Habitat for Humanity RECORDING RFgllEBTED BY Electronically Recorded In OffIcial Records,County of San Bernardino e120l2018
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City of Grand Terrece BOB DUTTON CAD
AND WHEN RECORDED MAIL DOCUMENTTO: ASSESSOR-RECORDER-CLERK
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Title of Document
THIS AREA FOR
RECORDER S
USE ONLY
THIS COVER SHEET ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION
($3.00 Additional Recording Fee Applies)
WHEN RECORDED PLEASE RETURN TO:
RECORDING REQUESTED BY:
Clerk of the City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
FOR THE BENEFIT OF THE CITY
LIEN AGREEMENT
(Lien Agreement as Initial Security)
For Parcel Map No. 19384
THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING
INFORMATION
RECORDED AS A BENEFIT
CITY OF GRAND TERRACE
WHEN RECORDED RETURN TO:
Clerk of the City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
LIEN AGREEMENT
(Lien Agreement as Initial Security)
THIS LIEN AGREEMENT ("Lien Agreement") is entered into this 21 ST day of June, 2018, by
and among the City of Grand Terrace, a political subdivision of the State of California( "City "}
and Habitat For Humanity, San Bernardino Area, Inc.("Owner").
RECITALS
A. Owner has applied to City for approval of a Final Map for Parcel No. 19384,
referred to herein as"Map, "pursuant to City Ordinance.
B. Owner is required to enter into a secured agreement with City entitled"Subdivision
Improvement Agreement" to perform certain acts and construct certain improvements as a
condition of City's approval of said Map.
C. Owner is required by the Subdivision Improvement Agreement, the Subdivision
Ordinance, and the Subdivision Map Act (Gov. Code, §§ 66462 and 66499) to provide security
satisfactory to the City to secure its obligations under the Subdivision Improvement Agreement.
D. Owner warrants that Owner has not sold any of the individual lots in the real
property to be divided, as identified on the Map.
E. With the exception of grading commenced pursuant to a valid grading permit,
Owner has not commenced to install or construct any of the improvements required by the
Subdivision Improvement Agreement and has not been issued any construction permits,excluding
a grading permit,on any of the real property to be divided as identified on the Map.
F. Owner has provided a title insurance policy and current title report from a title
company approved by the City and issued within the 60 days prior to the execution of this Lien
Agreement that documents that the Owner is the record owner of the real property to be divided
as identified on the Map and the real property to be divided is not subject to any mortgages,deeds
of trust, or judgment liens.
G. Pursuant to the City Municipal Code the City is authorized to defer the posting of
securities for the provision of improvements to the land division i f the Owner enters into a secured
agreement to defer making land division improvements required by Municipal Code Section
17.56.020.
H. City is authorized to accept the security proposed by Owner, known as a lien
agreement, for the Subdivision Improvement Agreement under the provisions of Government
Code Section 66499 (a) (4) and by Municipal Code Section 17.56.060 (C)(3).
I. City has found and determined that it would not be in the public interest to require
the installation of the required improvements sooner than two years after the recordation of the
Map.
J. Owner represents, and City has confirmed that Owner has paid all plan check fees
and has a deposit based fee account in good standing with the City.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. Owner's Performance and Obligations:
A. Owner hereby grants to City, in accordance with the terms and conditions of this
Lien Agreement, a lien upon the property ( "Property ") described in Exhibit "A " ( Legal
Description), attached hereto, as security for the following obligations of Owner:
(1) Construction of the improvements ( "Improvements ") specified in the
Subdivision Improvement Agreement, in the estimated amounts and for the purposes specified in
the Agreement; provided, however, that Owner's obligation hereunder shall extend to the actual
cost of construction of the Improvements,notwithstanding that such costs may exceed the estimate
set forth in the Agreement and
(2) Payment of the balance of the fees or provision of the improvements or
services described in the Municipal Code (collectively, "Fees"), in the amount required, as
determined appropriate by the Director of Public Works.
This lien secures said obligation and the remedies provided here in for breach of said
obligation.
