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2017 Habitat for Humanity of the Coachella Valley, Inc. - SubordinationRecording Requested By First American Title Company . Recording Requested By And When Recorded Mail To: La Quinta Housing Authority 78-495 CaIIe Tampico La Quinta, CA 92253 Attention: City Clerk SY703// DOC # 2017-0374722 • 09/08/2017 03:51 PM Fees: $0.00 Page 1 of 15 Recorded in Official Records County of Riverside. Peter Aldana Assessor -County Clerk -Recorder **This document was electronically submitted to the County of Riverside for recording** Receipted by: TERESA #134 APN: 774-044-012-3 [Exempt From Recording Fee Per Gov. Code 56103 and 27383] SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THELIEN OF SOME OTHER OR LATER SECURITY INSTRUMENTS. THIS SUBORDINATION AGREEMENT ("Agreement") is entered into as of August 24, 2017, by and among the LA QUI NTA HOUSING AUTHORITY, a public body, corporate and politic ("Authority"), EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants ("Participant"), and FIRSTBANK ("Lender"). RECITALS A. Participant owns fee title to the real property described on Attachment No. "1" attached hereto and incorporated herein by reference (the "Property"). B. On or about the same day hereof, Authority and Participant entered into that certain Affordable Housing Agreement with Resale Restrictions and Option to Purchase dated August 24, 2017, recorded concurrently herewith in the Official Records of the County of Riverside (the "AHA"). Pursuant to the terms of the AHA, Authority is deemed to have loaned Participant Ninety Thousand Twenty Dollars ($90,020) ("Authority Loan") to assist Participant in purchasing, the Property. The Authority Loan is evidenced by a promissory note executed by Participant on or about the same date hereof (the "Authority Note"). To secure repayment of. the Authority Loan and performance under the AHA, Participant executed that certain Deed of Trust With Assignment of Rents and Rider to Deed of Trust Attached Hereto encumbering the Property dated on or about the same date hereof, and recorded concurrently herewith in the Official Records of the County of Riverside (the "Authority Deed of Trust"). •1 C. Participant has executed or is about to execute a deed of trust, in favor of Lender, to be recorded concurrently herewith and encumbering the Property to secure a promissory note in the sum not to exceed One Hundred Thirty -Seven Thousand Five Hundred Fifty -Two Dollars ($137,552) (the "Lender Loan"), payable with interest and upon the terms and conditions described .in such note (respectively, the "Lender Deed of Trust" and "Lender Note"). .53240 Avenida Alvarado Castillo -l- DOC #2017-0374722 Page 2 of 15 D. Lender is willing to make the Lender Loan provided the Lender Deed of Trust is a lien or charge upon the Property prior and superior to the lien or charge of the Authority Deed of Trust and provided. that Authority will specifically and unconditionally subordinate the lien or charge of the Authority Deed of Trust to the lien or charge of the Lender Deed of Trust. E. It is the mutual benefit of Lender, Authority and Participant that Lender make the Lender Loan to Participant. Authority has agreed that the Lender Deed of Trust shall, when recorded, constitute a lien or charge upon the Property which is unconditionally prior and superior to the lien or charge of the Authority Deed,of Trust, subject to the specific terms and provisions of this Agreement. NOW, THEREFORE, in consideration of the mutual, benefits accruing to the Authority, Lender and Participant, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce Lender to make the Lender Loan, it is hereby declared, understood and agreed as follows: 1. Subordination by Authority 1.1 Necessity of Subordination By executing this Agreement, Authority makes the finding set forth in Health and Safety Code Section 33334.14 that subordination is necessary and that Authority has obtained written commitments as set forth in this Agreement, consistent with Health and Safety Code Section 33334.14, to protect the Authority's :investment in the event of a default. Therefore, Authority hereby agrees to subordinate the lien of the Authority Deed of Trust to the Lender Deed of Trust on the terms set forth in this Agreement. This Agreement shall set forth the priority of liens between the parties and govern the terms and conditions of such subordination. 