CV Land/1st Amendment 93FIRST AMENDMENT TO
AFFORDABLE HOUSING AGREEMENT
0111G11V0
THIS FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEM T ("First
Amendment") is entered into as of this 64A day of
1993, by and among the LA QUINTA REDEVELOPMENT AGENCY, a public
body corporate and politic ("Agency"), COACHELLA VALLEY LAND, a
Limited Partnership("Participant") AND WILLIAM J. CUSACK, a
married man("Owner").
R E C I T A L S
A. The Agency, the Participant and the Owner have entered
into an Affordable Housing Agreement dated February 10, 1993 (the
"Agreement"), a copy of which is on file as a public record with
the Secretary of the Agency and which is incorporated herein by
reference.
B. The Agreement sets forth the contractual obligations
pertaining to the funding and implementation of an affordable
housing project ("Project") consisting of twenty (20) single-
family dwelling units available at Affordable Rent to Qualifying
Renters and ten (10) single family dwelling units for sale at
Affordable Housing Cost to Qualifying Buyers.
C. The parties are proceeding to implement the activities
provided for in the Agreement and are in the process of
implementing the rental unit component of the Project in
accordance with the terms and conditions of the Agreement. The
ownership component of the Project requires the Participant to
obtain financing commitments for 95% first trust deed financing
from local private lending institutions for Qualifying Buyers
with the Agency providing certain down payment assistance.
Pursuant to the Agreement the parties contemplated that the first
trust deed loans would be accomplished using documentation
acceptable to Fannie Mae to ensure a ready secondary market for
such first trust deed financing.
D. The parties have submitted the relevant documents to
Fannie Mae for review and approval and Fannie Mae has insisted
certain modifications be made to the ownership component of the
Project in order to satisfy Fannie Mae guideline's.
E. To enhance the viability of the activities proposed
under the Agreement, including without limitation, the successful
completion of the ownership component of the Project and ongoing
affordability in accordance therewith, the Agency, the
Participant and the Owner desire to amend the Agreement to comply
with Fannie Mae guidelines.
NOW THEREFORE, the Agency, the Participant and the Owner
agree as follows:
1 The Affordable Housing Agreement is amended as follows:
1.1 At page 3, Section 102, definition of "Agency
Ownership Escrow Documents", last line, delete the words "the
Agency Deed of Trust, and (vi)".
1.2 At page 14, Section 301, second paragraph, line 1,
delete the term "Applicable Agency Assistance" and insert the
term "Applicable Ownership Assistance".
1.3 At page 3, Section 102, add under "Applicable
Percent" the following: "Applicable Percent" is defined in
Section 1.17 of this First Amendment.
1.4 At page 14, Section 301, delete the third
paragraph in its entirety.
1.5 At page 14, Section 301, fourth paragraph, line 3,
delete the word "this Agreement" and insert the words "the First
Amendment to the Affordable Housing Agreement".
1.6 At page 14, Section 302, subdivision (ii), delete
the words "and the Agency Deed of Trust,".
1.7 At page 15, the last sentence of Section 302 is
amended and restated in its entirety as follows: "Unless
otherwise instructed in writing by the Agency, the contingent
interest payable to the Agency pursuant to Sections 3, 4 and 6 of
the Buyer/Agency Note shall be the Applicable Percent, but in no
event greater than the maximum rate permitted by law, and the
place of payment shall be the address set forth in Section 103 or
such other address as may from time to time be designated by the
Agency. The "Applicable Percent" shall be that amount equal to
the amount of the Agency Loan divided by the amount of the
Original Sales Price."
1.8 At page 24, Section 313 delete paragraph 3 in its
entirety and renumber paragraphs 4 and 5 as paragraphs 3 and 4,
respectively.
1.9 At page 25, Section 314, paragraph 3, lines 1 and
5, delete the term "Agency Deed of Trust" and insert the term
"Rental Properties Deed of Trust".
1.10 At page 25, Section 401, part A, line 3, after the
word "sale" insert "to Qualifying Buyers".