B. For so long as title to the Property remains subject to this Lien Agreement, Owner
shall not: (1) request issuance by the Department of Real Estate of the Final Subdivision Public
Report for the Property; (2) sell or permit the sale of any lot shown on the Map; or(3) commence
work on any portion of the Improvements except as necessary to correct or prevent threats to the
public health, safety or general welfare with the consent of the City. Notwithstanding the above,
fee title to the entire property encumbered by this Lien Agreement or to all lots designated on the
Map may be sold in the aggregate to a single purchaser, provided that the proposed purchaser,
prior to assuming title to the property, executes a new lien agreement or provides acceptable
alternative security acceptable to the City.
C. At the time Owner executes this Lien Agreement, Owner shall file with City a cash
deposit in the amount of Twelve Thousand Dollars($12,000),to be used by City to reimburse City
for any costs which City may incur in processing a reversion to acreage initiated pursuant to this
Lien Agreement. Any un used portion of such deposit shall be refunded to Owner following
completion of such reversion. If the costs of reverting the Property to acreage exceed $12,000,
Owner shall pay such additional costs to City prior to recordation of the reversion to acreage map.
The unused portion of this deposit may be applied to the deposit of fees for inspection, tests and
other related purposes for the required Improvements upon termination of this Lien Agreement. If
fee title to the entire property encumbered by this Lien Agreement or all lots designated on the
Map are sold in the aggregate to a single purchaser and the purchaser executes a new lien
agreement, the purchaser shall file with City a cash deposit in the amount of Twelve Thousand
Dollars($12,000)for the purpose of reverting the property to acreage if the purchaser breaches the
terms of the lien agreement. Upon receipt of the substitute deposit from the purchaser and
execution of the new lien agreement, the original cash deposit will be refunded to Owner, minus
Fees still owed to City by Owner.
D. Prior to obtaining a grading permit or commencing the installation and construction
of any portion of the Improvements required by the Subdivision Improvement Agreement, Owner
shall deposit fees for inspections, tests and other related purposes, and shall substitute other forms
of security satisfactory to City in place of this Lien Agreement; provided, however, that Owner
shall not be permitted to obtain said permits, substitute such security or commence the installation
and construction of any portion of the Improvements if less than two (2) years have elapsed since
the date of recordation of this Lien Agreement.
E. Owner shall make the deposits specified in attached Exhibit `B" in the amounts
prescribed for such purposes upon termination of this Lien Agreement. Owner also agrees to
provide the substitute forms of security in the amounts and for the purposes set forth in the
Subdivision Improvement Agreement, except that the amounts shall be calculated using the
estimated cost of the Improvements at the time of substitution, as ascertained by City.
F. Owner shall substitute acceptable security for this Lien Agreement and commence
to construct the Improvements required by the Subdivision Improvement Agreement within three
(3) years following the date of recordation of the Map. At its sole discretion, the City may grant
extensions of time. For each extension of time, Owner shall provide a title insurance policy and
current title report from a title company approved by the City, and issued within the 60 days prior
to the request for an extension of time, that documents that the Owner is the record owner of the
real property to be divided as identified on the Map and the real property to be divided is not
subject to any mortgages, deeds of trust. or judgment liens.
G. Owner shall pay the balance of the Fees prior to commencement of the work for
which the Fees are required or prior to issuance of any building permit, whichever occurs first.
H. Owner agrees that if suit is brought upon this Lien Agreement, all costs and
reasonable expenses and fees incurred by the City in successfully enforcing Owners obligations
shall be paid by Owner, including attorneys' fees, and that, upon entry of judgment, all such
costs, expenses and fees shall be taxed as costs and included in any judgment rendered.
I. Owner agrees to indemnify, and hold harmless, the City, its officers, employees
and agents from any liability whatsoever based or asserted upon any act or omission of Owner,
its employees and agents relating to or in any way connected with the accomplishment of work,
obligations, or performance of service under this Lien Agreement. As part of the foregoing
indemnity, Owner agrees to protect and defend at its own expense, including attorneys' fees, the
City, its officers, employees and agents in any legal action based upon such alleged acts or
omissions.
