THIS INSTRUMENT PREPARED BY VIRGINIA BEACH CITY ATTORNEY'S OFFICE $ WORKFORCE HOUSING DEED OF TRUST THIS WORKFORCE HOUSING DEED OF TRUST is made this day of,, by and between, ( Eligible Buyer ), GRANTOR, and, TRUSTEE, whose mailing address is:, GRANTEE for indexing purposes, for the City of Virginia Beach, Virginia, a municipal corporation of the Commonwealth of Virginia, ( the City ), NOTEHOLDER. W I T N E S S E T H: WHEREAS, the City has adopted a Workforce Housing Program (the Program ) where it seeks to promote the ownership of affordable housing by residents of the City with median incomes between 80% and 120% of the area median income in the Hampton Roads Area; and WHEREAS, in order to implement the ownership of affordable housing, the City has provided incentives to developers to accept less than fair market value for Workforce Housing Units, as defined in the Program, and the City has agreed to finance the difference between the Initial Sales Price (as defined in Chapter 16, Article VIII, City Code) and the fair market value of the Workforce Housing Units at zero (0%) percent interest, subject to a deed of trust. The amount financed by the City at zero (0%) percent interest is equal to the Workforce Housing Discount as defined in the Chapter 16 Article VIII of the City Code; and WHEREAS, the City has entered into an agreement with the Developer entitled, City of Virginia Beach and Developer Workforce Housing Participation Agreement (the Developer Agreement ) dated as of with, ( the Developer ) wherein Developer agrees to make a Workforce Housing Unit available for sale at the Discounted Sale Price; and WHEREAS, Eligible Buyer and City have agreed in an agreement entitled Workforce Housing Participation Agreement, that the Eligible Buyer shall pay the Developer the Discounted Sales Price and that the City is entitled to receive the Workforce Housing Discount as evidenced by the Workforce Housing Promissory Note; and WHEREAS, THE ELIGIBLE BUYER HAS AGREEED TO PARTICIPATE IN A SHARED APPRECIATION PROGRAM WHEREBY A PORTION OF THE ACCRUED EQUITY IN THE WORKFORCE HOUSING UNIT WILL BE DUE TO THE CITY OF VIRGINIA BEACH UPON THE SALE OR TRANSFER OF THE WORKFORCE HOUSING UNIT. GPIN: 1
NOW, THEREFORE, the said GRANTOR does grant and convey unto the said TRUSTEE, the following property, to-wit: See attached Exhibit A IN TRUST, to secure holder or holders thereof, without preference, the payment of the principal sum of ($ ) with ZERO (0%) PERCENT interest, evidenced by that certain Workforce Housing Promissory Note of even date herewith, and also to secure the payment of any note or notes, bond or bonds, given and received in curtail or renewal, in whole or in part of the above described debt; and IN TRUST, to secure the City of Virginia Beach, Virginia, the payment of the City's Shared Net Appreciation as evidenced by a certain Workforce Housing Equity Sharing Agreement of even date herewith. THIS DEED OF TRUST SHALL NOT, WITHOUT THE CONSENT OF THE SECURED PARTY HEREUNDER, BE SUBORDINATED UPON THE REFINANCING OF ANY PRIOR MORTGAGE. This Deed of Trust is given to secure a debt in accordance with the provisions of Section 55-59 et seq. of the Code of Virginia as amended and effective on the date thereof, and, as therein provided, shall be construed to impose and confer upon the parties hereto, and the beneficiaries hereunder, the duties, rights and obligations therein set forth. As authorized and permitted by said Sections the following additional provisions are herein incorporated, in short form, and to be construed as therein provided; ADVERTISEMENT REQUIRED: Advertisement of the time, place and terms of sale once a week for two (2) successive weeks in a newspaper published in the City of Virginia Beach, Virginia; BIDDER'S DEPOSIT of not more than ten percent (10%) of the amount secured by this Deed of Trust may be required; IDENTIFIED BY TRUSTEES' SIGNATURE; DEFERRED PURCHASE MONEY; EXEMPTIONS WAIVED; SUBJECT TO CALL UPON DEFAULT; RENEWAL OR EXTENSION PERMITTED; RIGHT OF ANTICIPATION RESERVED; INSURANCE REQUIRED: $ ; SUBSTITUTION OF TRUSTEES PERMITTED; Grantor agrees that any default on a superior lien on the Property shall be a default under this lien and render the balance due hereunder immediately due and payable. In addition, Grantor hereby covenants and agrees to 1) promptly pay when due all taxes, assessments or governmental or municipal charges or fines on the Property, 2) to keep the improvements now existing or hereafter erected on the Property adequately insured against loss by fire, hazards and 2
such other risks as the City may reasonably require; all policies and renewals must contain a standard mortgage clause in favor of the City of Virginia Beach, 3) keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property. In the event of any default hereunder, and for the duration thereof, the Trustee or Trustees hereunder, in addition to all other remedies, shall be entitled to take possession of the property herein conveyed and above described, to dispossess the owner or owners thereof or any tenant of said owner or owners, and to collect any and all rents, issues and profits of said property for the use and occupancy thereof; and may apply said rentals for the following purposes: to the cost and expenses of the Trustee or Trustees in and about the administration of the trust; to the cost and expense of any repairs to said property deemed necessary or desirable by said Trustee or Trustees; to the payment of taxes and premiums of insurance on said property; and on account of the indebtedness hereby secured; and to that end the Trustee or Trustees are empowered to lease the said property for such time and upon such terms and conditions as they may deed advisable; to distrain for rent or take any other legal action to enforce the collection thereof, or to repossess the property. Grantor grants to the Noteholder, in his sole discretion and without cause or reason, the right and power to appoint from time to time one or more substitute Trustees, any or all of whom may act. The said grantor covenants that they will pay the debt hereby secured, and further covenant that they will warrant generally the property hereby conveyed. The resale restrictions contained in the Workforce Housing Participation Agreement dated the day of, shall not survive foreclosure, deed-in-lieu of foreclosure, or assignment of a superior deed of trust in favor of the Department of Housing and Urban Development. The City of Virginia Beach shall not be entitled to obtain any proceeds from future sales or transfers of the Property after foreclosure, deed-in-lieu of foreclosure, or assignment of a superior deed of trust in favor of the Department of Housing and Urban Development. This Workforce Housing Deed of Trust shall be released on payment in full of all sums secured hereby. NOTICE: THE DEBT SECURED HEREBY IS SUBJECT TO CALL IN FULL OR THE TERMS THEREOF BEING MODIFIED IN THE EVENT OF SALE OR CONVEYANCE OF THE PROPERTY CONVEYED. [SIGNATURES ON THE FOLLOWING PAGE] 3
WITNESS the following signatures and seals: Print Name Print Name (SEAL) (SEAL) STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: I,, a Notary Public in and for the City aforesaid, do hereby certify that and, who produced as identification, whose name is signed to the writing hereto annexed, bearing date the day of, 20, has acknowledged the same before me in my said City and State. Given under my hand this day of,. Notary Registration Number: My Commission Expires: X:/GlobalFiles/WFH/LegalDocuments/20121205-HNP-HD-DeedOfTrust-CON.doc Notary Public 4
Exhibit A Legal Description of the Workforce Housing Unit 5