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HomeMy WebLinkAbout1990-06-26 - AGENDA REPORTS - HOUSING ASSISTANCE CMTY DEV (2)AGENDA REPORT City Manager Approval Item to be presented George Caravalho CONSENT CALENDAR DATE: June 26, 1990 SUBJECT: Agreement for Housing Assistance between City and Community Development Director DEPARTMENT: CITY MANAGER Background The City Council has previously discussed the addition of housing assistance to the department head benefit package. The salary resolution establishes the parameters and conditions under which such housing assistance may occur. This item authorizes execution of a $50,000 loan for five.years as a partial down payment to Lynn M. Harris, Director of Community Development. The loan is to be used towards purchase of a house within the City limits. The agreement meets all conditions of.the Housing Assistance Policy. Recommendation Approve agreement. Agenda Item:._, 0 LOAN AGREEMENT 0 THIS AGREEMENT is made and entered into as of the day of , 1990, by and between the City of Santa Clarita ("City") and Lynn Harris ("Harris"), with respect to the following facts: A. Harris was recently hired as the Director of Community Development for the City of Santa Clarita; and B.. As part of the consideration for Harris' agreement to assume the position of Director of Community Development for the City at Santa Clarita, City has agreed to lend to Harris the sum of Fift� Thousand Dollars ($50,000.00) to enable Harris to purchase real property within the City of Santa Clarita to be used asiHarris' principal residences and C.I The parties hereto wish to memorialize their understandings with -respect to the disbursements of the loan funds and certain other terms of the loan not incorporated into the note evidencing the loan or the deed of trust securing it. NOW, THEREFORE, it is agreed as follows: 1. city agrees to lend to Harris the sum of Fifty Thousan Dollars ($50,000.00) to enable Harris to purchase a residence in the city of Santa Clarita. The loan will be evidenced by a promissory note in the form attached hereto as Exhibit A, in the principal amount of $50,000.00. The promissory note sh�ll be secured by a second deed of.trust encumbering the real pr party in the City of Banta Clarita to be used by Harris as her rincipal residence, which dead of trust will be in the form at ached hereto as Exhibit B. said dead of trust shall be recorde in the county recorder's office of the Los Angeles. 2. The term of the loan to Harris shall be for five (5) yea a; provided, however, City and Harris agree that prior to the expiration of the term of the loan, the City Manager of the City shill have the power to extend the term of the loan by one (1) year. The. City shall also have the option to accelerate the due date of the loan upon.the occurrence of any of the following events:) (a) Harris' failure to use the subject property as Harris, principal residence: or (b) Harris' failure to open an escrow for the sale of her current residence located at 1101 Nowita Place, Venice, California 90219, -within six (b) months after the.dats of the loan; or 0 i the Ci y. (c) The termination of Harris' employment with 3. The City shall deliver to the escrow holder the loan proceeds in the sum of $50,000.00 following (i) the opening of escrow for the real property in the city of Santa Clarita selected by Harris as Harris, principal residence, and (ii) upon Harrisls deposit of the promissory note and dead of trust described above. The City shall instruct the escrow holder that the funds shall be disbursed upon the close of the escrow. 4. Harris agrees that she will occupy said residence in the City of Santa.Clarita as her primary residence during the term of the loan. 5. This agreement constitutes the sole understanding of the parties hereto with respect to matters set forth herein, and manot be amended; altered, or modified except by an instru- ment irk writing signed by the parties hereto. Nothing contained herainlehall be construed as constituting a contract of employment between Harris and the City. IN WITNESS WHEREOF, the parties hereto have entered into this agreement as of the day of 1990. CITY OF SANTA CLARITA By Mayor ATTEST: LYNN HARRIS "Harris" -2- 900619 Ir 2.1.Jor RIDER TO DEED OF TRUST If Trustor shall fail at any time to occupy the subject property as Trustor's principal residence, or if Trustor's employment with the Beneficiary shall terminate, or if Trustor shall.fail to open an escrow for the sale of.Trustor's residence located at 1101 Nowita Place Venice Cal f 1 9 six (6 other and to at its hereby eviden after obl of the STATE COUNTY the un State, person acknow r , 1 orn a 0219, within months after the date hereof, or fail to perform any bligation under this deed of trust or note secured hereby cure such default within 3o days after written notice from Beneficiary, then Beneficiary shall have the right, option, to declare any indebtedness or obligations secured irrespective of the maturity date specified in any note ing the same, due and payable on the date which is g0 days he date Beneficiary delivers to Trustor written notice of iary's election to accelerate such indebtedness or IN WITNESS WHEREOF, Trustor has executed this Rider as and year first above written. CALIFORNIA as. LOS ANGELES Lynn Harris Ori this day of , 1990, before me, igned, a Notary Public In an for said County and sonally appeared Lynn Harris, known to me to be the se name is subscribed to the within instrument, and ed that she executed the same. WITNESS my hand and official seal. -1- 9DOd14- Jr •1.)er Notary Public PROMISSORY NOTE SECURED BY DEED OF TRUST $50,000.00 Santa Clarita, California 1990 FOR vALUE RECEIVED, the undersigned, LYNN HARRIS ("Makes"), promises to pay to the order of CITY OF SANTA CLARITA ("Holder"), at Santa Clarita, California, without deduction or offset`:the sum of FIFTY THOUSAND AND 00/100 DOLLARS ($50400.00), together with interest on the unpaid principal