CC Resolution No. 7157
RESOnmON No. 7157
A RESOIIJTION OF THE CITY croNCIL OF THE CITY OF aJPERI'INO
ATJ'lHORIzmG THE MAYOR AND CITY ATroRNEY TO EXEaJTE AN
AGREEMENT WITH o:HIUNITY HCXJSmG DEVEIDPERB, me.
FOR A IDAN OF $315,500 FOR AC(pISITION OF REAL PROPERl'Y
WHEREAS, On April 6, 1987, the City Council authorized a loan to
Cammunity Housing Developers in the ærount of $315,500 for acquistion of
real property at 20651 arrl 20653 Park circle E., CUpertino, California;
am
WHEREAS, The intent of said loan is to acquire said real property
for rental housing affordable to Senior citizens in acx::ordance with the
income limitations arrl purposes set forth in the IDan AgreeIlIeI1t; arrl
WHEREAS, the subject IDan AgreeIlIeI1t sets forth the terms arrl
purposes of said loan.
NCM, 'lliEREFORE, BE IT RESOLVED
SECl'ION ONE: The city Council of the city of CUpertino hereby
approves said loan éI.':J"eement, arrl authorizes the Mayor arrl city Attomey
to affix their signatures thereto.
SECl'IOO' 'IW): In acx::ordance with Section One of city Council
Resolution 7142, the amJl1Ilt of $315,500 is hereby appropriated from the
senior citizen Housing Fund for purposes of said loan proceeds.
SECl'ION 'IHREE: '!here is hereby aw,,~iated from the Senior citizen
Housing Fund the sum of $50,000 to be loaned for a period not to exceed 90
days at an interest equal to that being earned by the city on said fuJ'x:Is.
Said fuJ'x:Is will be advanced only upon the County's approval of funding for
the project, arrl that the City will be repaid the $50,000 amount advanced
under said loan from the County's proceeñ".
PASSED AND AOOPI'ED at a regular meeting of the city Council of the City
of CUpertino this 4th day of May, 1987 by the follCMing vote:
Vote Members of the city Council
AYES: Gatto, Plun;¡y, Johnson, Rogers,
NOES: None
ABSENT: None
ABSTAIN: None
Sparks
A'ITEST:
APB<OVED:
/s/ Roberta A. Wolfe
Deputy City Clerk
/s/ W. Reed SParks
Mayor, city of CUpertino
Ticor Title Co. #544738 8 Z 'so
i�ail 'lo:i �BPQ , 7i,
C
t0 oBoCu6880rtino LOAN AGREEMENT FOR THE DEVELOPMENT CE 687
Cupertino, Ca. 95014 AND MAINTENANCE OF LOW INCOME HOUSING
FOR SENIOR CITIZENS
/ /THIS AGREEMENT is made and entered into on the
day of , 1987, by and between the
City of Cupertino, a municipal corporation of the State
of California (hereinafter referred to as "CITY"), and
Community Housing Developers (hereinafter referred to as
"DEVELOPERS").
WHEREAS, the City Council, on December 15, 1986,
authorized circulation of a Request for Proposal to non-
profit housing providers inviting presentation of funding
requests for projects which fulfill the program objectives
of the CITY's affordable housing program; and
WHEREAS, the Proposal by Community Housing
'r� Developers, Inc. for a loan of $315,500 from said Senior
Citizen Housing Fund for purposes of acquiring and
rehabilitating two existing four-plexes as apartments for
senior citizen occupants on a shared living basis was
found to fulfill said program objectives.
WHEREAS,,CITY has agreed to loan three hundred and
fifteen thousand and five hundred dollars ($315,500.00) of
CITY's funds to DEVELOPERS to purchase and remodel
existing housing units which will provide affordable
housing for senior citizens meeting the CITY's income
eligibility requirements.
NOW, THEREFORE, the parties hereby agree as follows:
1. LOAN. CITY agrees to loan DEVELOPERS a maximum
of three hundred and fifteen thousand and five hundred
1
K158PAGE 1458
($315,500.00) dollars from CITY's funds. Said loan will
be evidenced by a Secured Installment Note executed by
DEVELOPERS and secured by a Deed of Trust satisfactory
to CITY. The Secured Installment Note will be in the
face amount of said loan, bear 0% interest, and be due
and payable in 35 years. Repayments of the loan amount
will commence on the first day of the sixth anniversary
of the execution of this Secured Installment Note and
shall continue on the first day of each subsequent year
in accordance with the established repayment schedule
attached as Exhibit "A" to the Secured Installment Note.
