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Itm 16 Staff Report Adopt Resolution Authorizing Executive of Documents Regarding Habitat for Humanity House at 25 Charles AvenueDATE: TO: FROM: MEETING DATE: 1/21/03 TOWN OF Los GATOSITElV1 No. CIVIC CENTER COUNCIL/REDEVELOPMENT AGENCY AGENDA REPORWE.MAIN STREEr P.O. Box 949 Lcs GATOS, CA 95031 January 9, 2003 MAYOR AND TOWN COUNCIL/REDEVELOPMENT AGENCY DEBRA J. FIGONE, TOWN MANAGER/EXECUTIVE DIRE O SUBJECT: ADOPT RESOLUTION AUTHORIZING EXECUTION OF DOCUMENTS REGARDING HABITAT FOR HUMANITY HOUSE AT 25 CHARLES AVENUE. RECOMMENDATION: Adopt resolution authorizing execution of documents regarding Habitat for Humanity House at 25 Charles Avenue. BACKGROUND: In 1998, the Town began discussions with Habitat for Humanity regarding the construction of a home on a remnant parcel of Town owned property at 25 Charles Avenue. In June 2000, the Redevelopment Agency approved a Disposition and Development Agreement with Habitat providing that the Town would sell to the Redevelopment Agency the parcel at 25 Charles Avenue for $260,000. The Agency would then grant to Habitat the parcel at no cost in order that a home could be constructed on the property for a low-income family. In addition, the Redevelopment Agency would provide Habitat $50,000 for costs associated with the project. Subsequently, Habitat submitted plans and received approval of a two story, 1,100 sq. ft. home on the property. DISCUSSION: Habitat would like to begin construction of the house in early Spring 2003. They have received approval of their construction plans from the Town and are ready to pull theirbuilding permits. In addition, they have satisfied the other conditions of the Disposition and Development Agreement. PREPARED BY: (Continued on Page 2) Marty Woodwort Redevelopment Manager Reviewed by: V5. Assistant Town Manager (,- Town Attorney Clerk Finance Community Development Revised: 1/9/03 12:15 pm Reformatted: 5/30/02 INCORPORATED AUGUST 10,1887 i,� TEWNTMLOS cwATOS Civic CENTER RESOLUTION OF THE TOWN COUNCIL/REDEVELOPMENT AGEW OWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER/EXjF ixlr IRECTOR TO EXECUTE ALL DOCUMENTS PERTAINING TO THE SILICON VALLEY HABITAT FOR HUMANITY HOUSE TO BE CONSTRUCTED AT 25 CHARLES AVENUE TREEr x 949 95031 WHEREAS, on September 15, 2000, a Disposition and Development Agreement (the "DDA") was recorded with the County of Santa Clara; and WHEREAS, the DDA formed an agreement between the Redevelopment Agency of the Town of Los Gatos (the "Agency") and Silicon Valley Habitat for Humanity ("Habitat") for the construction of an affordable home on property known as 25 Charles Avenue; and WHEREAS, Habitat has met the pre -development conditions of the DDA and would like to begin construction of the house in Spring 2003. RESOLVED, that the Town Manager/Executive Director is hereby authorized to execute and/or accept all documents to carry out the terms of the DDA. Such documents, as attached as exhibits, include, but are not limited to, escrow instructions, grant deeds, certificate confirming transfer of fund, certificate accepting real property, Resale Restriction and Option of Purchase, Deed of Trust and Promissory Note, all substantially in the form of those attached. PASSED AND ADOPTED at a meeting of the Town Council/Redevelopment of the Town of Los Gatos, California, held on the day of , 2003 by the following vote: COUNCIL MEMBERS/REDEVELOPMENT AGENCY BOARD MEMBERS AYES: NAYS: ABSENT: ABSTAIN: Attachment 1 INCORPORATED AUGUST 10, 1887 Ca TOWN OF Los GATOS Crvc CENTER 110 E. Maw SnEEr P.O. Box 949 Los GATOS, CA 95031 PROPERTY ADDRESS: TITLE REPORT NO.: AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS) THIS AGREEMENT is entered into this _ day of December, 2002, by and between the TOWN OF LOS GATOS, a California municipal corporation ("Seller"), and the LOS GATOS REDEVELOPMENT AGENCY, a public body corporate and politic ("Buyer/Seller"), and shall also serve as escrow instructions for this transaction and for a concurrent transfer of the same real property from the Buyer/Seller to the SILICON VALLEY HABITAT FOR HUMANITY, INC., a California nonprofit public benefit corporation ("Second Buyer"), pursuant to a Disposition and Development Agreement between the Buyer/Seller and Second Buyer, recorded September 15, 2000, as document No. 15392414 ("DDA"). THE PARTIES AGREE AS FOLLOWS: 1. AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell to Buyer/Seller, and Buyer/Seller agrees to purchase from Seller, upon the terms and for the consideration set forth in this Agreement, all that certain real property in the State of California, County of Santa Clara, Town of Los Gatos, (hereinafter called "Property") legally described as: COMMENCING AT THE SOUTHWESTERLY CORNER OF THAT 1.796 ACRE TRACT OF LAND CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED MAY 21, 1956 IN VOLUME 3500, AT PAGE 577, OFFICIAL RECORDS OF SANTA CLARA COUNTY; THENCE