1.11 At page 26, Section 401, part D, line 1 within the
caption, the words "Junior Trust Deed Loans" should be deleted
and a new subtitle "Agency Loans" should be inserted.
PUB►.:976_1 1 194 1 B2338.37 2
1.12 At page 30, Section 401, part F, insert "If
required by Fannie Mae," at the beginning of the third sentence
and delete the words "the Agency Deed of Trust, and, if required
by Fannie Mae," following the word "subordinate".
1.13 Attachment No. 3 at page 2 of 4, insert a new
paragraph 2 as follows: 112. INTEREST RATE. The Principal Sum
shall accrue interest at the rate of percent (_%) per annum
(ten percent (10%) or the interest rate of the first trust deed,
whichever is lower], amortized over a period of forty (40) years
and payable in equal monthly installments.
1.14 Attachment No. 3 at page 2 of 4, paragraph 2 is
renumbered as paragraph 3 and is amended and restated in its
entirety as follows: 113. TIME OF PAYMENT. The first monthly
installment shall be paid on the day , 19_,
(insert first day of first full month following execution of
Note] and of each succeeding month until paid in full.
Notwithstanding the foregoing, the whole of the Principal Sum and
accrued interest thereon shall become immediately due and payable
on the date of the first Sale or Transfer to occur after this
Date.
1.15 Attachment No. 3 at page 2 of 4, is renumbered as
paragraph 4 and is amended and restated in its entirety as
follow: 114. AMOUNT OF PAYMENT. If and when this Note is
accelerated and the Principal Sum and interest accrued thereon
becomes immediately due and payable pursuant to Section 3 above,
Borrower shall pay to Lender the Principal Sum and any unpaid
interest accrued thereon, together with contingent interest equal
to the Applicable Percent of the amount, if any, by which the
Sales Price in the Sale causing payment to become due and payable
exceeds the Original Sales Price. "The "Applicable Percent"
shall be that amount equal to the amount of the Agency Loan
divided by the amount of the Original Sales Price."
1.16 Attachment No. 3 at page 2 of 4, paragraph 4 is
renumbered to paragraph 5 and at line 6 delete the words "seven
percent (7%)" and insert the words "the Applicable Percent".
1.17 Attachment No. 3 at page 2 of 4, delete paragraphs
5 and 6 in their entirety and renumber paragraphs 7 through 15 as
6 through 14, respectively.
1.18 Attachment No. 4 at page 2 of 12, delete
subdivision (k) "Prepayment Fees" in its entirety and reletter
subdivisions (1) through (o) as subdivisions (k) through (n),
respectively.
1.19 Attachment No. 4 at page 4 of 12, Section 8,
subdivision (a), line 3, after the word "than" insert 11120."
1.20 Attachment No. 4 at page 10 of 12, Section 18 is
amended and restated in its entirety as follows: "Section 18.
PUBL:976_11194IB2338.37 3
Subordination. This Agreement shall be subordinate to the lien
of a first deed of trust against the Property, and shall not
impair the rights of any institutional lender which is the maker
of a loan secured by such first deed of trust, or such lenders'
assignee or successor in interest, to exercise its remedies under
the deed of trust in the event of default under the first deed of
trust by the Owner. Such remedies under the first deed of trust
include the right of foreclosure or acceptance of a deed or
assignment in lieu of foreclosure. After such foreclosure or
acceptance of a deed in lieu of foreclosure, this Agreement shall
be forever terminated and shall have no further effect as to the
Property or any transferee thereafter; provided, however, if the
holder of such deed of trust acquired title to the Property
pursuant to a deed or assignment in lieu of foreclosure, this
Agreement shall automatically terminate upon such acquisition of
title, provided that (i) the Agency has been given written notice
of a default under such first deed of trust, and (ii) the Agency
shall not have cured the default under such first deed of trust
within the 30-day period provided such notice sent to the
Agency."
