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06-15-09 Agenda Packet
CITY OF RICHFIELD, MINNESOTA MONDAY, JUNE 15, 2009 REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING RICHFIELD CITY HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7:00 P.M. AGENDA Call to order Roll call 1. Approval of minutes of Regular HRA Meeting of May 18, 2009 Notes: 2. HRA approval of agenda 3. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolution authorizing HRA not to waive monetary limits on municipal tort liability established by MN Statute 466.04 S.R. No. 23 Notes: 4. Consideration of Foreclosure Purchase Incentive Program Rehabilitation Assistance Loan Agreement between HRA and Jean Bolin and Benjamin Westerman for purchase of 7239 Queen Avenue Staff Report No. 24 Notes: 5. Consideration of revisions to Transformation Horne Loan Program to increase loan amount to maximum of $25,000 Staff Report No. 25 Notes: 6. Executive Director report 7. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. J HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting May 18, 2009 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Present: Sue Sandahl, Chair; David Gepner; Doris Rubenstein; and Steven Quam. HRA Members Absent: Joan Helmberger. Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community Development Director; and Nancy Gibbs, City Clerk. Item #1 HRA APPROVAL OF MINUTES M/Quam, S/Gepner to approve the minutes of (1) Regular HRA Meeting of April 20, 2009. Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Rubenstein, S/Gepner to approve the agenda. Motion carried 4-0. HRA Meeting -2- May 18, 2009 Item #3 CONSIDERATION OF FORECLOSURE PURCHASE INCENTIVE PROGRAM DOWN-PAYMENT ASSISTANCE LOAN AGREEMENT BETWEEN HRA AND BETH VOYLES FOR PURCHASE OF 7532 WENTWORTH AVE S.R. NO. 19 Assistant Community Development Director Barton presented Staff Report No. 19. M/Quam, S/Rubenstein to approve Foreclosure Purchase Incentive Program Down- Payment Assistance Loan Agreement between HRA and Beth Voyles for purchase of 7532 Wentworth Avenue. Motion carried 4-0. Item #4 CONSIDERATION OF FORECLOSURE PURCHASE INCENTIVE PROGRAM REHABILITATION ASSISTANCE LOAN AGREEMENT BETWEEN HRA AND LINDSAY JACOBS FOR PURCHASE OF 6810 - 11TH AVENUE S.R. NO. 20 Assistant Community Development Director Barton presented Staff Report No. 20. The HRA noted there was a typographical error on the staff report that incorrectly stated the loan was for down-payment assistance. M/Rubenstein, S/Sandahl to approve Foreclosure Purchase Incentive Program Rehabilitation Assistance Loan Agreement between HRA and Lindsay Jacobs for purchase of 6810 - 11th Avenue. Motion carried 4-0. Item #5 CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY AT 7408 SHERIDAN AVENUE THROUGH RICHFIELD REDISCOVERED PROGRAM, CONTINGENT UPON FINDING OF CONSISTENCY WITH COMPREHENSIVE PLAN BY PLANNING COMMISSION S.R. NO. 21 Assistant Community Development Director Barton presented Staff Report No. 21. Assistant Community Development Director Barton stated she anticipates the HRA purchasing more homes in the next few months. Commissioner Quam expressed the need to let people know there is money available through Richfield Rediscovered. M/Rubenstein, S/Gepner that the following HRA resolution be adopted and that it be made part of these minutes: HRA Meeting -3- May 18, 2009 HRA RESOLUTION NO. 1047 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7408 SHERIDAN AVENUE Motion carried 4-0. This resolution appears as HRA Resolution No. 1047. Item #6 CONSIDERATION OF RESOLUTION AUTHORIZING HRA ACCEPTANCE OF FUNDS FOR FEDERAL NEIGHBORHOOD STABILIZATION PROGRAM AND EXECUTION OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY S.R. NO. 22 Assistant Community Development Director Barton presented Staff Report No. 22. Commissioner Rubenstein asked how this particular geographic area was chosen. Assistant Community Development Director Barton explained that staff was asked to target census block areas hardest hit by foreclosures. Commissioner Quam stated he would like to make sure there is enough staff to accomplish using this money by the end of this year. Acting Executive Director Stark stated the Community Development Department is looking at possibly hiring a project person. Acting Executive Director Stark also stated that staff will market this program via the .City website with the Foreclosure Purchase Incentive Program. After much discussion Chair Sandahl and Commissioner Quam stated the consensus of the HRA is to approve additional help for this program. Chair Sandahl also stated she would like staff to present the HRA with monthly updates on the number of applications received, in process, completed, and dollars used. M/Sandahl, S/Rubenstein that the following HRA resolution be adopted and that it be made part of these minutes: HRA RESOLUTION NO. 1048 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7408 SHERIDAN AVENUE Motion carried 4-0. This. resolution appears as HRA Resolution No. 1048. Item #7 EXECUTIVE DIRECTOR REPORT Acting Executive Director Stark reported that the three applicants for the Foreclosure Purchase Incentive Program Loans from last month have not moved forward with there loans. HRA Meeting -4- May 18, 2009 Acting Executive Director Stark also reported that claims and payroll was e-mailed to the HRA Commissioners this morning and he hoped this would be helpful. Acting Executive Director Stark also stated that staff is currently working on revised 2009 and proposed 2010 budgets and due to timing staff will bring a report to the July meeting. Item #11 CLAIMS AND PAYROLL M/Sandahl, S/Gepner that the following claims and payrolls be approved: U.S. Bank 05-18-2009 Section 8 Checks: 116897 -117038 HRA Checks: 30557 - 30575 TOTAL Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:40 p.m. Date Approved: Nancy Gibbs City Clerk $ 166,486.80 $ 29,379.52 $ 195,866.32 Suzanne M. Sandahl Chair Steven L. Devich Executive Director AGENDA ITEM # 3p REPORT # 23 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 15, 2009 REPORT PREPARED BY: FRANCIS FLETCxER; H. R. COORD. NAME, TLTLE DEPARTMENT DIlECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: SIGNATURE ITEM FOR HRA CONSIDERATION: Consideration of resolution authorizing the HRA not to waive the monetary limits on statutory munici alit tort liabilit . I. RECOMMENDED ACTION: By Motion: Adopt a resolution authorizing the HRA not to waive the monetary limits on municipal tort liability established by Minnesota .Statutes 466.04. II. BACKGROUND The HRA purchases its insurance from the League of Minnesota Cities Insurance Trust (LMCIT). A requirement of that insurance coverage is that each participating municipality must annually either affirm or waive its statutory limits of liability. This action must be taken on or before July 1 of each year. The current statutory limits of liability for Minnesota cities are $300,000 for an individual ..claimant and $1,000,000 per occurrence. Cities can waive those limits by allowing an individual claimant to recover more than $300,000, up to the $1,000,000 occurrence limit or more if limits are waived and excess liability insurance is purchased. They may also waive the per occurrence limit and purchase excess liability insurance. 0615tort Historically, the Richfield HRA has not waived its limits of liability. This is true of the City of Richfield also. The'majority of cities in Minnesota have not waived their limits. in the past. . III. BASIS OF RECOMMENDATION A. POLICY • The State Statute establishing liability limits for cities at the current $1,000,000 level was established fairly recently and appears to be a reasonable limit. • Historically, just over one-half of the municipalities in Minnesota have not waived the monetary limits on municipality tort liability as was established by statutes 466.04. • The HRA could waive its statuary limits in future years if the Commissioners should decide to do so. • The City of Richfield has historically not waived its limits of liability. B. CRITICAL ISSUES • The HRA's insurance policy with the League of Minnesota Cities Insurance Trust renews on July 1, 2009. This action must be completed before that time. • The HRA does not have to make a decision on purchasing excess liability coverage at this time. Coverage such as excess liability may be added at any-time. C. FINANCIAL _ • There is a slight premium savings for political entities that affirm the statutory monetary limits. For the Richfield HRA the savings would be less than $1,000 for the coverage year. • The HRA has historically not purchased excess liability coverage because of the relatively high cost of such coverage. The cost for $1,000,000 of excess coverage would be between $6,500 and $7,500 per year. D. LEGAL • The tort liability limits established by Minnesota statutes have protected cities historically and no Minnesota court has ever established a monetary award in excess of the statutory limits against a municipality. • Each municipal entity must annually decide whether the City would voluntarily waive the statute for both the single claims each occurrence limits. IV. ALTERNATIVE RECOMMENDATION~S~ - • If the HRA feels that any single claimant should receive more than the $300,000 limit, the HRA could elect to waive the statutory monetary limits. • If the HRA