1.2 Subordination of Authority Deed of Trust to Lender Deed of Trust The Lender Deed of Trust (and any renewals or extensions of, or advances, including interest, thereunder) shall unconditionally be and remain at all times a lien or charge .on the Property, prior and superior to the lien or charge of the Authority Deed of Trust to all present and future indebtedness and obligations secured thereby, together with all rights and privileges of Authority thereunder, but subject to the terms and conditions of this Agreement. In the event of foreclosure or deed in lieu of foreclosure of the Lender Loan, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to income -restricted households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect. Any person (including his successors or assigns) receiving title to the Property through a foreclosure or deed in lieu of foreclosure of a prior Lender Loan shall receive title to the Property free and clear from such restrictions. 53240 Avenida Alvarado Castillo -2- DOC #2017-0374722 Page 3 of 15 1.3 Covenant of Authority Authority declares, agrees and acknowledges that to Authority's actual knowledge, there is no breach, event of default or default existing under the AHA or•Authority Deed of Trust or any circumstances, event, omission or failure of condition which would constitute such a breach, default, or event of default after notice or lapse of time, or both. 2. Reliance by Lender and Authority Lender would not make the Lender Loan and Authority would not have agreed to subordinate the Authority Deed of Trust without this Agreement and each of the undersigned 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 and will be entered into which would not be made or entered into but for such reliance upon this subordination. 3. Rights of Authority 3.1 Default Under Lender Deed of Trust In the event Participant defaults under the terms of the Lender Deed of Trust and as a result thereof the holder of the Lender Deed of Trust records a Notice of Default in the Official Records of the County of Riverside, the holder of the Lender Deed of Trust shall, concurrently with such recording, provide Authority with a copy of such Notice of Default. Upon the earlier of (i) Authority's receipt of such Notice of Default, or (ii)•the recordation of such Notice of Default, the parties hereto agree that Authority shall have each of the following rights so long as the Authority Deed of Trust encumbers any portion of the Property or interest therein: (a) To cure the noticed default at any time prior to the foreclosure of the Lender Deed of Trust. (b) To negotiate with Lender regarding the noticed default at any time prior to the foreclosure of the Lender Deed of Trust or other lien. • • (c) To purchase the Property from Participant, without the consent of Participant or the holder of the Lender Deed of Trust. The purchase price for the Property (the "Authority Purchase Price") shall be a price that would result in monthly housing payments that do not exceed an "Affordable Sales Price" for an "Eligible Buyer" (as those terms are defined in Recital H .and in Section 6 of the AHA), based upon a five percent (5%) down payment and a thirty-year fixed mortgage at the then -prevailing home mortgage rate for Riverside County, Califomia, as set forth at www.bankrate.com, or, if the aforementioned website is no longer available or no longer provides home mortgage rates for Riverside County, at the rate available from a reputable institutional lender reasonably selected by Authority, with the amounts of the remaining costs that constitute components of the "Monthly Housing Cost" (as that term is defined in Section 6 of the AHA) to be reasonably determined by. Authority, at the time of Authority's 53240 Avenida Alvarado Castillo -3- DOC #2017-0374722 Page 4 of 15 purchase, Tess (1) the outstanding amount due under the Lender Note, (ii) the amount due under the Authority Note, (iii) any delinquent taxes and assessments owing on the Property, and (iv) any costs incurred by Authority to effect the curing of a default and purchase of the Property; including but not limited to escrow fees and attorney's fees. Authority and Participant each agree to execute and deliver to the escrow officer handling the escrow pursuant to which Authority shall acquire the Property from Participant hereunder (the "Escrow Officer" or "Escrow," as applicable) escrow instructions that direct the Escrow Officer to demand a payoff amount from the holder of the Lender Deed of Trust under the Lender Note (the "Payoff Amount") and to pay to the holder of the Lender Deed of Trust the Payoff Amount at the closing of the Escrow. To the extent the Payoff Amount exceeds the Authority Purchase.Price as calculated above, the Authority Purchase Price shall be automatically increased to equal the Payoff Amount, and the entire Authority