1.21 Attachment No. 7 at page 1 of 7, the first recital
beginning "WHEREAS", line 5 delete the first word "Rents" and
insert the word "Renters".
1.22 Attachment No. S is deleted in its entirety.
1.23 Attachment No. 9 at page 3 of 9, Section 2,
subdivision (e) is amended and restated in its entirety as
follows: "This Declaration shall be deemed to be subordinate to
the Affordability Restriction; in the event of conflict, the
Affordability Restriction shall prevail. The Agency will, upon
receipt of written request therefore, prepare additional
documentation further evidencing such subordination.
Notwithstanding the foregoing, this Declaration shall be
subordinate to the lien of a first deed of trust against the
Property, and shall not impair the rights of any institution or
lender which is the maker of a loan secured by such first deed of
trust, or such lender's assignee or successor in interest, to
exercise its remedies under the deed of trust in the event of
default under the first deed of trust by the Covenantor. Such
remedies under the first deed of trust include the right of
foreclosure or acceptance of a deed or assignment in lieu of
foreclosure. After such foreclosure or acceptance of a deed in
lieu of foreclosure, the affordability covenant and the transfer
restrictions set forth in Sections 1, 2, 3, and 6 of this
Declaration shall be forever terminated and shall have no further
effect as to the Property or any transferee thereafter; provided,
however, if the holder of such deed of trust acquired title to
the Property pursuant to a deed or assignment in lieu of
foreclosure, said Sections 1, 2, 3 and 6 of this Declaration
shall automatically terminate upon such acquisition of title,
provided that (i) the Agency has been given written notice of a
default under such first deed of trust, and (ii) the Agency shall
PUBL:976_1 11941 B2338.37 4
not have cured the default under such first deed of trust within
the 30 day period provided in such notice sent to the Agency.
Notwithstanding any other provision hereof, the non-
discrimination covenants and the maintenance requirements set
forth in this Declaration shall remain in full force and effect
as to the Property and any transferee.
1.24 Attachment No. 9 at page 4 of 9, Section 4, delete
the first word "Covenants" and insert the word "Covenantor".
1.25 Attachment No. 12 at page 2 of 3, Section 1 is
amended and restated in its entirety as follows: "1.
Subordination. The Agreement shall be subordinate to the First
Deed of Trust against the Property, and shall not impair the
rights of Lender, or Lenders assignee or successor in interest,
to exercise its remedies under the First Deed of Trust in the
event of default by the Owner. Such remedies under the First
Deed of Trust include the right of foreclosure or acceptance of a
deed or assignment in lieu of foreclosure. After such
foreclosure or acceptance of a deed in lieu of foreclosure, the
Agreement shall be forever terminated and shall have no further
effect as to the Property or any transferee thereafter; provided,
however, if the holder of such deed of trust acquired title to
the Property pursuant to a deed or assignment in lieu or
foreclosure, the Agreement shall automatically terminate upon
such acquisition of title, provided that (i) the Agency has been
given written notice of a default under the First Deed of Trust,
and (ii) the Agency shall not have cured the default under the
First Deed of Trust within the thirty -day period provided in such
notice sent to the Agency."
1.26 Attachment No. 13 at page 2 of 6, paragraph
entitled "Equity Share", line 9, delete the words "Agency Deed of
Trust,".
2. Limitation on Points. The maximum points paid in
connection with the sale or financing of each Ownership Property
shall not exceed three (3) percentage points,.of which one (1)
point shall be applied to private mortgage insurance.
3. Closing Costs. Closing costs and fees shall be
determined on the basis of the hypothetical example set forth in
Exhibit "A" hereto, with certain items fixed as indicated and the
remainder adjusted in accordance with the applicable interest
rate and purchase price.
4. No Other Changes. Except as expressly set forth
herein, each and every provision of the Agreement remains in full
force and effect. All terms used herein shall have the meaning
given to such terms in the Agreement.
