its Option to purchase the Residence, the outstanding amount of principal and interest due C� under the Nate shall be paid to the Agency in the form of a credit against the purchase price to be paid by the Agency to the Owner. If a Transfer of the Residence occurs and the Agency elects not to exercise its Option to purchase the Residence , the Owner shall pay all principal and interest due under the Agency Note. Thereafter, this Agreement shall terminate and have no further effect. 10. OWNERIS REQUEST TO FORGIVE NOTE At the Owner's request, the Agency will forgive repayment by the Owner of the principal and interest on the Note if the Owner transfers the Residence to an Eligible Purchaser in a transaction that meets the Eligible Transfer requirements of Section 12 , arid the Owner assigns to the Eligible Purchaser and the Eligible Purchaser assumes from the Owner all obligations existing under the Note and Resale Agreement. The Agency will forgive the principal and interest on the Note only after the execution of a new note and new resale restriction agreement by the Eligible Purchaser pursuant to Section 12 . Any forgiveness extended by the Agency to the Owner pursuant to this Section shall apply only to the Owner and only to the particular Transfer transaction 32001S.P50 12/14/93 -9- relating to such Eligible Purchaser, and shall not automatically tC apply to any, subsequent owner. 11 . TRANSFER BY OWNER r In the event the Agency does not exercise its option to purchase pursuant to Section 7 above, the Owner may sell the v Residence to a person of the Owner 's choosing (the "Proposed Purchaser") on the terms set forth in this Section. A. TRANSFER TO INELIGIBLE PURCHASERS: If the Owner Transfers the Residence in a transaction that does not meet the Eligible Transfer requirements of Section 12 below the Owner shall first pay (i) all of the principal and interest due to the First Lender, and (:ii) to the Agency all principal and interest on the Note. The maximum amount that the Owner may receive for the Transfer shall be limited by the maximum Sales Price as defined in Section 13 . Thereafter this Agreement shall terminate and have no further effect. B. TRANSFER TO ELIGIBLE PURCHASER: If the Owner Transfers the Residence in a transaction that meets the Eligible Transfer requirements of Section 12 , the Agency shall waive payment on the Note owed it by the owner. Such waiver however shall be only for that specific transaction and the obligation for the Note payments shall be assumed by the Eligible Purchaser pursuant to Section 12A. v. and vi. The maximum amount that the 32001S.P50 ]2/]4/93 -10- Owner may receive for the Transfer shall be limited by the maximum Sales Price as defined in Section 13 . 12 . ELIGI13LE TRANSFER W rid A Transfer that meets the requirements set forth in this Section shall qualify as an approved Transfer to an Eligible Purchaser ("Eligible Transfer") : QrJ A. DISCLOSURES AND SUBMITTALS: the Owner and the Proposed Purchaser shall provide the following information to Agency: i . The name, address and telephone number in writing of the Proposed Purchaser. ii. A signed financial statement of the Proposed Purchaser in a form acceptable to the Agency and any other supporting documentation requested by the Agency. The financial information shall be used by the Agency to determine the income eligibility of the Proposed Purchaser. iii. The proposed sales contract and all other related documents which shall set forth the terms of the sale of the Residence. Said documents shall include the following terms: (a) The sales price ; and (b) The price to be paid by the Proposed Purchaser for the owner' s personal property, 320015.P50 17/14/93 -11- if any, and for the services of the Owner, if any. �r :iv. A written certification, from the Owner and the Proposed Purchaser in a form acceptable to the Agency that the sale shall be closed in accordance c� with the terms of the sales contract and other C►� documents submitted to and approved by the Agency. The certification shall also provide that the Proposed Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Proposed Purchaser or any other party, money or other consideration in addition to what is set forth in the sales contract and documents submitted to the Agency including personal property. