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HomeMy WebLinkAbout619 W. 9th Avenue 13-0337 5 111I1 "I'111 1 11 11 I 1' 11 il III 1' MORTGAGE 8 Tx:4383835 8 DOC# 179526(= Document Number Document Title NATALIE STROHME'-,R CITY OF OSHKOSH REGISTER OF DEF' =- RENTAL REHABILITATION PROGRAM WINNEBAGO COUNT '' FYI DEFERRED PAYMENT LOAN RECORDED ON 08/01/2019 11:23i RECORDING FEE I hereby mortgage,convey and warrant to the CITY OF OSHKOSH,a PAGES: 6 Municipal Corporation located in Winnebago County,Wisconsin (mortgage lender),in consideration of my receiving a deferred payment loan I (� in the amount of FIFTEEN THOUSAND DOLLARS and NO/100 I I ($15,000.00)for the rehabilitation,preservation and enhancement of rental Recording Area residential real property which is commonly known as 619 W.9th Avenue, Name and Return Address Oshkosh,and legally described as being in Winnebago County,State of City Attorney's Orrice /' \,�Q Wisconsin: Oshkosh,WI 54902-1130 L._ Lot 4,Block 1,in STREICH'S ADDITION,13th Ward,City of Oshkosh 913-0337-0000 Parcel Identification No. I This is not homestead property. This is not a purchase money mortgage. I certify that I have title to this property and that the title is free and clear of all encumbrances, excepting only restrictions and easements of record,municipal and the zoning ordinances,current taxes and assessments not yet due and any encumbrance noted below: NONE I will keep the mortgaged property free from any lien or encumbrance superior to the lien of this mortgage,except for those noted above. I agree to this mortgage on a condition that,if I pay to mortgage lender the full amount of the deferred payment loan secured by this mortgage and conform with the terms of the Borrower's Certification, Deed Restrictions, and this mortgage,then this mortgage will cease and the note(see Borrower's Certification)will be void. I will pay before they become delinquent all taxes and assessments which may be levied or assessed against this mortgage, the note secured by this mortgage and the property described above. I will deliver to mortgage lender, upon demand,a receipt showing due payment of any tax or assessment. I will keep the mortgaged property insured for fire and extended coverage perils for at least the full and fair market value of the property and pay the premiums thereon when due. I will make sure the City of Oshkosh is listed as a mortgage holder on the insurance policy. I agree to keep the mortgaged property in good condition and repair. I will not do anything to diminish or impair the value of the mortgaged property. Under any foreclosure proceeding,all foreclosure expenses,including reasonable attorney's fees,will also be added to the amount of the deferred payment loan and become due as incurred, and in case of judgement, will be included therein. If I fail to act according to the terms and conditions of this mortgage, the Borrower's Certification, or the Deed Restrictions for a period of more than fifteen(15)days,then the whole amount of the deferred payment loan will,at the option of the mortgage lender,become due and payable without notice. Under this circumstance, I hereby waive my right to notice. I understand that the mortgage lender is not responsible for the work performed by any contractor on my property. whether paid for out of deferred payment loan funds or otherwise. Unless otherwise required by law, the invalidity or unenforceability of any provision of this mortgage will not affect the validity or enforceability of any other provision. All the terms,conditions and covenants of this mortgage will be binding on my heirs,legal representatives,successors or any other individual to whom an interest in the mortgaged property or this mortgage is assigned. I shall not transfer, sell or convey any legal or equitable interest in the property(by deed, land contract,option,long- term lease or in any other way)without the prior written consent of the mortgage lender,unless either the indebtedness secured by this mortgage is first paid in full or the interest conveyed is a mortgage or other security interest in the property, subordinate to the lien of this mortgage. The entire indebtedness under the note secured by this mortgage shall become due and payable in full, at the option of the mortgage lender without notice, upon any transfer, sale or conveyance made in violation of this paragraph. (PLEASE NOTE THE SINGULAR "I" ALSO INCLUDES THE PLURAL "WE" IF THERE IS MORE THAN ONE SIGNATURE APPEARING BELOW) Dated this ,1!v day of 40tai / ,2019 ADVOCAP Inc. ?' (SEAL) MI L BONERTZ,Executive Director (SEAL) S ' r�C�O•• tii '' Q` AUTHENTICATION ACKNOWLEDGEMENT a • ✓ . S a Signature(s) STATE OF WISCONSIN ) Z�� 0A i - a WINNEBAGO COUNTY ) y 4 �. Z Q . Authenticated this day of 20_ L. pis, •:O S tia STP(<G`.. Personally came before me this 11j day of Aii 1 2011 PRINTED NAME: the above named Ali Chat..1 o,iert, TITLE:MEMBER STATE BAR OF WISCONSIN (If not, to me known to be the person(s)who executed the foregoing authorized by Sec 706.06,Wis Stats) instrument and acknowledge the same. Notary Public, Fond •i) ac County My_Commission(is permanent)(expires) May t3 20_a_a (Signatures may be authenticated or acknowledged.Both are not necessary.) Document drafted by: Lynn Lorenson,City Attorney,Oshkosh,WI ADDRESS: 619 W.9th Avenue,Oshkosh DEFERRED PAYMENT MORTGAGE NOTE AND BORROWER CERTIFICATION As an applicant for a deferred payment loan to be financed with Federal Community Development Block Grant(CDBG)funds through the City of Oshkosh,Department of Community Development,I hereby acknowledge and agree as follows: 1) The proposed improvements listed on the contract accurately describe how the proceeds of the deferred payment loan will be used and I will obtain approval from the Dept.of Community Development staff on all contracts for all work to be funded with said loan proceeds before I enter into such contracts. 