H. Ci 's Performance and Obligations:
A. Following (1) City's approval of the substitute forms of security submitted by
Owner pursuant to Paragraph I(D)hereof, (2) deposit by Owner of fees for inspections, tests and
other specific purposes, and (3) Owner's payment or other performance of the obligations
encompassed by the Fees required, performance of which are secured by this Lien Agreement,
City shall release the Property, from the provisions of this Lien Agreement, and shall execute any
necessary release to enable Owner or its transferee to clear the record of title of the Property so
released of the lien herein imposed.
B. In no instances shall this Lien Agreement compel the City to construct the required
Improvements.
III. Effect of Lien Agreement.
A. From the date of recordation of this Lien Agreement, a Iien shall attach to the
Property which shall have the priority of a judgment lien in an amount necessary to discharge all
obligations contained in the Subdivision Improvement Agreement and any Fees. Under no
circumstances shall the City agree to subordinate the lien.
B. Owner shall have the right to convey or sell fee title to the entire property
encumbered by this Lien Agreement, so long as the purchaser agrees in writing to accept and be
bound by the terms and provisions of this Lien Agreement, the applicable Subdivision
Improvement Agreement,and the Fees,or has provided alternative security acceptable to the City
per Subdivision Ordinance. Any new lien agreement entered into by a purchaser of the Property
must provide for completion of the Improvements by the same date as is specified herein.
C. This Lien Agreement shall expire upon release of the Property by the City, except
that Owner's obligation to perform and complete the Improvements within four(4) years from the
date of recordation of this Lien Agrecrn--nt, as described in Section I(F)above,shall not expire but
shall remain in full force and effect until satisfactory completion of the Improvements in full
compliance with the Subdivision Improvement Agreement.
D. Notwithstanding any provisions of the Subdivision Ordinance to the contrary, so
long as this Lien Agreement is utilized for security as described herein, the City is not obligated
to accept offers of dedication for street or drainage purposes on the Property.
IV. Events of Default. Upon the occurrence of any one of the following events, Owner shall
be deemed in default hereunder:
A. Failure by Owner to deposit fees for inspections,tests and other specified purposes
or to substitute other forms of security satisfactory to City within the time allotted and as prescribed
by this Lien Agreement.
B. Commencement of any work on the Improvements by Owner, its agents or
employees, prior to substitution of acceptable security with the City in place of this Lien
Agreement except as specifically authorized by City to correct or prevent threats to the public
health, safety or general welfare.
C. Failure by Owner to substitute acceptable security for this Lien Agreement and
complete construction of the Improvements described in the Subdivision Improvement Agreement
within the time allotted and as prescribed by this Lien Agreement.
D. Failure by Owner to pay the Fees described in Section I (A) (2), above, at the time
required herein.
E. Filing of any proceedings or action by or against Owner to declare Owner bankrupt
or to appoint a receiver or trustee for Owner or to reorganize Owner or to make an assignment for
the benefit of creditors or to do anything else of a similar nature or purpose under any state or
federal bankruptcy or insolvency laws, if such proceedings or actions are not discharged within
sixty (60)days.
F. Levy of any attachment or writ of execution against Owner and the Property
whereby the Property is taken or occupied or attempted to be taken or occupied by someone other
than Owner and such attachment or execution is not released within (60) days.
G. Sale of any lot shown on the Map prior to release of the Iien created by this Lien
Agreement, except as provided in subparagraph III (B).
H. Request by Owner of issuance by the Department of Real Estate of the Final
Subdivision Public Report for the Property.
I. Breach by Owner of any other term or condition of this Lien Agreement or of the
Subdivision Improvement Agreement or Owner's failure to fully and faithfully discharge its
obligations hereunder within the time specified herein.
All references to Owner in this section shall be deemed to include Owner's successors,
assignees and transferees.