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the Agency, the Agency shall have the right to file an action at law or in equity to make the parties terminate and/or rescind the sale contract and/or declare the sale void, notwithstanding the fact that the sale may have closed and become 3200IS.PSO 12/14/93 -12- final as between the Owner and the Proposed Purchaser. In any event, any costs, liabilities or obligations incurred by Owner and/or the L Proposed Purchaser for the return of any moneys paid or received in violation hereunder or for any C� costs and legal expenses , shall be borne by Owner L: and/or the Proposed Purchaser and they shall hold the Agency and its designee harmless and reimburse their expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement. V. An executed resale restriction agreement and option to purchase from the Proposed Purchaser with substantially the same provisions as this Agreement. The recordation of the resale restriction agreement and option to purchase shall be a condition of the Agency ' s approval , or its designee, of the proposed sale. The Agency may require the Proposed Purchaser to pay a reasonable fee to the Agency and reimburse it for out of pocket costs to cover the costs of administering its rights and obligations under this Agreement. vi. An executed deed of trust and a promissory note from the Proposed Purchaser with the same terms as the terms of the Note executed by the Owner in 32001ST50 12/14/93 -13- favor of the Agency except that the principal amount of the new note shall equal the principal L^ amount plus accrued interest owed the Agency by +*� the Owner under the Note. vii. Upon the close of the proposed sale, certified copies of the recorded deed of trust, a copy of the recorded resale restriction agreement and option to purchase, a copy of the final sales contract, settlement statement, escrow instructions , and any other document which the Agency may reasonably request. B. ELIGIBILITY OF PURCHASER: A purchaser who meets the following requirements shall be an Eligible Purchaser: i„ Each purchaser shall be a First Time Homebuyer. A First Time Homebuyer is defined as a household of one or more individuals , none of whom have owned a home at any time during the three year period before the purchase of the Residence, except that: 1) Any individual who is a Displaced Homemaker (as defined below) may not be excluded from consideration as a First Time Homebuyer on the basis that the individual, while a homemaker, owned a home with his or her spouse. For purposes of this section a Displaced Homemaker shall mean an individual 32001S.PS0 12/14/93 -14- who (i) is an adult; (ii) has not worked full-time, full-year in the labor force for a number of years, but has, during such years, worked primarily without remuneration to care for the home and family; and (iii) is unemployed or under-employed and is experiencing difficulty in obtaining or upgrading employment; 2) Any individual who is a single parent may not be excluded from consideration as a First Time Homebuyer on the basis that the individual, while married, owned a home with his or her spouse or resided in a home owned by the spouse . 3) An individual may not be excluded from consideration as a First Time Homebuyer under this paragraph on the basis that the individual owns or owned, as a principal residence during the three-year period before the purchase of the Residence, a dwelling unit whose structure is: a. Not permanently affixed to a permanent foundation in accordance with local or other applicable regulations; or 3200ISTSO ]2/]4/93 -15- b. Not in compliance with state, local or model building codes, or other applicable codes, and cannot be brought into compliance with such codes for less than the cost of w constructing a permanent structure. If funding programs providing mortgage or other assistance require a more restrictive definition of "First Time Homebuyer, " the more restrictive definition will be considered by the Agency. i:i. Each purchaser shall certify that he or she will occupy the Residence as his or her principal residence. iii. The combined income for all household members of the purchaser shall not exceed the Owner ' s Income Level. 13 . DETERMINATION OF SALES PRICE The maximum sales price (the "Sales Price") that the Owner shall receive for any type of Transfer of the Residence during the first ten (10) years of the term of this Agreement (the "Initial Term") shall be the Increased Base Price (as adjusted) plus the amount of the Note and the accrued interest, or the Fair Market Value, whichever is less. Following expiration of the Initial Term, and for the remaining term of this Agreement thereafter, the Sales Price shall be the Fair Market Value, determined in accordance with Section 8 above. 