feels that the $1,000,000 per occurrence limit is not adequate, the HRA could purchase excess liability coverage and subsequently waive the . limits of liability up to the amount of excess .coverage purchased by the HRA. V. ATTACHMENTS • Resolution VI. PRINCII'AL PARTIES EXPECTED AT MEETING • None ~~- i HRA RESOLUTION NO. RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04 WHEREAS, Minnesota Statute 466.04 provides for Municipal tort liability limits for Minnesota cities; and WHEREAS, the League of Minnesota Cities Insurance Trust has asked that each city review the tort liability limits and determine. if the respective city would choose to waive it's limits; and WHEREAS, such decision to affirm or waive the tort liability limits must be filed with the League of Minnesota Cities Insurance Trust at the.insurance renewal date. NOW, THEREFORE, BE IT RESOLVED that the Executive Director is directed to report to the League of Minnesota Cities Insurance Trust that the Richfield HRA does not waive the monetary limits on the municipal tort liability established by Minnesota statutes 466.04. Approved by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 15th day of June 2009. Suzanne M. Sandahl, Chair ATTEST: Joan Helmberger, Secretary AGENDA ITEM # LF REPORT # 24 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 15, 2009 REPORT PREPARED BY: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE REPORT PRESENTER: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE SIGNA v ITEM FOR HRA CONSIDERATION: Consideration of a Rehabilitation Assistance Loan Agreement between the Housing and Redevelopment Authority and Jean Bolin and Benjamin Westerman for the purchase of 7239 Queen Avenue through the Foreclosure Purchase Incentive Program. I. RECOMMENDED ACTION: By Motion: Approve the attached Foreclosure Purchase Incentive Program Rehabilitation Assistance Loan Agreement between the Housing and Redevelopment Authority and Jean Bolin and Benjamin Westerman for the aurchase of 7239 Queen Avenue. II. BACKGROUND In an effort to return foreclosed and vacant homes to owner-occupancy and reduce the associated blighting effects, the Housing and Redevelopment Authority (HRA) allocated $150,000 for the Foreclosure Purchase Incentive Program (FPIP) for 2009. On March 16, 2009 the HRA approved guidelines for the program. The purpose of the program is to encourage the return of foreclosed and vacant single- family homes to owner-occupancy as quickly as possible. Prospective buyers who homestead the property are eligible for either a $10,000 down-payment assistance loan or a $15,000 rehabilitation assistance loan. Both loans are deferred and will be forgiven after five years of owner-occupancy. 06152009 FPIP 7239 Queen - Bolin.doc Ms. Jean Bolin and Mr. Benjamin Westerman have submitted an FPIP application for rehabilitation assistance for the purchase of 7239 Queen Avenue. The home is vacant and foreclosed. Ms. Bolin's and Mr. Westerman's purchase offer has been accepted and their closing date is scheduled for June 29, 2009. Ms. Bolin and Mr. Westerman are in agreement with the terms of the Rehabilitation Assistance Loan Agreement and have signed the Agreement. Ms. Bolin and Mr. Westerman have submitted a rehabilitation plan for the use of the FPIP to install a new furnace and central air-conditioning, replace the water heater, insulate the crawl space, replace storm windows and doors, replace kitchen cabinets and flooring, and address other point-of-sale inspection requirements. The total cost of the above improvements is estimated to be $15,000.00. Staff has reviewed Ms. Bolin's and Mr. Westerman's FPIP application and has determined it meets all HRA FPIP loan requirements. Staff is therefore recommending approval of Ms. Bolin's and Mr. Westerman's Rehabilitation Assistance Loan Agreement for the purchase of 7239 Queen Avenue. III. BASIS OF RECOMMENDATION A. POLICY • The stated goals of the FPIP loan program are to: o Eliminate the blighting influence of foreclosed, vacant housing, thus stabilizing and improving residential neighborhoods; and to o Off-sets costs associated with deferred maintenance and property damage associated with foreclosure and vacancy. B. CRITICAL ISSUES • Foreclosed homes affect the stabilization of neighborhoods and property values. • Ms. Bolin's and Mr. Westerman's application meets the FPIP loan requirements as outlined in the FPIP Procedural Guidelines. C. FINANCIAL • Funds have been budgeted in the HRA's 2009 Budget for this activity. D. LEGAL • Ms. Bolin and Mr. Westerman have signed the FPIP Rehabilitation Assistance Agreement. IV. ALTERNATIVE RECOMMENDATION~S~ • Do not approve the execution of the Agreement. V. ATTACHMENTS • Foreclosure Purchase Incentive Program Rehab Assistance Loan Agreement Photo of 7239 Queen Avenue VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Ms. Jean Bolin ~'^,, W ~4a . ?~ ~ , r +~:. X 'r'N ~~ ~{-~ FORECLOSURE PURCHASE INCENTIVE PROGRAM REHABILITATION LOAN AGREEMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA and BENJAMIN WESTERMAN AND-JEAN BOLIN at 7239 QUEEN AVENUE SOUTH RICHFIELD, MN 55423 This Instrument Drafted by: Richfield Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, MN 55423 (612) 861-9760 '~- 3 AGREEMENT THIS AGREEMENT, made and entered into as of this 15`" day of June, 2009 by and between the Housing and Redevelopment Authority in and. for the City of .Richfield, a public body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Benjamin R. Westerman (single) and Jean A. Bolin (single) (Buyer). WITNESSETH: WHEREAS, the City of Richfield (City) and the HRA have previously created and established a Redevelopment Project (Project) and Tax Increment Financing District (TIF District) pursuant to the- authority granted in Minnesota Statutes, Sections 469.001 through 469.047 and Sections 469.174 through 469.179 (collectively, the Acts); and WHEREAS, pursuant to the Acts, the City and the HRA have previously adopted a redevelopment plan (Redevelopment Plan) and a tax increment financing plan (TIF Plan) to finance all or a portion of the public development costs of the Project; and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and TIF Plan as hereinafter defined and particularly to make specified land in the Project available for development by private enterprise for and in accordance with the Redevelopment Plan, the HRA has determined to provide substantial aid and assistance to finance public development costs in the Project; and WHEREAS, the HRA has become concerned that within the Project there is an increasing number of homes which have been foreclosed .and are standing vacant, and, in many cases are not being adequately secured or maintained; and WHEREAS, under such circumstances, the properties themselves are subject to deterioration; and the entire neighborhood is subject to the impacts caused by such conditions; and WHEREAS, the HRA, in recognition of the need to provide decent, safe and sanitary housing in the community has established a deferred .loan program which is designed to provide assistance to individuals who are acquiring and doing rehabilitation to foreclosed properties within the Project, and in furtherance of the goals and objectives of the plan for the Project; and. WHEREAS, the Buyer has proposed a development as hereinafter defined within the Project which the HRA has determined will promote and carry out the objectives for which the Project has been undertaken, will .assist in carrying out the obligations of the Redevelopment Plan and TIF Plan, will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development in the Project has been undertaken and is being assisted. 1 ~~-1 NOW, THEREFORE, in consideration of the mutual covenants and obligation of the HRA and the Buyer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) Cam. The City of Richfield,. Minnesota. (b) Rehabilitation Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit D. (d) Development. The Property and the Improvements to be constructed thereon according to the Rehabilitation Plans approved by the HRA. (f) Closing The date on which Buyer closes on the Purchase of the Property. (h) .Improvements. Each and all of the site improvements to be constructed on the Property by the Buyer, as specified in the Rehabilitation Plans. approved by the HRA. (i) Guidelines. The guidelines adopted by the HRA as such are applicable to the providing of rehabilitation assistance. (j) Mort~a~e and Holder. The term "mortgage" shall ,include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property or any part thereof, as security for a loan. The term. "holder" in reference to a mortgage includes any insurer or guarantor (other than the Buyer) of any obligation or condition secured by such mortgage or deed of trust. (k) Pro e .The real property legally described as: Lot 10, Block 1, Home Acres Located on land having a street address of: 7239 Queeen Avenue South, Richfield, MN 55423 (1) Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Buyer. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: 2 ~i - s A. Form of Certificate of Completion B. Guidelines C. The Note and Mortgage D. Rehabilitation Plan Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions: ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1 By the Buyer. The Buyer makes the following representations and undertakings: (a) The Buyer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Buyer has the necessary equity capital or will obtain commitments for financing the necessary for acquisition of the Property and construction of the Improvements; (c) The Buyer will construct the Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations; (d) The Buyer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; .and (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect, or other person acceptable to the HRA, as appropriate. If the proposed improvements do not require a plan to be prepared, buyer agrees to submit a detailed list of the proposed improvements to the Property, detailing the project and materials. 3 ~~~ (f) Buyer intends to reside at the Property following the Closing and to use the same as Buyer's principal residence; and is not acquiring the Property for the purpose of resale or speculation. Section 2.2 By the HRA: The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Buyer and will cooperate with the efforts of Buyer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO BUYER Section 3.1 Purchase of Property by Buyer. The Buyer has, or will utilize its best efforts to enter into a binding agreement to purchase the Property. Upon determination by the HRA that Buyer has entered into a binding purchase agreement for the purchase of the Property, the HRA will deliver to Buyer the Note described in Section 5.1. If no binding purchase agreement is entered into within 15 days from the date of this Agreement, either the HRA or the Buyer may declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. Section 3.3 Closing. Closing must take place on or before September 14, 2009,or such other date as may be agreed to by the Buyer and HRA in writing. At Closing, the Buyer will provide the HRA with a mortgage in recordable form (and pay for the cost of recording). The mortgage will be a first lien on the Property and will act as security for repayment of any of the Rehabilitation Loan advanced to the Buyer in the event that construction of the Improvements is not completed on or before the date specified in Section 4.3. The Mortgage will be in substantially the form of the mortgage shown on the attached Exhibit C. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. -The Buyer shall construct the Improvements on the Property in accordance with the Rehabilitation Plans and shall maintain, preserve and keep the Improvements in good repair and condition. Section 4.2. Building Plans. No building permit will be issued by the City unless the building plans are in conformity with the Rehabilitation Plans and all local, state and federal regulations. The HRA shall, within 25 days of receipt of Rehabilitation Plans submitted in application for a building permit, review such Rehabilitation Plans to determine whether the 4 `i ~~ foregoing requirements have been met. If the HRA determines such Rehabilitation Plans to be deficient, it shall notify the Buyer in writing stating the deficiencies -and the steps necessary for correction. Issuance of the building permit by the City shall be a conclusive determination that the Rehabilitation Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall be completed prior to November 10, 2009. All construction shall be in conformity with the approved Rehabilitation Plans. Periodically. during construction the Buyer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Buyer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Buyer and demand assurances from the Buyer regarding the Buyer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specific in Section 8.2 of this Agreement. Section 4.4 Certificate of Comuletion. Promptly after notification by the Buyer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Rehabilitation Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Buyer with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to• the obligation of the Buyer to construct the Improvements. Issunace of the Certificate of Completion shall also serve as a satisfaction of any obligation of Buyer under the Note and Mortgage. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Buyer to take or perform in order to obtain such certification. Section 4.5 Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred, and the HRA may proceed with its Remedies on Default under this Agreement. ARTICLE V. REHABILITATION LOAN Section 5.1 Issuance of the Note. As consideration for Buyer's covenant to construct the Improvements, and subject to all of the conditions of this Agreement, the HRA agrees to provide the Buyer with a Rehabilitation Loan in the amount of $15,000. Upon the Buyer providing the HRA with evidence that Buyer has entered into a purchase agreement for the purchase of the Property, the HRA will deliver to Buyer a .promissory note in substantially the 5 ~- g form of the attached Exhibit C. Payment of the Rehabilitation Loan will be exclusively subject to and in accordance with the terms of the Note as such are contained in the Note or described in this Agreement. Section 5.2 Note Terms. The terms of the Note will include the following: (a) Assuming the Buyer is in compliance with Buyers obligations, the Note will be payable in three installments. The first installment of $3,750 will be due and payable at Closing, the second installment of $3,750 will be due and payable not later than five days following notification and verification of the issuance a building permit for construction of the Improvements, and the final installment of $7,500 on the date of the issuance of a Certificate of Completion showing full completion of all of the Improvements. In the event the Improvements do not require a building permit, the second installment will be due and payable upon the submission of receipts for the Improvements totaling $5,000 or more. (b) The Note will be cancelled if the Closing does not occur by the last date provided in Section 3.3; or if construction of the Improvements are not fully completed by the last date provided in Section 4.3. (c) The Note will-not bear interest. (d) The Note may be canceled by the HRA in the event that the Buyer is in default of any of its obligations under this Agreement. (e) The Note may not be assigned or pledged unless the proposed recipient certifies to the HRA that it is aware of and accepts to the conditions of the Note governing payment. (fj The Note will provide for repayment of the any Rehabilitation Loan payments paid to Buyer under the Note in the event that the Buyer fails to meet the time requirements of Sections 3.3 and 4.3. Such repayment obligation will be secured by a mortgage in substantially the form shown in Exhibit C which will be delivered by Buyer to the HRA at Closing. Unless. the HRA agrees otherwise in accordance with Section 6.3, the Mortgage will be a first lien on the Property. (g) The Note will also provide that if the Buyer continues to observe all of the covenants and requirements and obligations imposed on Buyer under this Agreement, any other agreements between the HRA and Buyer with respect to the Property, and in the Note for a period of five years from the date of Closing, then the Buyer's obligation to repay the Rehabilitation Loan will be forgiven, terminate and be of no further force and effect; and an instrument discharging the Mortgage will thereupon be provided to Buyer for recording at the Buyer's request. Section 5.3 Payments Under the Note. On the date payments are due under the Note, the HRA will make such payments by delivering the amount due to either the lending institution providing financing for construction of the .Improvements, or the title company servicing the construction loan. Such lending institution or title company may then use the delivered funds to 6 ~- 1 make payment to any contractor or materialman'for work or materials actually furnished in connection with the Improvements In the event that no lending institution or title company is available to serve in that . capacity, the HRA shall disburse the payments, when due, in any manner which in its reasonable judgment will assure that the funds will be expended for construction of the Improvements. ARTICLE VI. FINANCING Section 6.1 Financing. If additional financing is required for the Improvements, within 30 days of the date of execution of this Agreement by all the parties, the Buyer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the amount of such financing along with the Rehabilitation Loan is adequate in amount to provide for the construction of the Improvements, the HRA shall notify the Buyer of its approval. If the HRA rejects the evidence of financing as inadequate, the Buyer shall have 30 days or such additional period of time as the Buyer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Buyer fails to submit such evidence or fails to use due diligence in pursuing financing, the HR.A may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Section 6.2 Copy of Notice of Default to Lender. Whenever the HRA shall deliver any notice or .demand to the Buyer with respect to any Event of Default by the Buyer in its obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to each Holder of any Mortgage authorized by the Agreement at the last address of such Holder shown in the records of the HRA. Section 6.3 