2009/10/14 Council Agenda Packet

5 Rehabilitation Property, less any amounts of Rehabilitation Funds attributable to that Rehabilitation { Property that the Subgrantee has already repaid to the City. The Subgrantee acknowledges that it is obligated to make the payment(s) required in the preceding sentence regardless of whether the Rehabilitation Nonprofit Organization makes any repayment of Rehabilitation Funds to the Subgrantee. Homeowner Assistance. The Subgrantee shall use $319,555 of the Subgrant to provide funds to one or more nonprofit organizations that will underwrite loans, including without limitation down-payment assistance loans, to help eligible persons recover approximately nine (9)foreclosed properties. This $319,555 is referred to this Agreement as "Assistance Funds." Each of these nonprofit organizations is referred to in this Agreement as a "Homeowner Assistance Nonprofit Organization." Each loan of Assistance Funds provided to an eligible person by a Homeowner Assistance Nonprofit Organization is referred to in this Agreement as a "Homeowner Assistance Loan." Each of the persons to whom the Homeowner Assistance Nonprofit Organization provides a Homeowner Assistance Loan is referred to in this Agreement as an "Assisted Borrower." Each of the foreclosed properties is referred to in this Agreement as an "Assisted Property." The Subgrantee shall not deliver any Assistance Funds to a Homeowner Assistance Nonprofit Organization unless the City has approved the Homeowner Assistance Nonprofit Organization and has approved the contract between the Subgrantee and the Homeowner Assistance Nonprofit Organization. Each contract between the Subgrantee and a Homeowner Assistance Nonprofit Organization must include at least the following items, all of which must be acceptable the City: (1) the form of promissory note to be executed by the Homeowner Assistance Nonprofit Organization, obligating the Homeowner Assistance Nonprofit Organization to repay the Assistance Funds to the Subgrantee; (2) the form of the loan agreement to be signed the Assisted Borrower, (3) the form of the promissory note to be signed by the Assisted Borrower, (4)the form of the deed of trust to be signed by the Assisted Borrower and recorded against the Assisted Property, (5) the form of the covenant, if any, to be recorded against the Assisted Property, (6) a requirement that the Homeowner Assistance Nonprofit Organization record the deed of trust and covenant at the closing of the Assistance Loan; (7) a provision stating the requirements for the priority position of the deed of trust and covenant; (8) a provision incorporating the CTED Grant Agreement and this Agreement, and requiring that the Homeowner Assistance Nonprofit Organization fully cooperate in assisting the City and Subgrantee to comply with both such agreements; (9) indemnity and insurance provisions in favor of the City and the State of Washington; and (10) any other provision that the City may determine necessary. If the Subgrantee receives any repayments of Assistance Funds from the Homeowner Assistance Nonprofit Organization, the Subgrantee shall promptly deliver those repayments to the City. If an Assisted Borrower sells or otherwise transfers Assisted Property (including without limitation transfer pursuant to trustee sale or foreclosure), at the closing of such sale or transfer the Subgrantee shall deliver to the City a payment equal to the original principal amount of the Homeowner Assistance Loan for that Assisted Property, less any amounts of Assistance Funds attributable to that Homeowner Assistance Loan that the Subgrantee has already repaid to the City. The Subgrantee acknowledges that it is obligated to make the payment(s) required in the previous sentence regardless of whether the Assisted Borrower makes any repayment of its Homeowner A-2 15