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EXHIBIT B
<br />ADDENDUM TO DEED OF TRUST
<br />The following provisions are hereby added to the Deed of Trust made by «Homeowner A —and 13)), as
<br />"Trustor", Old Republic Title Company, as Trustee, and City of Redwood City, a California municipal
<br />corporation, as 'Beneficiary".
<br />1. Junior or Further Financing Prohibited. Junior or further financing is not permitted, except as
<br />expressly permitted by this Paragraph 1. One of the inducements for Beneficiary to make the Loan to
<br />Trustor is the identity of Trustor as the purchaser from Beneficiary of the real property secured by this
<br />Deed of Trust. The existence of any interest in the Property, other than the interests of Beneficiary and
<br />Trustor, and the encumbrance of this Deed of Trust, even though subordinate to the security interest of
<br />Beneficiary, and the existence of any interest in Trustor or the property other than those of the Trustor as
<br />the present owners, would impair the Property and the security interest of Beneficiary.
<br />The Trustor shall not encumber, or permit the encumbrance of, the Property by any instrument creating a
<br />lien or mortgage against the Property, which is either junior, subordinate to or prior to this Deed of Trust,
<br />except for the Senior Deeds of Trust and the Subordinate Deed of Trust (defined below), provided
<br />however, that with the prior written approval of Beneficiary, the Trustor may, further encumber the
<br />Property with a deed of trust junior to this Deed of Trust ("Approved Junior Lien") to secure an obligation
<br />of Trustor to another party in an amount which does not exceed the amount of the equity of the Trustor in
<br />the real property, which equity shall mean the amount of any cash down payment paid by Trustor to
<br />Habitat for Humanity Greater San Francisco, Inc., a California non-profit corporation ("Habitat"), when
<br />Trustor purchased the real property and any principal payments made by Trustor on the Note which this
<br />Deed of Trust secures. The Borrower may execute and record against title to the property a deed of trust
<br />securing the Habitat for Humanity Loan to Trustor in the amount of , and a deed of trust
<br />securing the CalHOME Loan in the amount of $ which deeds of trust shall be prior to this
<br />Deed of Trust (collectively, the Senior Deeds of Trust"), The Borrower may also execute and record
<br />against title to the property a deed of trust securing the County of San Mateo Loan to Trustor in the
<br />amount of $ (the "Subordinate Deed of Trust").
<br />Trustor is entitled to only limited rights of equity and appreciation, as more specifically set forth in the
<br />Grant of Option to Repurchase and Resale Restriction Agreement signed by the Beneficiary ("Option
<br />Agreement"). As such, the further encumbering of the Property, except as expressly provided for herein,
<br />is antithetical to the purpose and intention of making available to said persons who qualify as qualified
<br />households such below market rate housing, and the further encumbrance thereof will frustrate the basic
<br />purposes for which the Property was sold to the Trustor. In the event that any party should make, execute,
<br />deliver andlor record any mortgage, deed of trust, Gen or other encumbrance or lien against the title of the
<br />Property subject to the lien of this Deed of Trust, except for an Approved Junior Lien, such mortgage,
<br />deed of trust, lien or other encumbrance or lien is and shall be deemed to be null and void and shall not
<br />entitle any party to any rights, title or claim to or against the title to the Property which is encumbered by
<br />this Deed of Trust.
<br />2. No Sale or Transfer of Property Permitted. As one of the inducements to Beneficiary for making
<br />the Loan and selling the Property to Trustor is the identity of Trustor, and the existence of any interest in
<br />the Property other than the interests of Trustor, Beneficiary and any Approved Junior Lien holder and the
<br />existence of any interest in Trustor other than those persons signing this Deed of Trust, would impair the
<br />Property and the security interest of Beneficiary. Accordingly, Trustor shall not Transfer or otherwise
<br />dispose of its interest in the Property without the prior written consent of Beneficiary, which Beneficiary
<br />may withhold in its sole discretion. 'Transfer" shall mean any sale, conveyance, lease, assignment,
<br />pledge or other transfer of all or any portion of the Property or any interest therein, including allowing the
<br />recordation of a deed of trust or mortgage, which creates a lien on the Property. Transfer shall not mean
<br />any of the following, provided that the transferee is bound by and agrees in writing to be bound by the
<br />terms of this Agreement:
<br />—B-4—
<br />SF #4844-8989-8473 v1
<br />REV: 05-19-2021 SK
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