ALONG THE SOUTHERLY LINE OF SAID 1.796 ACRE TRACT S. 80 DEG. 08' 40" E., 173.55 FEET, S. 75 DEG. 36' 16" E., 360.99 FEET AND S. 70 DEG. 28' 01" E., 73.56 FEET TO THE NORTHWESTERLY LINE OF BELLA VISTA AVENUE; THENCE S. 73 DEG. 17' 38" E. 52.37 FEET TO THE NORTHEASTERLY CORNER OF SAID AVENUE AND OF CHARLES STREET; AND THE ACTUAL POINT OF BEGINNING; THENCE ALONG THE NORTHEASTERLY LINE OF SAID STREET S. 62 DEG. 54' 50 E., 201.63 FEET; THENCE N. 34 DEG. 03' 18" E., 45.00 FEET; THENCE NORTHWESTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING AND BEING A PORTION OF LOT 4 IN THE BRAGDON SUBDIVISION OF THE TOWN OF LOS GATOS, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AS SHOWN ON THE MAP RECORDED ON NOVEMBER 5, 1917 IN BOOK P OF MAPS, AT PAGE 29. 2. PURCHASE PRICE. The total purchase price, payable by an inter fund transfer between the Seller and the Buyer/Seller, which transfer shall be acknowledged by certificate Exhibit 1 INCORPORATED AUGUST 10, 1887 '-a TOWN OF Los GATOS pefts,.s, including any cscr w t��, �:� cat ,uLlices as aie the responsibility of Sew'CarLER yer hereunder. 110 E. Mir STREET P.O. Box 949 Pay and charge Second Buyer for all document preparation and recording feel'tt P' 95031 half of and all other costs and expenses, including any escrow fee. • Disburse funds and deliver deeds when conditions of this escrow have been fulfilled by Seller, Buyer/Seller and Second Buyer. • Insurance policies for fire or casualty are not to be transferred, and Seller and Buyer/Seller will cancel their own policies after close of escrow. The term "close of escrow," if and where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the parties hereto. Any amendment of, or supplement to, any instructins must be in writing. TIME IS OF THE ESSENCE IN THESE INSTRUCTIONS AND ESCROW IS TO CLOSE AS SOON AS POSSIBLE. If this escrow is not in condition to close by , 2003, any party who then shall have fully complied with its instruments may, in writing, demand the return of money or property; but if nne have complied no demand for return thereof shall be recognized until five (5) days after Escrow Agent shall have mailed copies of such demand to all other parties at the respective addresses shown in these escrow instructions, and if any objections are raised within said five (5) day period. Escrow Agent is authorized to hold all papers and documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this escrow as soon as possible. Responsibility for Escrow Agent under this Agreement is expressly limited to Paragraphs 1, 2, 3, 4, 5, 6, 8 and 12 and to its liability under any policy of title insurance issued in regard to this transaction. 7. PERMISSION TO ENTER ON PREMISES. Seller and Buyer/Seller hereby grant to Second Buyer, or its authorized agents, permission to enter upon the Property al all reasonable times prior to close of escrow for the purpose of making necessary or appropriate inspections, or other project planning. 8. CLOSING STATEMENT. Seller and Buyer/Seller instruct Escrow Agent to release a copy of Seller's statement to Second Buyer in order to allow Second Buyer to ascertain if any reimbursements are due Sellers. 9. LOSS OR DAMAGE TO LMPROVEMENTS. Loss or damage to the Property INCORPORATED AUGUST 10, 1887 TOWN OF Los GATOS os Redevelopment Agency E. Main Street P.O. Box 949 Los Gatos, CA 95031 ATTEST: By: Marian Cosgrove, Town Clerk/ Secretary APPROVED AS TO FORM: By: Orry P. Korb, Town Attorney/ General Counsel BUYER/SELLER • Civic CENTER 110 E. MAIN STREET P.O.Box 949 Los GATOS, CA 95031 By: Debra Figone, Executive Director MAILING ADDRESS OF SECOND BUYER SECOND BUYER Silicon Valley Habitat for Humanity, Inc. 888 North First Street, Suite 215 San Jose, CA 95112 Attn: Bill Arnopp By: William Arnopp, Executive Director INCORPORATED AUGUST 10,1887 TOWN of Los GATOS NG REQUESTED BY: s Redevelopment Agency ain Street t Office Box 949 Los Gatos, CA 95031 WHEN RECORDED MAIL TO: Los Gatos Redevelopment Agency 110 E. Main Street Post Office Box 949 Los Gatos, CA 95031 CIVIC CENTER 110 E. MAIN STREET P.O. Box 949 Los GATOS, CA 95031 GRANT DEED For valuable consideration, receipt of which is acknowledged, TOWN OF LOS GATOS, a California municipal corporation, grants to LOS GATOS REDEVELOPMENT AGENCY, a public body corporate and politic, the real property in Los Gatos, California, described on attached Exhibit A, incorporated into this Grant Deed. Dated as of January _, 2003 GRANTOR: GRANTEE: Town of Los Gatos Los Gatos Redevelopment Agency By: By - Debra Figone, Town Manager Debra Figone, Executive Director APPROVED AS TO FORM: By: Orry P. Korb Town Attorney/General Counsel Exhibit 2 INCORPORATED AUGUST 10,1887 TOWN OF Los GATOS ig Requested By : os Redevelopment Agency . Main Street, P.O. Box 949 Los Gatos, CA 95031 After Recordation, Mail To: Silicon Valley Habitat for Humanity, Inc. 888 North First Street, Suite 215 San Jose, CA 95112 CIVIC CENTER 110 E. MAIN STREET P.O. Box 949 Los GATOS, CA 95031 GRANT DEED For valuable consideration, the receipt of which is hereby acknowledged, THE LOS GATOS REDEVELOPMENT AGENCY, a body corporate and politic, existing under the laws of the State of Califomia ("Grantor"), acting to carry out the central Downtown Project Area Plan ("Redevelopment Plan") under the Community Redevelopment Law of the State of California, hereby grants to SILICON VALLEY HABITAT FOR HUMANITY, a California nonprofit public benefit corporation (Grantee"), the real property (the "Property") legally described in the document attached hereto, labeled Exhibit A, and incorporated in this Deed by this reference. 