Subordination. In order to facilitate obtaining financing for the purchase of the Property or the construction of the Improvements by the Buyer, the HRA may agree to modify this Agreement, the Note or the Mortgage in the manner and to the extent the HRA deems reasonable, upon request by the financial institution and the Buyer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Representation as to Redevelopment. The Buyer represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Buyer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of 7 ~-/® making the Development possible, the qualification and identity of the Buyer are of particular concern to the HRA. The Buyer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Buyer for the faithful performance of all undertakings and covenants agreed by the Buyer to be performed. Section 7.2 Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Buyer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Buyer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Buyer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Buyer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Buyer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its. creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the Buyer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the Buyer, a receiver of the Buyer or of the whole or substantially all of its property, or approve a petition filed against. the Buyer seeking reorganization or arrangement of the Buyer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or 8 -i ~ (e) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Mortgagee. , Section. 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Buyer as provided in Section 9.5 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Buyer, deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) cancel or rescind the Note; (d) foreclose on the Mortgage; (e) withhold the Certificate of Completion; or (f) take whatever action at law or in equity may appear necessary or desirable to the HRA to enforce performance and observance of any obligation, agreement, or covenant of the Buyer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid, or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided .further that should any Mortgagee succeed by foreclosure of the Mortgage or deed in lieu thereof to the Buyer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Buyer under this Agreement to the extent that the same have not therefore been performed by the Buyer. Section 8.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy. shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient: In order to entitle the HRA or the Buyer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.4 No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. 9 ~ -/ ~ ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Buyer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Buyer or successor or on any obligations under the terms of this Agreement. Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59, which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and .binding on the Buyer as though fully set forth herein. Section 9.3 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Buyer: Benjamin R. Westerman Jean A. Bolin 2817 West 44th Street Minneapolis, MN 55410 10 y-~ 3 or at such other address with respect to either such party as that parry may, from time to time, designate in writing and forward to the other as provided in this Section 9.3. Section 9.4 Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Buyer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson By Its Executive Director Buyer ~~~ ~ ~~ c~Ma ~~ 9 ~ `~ STATE OF MINNESOTA ) SS COUNTY OF ~'ENt\) FP- ~ ) The foregoing instrument was acknowledged before me this ~ ('J~ day of ~? ~ +n2 , 200 °I , bySuzs-~ne M. Sa„d4t,1, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary: Public STATE OF MINNESOTA ) SS COUNTY OF I~>: N NE~1~•I ) The foregoing instrument was acknowledged before me this 15`x`-' day of `~ in,1e, , 200 °I , by S}evt,~n L . ~~ ch, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body corporate and politic under the laws of Minnesota, on behalf of the HRA. Notary Public STATE OF MINNESOTA SS COUNTY OFs ~; ~li'~:. x3;„ yw ) J The foregoing instrument was ack~_owledged before rr~e this ~~~~ -day of ~ R .• ..~- ~ . ,~,~ , 200_, by ~i-,ice :; ~§.,,r, ~ :/~~.~~`i«: .v~~a'F ~.~ , '~ °'~ ~; rC,c~~,-~ ~~: i f `/ -} ~ 1 Notary Public FAYE E. BLIIFN~ tVotary Pic Mirmesota at 10 ~- ~ ~` EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that ,has fully and completely complied with its obligations under Article IV of that document entitled "Foreclosure Purchase Incentive Program Rehabilitation Loan Agreement",. between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and dated filed as Document No. with respect to the construction of the approved construction plans at legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: By: Its: STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By: Its: Chairperson Executive Director The foregoing instrument was acknowledged before me this day of 20_, by and the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: Richfield Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, MN 55423 (612)861-9760 A-1 - ~ 1p FORECLOSURE PURCHASE INCENTIVE PROGRAM PROCEDURAL GUIDELINES Apri122, 2009 ~{ - l ~ Table of Contents Statement of Purpose Program Objective Program Outcomes Definitions Eligibility Terms and Conditions Data Privacy General Program Marketing 1 1 1 1 1 2 2 2 I ~f-l8 Foreclosure Purchase Incentive Program Procedural Guidelines Statement of Purpose The purpose of the Foreclosure Purchase Incentive Program (FPIP) is to return foreclosed, vacant properties to owner-occupied properties as quickly as possible. Program Objectives To eliminate the blighting influence of foreclosed, vacant housing, thus stabilizing and improving residential neighborhoods. To off-set costs associated with deferred maintenance and property damage associated with foreclosure and vacancy. This will be achieved through the provision of adown-payment assistance or rehab incentive to encourage prospective homebuyers to purchase foreclosed, vacant homes in the city. Program Outcomes Return ten to fifteen foreclosed, vacant houses in the city to owner-occupied homes. Stabilize neighborhoods impacted by foreclosed, vacant houses. Maintain and increase property values in neighborhoods impacted by foreclosed, vacant houses. Definitions Buyer -The buyer of the subject property. HRA -The Housing and Redevelopment Authority in and for the City of Richfield. Property -The subject house and lot. Foreclosed Property - A house and lot that has been through a mortgage foreclosure process with the most recent owner of record, and is currently owned by a lending agency/bank. Eligibility 1. Funding is limited to the purchase of foreclosed properties, with priority given to foreclosed AND vacant properties. 2. Applicants must apply to and be deemed ineligible for the Neighborhood Stabilization Program (NSP) funding prior to applying for FPIP funds. 3. If Buyer will be obtaining mortgage financing for the purchase of the Property, a minimum of 20% equity* in the Property, based on a recent appraisal, will be required. 4. Applicant's household incomes are not restricted. '1' - I 5. Loan recipient must be the Buyer and reside in and homestead the property during the life of the loan. 6. The house and property to be purchased must be located within the City of Richfield municipal boundaries. 7. Applicants must complete a City of Richfield HRA FPIP Application and submit it at least 30 days prior to closing. 8. Applicants who may be eligible to receive down-payment assistance through available State or Federal Programs must apply for those funds prior to applying for City HRA FPIP funds. 9. Applicants who receive down-payment assistance through State or Federal programs will not be eligible for FPIP funds. 10. Eligible properties must meet minimum health and safety requirements. Loans will not be issued for uninhabitable properties. Determination of habitability will be at the discretion of the HRA based on City of Richfield Point of Sale Inspection report and physical inspection conducted by HRA staff or HRA contracted inspector. Terms and Conditions 1. Maximum loan amount is $10,000 per eligible household for down-payment assistance and $15,000 per eligible household for rehab assistance. 2. Rehab assistance loans will only be issued in conjunction with the purchase of a foreclosed house. 3. Only one loan per eligible household. 4. Funds can be used city-wide within the City of Richfield boundaries. 5. Funds can be used for down-payment assistance OR for rehab/improvement projects associated with the property. 6. Buyers will be required to sign an Agreement (Agreement) with the City of Richfield Housing and Redevelopment Authority consenting to all loan requirements prior to loan disbursement. 7. Funds for down-payment assistance will be disbursed at closing. 8. Funds for construction/rehab projects will be disbursed in three installments as detailed in the Agreement. 9. Alien will be placed against .the. property by the HRA for the full loan amount. 