2) All improvements will be completed no later than ninety(90)days after the date of mortgage closing. 3) I authorize the City of Oshkosh,the State of Wisconsin and other authorized agents,to inspect the work financed by this loan. 4) None of the proceeds of this loan will be used to finance any improvements undertaken prior to the date of application approval. 5) I authorize the City of Oshkosh to make any and all documents pertaining to this loan available to the U.S.Department of Housing and Urban Development and other authorized agents. 6) I certify that I have record title to or an equitable interest in the property to be improved. 7) I understand that after this project is completed,this property will be ineligible for future CDBG Rental Rehabilitation Program grants or loans. 8) I am aware that any false statement or misrepresentation made in connection with this grant may subject me to criminal and civil penalties under United States and Wisconsin law. 9) I agree to comply with the CDBG Rental Rehabilitation Program requirements and all requirements contained in the Deed Restrictions. 10) I will comply with the City of Oshkosh Fair Housing Ordinance,the Wisconsin Open Housing Law,and the Federal Fair Housing Act. 11) I accept from the City of Oshkosh,a deferred payment loan in the amount of FIFTEEN THOUSAND DOLLARS AND NO/100($15,000.00)and agree that I will notify the City of Oshkosh upon the transfer of the property identified below if it is transferred during the life of this lien,at which time the loan,or balance thereof,will be repaid immediately to the City of Oshkosh. 12) The applicant is responsible for repayment of said loan as follows: $15,000 payable to the City of Oshkosh on or before April 22,2034. 13) I grant to the City of Oshkosh,and the City of Oshkosh hereby has,a mortgage on the real estate described below in the full amount necessary to satisfy my repayment obligation for the payment here made and for any subsequent payments made,and the cost,including reasonable attorney's fees,of collecting same. The real estate subject to this mortgage is situated in Winnebago County,State of Wisconsin,and is legally described as follows: Lot 4,Block 1,in STREICH'S ADDITION, 13th Ward,City of Oshkosh. Commonly known as: 619 W.9th Avenue,Oshkosh. 14) If any of the provisions of this promissory note,the corresponding mortgage note,or any of the specifications or other documents completed by me are violated by me,or if I am not in compliance with any of these provisions,then I agree to repay to the City of Oshkosh all amounts granted immediately upon demand. Dated this day of / / ,2019 ADVOCA Inc. EL ONE TZ CITY OF OSHKOSH CDBG RENTAL REHABILITATION PROGRAM REQUIREMENTS AND DEED RESTRICTIONS FOR PROPERTY OWNER(S)OF ADDRESS: 619 W.9th Ave.,Oshkosh The following CDBG Rental Rehab Program requirements run with the property and will be binding upon any future purchaser throughout the term of this agreement. The property is commonly known as 619 W. 9th Avenue, and legally described as being in Winnebago County, State of Wisconsin, as follows: Lot 4, Block 1, in STREICH'S ADDITION, 13th Ward, City of Oshkosh Before a property can be approved for CDBG Rental Rehab funds,the property owner(s)must indicate that he/she understands and will remain in compliance with these requirements by initialing each item, and by signing and dating this document. PERIOD OF AFFORDABILITY This project must remain affordable based on the CDBG subsidy per unit. The affordability period starts when the units are all rented out and inhabited by tenants. Rehabilitation of up to $10,000 per structure plus $5,000 per unit. For ten(10)years. X Rehabilitation of up to $10,000 per structure plus $5,000 per unit. For fifteen(15)years. Rehabilitation of$5,000 per structure to reduce the number of units. INITIAL RENTS Maximum rents to be charged will be determined by the Department of Housing and Urban Development and the City of Oshkosh. Rents based on the Section 8 Fair Market Rents (FMR). For project lease up,the FMR must be used in calculating the rent in all of the units. The cost of any tenant paid utility must be subtracted to determine Maximum rents allowed in either category. Deductions for tenant paid utilities are obtained from the City of Oshkosh. This amount must be recalculated with each lease renewal. OCCUPANCY QThe CDBG assisted units must be leased to households whose income does not exceed 60%of the Area Median Income. dicR If the initial tenants' income should exceed 80% of the Area Median Income,their rent will increase to 30%of their adjusted household income or the market(street)rent of this or a comparable unit, whichever is less. Deed Restriction 1 •i t 10At� the conclusion of the Rental Agreement between the property owner and the initial tenant, subsequent occupants must be at or below 60%of the Area Median Income until the end of the Period of Affordability. Each new tenant must be approved by the City of Oshkosh. ifije Each year,throughout the Period of Affordability,the property owner will obtain income information from each tenant and submit it to the City of Oshkosh, Department of Community Development. The City will supply a form for this purpose. OTHER REQUIREMENTS: paJe---On all projects, an inspection will be conducted every year. The CDBG assisted units must meet the City's Minimum Housing Code and the Section 8 Housing Quality Standards (HQS). ENFORCEMENT /)15 In the event the property owner, as grantee, violates any of the terms of this agreement,the City of Oshkosh, as grantor, reserves the right to take such action to cure such violation. Dated this g6, day of Aft,ji L 2019. ADV AP Inc. MI EL BONERTZ Deed Restriction 2