1. The Property is conveyed subject to the Redevelopment Plan and pursuant to a Disposition and Development Agreement entered into by and between the Grantor and Grantee and dated , 2003 (the "DDA"). The Grantor makes no representations or warranties about the condition of the Property's title, and the Grantee must obtain title insurance to protect itself against unknown title conditions. 2. The Grantee hereby covenants and agrees, for itself and its successors and assigns, that the Grantee and such successors and assigns shall promptly begin and diligently prosecute to completion the redevelopment of the Property through the construction of the improvements required to be constructed pursuant to the DDA (the "Project"), and that such construction shall be commenced and completed within the times provided in the DDA. Promptly after completion of the Project on the Property in accordance with the provisions of the DDA, the Grantor will furnish the Grantee with an appropriate instrument so certifying (a "Certificate of Completion"). Such Certificate of Completion by the Grantor shall be a conclusive determination of the satisfaction and termination of the agreements and covenants in the DDA and in this Grant Deed with respect to the obligations of the Grantee and its successors and assigns to C Documents and Settings mwoodworh`.Local Settings•Templiabttat.Grant RDA wpd -1- Exhibit 3 INCORPORATED AUGUST 10,1887 to TOWN OF Los GATOS ndcr r through him, cstablish or perinit any such pr actice or practices of discrimineRmrrER egregation with reference to the selection, location, number, use or occupancy?® ,t a lessees, subtenants or vendees in the land herein leased." P.O. Box 949 Los GATos, CA 95031 c. In contracts: "There shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of the land, nor shall the transferee hi self, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use of occupancy of tenants, lessees, subtenants or vendees in the land." 6. The Grantee represents and agrees that its purchase of the Property, and its other undertakings pursuant to the DDA, are and will be used for the purposes of timely redevelopment of the Property and not for speculation in landholding. The Grantee further recognizes that in view of the following factors, the qualification of the Grantee are of particular concern to the community and the Grantor: a. The importance of the redevelopment of the Property to other properties to be developed as part of the Redevelopment Plan, and to the general welfare of the community, with particular reference to the community's objective of providing additional housing resources through effective redevelopment of the Property; and b. The land acquisition assistance and other public aids that have been made available by law and by the government for the purpose of making such redevelopment possible; and c. The reliance by the Grantor upon the unique qualifications and ability of the Grantee to serve as the developer of the Property and upon the continuing interest which the Grantee will have in the Property to assure the quality of the use, operation and maintenance deemed critical by the Grantor in the development of the Property; and d. The fact that a change in ownership or control of the Grantee, or of a substantial part thereof, or any other act or transaction involving or resulting in a significant change in ownership or with respect to the identity of the parties in control of the Grantee or the degree thereof is for practical purposes a transfer or disposition of the Property; and e. The fact that.the Property is not to be acquired or used for speculation, but only for development and operation by the Grantee in accordance with the DDA; and f. The importance to the Grantor and the community of the standards of use, operation and maintenance of the Property. C Doc..ncn and 1e:mgs m% o vv011❑ Locel Settings Temp Habiut C n.vrt RDA INCORPORATED ALIGLIST 10, 1887 TOWN OF Los GATOS it Gtaiitui shall lave the light to institute such actions or proceedings asGrER irable for effectuating the purposes of this Section, including also the right to fimatkkikeRIEET r file with the Recorder of the County of Santa Clara a written declaration of the termiitleh949 rights and title of the Grantee, and its successors in interest and assigns, in all oJtcYth ° b o n31 of the Property and the re -vesting of title thereto in the Grantor. Any delay by the grantor in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Section shall not operate as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that Grantor should not be constrained so as to avoid the risk of being deprived of or limited to the exercise of the remedy provided in this Section because of concepts of waiver, laches, or others), nor shall any waiver in fact made by the Grantor with respect to any other defaults by the Grantee or with respect to the particular default except to the extent specifically waived. 