WARD, HOLLY A. - Laserfiche WebLink

"Residence "), the City is using a portion of its Lower Income Housing Fund as the source of a loan from the City to Borrower in the amount of the original principal sum of this Note; the loan, which is evidenced by this Note, provides for the monthly payment by Borrower to the City of Simple Interest at a rate which is less than or equal to what Borrower would be required to pay pursuant to a market rate loan secured by a second mortgage or deed of trust. 3.4 Acceleration. In order to provide a means to continue to provide below market rate second mortgage financing to moderate income households and eventually to expand the amount of such financing available to such households, the outstanding principal amount of the Note, plus all accrued Interest is due and payable by Borrower to the City in the event the Residence, or any interest in it, is transferred by Borrower. For the purpose of this Section 3.4, "transfer" shall have the same meaning as is set forth in Section 2.3 herein. 3.5 The Residence. The Residence, as is commonly described as set forth in Section 3.3, above, is more fully described in Exhibit "A" attached hereto and incorporated herein by reference. The Residence is hereby designated as a Moderate Income Unit, and its purchase and any subsequent transfer shall be subject to the provisions, as applicable, of this Note. The Residence serves as security for the Deed of Trust executed in connection with this Note. 3.6 Information Provided to City. The financial and other information previously provided to the City by Borrower for the purpose of qualifying to purchase a Residence was true and correct at the time it was given to the City and remains true and correct as of the date of the execution of this Note. 4.0 The loan to Borrower which is evidenced by this Note is made as part of the City of Pleasanton Homeownership Assistance Program (PHAP). The Borrower's income under the Program shall be reviewed by the Lender after two years and five years following execution of this Note and each year thereafter. Except as stated in Section 4.2, all monthly payments of principal and interest shall be waived until five (5) years after the date of this Note was executed. 4.1 At the conclusion of the fifth year after the execution of this Note, Borrower shall begin principal and interest payments on the Note as specified in Section 1.0. Any payment of principal and /or interest shall not result in the proportion of the Borrower's income applied toward monthly housing costs, which include principal and interest on any first mortgage loan, private mortgage insurance, homeowner insurance, homeowners association fees and property taxes, exceed 38 percent of the Borrower's annual income. In the event that the required principal and/or interest payment due results in monthly housing costs in excess of 38% of the Buyer's annual income, the principal and/or interest payment due will be adjusted to an amount that will result in an income to housing cost ratio of 38 percent. However, Lender shall have the option to allow deferral of interest and /or principal payments or to allow partial payment of interest and /or principal payments as specified in Section 1.0 beyond the initial waiver period if necessary to address a financial hardship as determined by the City Manager. The method and amount of partial payment or length of additional deferment shall be determined by the Lender. Page 3