32001ST50 12/14/93 -16- A. INCREASED BASE PRICE: The Increased Base Price of the :Residence means the original principal amount of the First Lender' s Loan to the Owner, of FTFTy THOUSAND (i, AND N01100 ($50,000) OP., and the original amount -or value of the Owner' s down payment, increased by the :percentage of increase in the Median Income. The increase shall be computed from the date of the original purchase of the Residence by the owner to the date of receipt of notice to sell by the Agency or its assignee required by Section 6 . "Median Income" shall :refer to the median yearly income, adjusted for a household size of four, in the Oakland Primary Metropolitan Statistical Area as published by the United States Department of Housing and Urban Development ("HUD") , or, in the event such income determination is no longer published by HUD, or has not been updated for a period of at least eighteen (18) months, the Agency may use or develop such other reasonable method as it may choose in order to determine the median yearly income in Contra Costa County. B. ADJUSTED INCREASED BASE PRICE: The Increased Base Price shall also be increased by the value of any :substantial structural or permanent fixed improvements which cannot be removed without substantial damage to 3200IS.P50 I2/14/93 -17- the Residence or substantial or total loss of value of said improvements. No such adjustment shall be made except for improvements: i) made or installed by the v� Owner; ii) approved in advance by the Agency or its designee; and iii) whose initial costs were Two Thousand Dollars ($2 , 000) or more. The value of such improvements by which the Sales Price shall be adjusted shall be the appraised market value of the improvement;, when considered as additions or fixtures to the Residence (i. e. , the amount by which said improvements enhance the market value of the Residence at the time of sale. ) The adjustment to the Increased Base Price for such improvements shall be limited to increase in value to the Residence as a result of the improvements and not the cost of construction of the improvements to the Residence. The Increased Base Price shall be decreased by an amount necessary to repair any violations of applicable building, plumbing, electric, fire or housing codes or any other provisions of the Contra Costa County Building Code, as well as any other repairs needed to put the Residence into a "sellable condition" . Items necessary to put a Residence into sellable condition shall be determined by the Agency, and may include cleaning, painting and making needed structural, mechanical, electrical, plumbing and fixed 32001S.P50 12/14/93 appliance repairs and other deferred maintenance repairs. 14 . DEFAULTS AND REMEDIES Upon a violation of any of the provisions of this Agreement by the Owner or the Proposed Purchaser, the Agency may give written notice to the Owner specifying the nature of the violation. If the violation is not corrected to the satisfaction of the Agency within a reasonable period of time, not longer than thirty (30) days after the date the notice is mailed, or within such further time as the Agency determines is necessary to correct the violation, the Agency may declare a default under this Agreement. Upon the declaration of a default or if the Owner or the Proposed Purchaser makes any misrepresentation in connection with receiving any benefits under this Agreement, the Agency may: (a) declare all amounts due under the Note immediately due and payable without further demand and may invoke the power of sale under the Deed of Trust; (b) apply to a court of competent jurisdiction for specific performance of this Agreement, for an injunction prohibiting a proposed sale or transfer in violation of this Agreement, for a declaration that a transfer in violation of this Agreement is void, or for any such other relief at law or in equity as may be appropriate . 