10. Funds will be awarded in the form of a five-year, zero-interest, forgivable loan. 11. Buyer must reside in and homestead the property during the life of the loan. If at anytime during the life of the loan the property is vacant for a period of six consecutive months or longer, or the property is no longer homesteaded, the loan will be required to be repaid in full. l2. If the house is sold or the title transferred during the loan period, the loan will be required to be repaid in full. 13. Any mortgage or financing for the property must be in the form of a fixed interest rate. 14. If Buyer will be obtaining mortgage financing for the purchase of the Property, a minimum of 20% equity* in the Property, based on a recent appraisal, will be required. 15. The HRA reserves the right to refuse loan issuance to properties deemed to be un- inhabitable. 16. The HRA may conduct an inspection of the property to verify rehab work has been completed in compliance with documentation submitted for the loan. 17. Loan funds are available on a limited b"asis. -20 *Equity can be in the form of Buyer down-payment and/or difference between appraised market value and amount of all liens against the property Data Privacy All information secured through the program is subject to the Minnesota Data Privacy Act. General Program Marketing Program marketing is entirely at the discretion of the HRA. It may include the following: 1. Buyer Solicitation. The HRA may market the program to Buyers through promotional articles, direct mail, the Internet, or other methods as deemed appropriate. End Buyers may be any financially eligible family. The HRA is a Fair Housing agency. `1-p~l EXHIBIT C PROMISSORY NOTE REDEVELOPMENT CREDIT NOTE $15,000 June 15, 2009 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic (the "Maker"), for value received, hereby promises to pay to Beniamin R. Westerman (sin le) and Jean A. Bolin (single) (the "Holder") the principal sum of Fifteen thousand and No/100 Dollars ($15,000.00), with no interest as hereinafter provided, in any coin or currency which at the time or times of payment is legal tender for the payment of private debts in the United States of America. The principal of this Note is payable as follows: 1. The principal amount of the Note is as provided for in that certain agreement by and between Maker and Holder entitled: Foreclosure Purchase Incentive Program Rehabilitation Loan Agreement dated June 15, 2009 (the "Agreement") and shall bear no interest. Terms contained in this Note shall have the meanings given them in the Contract unless a different meaning is clearly indicated. 2. The Note shall be due and payable the Note will be payable in three installments. The first installment of $3,750 will be due and payable at Closing, the second installment of $3,750 will be due and payable not later than five days following the date a building permit for construction of the Improvements is issued, and the final installment of $7,500 on the date of the issuance of a Certificate of Completion showing full completion of all of the Improvements. No amount shall be due or payable prior to those dates. 3. This Note will be cancelled if the Closing does not occur by the last date provided in Section 3:3 of the Agreement; or if construction of the Improvements are not fully completed by the last date provided in Section 4.3 of the Agreement. 4. This Note is given pursuant to the Agreement. All of the agreements, conditions, covenants, provisions, and stipulations and remedies contained in the Agreement are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It is agreed that time is of the essence of this Note. If a default by the Maker or the Holder occurs under the Agreement, then the Holder or Maker may at its right and option, exercise any rights it may have under law or at equity, under the Agreement, and under the Note. 5. The remedies of the Maker or Holder as provided herein, and in the Agreement, or any other instrument, shall, be cumulative and concurrent and may be pursued singly, successively, or together, and, at the sole discretion of the Maker or Holder, may be exercised as often as occasion therefore shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or release thereof. C-2 ~-2Z- The Maker or Holder shall not be deemed, by any act of omission or commission, to have waived. any of its rights or remedies hereunder unless such waiver is in writing and signed by the Maker or Holder and then only to the extent specifically set forth in the writing. A waiver with reference to one event shall not be construed as continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This Note may not be amended, modified, or changed except only by an instrument in writing signed by the party against whom enforcement of any such amendment, modifications, or change is sought. 6. This Note shall be governed by and construed in accordance with. the laws of the state of Minnesota without regard to its conflict of laws provisions. Any disputes, controversies, or claims arising out of this Note shall be heard in the state or federal courts of Minnesota, and all parties to this Note waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise 7. Holder may not assign, transfer or pledge this Note without the prior written consent of the Maker. Maker may condition consent on obtaining a certification from the proposed assignee, transferee. or pledgee acknowledging and agreeing to Maker's rights to cancel the Note in accordance with the terms of the Note and the Agreement. 8. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things required to exist, happen, and be performed precedent to or in the issuance of this Note do exist, have happened, and have been performed in regular and due form as required by law. 9. Any Foreclosure Purchase Incentive Program Rehabilitation Loan payments paid to Buyer under the Note will be repaid to the HRA in the event that the Buyer fails to meet the requirements of the Agreement. Such repayment obligation will be secured by a mortgage in substantially the form shown in Exhibit C of the Agreement which will be executed and delivered by Buyer to the HRA at Closing. Unless the HRA agrees otherwise in accordance with Section 6.3, the Mortgage will be a first lien on the Property. IN WITNESS WHEREOF, the Maker has caused this Note to be duly executed as of the 15th day of June, 2009. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By: Executive Director ATTEST: Recording Secretary Dated: ~ ~ +fti~ ~ ~ , ~..(~~ C-2 ~(- a 3 EXHIBIT C (cont'd) P. O. Box 198 Kennedy & Graven MORTGAGE This Indenture made .this 15`" day of June, 2009, between Benjamin R. Westerman (single) and Jean A. Bolin (single), Mortgagor, and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic under the laws of the State of Minnesota, Mortgagee. Witnesseth: That the said Mortgagor, in consideration of the sum of One ($1.00) Dollar and other good, valuable and sufficient consideration, the receipt whereof is hereby acknowledged, does hereby Grant, Bargain, Sell, and Convey unto the .said Mortgagee, its successors and assigns, Forever, all the tracts or parcels of land lying and being in the County of Hennepin and State of Minnesota, described as follows, to-wit: The separate tracts and parcels of land described in the attached Exhibit A. (The "Property") To Have and to Hold the Same, Together with the hereditaments and appurtenances thereto belonging to the said Mortgagee, its successors and assigns, forever. And the said Mortgagor, for itself, and its successors and assigns, does covenant with the said Mortgagee, its successors and assigns, as follows: That it is lawfully seized of said premises and has good right to sell and convey the same; that the same are free from all incumbrances, save and except reservations, restrictions and easements of record; that the Mortgagee, its successors and assigns, shall quietly enjoy and possess the same; and that the Mortgagor will Warrant and Defend the title. to the same against all lawful claims not hereinbefore specifically excepted. Provided, Nevertheless, That if said Mortgagor, its successors and assigns, shall keep and perform each and every one of its obligations with respect to completion of construction of the Improvements to be constructed by Mortgagor under and pursuant to that certain Foreclosure Purchase Incentive Program Rehabilitation Loan Agreement dated as of June 15, 2009 (the "Agreement"), made and entered into between Mortgagor and Mortgagee, and shall keep and perform all the covenants and agreements herein contained, then this deed to be null and void, and to be released at the Mortgagor's expense. This Mortgage secures a principal debt in the amount of C-2 y-a~ $15,000 payable by Mortgagor to Mortgagee under the terms of the Agreement, and amendments thereto, between Mortgagor and Mortgagee. And the Mortgagor, for itself, and its successors and assigns, does hereby covenant and agree with the Mortgagee, its successors and assigns,. to perform its obligations as above specified, to pay all taxes and assessments now due or that may hereafter become liens against said premises at least ten (10) days before penalty attaches thereto; to pay, when due, both principal and interest of all prior liens or incumbrances, and to keep said premises free and clear of all other liens or incumbrances; to commit or permit no waste on said