Purchase Price shall be paid to the holder of the Lender Deed . of Trust at the closing of the Escrow. Participant shall have twenty (20) days from the date it receives notice of Authority's election to purchase the Property to execute all documents reasonably requested by Authority to effectuate the transfer of the Property and to complete the transfer. If Participant fails to close the transfer within said twenty (20) day period, Authority shall have the right to specifically enforce this paragraph: 3.2 Disbursements Lender, in making disbursements of the proceeds of said Lender Loan, is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom disbursements thereof are made and any application or use of such proceeds for purposes other than those provided in the documents evidencing and securing such Lender Loan shall not defeat the subordination herein made in whole or in part. 3.3 Enforcement of Use Restrictions Nothing set forth in this Agreement shall prevent Authority from enforcing the terms of the AHA or any other agreement between Participant and Authority with respect to the Property or Authority Loari. 4. Miscellaneous 4.1 Entire Agreement This Agreement shall be the whole and only agreement with regard to the matters set forth herein and shall supersede and cancel, but only insofar as would affect the priority between the Lender Deed of Trust and the Authority Deed of Trust, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the Authority Deed of Trust which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages, upon the Property. 53240 Avenida Alvarado Castillo -4- DOC #2017-0374722 Page 5 of 15 4.2 Successors and Assgns This Agreement shall inure to and bind the heirs, legatees, devisees, administrators, executors, successors and assigns of the parties hereto. 4.3 California Law This Agreement shall be construed according to the internal laws of the State of California without regard to conflict of law principles. 4.4 Severability If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 4.5 Notice Any notice, demand, request, consent, approval or communication that any party desires or is required to give to another party or any other person must be in writing and may be given by personal delivery, by mailing the same by registered or certified mail, return receipt requested, postage prepaid, or by a reputable same day or overnight delivery service that provides a receipt showing date and time of delivery, to the party to whom the notice is directed at the address of such party hereinafter set forth, or such other address and to such other persons as the parties may hereafter designate. Any such notice shall be deemed given (i) upon receipt if by personal delivery or by delivery, service, or (ii) forty-eight (48) hours after deposit in the United States mail, if sent by mail pursuant to the foregoing. If to Authority: La Quinta Housing Authority 78-495 Calle Tampico La Quinta, CA 92253 Attention: City Clerk With copy to: If to Participant: 53240 Avenida Alvarado_Castillo Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, CA 92626-1998 Attention: William H. Ihrke Eduardo Verdugo Castillo Mariana Navarro Melchor 53240 Avenida Alvarado La Quinta, CA 92253 -5- DOC #2017-0374722 Page 6 of 15 If to Lender: FirstBank 12345 West Colfax Avenue Lakewood, CO 80215 Attention: Loan• Servicing 4.6 Attorneys' Fees In the event that any action, suit or other proceeding is brought to enforce the obligations under this Agreement, the prevailing party shall be entitled to receive all of such party's costs and expenses of suit, including attorneys' fees, expert witness fees, and all costs incurred in each and every action, suit or other proceeding, including any and all appeals or petitions therefrom. 4.7 Counterparts This Agreement may be executed in any number of counterparts, each of which shall be an original; but all of which.shall constitute one and the same document. 53240 Avenida Alvarado Castillo [End — Signature Page Follows] -6- DOC #2017-0374722 Page 7 of 15 IN WITNESS WHEREOF, the parties have executed this Subordination Agreement as of the date first written above. NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENTS. ATTEST: By: Susan Maysels, Authority Secretary APPROVED AS TO FORM RUTAN & TUCKER, LLP k By: 114-1) OA/MAAR-- Allison LeMoine-Bui Authority Counsel 53240 Avenida Alvarado Castillo "AUTHORITY" LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic By: Steve Howlett, Acting Executive Director i6re6\k Irt Covid-eireak- \ of 3 "PARTICIPANT" EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants BY: C_.AJ • \ Z. G • EDUARDO VERDUGO CASTILLO BY: q\cly