32001S.P50 12/14/93 -19- 15 . NOTICE: OF DEFAULT AND FORECLOSURE A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the (, Residence shall be recorded by the Agency in the Office of the Recorder of the County of Contra Costa for the benefit of the Agency. The Agency may declare a default under this Agreement 10 upon receipt of any notice given to the Agency pursuant to Civil w Code Section 2924b, and may exercise its rights as provided in Section 14 and 16 . In the event of default and foreclosure, the Agency shall have the same right as the Owner to cure defaults and redeem the Residence prior to the foreclosure sale. Nothing herein shall be construed as creating any obligation of the Agency to cure any such default, nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage . If the Agency failed to file the request for notice of default, the Agency's right to purchase the Residence shall commence from the date the notice of default is given by the Agency to the owner. 16. PURCHASE OPTION UPON DEFAULT A. PURCHASE OPTION: Notwithstanding, and in addition to, the remedies provided the Agency in Section 14 , the Owner hereby grants to the Agency, the option to purchase the Residence effective thirty (30) days after 32001S.P50 12/14/93 -20- the Agency has given the Owner notice of the declaration of a default and the owner has failed to cure the default. Said option to purchase is given in N consideration of the economic benefits received by the i� Owner resulting from ownership of the Residence made G possible by the financial assistance of the Agency in L' developing the Residence. B. EXERCISE OF OPTION: The option to repurchase may be exercised upon a default under this Agreement or upon default under any promissory note, deed of trust or any other lien, including a judgment lien, recorded against the Residence. The Agency shall have thirty (30) days after a default is declared to notify the Owner and the First Lender of its decision to exercise its option to purchase. Not later than ninety (90) days after the notice is given in accordance with Section 25 below to exercise its option, the Agency shall purchase the Residence for the Sales Price set forth in Section 13 . 17 . NONLIABILITY OF THE AGENCY In no event shall the Agency become in any way liable or obligated 'to the Owner or any successor-in-interest to the Owner by reason of its option to purchase under Sections 7 and 16 nor shall the ;Agency be in any way obligated or liable to the Owner or any successor-in-interest to the Owner for any failure to exercise its option to purchase. 32001S.PS0 12/14/93 -21- 18 . RESTRICTIONS ON FORECLOSURE PROCEEDS If a creditor acquires title to the Residence through a deed L in lieu of foreclosure, a trustee ' s deed upon sale, or otherwise, the Owner shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited to the creditor exceed the amount the Owner would have received by a sale in accordance with Section 13 . The Owner shall instruct the holder of such excess proceeds to pay such proceeds to the Agency as repayment for, and in consideration of, the financial assistance provided in the development: of the Residence. 19 . BINDING ON SUCCESSOR AND ASSIGNS This Agreement shall bind, and the benefit hereof shall inure to, the Owner, his or her heirs, legal representatives , executors, successors in interest and assigns, and to the Agency and its successors, until the earlier of (a) thirty (30) years from the execution of this Agreement, or (b) the date the Sales Price is paid to the Owner by the Agency, or (c) the date of a Transfer of the Residence to an Eligible Purchaser in accordance with Section 12 above. 20 . SUPERIORITY OF AGREEMENT The Cwner covenants that he or she has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions hereof, and that, in any event, this AgreE!ment is controlling as to the rights and obligations 32001S.PSO 12/14/93 -22- between anti among the Owner, the Agency and their respective successors.. 21. RIGHTS OF BENEFICIARIES UNDER DEEDS OF TRUSTS This Agreement shall not diminish or affect the rights of ,y the Agency under the Note and the Deed of Trust executed by the t Owner in favor of the Agency in connection with the purchase by the Owner of the Residence. Notwithstanding any other provisions to the contrary in this Agreement ;to the contrary, any assumption of any note secured by a deed of trust on the Residence other than the Note shall be subject to the approval of the holder of the assumed Note . Notwithstanding any other provision in this Agreement to the contrary, this Agreement shall not diminish or affect the rights of the California Housing Finance Agency ("CHFA") , HUD, the Federal National Mortgage Association ( "FNMA") , or the Veterans Administration ("VA") under the First Lender ' s Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Residence. Notwithstanding any other provisions in this Agreement to the contrary, all of the provisions of this Agreement shall terminate and have no further force and effect upon the occurrence of one of the following events: A. Title is acquired by CHFA, HUD, FNMA, VA, the First Lender or another party upon foreclosure of a deed of 32001S.P50 12/14/93 -23- trust to the First Lender or CHFA, or a deed of trust insured by HUD or guaranteed by VA. B. Title is acquired by another party by a deed in lieu of foreclosure of the First Lender_ , CHFA, or FNMA deed of trust. 