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HomeMy WebLinkAbout332 Hudson Street MORTGAGE ORIGINAL DOCUMENT Document Ynm6er Document Tide -RECORDED as: sirF� fijtfe 00umerlt No. t CITY OF OSHKOSH Will RENTAL REHABILITATION PROGRAM DEFERRED PAYMENT LOAN Date: � j Tlrne. hereby mortgage,convey and warrant to the CITY OF RecardinZ Area OSHKOSH, a Municipal Corporation located in Winnebago \ameand Morn addresa County,Wisconsin (mortgage lender), in consideration of City Attorneys orae my receiving a deferred payment loan in the amount of TWENTY Oshkosh,NVI349©2-1130 THOUSAND DOLLARS and No/100 ($20,000.00)for the rehabilitation, preservation and enhancement of rental residential _904-0357 0000 real property which is commonly known as 332 HUDSON STREET, ParCeI Identification No. Oshkosh,Wisconsin and legally described as being in Winnebago County, State of Wisconsin: The East 45 feet of Lot 23, Block 82, in WASHBURN'S SUBDIVISION of Lot 4 of Block 41, 4th Ward, City of Oshkosh 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: Mortgage to Choice Bank in the amount of$1,600,300.00 and recorded in the Register of Deeds office on even date herewith. (includes 21 other parcels) I will keep the mortgaged property free from any lien or encumbrance superior to the lien of this mortgage, except for those noted above. agree to this mortgage on a condition that,the full amount of the deferred payment loan secured by this mortgage is due in full on or before September 4, 2027, 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 Restriction and this mortgage, then this mortgage will cease. If the deferred payment loan is repaid priorto the due date,the affordability period on the rental units shall continue until September 4, 2027(see Deed Restriction). 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. The City of Oshkosh shall be shown as a mortgage holder on said insurance certificate. 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 and the Deed Restriction 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 MORTGAGE ➢acumenl Number. ➢acumznt Tldt 1728405 CITY OF OSHKOSH REGISTER'S OFFICE RENTAL REHABILITATION PROGRAM WINNEBAGO COUNTY, WI DEFERRED PAYMENT LOAN RECORDED ON 11/23/2016 10:47 ANI I hereby mortgage,convey and warrant to the CITY OF Reenrdin rea OSHKOSH, a Municipal Corporation located in Winnebago Name and RAe;uraAd UPITER L'ARSON County, Wisconsin (mortgage lender),in consideration of cityRAR4ToyjLEGISTER OF DEEDS my receiving a deferred payment loan in the amount of TWENTY osnkwn,Wr 54902-1130 THOUSAND DOLLARS and No/100 ($20,000.00)for the RECORDING FEE 30.00 rehabilitation, preservation and enhancement of rental residential Boa ass7!""o--RAGS' 6 real property which is commonly known as 332 HUDSON STREET, Parcel It3enlific'UmiNo, ` Oshkosh, Wisconsin and legally described as being in Winnebago County, State of Wisconsin: The East 45 feet of Lot 23, Block 82, in WASHBURN'S SUBDIVISION of Lot 4 of Block 41,, 4th Ward, City of Oshkosh 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: Mortgage to Choice Bank in the amount of$1,500,300.00 and recorded in the Register of Deeds office on even date herewith. (Includes 21 other parcels) I will keep the mortgaged property free from any €ien or encumbrance superior to the lien of this mortgage, except for those noted above. I agree to this mortgage on a condition that,the full amount of the deferred payment loan secured by this mortgage is due in full on or before September 4, 2027, 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 Restriction and this mortgage, then this mortgage will cease, If the deferred.payment loan is repaid prior to the due date,the affordability period on the rental units shall continue until September 4, 2027 (see Deed Restriction). 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. The City of Oshkosh shall be shown as a mortgage holder on said insurance certificate. 