12. The Grantor has an irrevocable option to purchase the Property in the event the DDA is terminated pursuant to Section 8.4 of the DDA, and such termination occurs prior to the issuance of an Estoppel Certificate of Completion by the Grantor. The purchase option maybe exercised by the Grantor delivering to the Grantee a notice of exercise of the option, upon which the Grantee shall immediately convey the Property to the Grantor. The purchase price shall be the amount that would be payable to the Grantee under Section 8.4 of the DDA and Section 10 of this Grant Deed if the Grantor exercised its right of reverter, and the purchase price shall be due and payable promptly following the Grantor's subsequent sale of the Property to a third party in the same manner that the Grantor would sell the Property to a third party if the Grantor exercised its rights of reverter. 13. OnIy the Grantor, its successors and assigns, and the Grantee and the successors and assigns of the Grantee in and to all or any part of the fee title to the Property shall have the rights to consent and agree to changes or to eliminate in whole or in part any of the covenants contained in this Grant Deed, to subject the Property to additional covenants, easements, or other restrictions, or to consent and agree to changes in the Redevelopment Plan as they apply to the Property. For purposes of this Section, successors and assigns of the Grantee shall be defined to include only those parties who hold all or any part of the Property in fee title, and not to include a tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under deed of trust, or any other person or entity having an interest less than a fee in the Property. In the event there is a conflict between the provisions of this Grant Deed and the DDA, it is the intent of the parties hereto and their successors in interest that the DDA shall control. GRANTOR: GRANTEE: Los Gatos Redevelopment Agency, Silicon Valley Habitat for Hummanity, Inc. By: By. Its: Its. ALL SIGNATURES MUST BE NOTARIZED C Documenis and Settings mwoadworth' Local Settings`.Temp'Habitat Grant RDA wpd -J- INCORPORATED AUGUST 10, 1887 Za TOWN OF Los GATOS CERTIFICATE CONFIRMING TRANSFER OF FUNDS FROM REDEVELOPMENT AGENCY TO TOWN OF LOS GATOS CONCERNING REAL PROPERTY ACQUISITION CHARLES STREET, LOS GATOS, CA APN: 529-22-028 • CIVIC CENTER 110 E. Main STREET P.O. Box 949 Los GATOS, CA 95031 This is to certify that Los Gatos Redevelopment Agency Housing Set Aside Funds in the amount of TWO HUNDRED SIXTY THOUSAND DOLLARS ($260,000) have been transferred from the Los Gatos Redevelopment Agency ("Agency") to the Town of Los Gatos for the acquisition by the Agency of the above referenced Town -owned property for the purpose of conveying said property to Silicon Valley Habitat for Humanity, Inc. ("Habitat"), in order to develop a deed restricted affordable housing unit pursuant to the Disposition and Development Agreement between the Agency and Habitat recorded in the official records of the Santa Clara County Recorder on September 15, 2000, as document No. 15392414. Debra J. Figone, Executive Director APPROVED AS TO FORM: Orry P. Korb, General Counsel Date: Exhibit 4 INCORPORATED AUGUST 10, 1887 SS TOWN OF Los GATOS CERTIFICATE ACCEPTING REAL PROPERTY FROM THE TOWN OF LOS GATOS AT CHARLES STREET, LOS GATOS, CA APN: 529-22-028 Civic CENTER 110 E. MAIN STREET P.O. Box 949 Los GATOS, CA 95031 This is to certify that the interest in real property conveyed by the Town of Los Gatos„ a California municipal corporation, to the Town of Los Gatos Redevelopment Agency, a California public body corporate and politic, is hereby accepted by the undersigned officer on behalf of the Board of Directors of the Town of Los Gatos Redevelopment Agency, pursuant to authority conferred by section 2.30.025(d) of the Town Code of the Town of Los Gatos, adopted by the Town Council on February 20, 1973, and Resolution No. , adopted by the Los Gatos Redevelopment Agency on January , 2003, and the grantee consents to recordation thereof by its duly authorized officer. Debra J. Figone, Executive Director APPROVED AS TO FORM: Orry P. Korb, General Counsel Date: Exhibit 5 INCORPORATED AUGUST 10,1887 ii a TOWN OF Los GATOS 'G REQUESTED BY N RECORDED MAIL TO: Town of Los Gatos Redevelopment Agency 110 Main Street