V. Citv's Remedies. Upon the occurrence of any of the events described in Section IV,
above, City may declare a breach of this Lien Agreement by giving thirty (30) days written
notice to Owner, and may, at City's option, exercise any one or more of the following remedies:
A. Pursue any or all of the remedies provided in the Subdivision Improvement
Agreement;
B. Enforce this lien by appropriate action in court or as provided by law and in the
event the enforcement is by action in court, the Owner agrees that the amount of said lien shall
include reasonable attorneys' fees which shall be taxed as a cost in any suit for such enforcement;
C. Estimate the cost of the work required to complete the Improvements,and all Fees,
and foreclose said lien in said amount;
D. Initiate proceedings for reversion of the real property within the land division to
acreage, at the expense of Owner, in accordance with the provisions of the Subdivision Map Act;
E. Pursue any other remedy, legal or equitable, for the foreclosure of a lien. Owner,
its heirs and assigns, shall pay reasonable attorneys' fees to be taxed as a cost in said proceedings.
Vl. General Provisions.
A. Recordation.This Lien Agreement shall be recorded by City with the City Recorder
immediately following execution of this Lien Agreement indexed by(1)all parties hereto,and(2)
all parties having any record title interest in the subject real property, pursuant to Government
Code Section 66436, acknowledging subordination of their interests to this Lien Agreement.
B. Continaencv. This Lien Agreement shall not take effect until it has been approved
by the City of Grand Terrace.
C. Entire Apareement. This Lien Agreement together with all exhibits and other
agreements expressly referred to herein, constitutes the entire agreement between the parties with
respect to the subject matter contained herein. All prior or contemporaneous agreements,
understandings, representations, warranties and statements, oral or written, are superseded.
D. Further Assurances. The parties agree to perform such further acts and to execute
and deliver such additional documents and instruments as may be reasonably required in order to
carry out the provisions of this Lien Agreement and the intentions of the parties.
E. Governing Law.This Lien Agreement shall be governed,interpreted,construed and
enforced in accordance with the laws of the State of California. Any legal action or proceeding
brought to interpret or enforce this Agreement, or which in any way arises out of the Parties'
activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate
California State Court in San Bernardino County, California.
F. Headings. The captions and Section headings used in this Lien-Agreement are
inserted for convenience of reference only and are not intended to define, limit or affect the
construction or interpretation of any term or provision hereof.
G. Modification. Waiver. No modification, waiver, amendment or discharge of this
Lien Agreement shall be valid unless the same is in writing and signed by all parties.
H. No Other Inducement. The making, execution and d e l i v e ry o f t h i s Lien Agreement
by the parties hereto has been induced by no representations, statements, warranties or agreements
other than those expressed herein.
1. Severability. If any t e r m, provision, covenant or condition of this Lien Agreement
is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent
jurisdiction, the remainder of this Lien Agreement shall not be affected thereby,and each term,
provision, covenant or condition of this Lien Agreement shall be valid and enforceable to the
fullest extent permitted by law.
CITY OF GRAND TERRACE Attest:
By Clerk he City of G d Terrace
ar arcy McNaboe BY Al 1 IPA A
Clerk
APPROVED AS TO FORM
Richard L. Adams IIl CI-y 11 t+ -orney
HPcB17'�T �o H uNlhN 1Ty 5PrN SeIzNl4rZ-01No A9EIN, INC,(otwim)
Z'r'Ck"7 0W--/e'id'J
Cwi+h�ss� eM3e4nn 14annct)
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ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of :5W bEKA_)AZ0;A3 o )
On _ JM&q a! . aa! -before me, L_ !%1DA44 5 A CnAK Ar
(insert name and titl of the officer)
personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
-610
DEfifu t..n+oMi�s
WITNESS my hand and official seal. Commission#2130209
Notary Public-California
San Bernardino County
M Comm.Ex irea Nov 10,2019
Signature (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validit
y of that document.
State of California
County of_A4,0 &W4&j Lf,Q )
On before me,
(insert name and titI6 of the officer)
personally appeared_ � i'V)�' Al 4 6,�
who proved to me on the basis of satisfactory evidence to be the person(,sr)'whose namew is/am
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
kris/her/their authorized capacity(k*, and that by his/her/their signatureW on the instrument the
person(g, or the entity upon behalf of which the personal acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
OEBRA L.THOMAS
WITNESS my hand and official seal. Commission#2130209
z m Notary Public•California
San Bernardino County
Mi Comm.Ex lres Nov 10.2019+
Signature (Seal)