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 dire as incurred,and in case of Judgement,will be included therein, If 1 fall to act according to the terms and conditions of this mortgage,the Borrower's Certification and the Deed Restriction for a period of more than fifteen (15) days, then the whole amount of the deferred payment loam 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 this22nd day of November. , 2016. ABEL PROPERTIES LLC Robert D. Abel, managing member AUTHENTICATION ACKNOWUDGE\dENT Signaturt(s) STATE OF WinnebagoWISCONSM ) COUNTY ) Authenticated this day of 20 Personaltvcamebeforemethis &y of NnvPmht-r 20 I6 the above named Robert D. Abel TITLE:IvIENfBFR STATE BAR OF WISCONSIN (Ifnot to me knovsit to W the person(s)who executed the foregoing authorized by Sec 706.06,Wis Stats) trutuent and ackaoxlealge tit same. �,0 �,tPT Ir(j IG W nne ago County 'nly a Vjji pn is ermanent)(expires) >�2�Izozo XXX (Signatures may be authenticated or acknondedgeiv*` ' �� are not neea>sary.} � ^^-...•`' mak'' . qI rlrrr r n a ur t Htits1 THIS HNSTRUMENT DRAFTED BY: Lynn Lorenson,City Attorney,Oshkosh,%V1 ADDRESS: 332 Hudson Avenue, Oshkosh DEFERRED PAYMENT MORTGAGE NOTE AND BORROWER CERTIFICATION As an applicant for a deferred payment loan that was previously 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) Improvements were completed on the residential units at this location with Federal Community Development Block Grant funds in 2012. 2) The applicant agrees to provide access to the City, the U.S. Department of Housing and Urban Development (HUD), the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers and records which are directly pertinent to this loan for the purposes of making audit, examination, excerpts and transcriptions. 3) 1 authorize the City of Oshkosh to make any and all documents pertaining to this deferred payment loan available to the U.S. Department of Housing and Urban Development or its duly authorized representatives. 4) 1 certify that I have record title to or an equitable interest in the property to be improved. 5) 1 understand that this property will be ineligible for future CDBG Rental Rehabilitation Program grants or loans. 6) 1 am aware that any false statement or misrepresentation made in connection with this deferred payment loan may subject me to criminal and civil penalties under United States and Wisconsin law. 7) 1 agree to comply with the CDBG Rental Rehabilitation Program requirements and all requirements contained in the Deed Restriction, S) 1 will comply with the City of Oshkosh Fair Housing Ordinance, the Wisconsin Open Housing Law, the Federal Fair Housing Act, and any other applicable state, federal and local laws/ordinances. 9) 1 accept from the City of Oshkosh, a deferred payment loan in the amount of TWENTY THOUSAND DOLLARS AND N01100 ($20,000.00) and agree that I will notify the City of Oshkosh upon the transfer of the property 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. 10) The applicant is responsible for repayment of said loan as follows: $20,000.00 payable to the City of Oshkosh on or before September 4, 2027. 11) The terms and conditions of the Rental Rehabilitation Deferred Payment Loan and borrower's certifications of even date herewith shall apply. 12) 1 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: The East 45 feet of Lot 23, Block 82, in WASHBURN'S SUBDIVISION of Lot 4 of Block 41, 4th Ward, City of Oshkosh Commonly known as: 332 Hudson Avenue 11) 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 22nd day of November , 2016. ABEL PROPERTIES LLC � 7;/� ','I Robert D. Abel, managing member CITY OF OSHKOSH CDBG RENTAL REHABILITATION PROGRAM REQUIREMENTS AND DEED RESTRICTIONS FOR PROPERTY OWNER(S) OF ADDRESS: 332 Hudson Ave., Oshkosli 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 332 Hudson Avenue, and legally described as being in Winnebago County, State of Wisconsin, as follows: The East 45 feet of Lot 23, Block 82, in WASHBURN'S SUBDIVISION of Lot 4 of Block 41, 4th 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 (September 4,2012). . Rehabilitation of tip to $10,000 per structure plus $5,000 per unit. For ten (10)years. 71)A Rehabilitation of LIP 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 �,7a q 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 FMIZ 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 ,7�A The CDBG assisted units must be leased to households whose income does not exceed 60%of the Area Median Income. jq :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 t ;�At 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. :,M '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: 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 3 _ln 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 22nd day ofNovember 2016• ABEL PROPERTIES LLC Robert D. Abel, managing member Deed Restriction z