RecDoc 2022-068214 612 Jefferson #404

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EXHIBIT lB ADDENDUM TO DEED OF TRUST The following provisions are hereby added to the Deed of Trust made by Trevor Leif Hanson, as "Trustor', Old Republic Title Company, as Trustee, and City of Redwood City, a California municipal corporation, as "Beneficiary". 1. Junior or Further Financing Prohibited. Junior or further financing is not permitted, except as expressly permitted by this Paragraph 1. One of the inducements for Beneficiary to make the Loan to Trustor is the identity of Trustor as the purchaser from Beneficiary of the real property secured by this Deed of Trust. The existence of any interest in the Property, other than the interests of Beneficiary and Trustor, and the encumbrance of this Deed of Trust, even though subordinate to the security interest of Beneficiary, and the existence of any interest in Trustor or the property other than those of the Trustor as the present owners, would impair the Property and the security interest of Beneficiary. The Trustor shall not encumber, or permit the encumbrance of, the Property by any instrument creating a lien or mortgage against the Property, which is Either junior, subordinate to or prior to this Deed of Trust, except for the Senior Deeds of Trust and the Subordinate Deed of Trust (defined below), provided however, that with the prior written approval of Beneficiary, the Trustor may, further encumber the Property with a deed of trust junior to this Deed of Trust ("Approved Junior Lien") to secure an obligation of Trustor to another party in an amount which does not exceed the amount of the equity of the Trustor in the real property, which equity shall mean the amount of any cash down payment paid by Trustor to Habitat for Humanity Greater San Francisco, Inc., a California non-profit corporation ("Habitat"), when Trustor purchased the real property and any principal payments made by Trustor on the Note which this Deed of Trust secures. The Borrower may execute and record against title to the property a deed of trust securing the Habitat for Humanity Loan to Trustor in the amount of $105,468, a performance deed of trust with the City of Redwood City, and a deed of trust securing the CalHOME Loan in the amount of $100,000 which deeds of trust shall be prior to this Deed of Trust (collectively, the "Senior Deeds of Trust"). The Borrower may also execute and record against title to the property a deed of trust securing the Housing Authority of the County of San Mateo Loan to the Trustor in the amount of $50,000, deeds of trust securing the County of San Mateo Loans to Trustor in the amount of $50,000 and $ 4,000, and a deed of trust securing the Habitat for Humanity Greater San Francisco Loan to Trustor in the amount of $5,532 (collectively the "Subordinate Deeds of Trust'). Trustor is entitled to only Iilrrited rights of equity and appreciation, as more specifically set forth in the Grant of Option to Repurchase and Resale Restriction Agreement signed by the Beneficiary ("Resale Restriction Agreement'). As such, the further encumbering of the Property, except as expressly provided for herein, is antithetical to the purpose and intention of making available to said persons who qualify as qualified households such below market rate housing, and the further encumbrance thereof will frustrate the basic purposes for which the Property was sold to the Trustor. In the event that any party should rnake, execute, deliver and/or record any mortgage, deed of trust, lien or other encumbrance or lien against the title of the Property subject to the lien of this Deed of Trust, except for an Approved Junior Lien, such mortgage, deed of trust, lien or other encumbrance or lien is and sliall be deemed to be null and void and shall not entitle any party to any rights, title or claim to or against the title to the Property which is encumbered by this Deed of Trust. 2. No Sale or Transfer of Property Permitted. As one of the inducements to Beneficiary for making the Loan and selling the Property to Trustor is the identity of Trustor, and the existence of any interest in the Property other than the interests of Trustor, Beneficiary and any Approved Junior Lien holder and the existence of any interest in Trustor other than those persons signing this Deed of Trust, would impair the Property and the security interest of Beneficiary. Accordingly, Trustor shall not Transfer or otherwise dispose of its interest in the Property without the prior written consent of Beneficiary, which Beneficiary may withhold in its sole discretion. "Transfer" shall mean any sale, conveyance, lease, assignment, pledge or other transfer of all or any portion of the Property or any interest therein, including allowing the recordation of a deed of trust or mortgage, which creates a lien on the Property. Transfer shall not mean any of the REV: 08-28-22 5K ATTY/AGR.2022.292/Habitat G12 Jefferson (08_HOME - Deed of Trust (Buyer) FIGSF 404) (Page 4 of 9)