alc '�]�j t CLPO iq c Jr v M.ARIANA NAVARRO MELCHOR "LENDER" FIRSTBANK By: Its -7- DOC #2017-0374722 Page 8 of 15 IN.WITNESS WHEREOF, the parties have executed this Subordination Agreement as of the date first written above. NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER.OR LATER SECURITY INSTRUMENTS. • "AUTHORITY" LA QUINTA HOUSING AUTHORITY, a public body, corporate and is By: ATTEST: �I r/„I : 8y Susan-Maysels; A f tharity - airy— Monika Radeva, Acting Authority Secretary Steve Howlett, Acting Executive Director APPROVED AS TO FORM RUTAN & TUCKER, LLP Sy: Ap YWAYIA/u_i/go.k Allison LeMoine-Bui Authority Counsel 53240 Avauda Alvarado Castillo Itri al-e/rret Zo&3 "PARTICIPANT" EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and wife as joint tenants BY: JC Ic o c)_ V, C. EDUARDO VERDUGO CASTILLO BY: i\ py)r-n a 7. �l � {iC'i{'i'v G[c y M RIANA NAVAR 0 MELCHO "LENDER" FIRSTBANK By: Its : -7- DOC #2017-0374722 Page 9 of 15 IN WITNESS WHEREOF, the parties have executed this Subordination Agreement as of the date first written above. NOTICE: THIS SUBORDINATION AGREEMENT 'RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENTS. "AUTHORITY" LA QUINTA HOUSING AUTHORITY, a public body, corporate and politic ATTEST: By: Susan Maysels, Authority Secretary APPROVED AS TO FORM RUTAN & TUCKER, LLP By: Allison LeMoine-Bui Authority Counsel 53240 Avenida Alvarado Castillo By: Steve Howlett, Acting Executive Director Siyvied [in Coves -per- 3a� "PARTICIPANT" EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, husband and .wife as joint tenants BY: BY: EDUARDO VERDUGO CASTILLO MARIANA NAVARRO MELCHOR "LENDER" FIRSTBANK By: gOLIA+►ro \3WIend.z % r: Its : PccsiStArif 11 [ce P cc5uCjervf • -7- DOC #2017-0374722 Page 10 of 15 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. CO V Y� A p �'� Ii21 v-ZI-S I CA -e ��e off: cam\ �%Ur ; �t On 8 ea 5 2017, before me, Notary Public, personally appeare STEVE HOWLETT who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. [SEAL] i 53240 Avenida Alvarado Castillo PAMELA MIETO Commission # 2111660 Notary Public - Califbrnla e Rlveralde County Comm. Exnfres May 15, 2019 Notary Public • -8- �o DOC #2017-0374722 Page 11 of 15 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. CG\t-61-n(Gl Covv�p�:�lV-�rStOE� On 3e6 eXdOtir , 2017, before me, L - r ,(r ' , Notary Public, . personally appeared EDUARDO VERDUGO CASTILLO and MARIANA NAVARRO MELCHOR, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, .executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and official seal. [SEAL] Notary Public :11111111111111 Si1- 1111511111111111111111111 ' " L., DURAN - Comm, *21811392 4 Notary Public-Calfforni❑ 1b Riverside County My Commission Expires January 23, 2021 53240 Avenida Alvarado Castillo -9- DOC #2017-0374722 Page 12 of 15 Notary Seal Under the provisions of Government Code 2736L7, 1 certigy under the penalty of perjury that the Notary Seal on the document to which this statement is attached reads as follows: Name of Notary: L- Duiran Commission #: Q 1 O l U. l Z' Date Commission Expires: )0t1i) 23,?-UZ 1 County where Bond is filed: Vendor; NPnzt-- Place of Execution: Redlands, CA Date: Signature: -Terrero OnL.t Cyc--k R7��.■ appeared ' ,V , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the.instrument the person or the entity upon behalf of which the person acted, executed .the instrument. I certify 'under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. DOC #2017-0374722 Page 13 of 15 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. C.0 ''► 0C": R l 2017, before me, Notary Public, personally Witness my hand and official seal. [SEAL] 53240 Avcnida Alvarado_Caatillo RHYANON R. MACKLIN Notary Public - California Riverside County Commission R 2179776 My Comm. Expires Feb 11, 2021 IAA Notary Public -10- DOC #2017-0374722 Page 14 of 15 Certification Under the provisions of Government code 27361.711 certify under the penalty of perjury that the following is a true and correct copy of illegible wording found in the attached document. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Place of Execution : Redlands, CA Date: Signature: : 2 E Guerrero' DOC #2017-0374722 Page 15 of 15 ATTACHMENT NO. 1 LEGAL DESCRIPTION OF PROPERTY That certain real property located in the City of La Quinta, County of Riverside, State of California described as follows: LOT 13 IN BLOCK 175 OF' SANTA CARMELITA AT VALE LA QUINTA, UNIT #18, AS PER MAP RECORDED IN BOOK 19, PAGES 30 AND 31 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26, 1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. AP N: 774-044-012-3 53240 Avenida Alvarado Castillo