premises and to keep them in good repair; to complete forthwith any improvements which may hereafter be under course of construction thereon, and to pay any other expenses and attorneys' fees incurred by said Mortgagee, its successors or assigns, by reason of litigation with any third party for the protection of the lien of this Mortgage. That Mortgagor, does further covenant and agree that if any lien for labor, skill or material shall be filed for record during the life of this Mortgage, upon or against the premises hereby mortgaged, the said Mortgagor will, within thirty (30) days after the date of its filing for record, either pay off the said lien and secure its satisfaction of record, or will protect the Mortgagee against any loss or damage growing out of its enforcement, by furnishing a bond for the same amount in the form and with the sureties to be approved by the Mortgagee. In case of failure to pay said taxes and assessments, prior liens or incumbrances, expenses and attorneys' fees as above specified, or to insure said buildings and deliver the policies as aforesaid, the Mortgagee, its successors or assigns, may pay such taxes, assessments, prior liens, expenses and attorneys' fees and interest thereon, or effect such insurance; and the sums so paid shall bear interest at the highest rate permitted by law from the date of such payment, shall be impressed as an additional lien upon said premises, and be immediately due and payable from the Mortgagor, its successors or assigns, to said Mortgagee, it .successors or assigns, and this Mortgage shall from date thereof secure the repayment of such advance with interest. In case of default in any of the foregoing covenants, the Mortgagor confers upon the Mortgagee the option of declaring a default and hereby authorizes and empowers said Mortgagee, -its successors and assigns, to foreclose this Mortgage by judicial proceedings or to sell said premises at public auction and convey the same to the purchaser in fee simple in accordance with the statute, and out of the money arising from such sail to retain all sums secured hereby, with interest and all legal costs and charges of such foreclosure and the maximum attorneys' fee permitted by law, which costs, charges and fees the Mortgagor herein agrees to pay. C-2 ~(-a~ In Testimony Whereof, The said Mortgagor has hereunto set its hand the day and year first above written. r ~- STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing instrum nt w,as acknowledged before me this day of~.,, ,.~~;~ ` ~. , ,. r ~ . 2009 by - ~ ~, > , ~, , f (! ~ . L. ; 2J ~~ 1 ., z,/ ' SB'~ ~ : ~. a fs~,i~ ,s yi,.-i ,. ~ ` li ~~., ,i~~, % ,.., ~t r' % ~' ~\..d //Utrt t' . !'4 i i ~~6/~'0'f A/i (Notary Stamp or Seal) Not P blic FAME E. BtANp Pubic AAinneaot~ d ices JanuB 34.3443 This Instrument was Drafted by: Richfield Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, MN 55423 (612)861-9760 16 u-a~ EXHIBIT A LEGAL DESCRIPTION Lot 10, Block 1, Home Acres C-3 ~-a`~ EXHIBIT D LIST OF CONSTRUCTION PLAN DOCUMENTS • Foreclosure Purchase Incentive Program Rehabilitation Loan Agreement, fully executed • Improvements Plans, approved by the HRA and approved by the Building Official for .construction considerations if applicable • Purchase Agreement for sale of Properly from Seller to Buyer D-1 `-/ -~ ~ Proposed projects for 7239 Queen Ave. S. Replace furnace and add central air ..........................................................................$8,000 Replace water heater ...........................................................:...................................850 Insulate crawl space ...........................................................................................................400 Replace four storm windows .............................................:..............................................300 Replace kitchen cabinets and flooring ...........................................:..............................3,100 Replace two storm doors ..................................................................................................500 Items noted on Point of Sale ..........................................................................................1,850 TOTAL ...................................... $15,000 oC RICHFIELD PUBLIC SAFETY (692) 869-9882 Ps Detail Listing of All Items Requiring Correction for 7239 QUEEN AVE S Lic. or App. Number: 12578 This property was inspected by: Jennifer Grinde on: 5/26/2009 at 7:30:00 A Date Identified Unit/Floor Location Description Action Required [-] 5/27/2009 Water to dwelling shut off Water must be on, check system for leaks, including faucets, traps, water pipes, drain lines, ect. NO OCCUPANCY UNTIL RE- INSPECTED ;~ 5/27/2009 1st Floor No Carbon Monoxide detector/or Install carbon menoxide inoperable detector WITHIN 10' OF ALL BEDROOMS. ~] 5/27/2009 1st Floor All Areas Window(s) lack operable locking device All windows, 1st floor and lower, require locks. (~ 5/27/2009 1st Floor back door to dec -Dead bolt lock(s) missing at exterior Install dead bolt locks at all door(s) exterior doors [-~ 5/27/2009 lst Floor Bathroom GFI outlet not functioning properly/not .Wire GFI outlet to tripping manufacturers instructions and/or replace. 5/27/2009 1st Floor bedrooms No smoke detector as required. Install smoke detector per manufacturers instructions to specified location IMMEDIATELY. (~ 5/27/2009 1st Floor Furnace Room Fumace inoperable at time of Heating system to be certified inspection /GAS LEAK AT FURNACE by heating contractorlicensed with the City of Richfield on City of Richfield form.. `] 5/27/2009 1st Floor Hallway Smoke detector not functioning. Replace w/operable smoke detector IMMEDIATELY. ~J 5/27/2009 1st Floor Kitchen Gasline-Open, uncapped gasline Gasline-cap open unused gasline. ~ 5/27/2009. 1st Floor Laundry open standpipe at laundry cap unused standpipe [~ 5/27/2009 1st. Floor Laundry Gasline-Open, uncapped gasline Gasline-cap open/unused gasline. ~ ~ 5/27/2009 1st Floor Laundry Paint peeling Refinish all peeling or blistered paint and refinish. Paint chips, must be properly disposed of. ~ ] 5/27/2009 1st Floor Living room Outlet/switch cover damaged or missing Outlets/switches must have _ approved coverplates f--; 5/27/2009 1st Floor Water heater Pipe leaking Repair leaking pipe. j_~ 5/27/2009 1st Floor Water heater saddle clamp at water heater remove illegal saddle clamp and replumb to code with permit and inspection [] 5/27/2009 1st Floor Water heater Vent Connector for water heater Un- All Joints Must Be Secured secure at Joints. With 3 Sheet Metal Screws or Rivets. Page 1 5/27/2009 11:36 ~~~ RICHFIELD PUBLIC SAFETY (612) 861-9882 rs Detail Listing of All Items Requiring Correction for 7239 QUEEN AVE S C_~ =J ~J J _I 5/27/2009 garage O.H. Garage door not reversing properly Adjust O.H. Garage door to reverse properly or remove 5/27/2009 garage Paint peeling Refinish all peeling or blistered paint and refinish. Paint chips must be properly disposed of. 5/27/2009 garage Garage door opener powered by Garage door opener must reach ext.cord/adapter. an approved outlet with it's . original cord. Add outlet W/PERMIT & Inspection or REMOVE unit and cord 5/27/2009 Outside Back yard Fence in disrepair Repair or replace fence as needed. 5/27/2009 Outside Back yard Brush/leaves on property Brush/leaves on property must be removed. 5/27/2009 Outside Deck Stairs and/or landing deteriorated Patch/Repair/Replace steps landing as needed. 5/27/2009 Outside facia/trim Paint peeling Refinish all peeling or blistered paint and refinish. Paint chips must be properly disposed of. 5/27/2009 Outside faucets .Outside hose faucet with threads has Install backflow preventer to potential ofback-siphoning threads on faucet spout. 5/27/2009 Outside fireplace Fireplace chimney-deteriorated brick / Fireplace-repair deteriorated mortar/ cap /or inside firebox areas of brick/mortar 5/27/2009 Outside .Garage Light fixture not functioning Verify working condition of light fixture. 5/27/2009 Outside gutters Gutters damaged Repair/replace gutters and/or downspouts and extentions 5/27/2009 Outside gutters Gutters blocked w/debris Remove debris at gutters as needed 5/27/2009 Outside Roof Flue cap damaged/unlisted/missing Flue cap must be U.L. listed & in good condition. 5/27/2009 Outside Shed Rotted wood, siding or trim Any/all rotted wood must be replaced. 5/27/2009 Outside south GFI outlet not functioning properly/not Wire GFI outlet to tripping manufacturers instructions and/or replace. 5/27/2009 Outside windows Windows have missing/deteriorated Reglaze windows as needed glazing 5/27/2009 Outside windows Paint peeling Refinish al] peeling or blistered paint and refinish. Paint chips must be properly disposed of. Page 2 5/27/2009 11:36 ~f-~~ MAY.~2G~-2009` 1720 ~~~~..~~ fislTrdY.~S'~Rrtwiiysa~~us _iri~rror-aca ,x,~{ r~a;al 76371~7722H PP. O; ~~~~~~ h ,ca~+ F~lR~Fllilf~B.AGRE~I~I+lT T~ iorm eAAroYQd>N~ ~O~I~rtirt~pdR~FJII.TORB~`. ~~~ oi't~I~l'DR.9~6~ ~~ ~. a~ ~ s~.--- ^~',, ,~1 ~. Psi 1.~ S Itt*CL'tllixl'~ C~.a` `~.i1. ~ ~ ~ i l+l ~- i~1 y}7 i Yf I4 . ~~S~~a''l"Y! tl4 ~~ 4 ` 0 ihs riurn.a! ~allwrs ~ +. ada:'~ a s by ~ ~Ctt< p CAIN !