Los Gatos, California 95031 Attn: Redevelopment Manager No fee for recording pursuant to Government Code Section 27383 CFVJC CENTER 110 E. Main STRE.Er P.O. Box 949 Los GATOS, CA 95031 RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE This Resale Restriction Agreement and Option to Purchase (the "Agreement") is entered into as of , 2000, by and between the Town of Los Gatos Redevelopment Agency (the "Agency") and (the "Owner"), with reference to the following facts: The Owner is buying the property described in the attached Exhibit A (the "Home"), known commonly as Charles Street, as the Owner's principal residence. The Home was developed by Silicon Valley Habitat for Humanity (the "Developer") pursuant to that certain Disposition and Development Agreement between Agency and the Developer dated as of , 2000 (the "DDA"). The DDA required the Developer to sell the Home to a household with an income not greater than a threshold defined in the DDA, for a sales price not greater than an amount that would cause the purchaser's monthly housing cost to be "affordable." Without the restricted sales price for the Home under the DDA, the Owner would not have been financially able to purchase the Home. In exchange for the ability to purchase the Home, the Owner is agreeing to the resale restrictions on the Home set forth in this Agreement. WITH REFERENCE TO THE FACTS RECITED ABOVE, the Agency and the Owner (the "Parties") agree as follows: _ ARTICLE 1: DEFINITIONS Section 1.1 Definitions In addition to the terms defined elsewhere in this agreement, the following definitions shall apply: a. Adjusted Income means the total anticipated annual income of all persons in a household as calculated in accordance with 25 California Code of Regulations section 6914 or pursuant to a successor state housing program that utilizes a reasonably similar method of N:\ATY`.RESALE. WPD -1- Exhibit 6 INCORPORATED AUGUST 10, 1887 TOWN OF Los GATOS Option means the option to purchase the Home granted by the Owner. as r r \JVIC ...ENTER to the Optionee, as optionee, by this Agreement. When the Optionee exercisatiAIN STREET the Owner must sell to the Optionee the Home, subject only to the Permitted ExceNRax.949 at the purchase price set forth in Section 2.4(d). Lo GATOS, CA 95031 J. Optionee means the Agency or any government, nonprofit corporation, or natural person designated by the Agency to be the Optionee through a written notice delivered to the Owner. k. Parties means the Agency and the Owner. 1. Permitted Exceptions means this Agreement; the lien of assessments and ad valorem taxes not yet due or payable; such other encumbrances that were e exceptions to title on the date of this Agreement (other than taxes, assessments and encumbrances created or suffered by the Owner); and the lien of Approved Loans. m. Transfer means any voluntary or involuntary sale, assignment or other transfer of ownership of the Home or any interest in the Home, including a fee simple interest, tenancy in common, joint tenancy, community property, tenancy by the entireties, life estate or other limited estate or leasehold in the Home, or any interest evidenced by a land contract. n. Very Low Income Household means a household with an Adjusted Income that does not exceed fifty percent (50%) of Median Income. ARTICLE 2: TRANSFERS, RESALE RESTRICTIONS, AND OPTION Section 2.1 Transfers Prohibited Except As Specifically Approved a. The Owner shall not make or agree to make any Transfer except where the Transfer is made as explicitly permitted by Section 2.1(b), 2.2 or 2.3. Any attempt by the Owner to make a prohibited Transfer shall be void and shall trigger the Optionee's right to exercise the Option in the manner described in Section 2.4. b. The following Transfers are permitted by this Agreement and will not trigger the Optionee's right to exercise the Option: (1) Transfer by lifetime gift or by devise or inheritance to the Owner's spouse (subject to Section 2.1(d)); (2) Transfer by devise or inheritance to the Owner's natural or adopted children (subject to Section 2.1(c)); (3) Transfer by an Owner's death to a surviving joint tenant, tenant by entireties or a surviving spouse of community property (subject to Section 2.1(c) or (d)); N:\ATY\RESALE.WPD -3- INCORPORATED AUGUST 10, 1887 i,, TOWN OF Los GATOS estate conveyed to the Grantee, if the DDA is terminated pursuant w SCt.tiuu 8.4 f the LNIC CENTER 110 E. MAN STREET P.O. Box 949 11. The Grantor shall have the right to institute such actions or proceedin l Tits, k95031 deem desirable for effectuating the purposes of this Section, including also the right to execute and record or file with the Recorder of the County of Santa Clara a written declaration of the termination of all rights and title of the Grantee, and its successors in interest and assigns, in all or that portion of the Property and the re -vesting of title thereto in the Grantor. Any delay by the grantor in instituting or prosecuting any such actions or proceedings or otherwise asserting its rights under this Section shall not operate as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that Grantor should not be constrained so as to avoid the risk of being deprived of or limited to the exercise of the remedy provided in this Section because of concepts of waiver, laches, or others), nor shall any waiver in fact made by the Grantor with respect to any other defaults by the Grantee or with respect to the particular default except to the extent specifically waived. 