2. PROJECT. Said loan may only be used to
purchase and remodel the existing housing units located
at 20651 and 20653 Park Circle East, Cupertino,
California.
3. LOAN POSITION. Said loan will be recorded
against said property and will be subordinate only to
new purchase money mortgage from Citibank Savings in the
amount of $316,000 on the date this Agreement is
executed. CITY's loan will be senior to any future
loans secured by the property which are made subsequent
to the date this Agreement is executed.
4. PROJECT COMPLETION. DEVELOPERS agree to
immediately repay said loan if the project is not com-
plete within four (4) years of the date this Agreement
is executed.
2
K158PQGE1459,
5. PROPERTY USE. Said loan is based on the under-
standing that the property will be used by DEVELOPERS to
provide housing to Senior Citizens of low and very low
income. For purposes of this Agreement, Senior Citizen
is defined pursuant to California Health and Safey Code
Section 50067, as amended, as a person who is sixty (60)
years of age or older. One Hundred percent (100%) of the
tenants shall be those persons whose gross annual income
is not more than eighty percent (80%) of the median
income for Santa Clara County. The DEVELOPER will make
every effort to insure that fifty percent (50%) of
tenants shall be those persons whose annual income is not
more than fifty percent (50%) of the median income for
Santa Clara County. The rental charges for each unit
shall not exceed the amount of thirty percent (30%) of
the annual income limits set by HUD for a low income
household of two in the San Jose Standard Metropolitan
Statistical Area. Residents of the City of Cupertino
and their immediate relatives will receive first priority,
to the maximum extent feasible, in obtaining a room.
6. ACCELERATION. CITY may accelerate the maturity
of all installments to become due, if prior to fully
repaying the loan, DEVELOPERS disposes of the property,
whether by sale, lease, donation, or otherwise, or ceases
to use the property as described above in Section 5.
7. HOLD HARMLESS. DEVELOPERS agree to save and
hold harmless CITY from any and all damage and liability
N
K 15SPAGE1460
of every nature, including all costs of defending any
claim, caused by or arising out of the performance of
this Agreement including, but not limited to, any claims
brought by the present tenants occupying the subject
housing units.
8. NON-DISCRIMINATION. No discrimination shall be
made in the employment or housing of persons under this
Agreement because of the race, color, national origin,
ancestry, religion or sex of such person.
9. CHANGES. This Agreement shall not be assigned
or transferred without the written consent of CITY. No
changes or variations of any kind are authorized without
the written consent of CITY.
10. CAPTIONS. The captions of this Agreement are
for convenience of reference only, and the words
contained therein shall in no way be held to explain,
modify, amplify or aid in the interpretation,
construction or meaning of the provisions of this
Agreement.
11. SEVERABILITY. In the event that any provision
or clause in this Agreement conflicts with applicable
law, such conflict will not affect other provisions of
the Agreement which can be given effect without the
conflicting provision, and to this end the provisions of
the Agreement are declared to be severable.
4
IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.
State of California )
) ss.
County of Santa Clara )
On this 1,2 7,0 day of 04V , 1987, before
me, /YJAo? A'' j BAI , the undersigned Notary
Public, personally appeared Al/j2>4 Y.iT�s
personally known to me, or proved to me on the basis of
satisfactory evidence, to be the person(s) who execut d
the within instrument as .� ECd?I✓� bJl1EG w
or on behalf of the corporat ontherein named, and
acknowledge to me that the corporation executed it.
WITNESS my hand and of
(SEAL)
COMMUNITY HOUSING DEVELOPERS,
a non-profit corporation
FOR
CoTsjjNI ITY HOUSING DEVELOPERS, INC. A CALIFORNIA
ptttte-gETqEf-58} SPIT. CORPORATION
APPROVED AS TO FCIRM
CIT ATTORNEY
CITY OF CUPERTINO, a municipal
corporation
MAYOR
State of California
) ss.
County of Santa Clara )
On his day of , 1987, before
me, c , a nd signe4_Notary
Public, person ly appeared J
personally known to me, or proved to me on the bdsis of
satisfactory evidence, to be the person(s) who executed
the within instrument as
or on behalf of the corporation therein named, and
acknowledge to me that the corporation executed it.