~ Na°rx as a~rtra-t nran~Y to ba dapasibted uororr reaec+~ of >Rwroi~.e 7 ,-pra~~ by~iN1 ~rtt~ bataco the tf11M bs~sitt~ daady ~r1'bRr saca~sa~, to tips trust ~aosrnt of tlstMp ~ tmoltr, u~rlhrsrr olf4sr~cirta~tsdbo ire rrrtfb+p, heft ~ be reed to ~uyrr sif lur~raas It~rsemant to notaa+coptt:d a tryr asltir, Said mcet~r ~ Part prynnrtth+r tM pu ~ of ti7s PralxarlY lacefed at t0 t;br,pt Ad ~~ c>ftty~ ~ ~ ' Ca of tz amt. ctMtnryee!~, ItQaliy ~aiaetttstc ~ 1a ~~ - - - trc b~tdudinp ugfurturesort !hf felierivl-tp Droatb'~ ~ anY. 4wMd 6y 8sger a~ >s~ snd bcs6ad on ,ald propattvy, tts IrtolueSnn brit rlat#rrdtRdla gahMn balbs, Pte, ~~ raid bees: t ~ aia)m ditaprr, seuams ~rrrd awnGrgee; f7 wtndpW oaf, bilrt~;, t;<rt~s ittd otxlahe ~M ei~P#~y nods; edtaot:ed tl'tilfitis and bugm ptunsbkrp 48 tixturoa. waia~ healer, haa~0 ptanK (wiift srtyburr-t~, non~[wi tanks, datrss and o~+er equ_ip:nstrt u~ in~nrratlon ~ a thatawtlh~, buAt-b+ ~mndldontng *quiPment. Maatrcni~t:k llrttr~ waesceotdnsr !] OWFIED C7 RE~t'I~~if itOt"(~. ~ bs~trks hurnr~twr neat fetamiilf~, it~rW ltirst tars) r~.-.tARSE^ N~lx amd ear~isnrs « tt>• z1 proppaa++~~yef~Nre+rh sUrttppwrp; aKrrotad tatavtston terttor+e>A.caE~:'f~~endvitrl[rp: Htllt.'f-Wa: ~it~wsti«ss, ?~ 4s~9~- . daspovals- ft~et~t txkrttrsotors, ovens. oe~Op stoves. miarowavs ovem-, hnod~ fans. tntee+oanej; ~ AT1`AQtit~Or ~ !?ttr+rerrs: t;<~iPrr door opsr-ves~ Hnt cCWfE~t~ Inca s+er+e~eir. door and Z4 I~uRattratars; A~tD tfx fo0osviet~ i'~ D~ b(4 Z8 . ~. ..---- zb 27 aU M Wttlt;tl op y x~k ttas QQy f~ sellLin D r for •surn tat ~,t1t...+atto l zl Eiir~r .1~t4"~etihi{~ l.~te{~. e~-q}-1 ~T boUUS. ~ which Hvyst ~syrsas to pity b+ dts~ta>tawtng rrtattntr ?-' ' "1'" , „. ~; 30 t. Casff of tt }esst.- Psrowtt {~4y of tits sale prlaa. wP-rah iruludss tha aamat enansy; PLU3 , i ! ~ ' 31 '2 F67ulflirp~ ~ iatsl simvuet srwrsd rrpatnst tttri prcPerty to ttutd thk puet7haue. Aat io exaaad _(~~~ --4 . ` ; . 32 parom! {96} otitr. saTo Arica. ~ 33 $:ui-ffnMns~ba ~o/teakorut,~ a ~rrrt mortgaW; i~r:ontr~t for' dtadl ar O a' t>t~ mor paQa vrlrfx "~~' ~'~ %<~~.:.,4 ~ btmdlruiM ffrtarrdnQ . ss d she sta.ohsd Addettdwm: ae ~ Corry~lan~elf D ~fU p cVA 0,4rssrmrp~-orr p conts:at for ao.~ 4 otltHr: 3a The daa oicbsirs~ ~stl ST Thor Peuahxa Agrovma Attdarufurrt!'or sa,Fa o1't3tryrn's Dr~rtY as {if anefiwr•ts G, ast ~ +4ri~dsrnyu-tt.) sri {d irsiwsr•is G Nq'!', the aWslnO o[ Ski prapsrty, iCarrY, may slat aBsat>Ssryer~asb~tyto otatain ~rtrr,~ Knnsrtotrtg a0 is~ltoabts.) Mht pJr1 {osq~) ' ~o.tinnata~:Ti~uarasa" snw~r.»a~am~.ca,~ 3a:a9~ti T1AY.vB-2009` f X21 .a. rv~n. f i~.IDeiis•Rewiiyt iem7~ n~v rives ~sca r•-ua ?63'7i~7228 PP05~ Y inU~HASl6 At~P,1[tM~NT ;= AddRas ?~~~~ t~_ ~ Ipe~s ~ t1~e ~. ,~ !.! U ~,..r.___ 43 Yhb Rune Agreetrtent Q1ai~ _ ~~ NOT supjsatto a tSnceEla&Kt ai a pnsvbuely wrttEs>t purai~ss~ pr+~smsnt ~ ~ mswrr is i~ said cux~r . shall be v 3aie~ed r-a tsi~r than It +t8 tad Patton ~ Iwt bbiair+ed ky said date, this t:uroitaaa A~r+aent ts~-eakd. liuyor~rnd zs+utvr sl+aq TrrYnedlatbiy 47 a>~n ~a C.~a~tiativn of Fnr~r,.RQrorerrlvirt oprdlrming qld oat~atfiadan antic ditaoit~ a~u a~fd motet p~shf ae hannatdartio ba csi~ndad b t3uyar.} 4i1 t3tiyer ~tss tin tttada. ~raty td a'+R wst]sbNltj~ o! p~lvsrlY . ;. >s>~' ~ ~lscls D QeWhres fo ttavs ^ _.-~In.ak«wR1~ ao propstiyk,epac~on psfiFxtnrii at B.e~tya~t'a~~ncpM.nn• at Th3a P~aq A~roetnscit ~A Dl>i NOT stlbj.otio an lrltµ»vllon CorrlfrtQar~Adlo~n~kmr. tlt ~t~sttsta~erla 18. aNr i~tt~d ~~,)~ ' Qs t76raAleAR1I~t~RBL~ 49H.s: Upon psrfonnsna~ W tktyec, ~s6er rhsU daiivet s d4 D W~~ty t>~# ar ~ Ott~:,~QRLAl1t~D iV~ Dsstf jofrtsd in by apoaw, l< sny, oomvyinp _..._ as rnsrksb~bls t{tla, a+f;lec~t m 68 {a} tttp M-d lawn a~nwa• and slsh sr~d tsdsrsl te9ul~a; sr (~a} t+sstAo~o:+a t+~1ti'+d tri use ar>atprpntamenf of tltie ptoplr#y wlthot>(sthaliw 13orfa~ pcovislvns; 013 (c} rst>pfytitiivrt Otsny M>utaral tights by t~ ~ 4E Mtrinssfltf; 61i {d} ulllity add drasbps saams~ whlcit cb not Ihiartttre w{th ~ trrfprnv~msnb; av {a) rights of tempts ~s loitows {urdass t~atA4d, not:sutgeat b le:sat~o~sa). fi artd ~ {ti} ~r%{mustbs spedtfed Sn uRiir~a) ~3 a4 t;6 as i7 - 6a ©1Qt~fYJli[3HALL PJkY ~;ZJrLLiaR Mai~iAL.L PAY oa dx~ ~ aiaainy any datatTed 1!e711 ettlAfe t~ {s,~„ .Siroett s ~) ~ s~ ~ sswirea+~fa, p~ntsttta[a+ltiOh i, raquirad a. a rt~t of tf-a dosEng ef'1fNS:afs. 70 ;] OIJYER AHQ IiIEt;LER MALL P!lQRAIT/ Aa gPTH a DAT>t yF CLOSING ~~ a4fJ-L.L >RAY ON ... - tlWet ews• - ~.~+~ >•i D~1'S OR Ctrt?lSJNlsI , sft- trasfaAmsnts of apaalal ass~ssatatti~ aurMtliad ror D~tyrnant, w~h die teal elbta tkxu due and 77 payable kI ~ y~••r +ef alaal~sp• 73 (] •UY~lt ii~i~tLL A!J<BtJY>t~ ~ t!~lLLER SHALL FAY on dab of Attlxikiq ~a~A opt spaetal as~msrRs tavfad sr :~ ~~i----~--- - - 1'4 of ffie lots of thin Put!ofil~sle Agreenteris. ' 76 i] dUY~R tiHALLAii~t71~ ~ 8ELL13R At~tAt»L MitOViD! IrdR PaIYAlttNT O!~ sp~l anRants~ pesuitnD -,~~ ,----~cnec~r 7f aeoltte:dafaolt!lfsPurdta'seA~rasnlentioi'Improver>~+bthsiluwbestlord~d~enyssaeasinp a~thtuittas.(satEafs Te !~ ss taai+>r~id bey lluY~s i~ .~ erd irsta escrow oEtwo (2) Bn,es tine esgrnatad snto~n! cf tf~ s~ssssmMpt ar ao kMi~bh N rwt~ l~iw~eltt ~ ~e~1t pa~ysbla In the yeeriol[awUp d~Enp attak gtete+eMt~ tAe pe~t.cf ldN. PA.~ f0~0?'I rvs+~d~n!?iw~-tir•Trerat~nns' w~iirr,TnrFann...vm BCLk~44~QtN3 768'377228 F.O6 MAY-26-2009 17:21 fishMLS Raalty ntl~ Gi' cuua atscanr, rieiitr- u,aa.a~a1p5.1r1L¢~;r'1L~ dCt!!fUl p.14 PURCNABK AGRfi6Ml~r .st Address~~ ~,~per~r ~v: ~• t2 P.e~e 3 t~Ata G.. ~ao~ :~ As of the cMt+e of ~ckC Puro~e l~+rt»nt, SNNr t+spr~aKtt: ihs! l~~r ©FIK~ 1~ FfAs No'r noe~d s rxntat s4 r~d~0 ,ny +srw imgrovsrrisnt p~ favor +~+ •s~ttxpA Ilcrtrmrr~ide, firs aas#s of whtoh prc+kct may ba areesssd ea a~aUl~fha prapstiy. At0-~+aft ~oitos rs~ceived by dstttafisr thf dste oft~s Pttt+e#tase ApaeeMent x~d'I}sldrm o10~ ~ sta~E be- pout ba i~rryar blmysdBei3sly.•!f• Abell Naltos is istRrwtd atfsrths d~olrfas Putter R>tro+Knentsnd OR at w bar the dsM +od'sfa~sirt0- ~! du psbctlac 1118y ~ Ut v~htp. on eu ba~o» ftls dstrk of d09FnQ. ~ Aa4-: pl[rVidor q tart}br pttyt:unt a1'tbr e3tlltl'fi ths.sp~isE *we*arccuttr. N7 ihs tea! Af suds ~~artbet~ ~INOC PsrtY ttpc:t deolaro 8B ti# Fur~ottaae {~rserttent oeattasled b1r writes mites telhs alfier party. or lleatsse rapc~tlrna or usls~+g the tttlrsT 90 psrgt~ inwhkd- want this Fktrof+ew A~et~t~t Is os~Esd. N eEther pirt5f d~iaa~as lhte 1'ylroMlliv ~'aimant csr:ootdtl, 4i Stry~lr Wtd Seller, eft htmedlNcdY sin ! Csnoe~or- ~ Pu~hsaa st~,s~r»tsM aontffrntn~ sa{d t~noNlstE~» at~d 07 dMICZkIs(ilE 1lsrRQStMOrtBy (3sii! t5E1'~AfldtF~D bF ~JcII:ded to ectyor. w rauyrr rt>an ~ ~~tFROi~rre»- r~aM oxtr or ~~>K~ D,,.r..._~~z7tta OF Dom. D~t~ci ray sstafr trz~b t~ 9.4 and payable In the year Z!7 i~ l5sller aMa p=y~IROR~I~L'D WlY Orr 1Z?'HS OF O ALL DlIO teal !sue trx+a dare and 86 ifay~la hulls y~ m,,,~, of the oto~ dsrrt is chanv~, ttl~ rost ester tea Id'tsq, i€prorated, bs ~acquetad s7 i~ iht raw dosirtSt dada, ire erwsrrantrf tsxss d<re end pty~te ih lh+r ywir~tt~ el~p bs D F- T~~~1 Nohi- as hwrstsad eisttisivn. sf t! peib- ar nent+nmsst~ clsssMcatron b eheo3ced, ~Baifer ta.psy Sayer sE itbsing 5,,,,,,. too snwred wr narMtornr~d real sst~ sexta. lScryer agrNS b aey a-'W rsrr~lnlrcD tralanoe at r:em~~r~mar rd wci: 4 of when 4tNy bwotnt- dccs} ~sirltt pacyable. ~Y~ shelf pay t..l stFst- torus due and paysbia to tlhs~yaattatiorr~ olosh+fl 40~ end ~wr?fafiertiFFf4 paylllMt <Sf whinh is h8t alh8twlts FfrfY}tf prOVlded. file fttgfR~tbS110r1f 81~f i'(18dv ootiobm6lp fhb 4as snteuntafeirbs~egttpr:t»al~astictetaxs+-. too. r~tsssiDN: Ba1Mr snail ttattwr P~+ ~ ~ Prepetiy ne tatat•than j Qd, atmr oioshs~. 40i M (hts~tt, un8.ti~M114rs'.~OCb~ioE1 dUlS, tiBrtts Arid iai Oitar~ t10r Qlty YIi~F, i~WN. s a q- ~d Tt~rri~1 pet Eh~l 40i BS Ik~Orated 6eiweat- tldi~sypA!'flGS ss Of dsie Pf ClvsfiD. iRuyK ti1o11 paY Saaat ~Or 1'CtYlsl SpIIOM 4~ hid) Op Or 11~1d 40s ~~htAL PRQP~f~TY~ NO~t ~MtO UDf:~7 H~R~~iN fr~o-r:~01a ~Al'ep t~ ~bY pomaseata7 ~s Af.L D~Rt$ AND tOS tiCf'L15 sWd i:7rAM[NJt'itt~N: YiRltfbt p rpeoctable tJtlie parbd ottsr.saaept~s-ta~e d ac11c ptrtdllase nsr>w BsNss, ti o ^hetr prpvtcM otNr vi the iofi tfttf evtderlda eptiolls, aft Serie~'s adsctfon. rvhtah sly iealuda~propsr srsrolxat iit e~ovtrinp t>,u-kcu~otas, surfs snd lbdersl#adpme~t and i€stn~ atlsi f•+Aatf'and iserxtiri~ spedar aasssetnar4b to ecrysr f 12 or l~+y-ds dtidpradsd itdrr astvJca pravld~r: its (4) A aoarniernerlt'far srb anvrtsfs pafloy of ttth insursnoe on a curntr# AI.7A tarot Isscr*d by an ulsurar tlceatseti tie ~ vrrita 1Tthr fnatasnoe ref luGrinisotf acs estsatad by 8uysr. 8e!!al' siiait ba tespaasible for tM fete sssroh and ttb e~Gtrri OOl~ti trllabd b? the eornmitment. tauysr theft be resporisibra for aU ad'dJtlvcbtci Doers related to ttu lsfuanee it6 pt~tiltia ttuurinca pntEay~a } Uratcrdlrtp but trot ~rilfad to it:e Prsmi+bn9(Ir), puysr's Aema eearoh A11d (~ 11T dtsvi~u+3, ~ any. i~eller slutli ~ ss~rrtr~+r rc aopy c:f sny. Cwner'a t~ ~lnwtaclos poYo1+ aed Abe~+tet oaf ~ N In ii s &eliar8 posae~ssior+ a eerarnt. ter ti>~ to Buyer a SuysY's t3 title twrvic~ p-av(d*r. 119 ~) An Abstract or TRM • ePr!'dwd tc ~st<oot Property of s ts~~ >aroPs>'~ Asbetraat (FtPA7 cortirted to i2a cuts tt Raplstersd ~Torrsrsr~ ppr~aappeetty. '8etlar :!fait ~Y for dwt ebe~ette+g or rt A ones ~! ttiT[Brleler my s~i !or tt><a Propsttlr in BetEat'e posaesalart or tonlrn! is Brayer ar r3uyaPa desi~ttsad tt~v iear-1at~pr~avldsr. tie H 13rnperty is 1lbstraal;-and.b'ailsr boas ~ h aw sa1 Abstcaet ot'>Zih. opttat i1? wAi sutomatkaKyt ~sppiy. 