12. The Grantor has an irrevocable option to purchase the Property in the event the DDA is terminated pursuant to Section 8.4 of the DDA, and such termination occurs prior to the issuance of an Estoppel Certificate of Completion by the Grantor. The purchase option may be exercised by the Grantor delivering to the Grantee a notice of exercise of the option, upon which the Grantee shall immediately convey the Property to the Grantor. The purchase price shall be the amount that would be payable to the Grantee under Section 8.4 of the DDA and Section 10 of this Grant Deed if the Grantor exercised its right of reverter, and the purchase price shall be due and payable promptly following the Grantor's subsequent sale of the Property to a third party in the same manner that the Grantor would sell the Property to a third party if the Grantor exercised its rights of reverter. 13. Only the Grantor, its successors and assigns, and the Grantee and the successors and assigns of the Grantee in and to all or any part of the fee title to the Property shall have the rights to consent and agree to changes or to eliminate in whole or in part any_ of the covenants contained in this Grant Deed, to subject the Property to additional covenants, easements, or other restrictions, or to consent and agree to changes in the Redevelopment Plan as they apply to the Property. For purposes of this Section, successors and assigns of the Grantee shall be defined to include only those parties who hold all or any part of the Property in fee title, and not to include a tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under deed of trust, or any other person or entity having an interest less than a fee in the Property. In the event there is a conflict between the provisions of this Grant Deed and the DDA, it is the intent of the parties hereto and their successors in interest that the DDA shall control. Grantor: Los Gatos Redevelopment Agency By: Its: u :\ATY\GRANT. WPD INCORPORATED AUGUST 10, 1887 to VALLEY TITLF COMPANY Escrow = Cc. Bill e TOWN OF;LOS GATOS Code Area - WHEN RECORDED MAIL TO J CIVIC CENTER 110 E. MAIN STREET P.O. Box 949 Los GATos, CA 95031 THIS DEED OF TRUST, Made this whose address is Deed of Trust SHORT FORM day of Between herein called TRUSTOR, (Number and Streeo (Ord aarist (Siam VALLEY TITLE COMPANY, a corporation, herein called TRUSTEE, and , herein called BENEFICIARY Wttnssseth: That Trustor irrevocably GRANTS, TRANSFERS AND ASSIGNS to TRUSTEE IN TRUST WITH POWER OF SALE, the real property situated in the County of , State of California, described as follows: Together with the rent& issues and profits thereof. SUBJECT, HOWEVER, to the npht. power and authority given t0 and Conferred upon Beneficiary by Psragrapn 5 of Part 8 of the provisions incorporated herein by reference to collect and goofy such rents. issues and profits For the Purpose of Securing: 1. Performance Of each agreement of Trustor incorporated by reference or herein Contained 2. Payment Of the indebtedness evidenced by one promissory note of even dale herewith in the Principal sum Of S payable t0 Beneficiary or order. 3. Payment of additional sums and interest demon which may hereafter be boned to Trustor. or his successors or assigns, wren evidenced by a promissory note or notes reeding that they are secured by thte Deed of Trust. Such addttbnel bans shall be secured hereby only it made to the owner of record of said property et a Tint• wren he to such Owner of record Trustor Agrees: By the execution and delivery of this Deed of Trust and the notes secured hereOy Me Daniell hereto agree that there're adopted and Included reran for any and all purposes by ref e rence Y th ougn the lame were written ,n full herein the provisions of Section & including paraprapns l throupn 6 l hereof, and of Section a. including persgraohs 1 through 10 thereof. Of that certain fictitious Deed 01 Trust recorded in the official records in the Offices o1 the County RecorOers of the following countlea: San Mateo County on Jen. 10. 1963 in Book 4366 pg. 576: Santa Cruz County on F*4 25. 1965 in Boos 1677 pa 481 Alameda County on Jan 29. 1965 in Reel 1425 image 648: and in Santa Clara County on July 14. 