WITNESS my hand and official sea
(SEAL)
Notary's Signature 5
OFFICIAL SAI;
Dorothy Marie
NUfARy pU8LIC Cornelius
SANTA CI,gR -CALIFORNIA
MY Comny�on EXPires A COUNTY
���=ooe� •�, April 11 1988
;tom
OFFICIAL SEAL
Ltd-
MARTEN BARRY
ul�
�r
NOTARY PUBLIC - CALIFORNIA
SANTA CLARA C!IUNTY
=
My comm, expires A?11R 4, 1988 1,
CITY OF CUPERTINO, a municipal
corporation
MAYOR
State of California
) ss.
County of Santa Clara )
On his day of , 1987, before
me, c , a nd signe4_Notary
Public, person ly appeared J
personally known to me, or proved to me on the bdsis of
satisfactory evidence, to be the person(s) who executed
the within instrument as
or on behalf of the corporation therein named, and
acknowledge to me that the corporation executed it.
WITNESS my hand and official sea
(SEAL)
Notary's Signature 5
OFFICIAL SAI;
Dorothy Marie
NUfARy pU8LIC Cornelius
SANTA CI,gR -CALIFORNIA
MY Comny�on EXPires A COUNTY
���=ooe� •�, April 11 1988
TiCOR TITLE INSURANCE
APPLICATION NUMBER: 0544738 0000
K1 5 SpAGE -1 4 3 2
SCHEDULE C
:he land referred to herein is described as follows:
All that certain real property in the City of Cupertino, County of
Santa Clara, State of California, described as follows:
Lot 14, Tract No. 3061 Stevens Creek Park, filed for record in the
Office of the Recorder of the County of Santa Clara, State of
California on November 29, 1961 in Book 140 of Maps, at page 44.
Ticor Title Insurance Company of California
Recorded at the reque$t of
TICOR Title Ineurance Company
of California
MAY 811987 8:A.0
Laurie Kane, Recorder
SANTA CLARA COUNTY, OFFICIAL RECORDS
_5_
K158PASEi463
K158PAGE1457 Of
RECORDING REQUESTED BY
Ticor Title Co.
Escrow# 544738
AND WHEN RECORDED MAIL TO
F
Name City of Cupertino
Str et P. 0. Box 580
Ad Cupertino, Ca. 95014
Ctva
State
CAT. NO. NNO0608
TO 1934 CA (3-83)
9283606
K 158PAGE1442
Fiecorded at the request of
TICOR Title f Insurance
Company
MAY 2 11987 a:oo
A.M.
SMPF Laurie Kane, Redortkr
SANTA CLARA COUNTY, OFFICIAL �ECOR���f��A
J PCOR �
SPACE ABOVE THIS LINE FOR RECORDERi01SE--
Request for Notice `
UNDER SECTION 2924b CIVIL CODE
In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice of
Default and a coy of any Notice of Sale under Deed of Trust recorded as Instrument No. i �3 on
Z.
wau.l a,k , 19_8 J , in Book/Reel , Page/Image ,
Q a
Official Records of ra Yta c1 a r'c9. County, California, and describing land therein as
D Recording Concurrently Herewith
N Executed by Community Housing Developers Inc , as Trustor,
in which Citicorp Savings is named as
Beneficiary, and Citicorp Savings Service Corporation , as Trustee,
be mailed to The City of Cupertino
at P 0 Box 580 -
(� Number and Street
Mtky 19, 1987
Cupertino, Ca. 95014 - Dated
CRV and State
,d
elly Uan
STATE OF CALIFORNIA
COUNTY OF
On
FOR CORPORATE ACKNOWLEDGEMENT
} Ss.
before me, the undersigned, a Notary
Public in and for said State, personally
appeared
personally known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within
instrument as the President, and
personally known to me or proved to me on the basis of satisfactory evidence to be the person
who executed the within instrument as the Secretary of the Corporation that executed
the within instrument and acknowledged to me that such corporation executed the within instrument pursuant to its by-
laws or a resolution of its board of directors.
WITNESS my hand and official seal. Signature
FOR INDIVIDUAL ACKNOWLEDGEMENT
STATE OF CALIFORNIA1 Ss
COUNTY OF Santa Clara I
On � 19 1987 before me, the undersigned, a Notary Public in and for said State, personally
appeared
personally known to me or proved to me on the basis
of satisfactory evidence to be the person_ whose name ^ s ibed to the within inst ment ar,d cknowledged
thatexecuted the same.
WITNESS"my hand and official seal. Signature
GnD PeD'rNFPrT41P ArKNOWI.EDGEMENT NlaTlan Schmidt