22 . HUD FORBEARANCE RELIEF G% Notwithstanding other provisions of this Agreement, the Option shall not be exercised by the Agency when a deed of trust insured by HUD is secured by the Residence, and i. The owner is undergoing consideration by HUD for assignment forbearance relief; or i:i. The owner is undergoing consideration for relief under HUD ' s Temporary Mortgage Assistance Payment (TMAP) program. 23 . INVALID PROVISIONS If an, one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 32001S.PS0 12/74/93 -24- 24 . CONTROLLING LAW The terms of this Agreement shall be interpreted under the laws of the State of California. 25 . NOTICES C:^� All notices required herein shall be sent by certified mail, r� return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective as of the date received or the date delivery was refused as indicated on the return receipt as follows: To the Owner: At the address of the Residence. To the Agency: Contra Costa Redevelopment Agency 651 Pine Street Martinez, CA 94553 Attn: JIM KENNEDY The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section 25. 26 . INTERPRETATION OF AGREEMENT The terms of this Agreement shall be interpreted so as to avoid speculation on the Residence and to insure to the extent possible that its sales price and mortgage payment remain affordable: to persons and families of low and moderate income. 3200IS.P50 Iv14i93 -25- 27 . EXHIBITS Any Exhibits referred to in this Agreement are incorporated in this Agreement by such reference. LD IN WITNESS WHEREOF the parties have executed this Agreement on or as of the date first written above. 4 im AGENCY: OWNER: CZ / By 't''''ai '��- �i I Titlet , J ANNIE DENISE HARRIS f ype Name and Title) (Type Name) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5193 State of Calif orn__a � OPTIONAL SECTION CAPACITY CLAIMED BY SIGNER County of Contra Costa Though statute does not require the Notaryto fill in the data below, doing so may prove f �On6-28-94 before me, invaluable to persons relying on the document. **Linda Hoover Notary** DATE NAME,TITLE OF OFFICER-E.G.."JANE DOE,NOTARY PUBLIC' ❑ INDIVIDUAL E L personally appeared *James Kennedy** CORPORATE OFFICER(S) NAME(S)OF SIGNER �y S) �1tY D1L"L'Ctor — RedevelojT, TITLE(S) [ipersonally known to me - OR - ❑ proved to me on the basis of satisfactory evidence ❑ PARTNER(S) ❑ LIMITED to be the person{s)' whose name4s) is4f-e ❑ GENERAL subscribed to the within instrument and ac- ❑ ATTORNEY-IN-FACT knowledged to me that helsheAbey.executed ❑TRUSTEE(S) UNDAHoovEP the same in his/4&,T � authorized Comm.988036 z capacity(res), and that by his/#ger err GUARDIAN/CONSERVATOR z OTHER: Notary Public—Coiifomiv > signature(sj on the instrument the person(s} ❑ '`% cCrNTRACOSTACouNTv or the entity upon behalf of which the My Comm E..rire;MAR ]A, 1997 person(s) acted, executed the instrument. SIGNER IS REPRESENTING: IT ESS my hand and Official seal. NAME OF PERSON(S)OR ENTITY(IES) / Contra Costa County SIGNATURE OF NOTARY �I OPTIONAL SECTION TIHIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT Resale Restriction Agreement/Option to THE DOCUMENT DESCRIBED AT RIGHT: Purchase (OCUMENTJ.Harrls/100 Harris Cir' y Ba Poin Though the data requested here is not required by law, NUMBER OF PAGES-27- DATE OF D it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION-8236 Remmet Ave..P.O.Box 7184-Canoga Park,CA 91309-7184 Order no. : 191950-SII BffiBIT W The land referred to is situated in the State of California, County of Contra Costa, in the unincorporated area, and is described as follows: Lot 1, as shown on the Map of Subdivision 7021, filed for record on July 5, 1989, in Book 335 of Maps, page 4, Contra Costa County Records. p.