5. Representations. Each of the parties hereto warrants
and represents to the other that it has the full power and
authority to enter into and execute this First Amendment, that
PUBL:976_1 11941 B2338.37 5
Dated: � "1� By:
all authorizations and approvals required to make this First
Amendment binding upon such party have been obtained, and that
the person or persons executing this First Amendment on behalf of
such party has been fully authorized to do so.
6. Amended Agreement. The Agreement and this First
Amendment collectively shall hereafter be referred to as the
"Amended Agreement." The Amended Agreement integrates all of the
terms and conditions of agreement between the parties and
supersedes all negotiations or previous agreements between the
parties with respect to the subject matter hereof.
IN WITNESS WHEREOF, the Agency and the Owner have executed
this First Amendment as of the dates set forth below.
LA QUINTA REDEVELOPMENT AGENCY, a public
body, corporate and p itic
L,4w -a - �
Chairman
"AGENCY"
APPROVED AS TO FORM:
StfadlZng, Yocca, Carlson & Rauth
Agency Special Counsel
COACHELLA VALLEY LAND, a limited
partnership
lei 2
7 By:
Dated: ` � .
Its:
Dated:
By:
Its:
PUBL:976_111941B2338.37
Dated:
"PARTICIPANT"
WILLIAM J. CUSACK
"OWNER"
PUBL:976_1 11941 B2338.37
-JL.N 02 193 16: 47 3105 BLJ40010RE-FIN P. 2
EXHIBIT "A"
I
BUYER'S CLOSIN2 COST
SALES PRICE 1100,000
DOWN PAYMENT 3% customer $3,000 2% Agency $2,000 S;.Rn
LOAN AMOUNT 95,000
INTEREST RATE 8.25 X LOAN DETAILS
APR -----X
ITEMS BY LENDER PAYABLE IN CONNECTION WITH LOAN
LOAN ORIGINATION FEE 110
POINTS (loan discount fee)
APPRAISAL FEE
CREDIT REPORT
LENDER'S INSPECTION FEE;PHOTO FEE
(review appraisal.)
PROCESSING FEE 400 (F)
TAX SERVICE CONTRACT 70 (F)
UNDERWRITING FEE 275 (F)
DOCUMENT PREPARATION FEE 150 (F)
WIRING FEE =.~: -_ . 25 (F)
FUNDING FEE 225 (F)
FLOOD CERTIFICATION FEE n/a (F)
COUNTY TAXES PRORATION
200
2,670
ITEMS BX LENDER TO BE PREPAID IN ADVANCE
INTEREST FROM_ 1 s —TO 15th T 21. 77 PER DAY
** 327
MORTGAGE INSURANCE FIRST YEAR PREMIUM (PMI/MMI)
11000
HAZARD INSURANCE FIRST YEAR PREMIUM
PREMIUM TO MORTGAGE BROKER
1627
RESERVES TO BE DEPOSITED WITH LENDER
HAZARD INSURANCE 2 MOS • 25.00 PER MONTH
_ 50
MORTGAGE INSURANCE 2 MOS • 42•00 MONTH
64
,PER
COUNTY PROPERTY TAXES • 30�PER MONTH
._..� 300
--!—MPS
ASSESSMENTS
434
TITLE AND ESCROW CHARGES
CLOSING FEE ESCROW Buyer 50%
25i (F)
DOCUMENT PREPARATION ESCROW
TITLE INSURANCE Buyer 50%
150 (F)
SUB ESCROW FEE
bU (F)
450.
GOVERNMENT RECORDING AND TRANSFER CHARGES
RECORDING FEES 1) DEED
30 (F)
2) MORTGAGE
CITY/COUNTY TAX/STAMPS: DEED
110 (F)
ADDITIONAL CHARGES: f.e. federal express etc.
50
190
CASH TO CLOSE ,
Cus tourer , ** DOWN PAYMENT 30DO.
CLOSING COST - 327_
PRORATIONS
TOTAL "i3327
2-97x
(F) Fixed Cost
Agency- ' 2000
5044
T .O T A L 7044
06-02-93 04:46PH P002 #35