balance at the rate of percent ( �) per annum. All unpaid interest and prino_ipal_shall be due and payable on or beforelthe date that is five (5) years after.the data hereof; provided, however, the City Manager of the City of Santa Clarita shall have the power to extend the due date hereof by one (1) additional year, which option may be exercised by such City Manage by delivering written notice thereof to Maker. Maker may prepay, without penalty or premium, any amounpriori oftheedueldateathereof.al or Any gunder t his amounts so paidshallofirst be credited against accrued interest and the balance shall be credited against principal. be adjt below, equal t Holder (the 11] publisk Treaaui rate at first c (the "I unavail index t of this after w any ind shall b, the dat, Holders, Maker agrees that the interest rate on this Note shall :ed on each Interest Rate Adjustment Date, as defined itil the next Interest Rate Adjustment Date, toan amount the current annual interest .rate then being received by i funds deposited With the Local Agency Investment Fund AV), as computed from statistics tabulated and by Pooled Money investment Board of the Office of the of the State of California. Changes in the interest 1 occur annually, on the first day of the calendar month urring after the annual anniversary date of this Note erest Rate Adjustment -Date"). If the Index shall become Is, the Holder of this Note may choose an alternative t closely relates to the Index described herein. Should default be made by Maker in performance of any in of Maker hereunder or as contained in the Deed of I Assignment of Rents ("Deed of Trust") securing payment iOte, and if suchdefault is not cured within 30 days tten notice of such default, then, at Holder's option, tedness hereunder, irrespective of the due date hereof, ome due and payable on the date which is 90 days after Holder delivers thereof -to Maker written notice of election to accelerate of this Note. EXHIBIT A • 0 Moreover, notwithstanding the foregoing, if Maker fails to occupy as Maker's principal residence the property that is the collateral for the Deed of Trust, or if Maker fails to open an escrowifor the sale of Maker's residence located at 1101 Nowita Place, Venice, California, within six (6) months after the date hereof, or if Maker's employment with the city of Santa Ciarita shall terminate for any reason prior to the due date hereof, Holder shall have the.shall have the right, at its option, to declare any indebtedness hereunder, irrespective of the:due date hereof, due and payable on the date which is 90 days.after the date Holder delivers written notice thereof to Maker. To this and, the Deed of Trust provides as follows: shall the S If Trustor shall fail at any time to occupy the eject property as Trustor's principal residence, or if tutor's employment with the Beneficiary shall terminate, if Trustor shall fail to open an escrow for the sale of tutor's residence located at 1101 Nowita Place, Venice, .ifornia 90219, within six (6) months after the date ,aof, or fail to perform any other obligation under this A of trust or note secured hereby and to cure such Iault within 30 days after written notice thereof from eficiary, then Beneficiary shall have the right, at its ion, to declare any indebtedness or obligations secured eby, irrespective of the maturity date specified in any e evidencing the same, due and payable on the date which 90 days after the data Beneficiary delivers to Trustor tten notice of Beneficiary's election to accelerate such ebtedness or obligations. This Note and the Deed of Trust by which it is secured governed by and construed in accordance with the laws of of California. Maker waives presentment for payment, demand, protest, notice of protest and notice of dishonor. If any sum due under this Note is not paid when due, the and rsignad hereby covenants and agrees to pay all costs and expenses of collection, whether by suit or otherwise, at any time or fromltime to time incurred, including without limitation reasona}le attorney's fees. -2- 900619 Jr 2.1.I�r Lynn HarrIs "Makers • AND WNSN RECORoEO MAIL TO r Nem. 6v t Mn Ar awa 11.0 L. 1 J EXHIBIT B e AT. No. NN6011e SNORT FORM DEED OF TRUST AND TO 1930 W fla-MI JOPIN END) Trust, made this Gay Of ABOVE THIS LINE FOR RECOROER1 USE DNMENT OF RENTS (INDIVIDUAL) , betwccn whose Address is , herein caed Trustor, (number sed Q O (dor (.erre) (y) Timor Tide Insurance Company of California, a California corporation, herein called Trustee, and herein called Beneficiary, thatessethiproper That Trustor nuEvoeA2Lr CLAN", TR 6r1F2Ra AND uswNN " TRUSTEE IN TROT, WTM POWER OF LACK, that property in County. California, described u: IER wl'fFi the ante, illou and grafin thmof, SUBJECT, HOWEVER. to the ri111I64 gown end autbority $I to mod I'Pan enetidery by PUW'pb (10) of the ptovbioee inmrponted h"ele by fefAllow ro Collect and apply web rents, 'nryvu err 6eutllgl L Perfomnu otach agreement of True[9r Incorporated by rehnuce oe eonttined heretrf. 7. hyo the iadebtdneu evidenceOne by one pfomiroryy Rate Of wen dare h"ewith, Led ley motion or renewal theroof. in the Avon of a executed byto7mnecr in favat of Eanentary or efd". J, Payr otsueh farther come ai record awnee Of ptopofty hercanet =7 barrow from Beneficiary, who "maid by another out (Or notes) Veee i tour" and deliveey e/ thh Deed of Truer ud the nate Nene Or such county, viz. 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The undersigned Tmmr requesu that a copy of arty Netice of Otfault and of My Notice of Sale hafaal,d" be At his address herainbifore in faith. malted to him STATE OF CALIFORNIA i COUNTY OF JSL on befoff mt. the andenignad, a Notary Public in and to Cad Stan. penaniny appeared "nally known to me or proved to me oo the boob of ear• lefaerery v ddeau to be the pefwn�whou come subscribed to the within Wtmmml and atknv--fe3ged WITR=my buldoAnd the flew tial, Signturr Signature of Trustor Tide Ord" No. taeow or Loan No.