+ RESERVING THEREFROM: All oil, gas, casinghead gas, asphaltum and other hydrocarbons and all chemical ; gas, now or hereafter found, situated or located in all or any part or portion of the lands described herein lying more than five hundred feet (5001 ) below the surface thereof, together with the right to slant drill for and remove all or any of said oil, gas, casinghead gas, asphaltum and other hydrocarbons and chemical gas lying below a depth of more than five hundred feet (5001 ) below the surface thereof; including the right to grant leases for all or any of said purposes but without any rights whatsoever to enter upon the surface of said land or upon any, part of said lands within five hundred feet (5001 ) vertical distance below the surface thereof. (Being APN 095-420-001) END or DDCU� State of County of ( ('jb�. 1!!l. ( e- ,J L\ i Chi (1 I L I before me, the undersigned, a Notary Public in and for said State, personally appeared J e 01 � ��'J-1• Sk� �6�All11 personally Down to me (or proved to me on the basis of satisfactory evidence) ►� to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my h d and. offic' seal. Cr FIW'AL SJ1L CECILLA A.SI NOTARY PUBLIC CALIFORNIA Signature ^ CONTRA \ CIF\µ••\4 Pd!Coli&'.EXPIRES NOVF4 1994 Name (typed or printed) (Seal) Exhibit C i 7103 9628 5940 0386 0566 �M O �J T.S.CA-07-111972-RM CONTRA COSTA COUNTY REDEVELOPMENT AGENCY ATTN: JIM KENNEDY 651 PINE STREET MARTINEZ,CA 94553 N END 00386056 this page intentionally left blank Quality Loan Service Corp. 2141 5th Avenue San Diego, CA 92101 619-645-7711 Date: 12/12/2007 T.S. Number: CA-07-111972-RM Loan Number:0323013789 DEBT VALIDATION NOTICE 1. The enclosed document relates to a debt owed to: Deutsche Bank National Trust Company as Trustee under Pooling and Servicing Agreement Dated as of February 1, 2005 MORGAN STANLEY ABS CAPITAL I INC. TRUST 2005-NCI MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2005-NC1 2. You may send us a written request for the name and address of the original creditor, if different from the current creditor, and we will obtain and mail the information within thirty (30) days after we receive your written request. 3. As of 11/9/2007 the total delinquency owed was$5,086.73, because of interest, late charges, and other charges that may vary from day to day this amount will increase until the delinquency has been fully paid. Before forwarding payment please contact the above at the address or phone number listed in order to receive the current amount owed. 4. As of 12/12/2007, the amount required to pay the entire debt in full was the unpaid principal balance of $151,020.55, plus interest from 7/1/2007, late charges, negative escrow and attorney and/or trustee's fees and costs that may have been incurred. The amount will increase daily until the debt has been paid in full. For further information please write to the above listed address or call 619-645-7711. 5. You may dispute the validity of this debt, or any portion thereof, by contacting our office within thirty (30) days after receiving this notice. In that event, we will obtain and mail to you written verification of the debt. Otherwise, we will assume that the debt is valid. WE ARE ATTEMPTING TO COLLECT A DEBT, AND ANY INFORMATION WE OBTAIN WILL BE USED FOR THAT PURPOSE. this page intentionally left blank "LSI TITLE, FNDS DIVISION" THIS IS TO CERTIFY THAT THIS IS A FULL, TRUE AND CORRECT COPY OF THE ORIGINAL RECORDED IN THE OFFICE OF THE COUNTY Recording requested by: RECORDER ON: November, 13 2007 Quality Loan Service Corp AS DOCUMENT N0: 313788 BY: s/Jackie Marquez When recorded mail to: FIDELITY NATIONAL DEFAULT SOLUTIONS Quality Loan Service Corp. 2141 5th Avenue San Diego, CA 92101 Space above this line tar Recorder's use TS No.: CA-07-111972-RM Loan No.:0323013789 IMPORTANT NOTICE NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION. You may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within the time permitted by law for reinstatement of your account (normally five business days prior to the date set for the sale of your property). No sale may be set until three months from the date this notice of default is recorded (which date of recordation appears on this notice). This amount is$4,634.73 as of 11/9/2007 and will increase until your account becomes current. While your property is in foreclosure, you still must pay other obligations (such as insurance and taxes) required by your note and deed of trust or mortgage. If you fail to make future payments on the loan, pay taxes on the property, provide insurance on the property, or pay other obligations as required in the note and dE�ed of trust or mortgage, the beneficiary or mortgagee may insist that you do so in order to reinstate your account in good standing. In