RecDoc 2010-110432 - Laserfiche WebLink

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EXHIBIT E FORM OF CITY NOTE SECURED BY DEED OF TRUST (Shared Appreciation Loan) PP ) Principal Amount: 5eptember 23 , 2010 $400,000.00 Redwood City, California FOR VALUE RECEIVED, KAINOS HOME & TRAINING CENTER ( "Maker ") promises to pay the CITY OF REDWOOD CITY ( "City ") the principal sum of FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) ( "Principal Amount "), plus a contingent deferred amount equal to the City's Shared Appreciation as calculated and payable under Section 7 below, any additional amounts due and owing pursuant to Sections 9 and 11 below, any additional amounts due and owing pursuant to the Deed of Trust (as defined below), and any additional amounts due and owing as permitted by law. 1. PROPERTY. The "Property" is that certain real property commonly known as 1122 Valota Road, Redwood City, California, and more particularly described on Attachment 1, attached hereto and incorporated herein, which together with all improvements located thereon is referred to in this promissory note ( "Note ") as the "Property." The Property includes a single - family dwelling owned by Maker. Maker is obligated to rent six bedrooms within the dwelling to extremely low income persons with development disabilities at an affordable rent (each bedroom, an "Affordable Bedroom ", and collectively, the Affordable Bedrooms "). 2. FUNDING AGREEMENT. Pursuant to an Agreement for Funding to Acquire the Property, dated �Cpt • 20 , 2010 ( "Funding Agreement "), City provided funds in the form of a forgivable loan ( "City Loan ") to Maker for acquisition of the Property conditioned upon Maker maintaining compliance with the Funding Agreement, including the affordability of the Affordable Bedrooms as set forth in the Declaration of Affordability Covenants (Exhibit D to the Funding Agreement). 3. DECLARATION OF AFFORDABILITY COVENANTS. The Affordable Bedrooms are part of the City's affordable housing program designed to create, preserve, maintain and protect housing for persons of low- and moderate - income, including expansion of the supply of affordable special needs housing for Redwood City persons and households as set forth in the City's Consolidated Plan and Housing Element. The City Loan was made to Maker to assist Maker in purchasing the Property for the purposes described in Section 1 above, subject to the covenants, conditions, and restrictions set forth in the Funding Agreement and the Declaration of Affordability Covenants recorded onSe • 2 , 2010 as Document No.2O10 in the Official Records of San Mateo County, California. apitalized terms used herein and not defined in this Note shall have the meanings set forth in the Funding Agreement or Declaration of Affordability Covenants, as applicable. 4. CITY'S CONTRIBUTION. Maker's purchase price for the Property is ONE MILLION SEVENTY -FIVE THOUSAND DOLLARS ($1,075,000.00 (the "Purchase Price "). Maker contributed SIX HUNDRED SEVENTY -FIVE THOUSAND DOLLARS ($675,000.00) towards the Purchase Price. The City Loan contributed FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) towards the Purchase Price, which is the amount reflected above in the Principal Amount of this Note. 5. DEED OF TRUST. Payment of this Note is secured by a first position deed of trust, assignment of rents, security agreement and fixture filing (the "Deed of Trust ") from Maker in favor of City, which Deed of Trust is dated concurrently herewith and recorded against the Property. 6. DUE ON SALE. Maker acknowledges that this Note is given as part of a City program to provide extremely low income, developmentally - disabled persons with affordable housing. Consequently, upon any sale of the Property, this Note is not automatically assumable but is subject to the City's right to accelerate all amounts due hereunder if either the Property is transferred with City consent conditioned Exhibit E 1