1959 in Book 4480 pd. 441. The undersigned Tremorresprata that a copy of any Notice of Default and of any Notice of Sale hereunder be mailed to him at he address herefnbefore set forth. STATE 01 CALIFORNIA COUNTY of Exhibit 7 On Nome me. the undersigned, a Notary Public in and for said County and State. personally appeared penonatly known to me or prevea 10 me O� me saws yr sa�msa. instrument and ackn0wied9e0 triatIVCORI'OR.17-prrAtmicr;r719717rs,mY nano and Official Seal within to, os ATOS PRCIMTSCQ � NOTE SLURED BY DEED OF TRUST e, California ary , 2003 CIVIC CENrER 110 E. MAIN STREET P.O. Box 949 Los GATos, CA 95031 For value received, the undersigned, SILICON VALLEY HABITAT FOR HUMANITY, INC., a California public benefit corporation ("Borrower"), promises to pay to the order of TOWN OF LOS GATOS REDEVELOPMENT AGENCY, a public body corporate and politic ("Lender"), at 110 E. Main Street, Los Gatos, CA or at any other place that may be designated in writing by Lender, the principal sum of $ 260,000. All sums due are payable in lawful money of the United States of America. This Note is secured by, among other things, the Deed of Trust Short Form of the same date as this Note, executed by Borrower, as trustor, in favor of Lender, as beneficiary ("Deed of Trust"), and encumbering the real property described in the Deed of Trust ("Property"). The holder of this Note will be entitled to the benefits of the security provided by the Deed of Trust and will have the.right to enforce the covenants and agreements of Borrower contained in the Deed of Trust. Borrower will pay to Lender the principal amount of this Note, and accrued interest, as follows: Pursuant to a Disposition and Development Agreement between the Lender and Borrower, recorded September 15, 2000, as document No. 15392414 ("DDA"), Borrower shall pay Lender $260,000, which payment shall be deferred until issuance of an Estoppel Certificate of Completion pursuant to the DDA for the Property, at which time the obligation to make the payment shall be forgiven and the Deed of Trust reconveyed. If Borrower fails to obtain the Estoppel Certificate of Completion pursuant to Article 5 of the DDA, and Borrower shall fail to cure said breach or failure as set forth in subsection (b) of section 8.4of the DDA, said failure or breach shall constitute a "Developer Event of Default" pursuant to that subsection (b) of section 8.4 of the DDA and Lender shall have all the rights set forth therein. Borrower will pay to Lender all sums owing under this Note without deduction, offset, or counterclaim of any kind. The relationship of Borrower and Lender under this Note is solely that of borrower and lender, and the loan evidenced by this Note and secured by the Deed of Trust will in no manner make Lender the partner or joint venturer of Borrower. • If any attorney is engaged by Lender to enforce or construe any provision of this Note, the Deed of Trust, or the other Loan Documents (defined in the Deed of Trust) or as a consequence of any Event of Default, with or without the filing of any legal action or proceeding, then Borrower will immediately pay to Lender on demand all attorney fees and other costs incurred by Lender. No previous waiver or failure or delay by Lender in acting with respect to the terms of this Note, the Deed of Trust, or the other Loan Documents will constitute a waiver of any breach, default, or failure of condition under this Note, the Deed of Trust, or the other Loan Documents. A waiver of any term of this Note, the Deed of Trust, or the other'Loan Documents must be made in writing and will be limited to the express written terms of the waiver. If there are any inconsistencies between the terms of this Note and the terms of any of the other Loan Documents, the terms of this Note will prevail. Exhibit 8 INCORPORATED AUGUST 10,1887 Silicon Vallev- �ti�• «nauimaarnose.org manirv, Inc. et, Suite 215 6464 - TOWN OF LOS GATOS Marty Woodworth Redevelopment Manager Community Development Department Town of Los Gatos Civic Center, 110 E. Main St. P.O. Box 949 Los Gatos CA, 95031 Dear Marty: 110 E. P.O. Box 949 Los GAros, CA 95031 January 9, 2003 You asked me to write to explain the process involved in selecting the family for the Los Gatos home to be built at 25 Charles Street. The mission of Silicon Valley Habitat for Humanity is, with the community; to help low income families build and own their own homes. The family is required to make their down payment with 500 hours of sweat equity. This is the equivalent of 3 months of 40-hour weeks, not easily done by people usually already working 40 or more hours per week. The no interest mortgage is paid off over thirty years. The family selection process began with community meetings at St. Mary's Church and Congregation Shir Hadish- Reform in September of this year. Selection involved applying firm criteria including: presently living in substandard housing, having an income of less than 50%of the median in our area, a reasonable credit history, living or working in Los Gatos, and U.S. citizenship. Following completion of their applications the families are visited in their present living situations