addition, the beneficiary or mortgagee may require as a condition of reinstatement that you provide reliable written evidence that you paid all senior liens, property taxes, and hazard insurance premiums. Upon your written request, the beneficiary or mortgagee will give you a written itemization of the entire amount you must pay. You may not have the pay the entire unpaid portion of your account, even though full payrnent was demanded, but you must pay all amounts in default at the time payment is made. However, you and your beneficiary or mortgagee may mutually agree in writing prior to the time the notice of sale is posted (which may not be earlier than the three-month period stated above) to, among other things, (1) provide additional time in which to cure the default by transfer of the property or otherwise; or (2) establish a schedule of payments in order to cure your default; or both (1) and (2). Following the expiration of the time period referred to in the first paragraph of this notice, unless the obligation being foreclosed upon or a separate written agreement between you and your creditor permits a longer period, 'you have only the legal right to stop the sale of your property by paying the entire amount demanded by your creditor. To find out the amount you must pay, or arrange for payment to stop the foreclosure, or if your property is in foreclosure for any other reason,contact: Barclays Capital Real Estate Inc. dba HomEq Servicing C/O Quality Loan Service Corp. 2141 5th Avenue San Diego, CA 92101 CA-07-111972-RM TS No.:CA-07-111972-RM Loan No.: 032301:3789 Notice of Default and Election To Sell Under Deed of Trust If you have any questions, you should contact a lawyer or the governmental agency which may have insured your loan. Notwithstanding the fact that your property is in foreclosure, you may offer your property for sale provided the sale is concluded prior to the conclusion of the foreclosure. Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION. NOTICE IS HEREBY GIVEN: That the undersigned is either the original trustee, the duly appointed substituted trustee, or acting as agent for the trustee or beneficiary under a Deed of Trust dated 10/4/2004, executed by JEANNIE DENISE HARRIS, A SINGLE WOMAN, as Trustor, to secure certain obligations in favor of NEW CENTURY MORTGAGE CORPORATION, as beneficiary, recorded 10/21/2004, as Irstrument No. 2004-0403689-00, in Book xxx, Page xxx of Official Records in the Office of the Recorder of CONTRA COSTA County, California describing land therein: as more fully described in said Deed of Trust. Said obligations including 1 NOTE(S) FOR THE ORIGINAL sum of $157,000.00, that the beneficial interest under such Deed of Trust and the obligations secured thereby are presently held by the undersigned; that a breach of, and default in, the obligations for which such Deed of Trust is security has occurred in that payment has not been made of: Installment of principal and interest plus impounds and/or advances which became due on 8/1/2007 plus amounts that are due or may become due for the following: late charges, delinquent property taxes, insurance premi--ms, advances made on senior liens, taxes and/or insurance, trustees fees, and any attorney fees and court costs arising from or associated with beneficiaries effort to protect and preserve its security must be cured as a condition of reinstatement. That by reason thereof, the present beneficiary under such deed of trust, has executed and delivered to said duly appointed Trustee, a written Declaration of Default and Demand for same, and has deposited with said duly appointed Trustee, such deed of trust and all documents evidencing obligations secured thereby, and has declared and does hereby declare all sums secured thereby immediately due and payable and has elected and does hereby lect to cause the trust property to be sold to satisfy the obligations secured thereby. Dated: 11/9/2007 Quality Lo ervice Corp., AS AGENT FOR NEFICI RY BY: Fidelity a al Title CA II k15' 0 If you have previously been discharged through bankruptcy, ou may have been released of personal liability for this loan in which case this letter is intended to exercise the note holder's rights against the real property only. THIS OFFICE:IS ATTEMPTING TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. As required by law,you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit report agency if you fail to fulfill the terms of your credit obligations.