by two separate teams of interviewers. The Family Selection Committee makes a recommendation to the Board of Directors who then vote based on their evaluation and report. The attached press release on our historic restoration in San Jose contains further information on the family selection process. Attachment 2 INCORPORATED AUGUST 10, 1887 za Habitattiorth8thSt. TOWN OF LOS GATOS Pagio1 Press Release FOR IMMEDIATE RELEASE CIVIC CENTER 110 E. MAIN STREET P.O. Box 949 Los GATC�, CA 95031 For More Information Contact: Chata Alfaro, SVHFH Interim Exe. Dir. (408) 294-6464, calfaro@habitatsanjose.org or Ginger Taylor McDonald, GTM Marketing (volunteer) (408) 396-2622, ginger@gtmmarketing.corn City of San Jose & San Jose Redevelopment Agency Gift Victorian to Silicon Valley Habitat for Humanity SAN JOSE, CA...Silicon Valley Habitat for Humanity (SVHFH), in partnership with the City of San Jose and San Jose Redevelopment Agency celebrate the start of restoration on a four - bedroom historical Queen Anne Victorian. It will take place on Saturday, January 11, 2003 at 157 North 8th Street, at 11 a.m., announced Chata Alfaro, Interim Executive Director. "The house is one of several that were moved from the future site of the San Jose City Hall and relocated throughout the city, because of their historical value." "In addition to providing affordable housing opportunities to the residents of San Jose, this partnership plays a vital role in revitalizing Downtown neighborhoods," said Susan Shick, Executive Director of the San Jose Redevelopment Agency. "Working together, we can increase the possibility of homeownership in San Jose." Cindy Chavez, City Councilwoman of District 13, said, "The City of San Jose continues to find creative ways to provide more affordable housing to our economically diverse community. Affordable housing gives families the opportunity to build a base in San Jose and provides them with the feeling of stability, integrity, and pride in their neighborhood. This Habitat for Humanity project is an enormous accomplishment for our community and an example of how innovative thinking can increase the quality life for our families." "SVHFH is also proud to announce that the cost to restore the house is made possible by our sponsors: The late Mrs. Gail Paulson, Dave Paulson and their family, The Congregation of Good Samaritan United Methodist Church in Cupertino, and The Myra Reinhard Family Foundation," said Alfaro. Pam Brotherton-Sedano, chair of the SVHfH Family Selection Committee, said, "The ceremony marks the beginning of a dramatic change in the lives of Mr. & Mrs. Villagomez and their three children, They are hard working individuals who because of their low-income were forced to live in overcrowded, substandard dwellings. The Villagomez were selected from a List of more than 85 applicants." file://D:1HabitatSJ8thStPR.html 1 /9/03 INCORPORATED AUGUST 10,1887 ! ianitatINortnzstnst. Page 3of3 • tential families livin• , , , OF .OS a TOS ent substandard living conditions, and their ability to make small monthly hoeCIVICC�R S. The selected families must invest 500 hours of "sweat equity" in the construe. M Box03sx 949 ��TOS omes. Working side -by -side, future homeowner families, donors, and other H ®'1 , CA 95031 volunteers create a spirit of partnership and develop a sense of community that benefits everyone. Once the construction is completed, Habitat sells the homes at no profit to the homeowner family, who pay over 30 years, small monthly NO INTEREST MORTGAGE PAYMENTS. Mortgage payments are recycled to build future homes for more needy families. Family Selection Guidelines Habitat welcomes applications from all families. Habitat does not discriminate based on race, color, religion, national origin, sex, handicapping condition, family status, marital status, or age (except that the applicant and co -applicant must be legally able and competent to enter into a binding agreement). Subject to special exception, a family unit may not exceed the capacity of the Habitat home (any more than two persons per bedroom). Eligibility The family must live or work within the city limits of San Jose. 1) The family must meet current income guidelines for Habitat eligibility as adopted by the . Board of Directors. a) The family does not qualify for conventional real estate financing. b) The family must have a history of financial responsibility. c) The family must have a history of steady income. d) There must be demonstrated ability to repay the loan to Habitat. e) There must be a willingness, desire, and commitment by the family to participate in the planning and building of the home or in the building of Habitat homes for others. fj The family must invest 500 hours of labor working on their home. g) The applicant, co -applicant, and additional wage earners must be permanent residents or citizens of the United States. ### file://D:\HabitatSJ8thStPR.html 1/9/03 INCORPORATED AUGUST 10, 1887 Za