123 Sed4r etFaN uw t3aUar's 15eet Ntvrbt to pti:Wct~ ~_ ~ bYths dbss otckwt+p. {-~ the wtM ~siGar has net isa ppra+ridvd m•1s t~ ~~wdv* tctl t~kh~obdlbtc nvtlesi Spa r;Ni n 3>tdtiit~tQ tmha 30~1ay ~ BuYar 42d ttir aiternatlw, rain ~Y b,lttMer exter:d dse afoaktg dsrts. Li~drip esdatt~3oq. ldfher pariy~muy dwlrcro 423 and 3Nlelr tl~Y. by trltrlWr ~rogmeM, Ct'seelcdlt~ ttla othsc +ss this Pnrohuss AansrtaM aerlalad by wrltts~ ttettoe b iha attter pst1Y..or ITetnsaa rap[aser:tlrip 4xi~ pp#rpr. M vrhloh ~ #tis Putchsse giant is anaisd. If ebher.party cisdatesthb fr+rr~fiate.AA~msnt aercoslsd, 4~a Bayer-and Ssiilec ~:tusli Imm~!ctrb ~h s GanaNietloa of Prnra~ase Ap~eraerbt oonfirmhsq sera carwslPsitoa and 1ao d#rsoting eQ eaatsst money p+dd aZrYru:~ ttl r» cvturded fo ~r µ1b5FA~S(OOr07I. ~nnprr~bdbyr.TPlkFanw` WYtW,t'1zaPe~mi•win LOG49sebtx ~~_3c~ IwlA1'-26-2Q09 17:2! f i shMIS ttad l ty 763717722.8 I'. Q7 ,~,e,bt c~. auua ~,tsaurrn nraa~.r• ,u1ti12rtls ~nze~r•i~y del«ut p~'/ pUtitCMl~Wg A~ttis~NILNT t31 162 tOS t64 i~ 16i< t07 16Z ~1J~ ~ 44t'IL1t ~ ~ sa[!s cDl~lltei are+s~sttw s s1~VWOrt otbrrtd vwrtaat ~ t3silir. $atlsr shell psy 133 ~ swbdivl7lart aN a~ Obbetr! >Aii tt0Oaa~/ gOArfrrlf~7#1:tst appeteVals. v+rarrarste that the ~ dii+C 734 d 3ha real ~ tar till ovrtt+iyCdi 1~ tfeart 01' ihaN ~ appfr}vsd far eo0oedMQ as e! tlfe date d al~rt~. tietitrwarytinm 138 ttsat #~ bu~rllttps stir Cr shall tta axtsslrur>Qe4 an<tnty wilfttirr fire ttoundary Etna e# the .propQ!ty. S~fawvrrrseth that 138 there If a t~hEof a~vv~sE ~e lfiv propatty fi4n+s publip r~-'~'aY. Ytarsa wrur~rrrtlea attsll as~eYivs lttis detNvey of Hto 137 dead dr Ndntta0~ WC Clead. tae SaNarwaer+atita thatpsior fe ~ eAestr*~, wsyRr+es,:~in turx wfU hays tssatt tnado ttx a)! tstwr. resaterla!!. rnssbin+.rr, AxttiR+~s t34 or tiools flureistt~ed w1t!!M the 430 ehtys Itrrt-adtaivh- preoedrtsq tha clvslrW in aor;nadton wtttr oortstticdte~:, 4Rsratfon or tap r~ d ariy stect4tuiw ~ yr imprcwsmar+t ib, St• prop+~+- tAt saite~~rraMsthrrtt~;etisrhanolrectMedmt+notivtfrvrnu~Y~CnterrMr~ent~ttu+thorny~waivoondeme-arllonproarsdf~s~ t4i[ or Kolattoa aaf arty law~r, orsErtanos or rs~ui:r:Efat. N 6w properly b; sat t+d rrstr$s~ee srjwnsrrb, 6slfa wartea>~ that taa ais><sr hss rwt raoe>lred stq-•rsotloa.irorn~any prison or sutt>o~- ss tea a ht4-+aflt of i1w acwnar~s. JAY scich rtodnee t44 racat!n4 by SpQvr shall t~ proYic!'.d tv B,cgref trnmsdJstey. toss Saebr aflreas• to atla~w nrasvns~k+ a-ecew to the. properly tar Fsrl~rtnaa~toe of sny sutvayss or Insrpeoaatu aprsad to 146 hers. ' taT ~!lttt of tvQEt t# fttsr+a ie arty loss err aamapo to the prope~'~+ Csa~asrt the she ttMraof arrd tits data atabslnp 1Fa' any t~t1 wart, Mcreullnp 1#a. vandaltOrrt, ltaod, •srstss~arki asct 0a' qad, ttt+e rlik of laser a~ lyrr vn ~t1kr, li the pro~rgt tari Is~das(rgyyed cr s~Watttlatf3+t~ms9ad bsWt+a the Ctostlrtp Mats, thds Pti;ott~t Apnsermr~tis txttCalAd, et t)uysrs upttatt, tlsff !,y wt~5sn riotlas ttt 9silsr err pssen+eert nPr+r>ter:tlnq d: ssrshdt:p tlall~. tf 8tryu osnoa~ th6r Rttrchass Aonsntenl. tbt Baysrturd8stisr shall ~~ .siQr- at c~tnr:rAsr«xr of l yrohasra r+IQrassyttarrrE ooettimtlrKi satdassorclistlatand 1a2 din-dls+p slt sernsotrr:arsy pale! t~aretertdsrto be r•tLa-daet to @uysr, tsss 'Tti~d! ~l+ trae~iCEs'>'kr>e •is of the essence fn this Purls ~ tba tssa t+ss tsrr tss8 is 160 101 tea t00 tra tTt 17! 1T3 174 i75 Pe5s4 t3~e.,~~'~t 0_7~ RFtrlR>~ /~filtfaEgENT: 'rnu Pcuahs-aa A~prius~arrt. any attsofi•d rests snd arty addends a a:ttarfdtrfstita sorted by the psrdes ~ sl~slt tJb~ ih~ wr8ra bebna+:t ~ifW Arid t3uy+er atxi sups~ea+Wss anY' otltsr ~titleA or oe~d ~reomanb batwamrt slier and isuyar. ~~iohaw I~grs+m•nt oan 8s +nadtthd ar fad arty kt w-lftt}g slDned by ardter arse n- yrr ar i~r opsrsbon of law. Rit nearwrrt:rry sins ~ d~+ema~d to ba: vr~sd arrive our~:+rnaY tar purposes ~tlde >°cant~aart Aorsametlt t8uy+rr s>r SaM •r MaY bs rtiautrsd to psY asrtsiti tlosirq C~7etf:, +Mitatt ensY etcdrdivsiy inoes~-ltss ossh ~Y at ctog6'1s:~ ur r+sdcraa ~S proosods from iii sa}s. ACtst+TIWC>ei Tp bs i#ding, ~#tsist Pttreha~ ~graeatNrt must be Wliy •7creufi~d by t~Wh psrttts srrd s aoDY eti:tul bs s9dMlutid. OItFAW.T: !! BuyMr daptwtr let ~sy of tfiti . nremsrtts tte:rot:atlir, ;letter may termhatst tAIS Ptltcltsrd AOroarrern suxisrthe pe~av~Ditt at MN Rtatuta 8~9 21. !f C~4+fs +or nor da~fudls I~ ~y of the a~~ aanau itdrs~iux~ma~ theta axtssis sn tu4fslf6rd earuWoR after the. dats~ spsertfsd tar tt:tttperseret, srtoter RartY msY itArstrrsrc# ssrtdsr ~w st~,1.559.21 T. ~8ubd. 3.. 1Nherteyer K b provided hexsii+ that thlie Putntsaae ~:s.mWtt h aarrosled,alq tars5us~:srhall ba daamed a prbvlstan sutttvetxirtfl a ry CartormRatllcn utetlar Nlf+1 •tlb:tu6e I~~Z17, $ubd.4. if this PtircttASe Apswntsnt Y Wert ostwsipd ttr hrtnlMrtsci as proVldsd hs»tndrrt ilvyllt ttr t3s11sr msy sash a~atuai dane~raws ~ ~~~ s mtikstbe:t rrwstst>r writ ~ wt~ihfi ~x a sttOsr stectt rqM a~f soba~lees. ~ ~ ss tc spsaitlC p«tcrtnarto#,~ NOTICB tttttciuii~DiNR PRiDATORY Ctrlr!lNi7i~Ft WFORSIATt.DN: Int'arraatiosr reO~aKt ~ prlydestpry oedsndac ~piatry and persons r+s~stsr+ed with tlta prvdstory ofNndsr~tos under ~t sstatutd 4Q3.4 tm msyb bs tlbtginsd ~ubnsnt oi~Cotrsetior r~i~{)~~'t T~OtI; o~mfrQ~ri1~~ ti~earttnr rtaetbrn web sits. at www.carrstat[.ralLtie. MN; PJ1.R (O~AT.r) hun9Or:'tti'YtFoeaiw' re+nr.~'rn~Foe+asaan #4MpY•Y~SZ l ~~ MAYS 26-20QJ..~4.,22 s.vu~a~~ ff~ss3++A.S~Rawiiy cams an'o~triLy t!C! r~f6ti 763'1?722.9 >r0~ ,~~ I>u~~-s p~~ur~r~r f+ays ~a tisor t7i >isNVfROHNIeN'r~u.QON~CE~IS:Tof~•aa~t~ts~`sknowt,do.,fhe~ear~arroMa~a~Faase~,bsfanose~arunae-~mwsa ,t~ sups isr~cs+acoept F~+sfrt ilotiaa; ,eo - Tet sex ~a~ ~~ t~ ~~s 187 , ti9 __ - - ---........__ ..~.~_. I4~ (Z71stiTC ~+.~ Boa 8EI,4FsR Vb THAT 7HE PROF'!rR`t'y' tS ~E~ D Ti.Y CSR lNii1REMLY t7<aNf~GTED TC. 4~it CITY ~ Y~ ~ NQ / G!'I'YWATIIR Y~ ONO tg2 L~IY,ItTR {lElNiit iYiTi~ 4'93 IES TF SIY3.l.E!! L7 OOES OQl~4 NO? KNOB! 4P A ~RNATit ~ 5Y5CEM ON OEi --°-~--r--a~+J--- 1 iE ~LRYINCi THE i~RC?PlR7Y, tlf ' i! DOi!!, asp prlc~ete Selsrr syafiurr Disch~sr~e~ Stat~~~y taa ~ 11s8 THAT sCLLER ~pt?EE C~oicu t~eT faIOW 4F a tNRtd. ON tyR SEAV{NG 'PHE ts+f PROpIRT'Y. Qi'answet le DtiE~~u+d wNl he kroatad~an ate -~ttY WiA' Ofst~bftWtr tnnt.} 4os THi8 PURCHASE Ac~i;EMEN7' C~ !E i~ ~ HOT SiJPl.ll`CT To A P1i'1VA7~'~!lVNE~ RND WF1.L lht3PFGTlON tes COJV77A-G>~AfGYA~JD~IVDUM. (!f snsWe~ fi {IIS, a Leh d ~{dt~dulrr. j zoo IP A waa~t. o>!e ~!l~vATE aEW~R ~~~ ~xtsTS aw ~xs pao~r~t-nr t3ttYi~e wts Ia~caeN~ A w~t~ 2D1 CISC3.4:1t111La9TI~r~NTIIAPRIYATBt$Y~TfV1~tO/sC~Odt~~j'$TiR~I/N7'. 9D! .L~ SO1V /dllCIM1+l7Z ~ 9s ~I8sNs1"+~ Aunt D B~tys~ir A~ISnt D ~WSI Aflint ~ FaoltittEbr. zC4 ~ caa+vw zov ~ _,.~, ~ Is Q Ss~ie~'r AQsnt ~BuSnts~Apsnt~~O i7usl Agent [~ Fadlitator. Z08 ?~ T'Ht* NC'~I~ DO~s•~BATi$>at-MtNNiESO~`A =1'At'UTC~Y Aa>~t~CY 019Ct.owie~ Recu~ltlllv[i~. A1H: pJfrS (4i81nT) t,rmp~~.dW:Trwsc~-~" wwwTntsFa~nl.taa iowtns~~'2 ~~ MAY-26-2409 17:2 fi~shMLS Raalt~ 7637177228 P.09 ~~ra ca. cuuo alaaurr~ti ncaavr• waa +.awo ir..~c~r•s..a vci r-rva r.a zae 2C0 u c a~~~._ P1~e 8 DaOo ,~„~QQ~, ata SEt[.giR WAEiltAbl'iY 7FtAY CEN'fiiAL AIR-CpNDiTIONlNG, HEA'!'EVG~. IsLUlV1U11Vti AtVO Wl)tlNd i31't1T>!~M$ U$t:D 21 ~ /WO LOCJ17'tt3 ON ~8~Nt3 p~tOPER~Y 8FtAU. El: lht VYCnlK3N{3 ORDER ON DATE o~ ck~bt~ll`fO, lKgEP'I' Ag 219 NOTijL~ IN TM~ i~t,1RCN AOREENfENT. 2t7 IptlYEr~ iillb 19~ KIQI!f'1' 't'O A ~itltLK•THt[Ot1QK iREYIttYt- O1r THtI t~tltJlrrllTY' isltlCiR TO Ckd:tA}~ TQ xta ~T/ltititii•1'~l~I~TT~RROPL1t7Y Is li'I titJ]rtIT/4NTillLi.Y TNii bAM~ C~1RI'noN~ At! op'I'tta DATB.tlF Z16 tNlf pt}RCNA=ltl Aiil~#Iat~Nl', 21i ltt1Y~R ~ E111s ^ FiAtl i+IlKt` t1ECEtVis~ A 8f"ikEiQ'~ PROt*LA'TY C1SCl.Q$f~4@ 3T,4T~JW!"M' OR A 2f7 SELL,bR'S ~CUR~AI.T~FW~77VES F.QRM, 2tv 1J BNYBR I~D1AT~'EN WRRfN~ Cl~~ IANY st~~'AHZ11~fENCNA~I~ta~ Ft~O11~ Ai'1Y RR$Oa 2'1A F~r~'lli~lTii<TTQNI! Fti~##RDTIiG THtE PROPEl~'f'1r. ?fit IN'iHE EVAN'FJ~B~iLiER'SAISCGO~dA4EALTERN,4T1VbSFOfiMIB ti$liA INTl~1S7RKidS~lCTK3N, DItR~aOARE3 712 LAVES T1Z'TNROUGH ~. ~? ~4• 22i 226 . 027 zZi 2~ DUAL AOENGY Rk°I`RESBN7AT1fiiV ~Q Tt,EA$~ Cli><t.K ~:t`n' TEIC 1"akLGW1~1G ilaLEt:t'EONB; Qa1 ~ t3ua! Ap~ncy t+spn33aitbdton QGB3 NCTspply fi thit.trsns~astson. O~srpar.~ ~Msr &t~•2~4A. ~ Q Gttaf As'I raprrmfteitgn A0~4 apply In this suf6on. Corr~lolQ Nw d h A4sra 2~•24.d ass thnker boils ~ ~1Mr(ts~ ~d tht bu . ~} of the pr+opaly end in lhi~ trac~iwito~n, cr~t~~ # asa dual ao~+~- r+ti ~ lh11t eroicsr •w+d isa ows ttciuatary b ttoih S~apsrfsy any n;)• teaeaene tai ti,M p+usas may geMiettt~ fib, rand its sfl~+rat:»M a h3tited lbraf advoaeti ax~HSiy fwr aaa a~ t~#Y. ltaoker 3 r-ot~as ~ dari In ttw trartatoUan withoat aoroent of barn ba s~~ane ~b+~+1• 2a7 gip,t(a}.w8 euysrt.) tha4 . xaa ~t } oonlldenttat eaeam b &oiwr which rapsrds ptie-r iKms a~ rs~a~ n b buy or sap, vK~ 23~ f.OR11t~t! 00l~ urd~ss i) vrl3'siysY(s? ir13$IiCCe $h01cM fY4 Writin tQ dlaolCSB ii1{o~l7iif~t. 2to iniber~ttloet W21 t!1 tfua~ X41 {Z} broker and >~ ri1n s v-V!f t+at: raprdaint thin itlterbst vt slitter p.r'!}r to d ' . tnt d ~ othsr; rnd 2i2 {3) wllhhi tht Ibrtlb of ~prtieY, erolanr srtd ils ulesperscna wIIt wort; ~ faoipt~tte the rrwcltaatas of ~aa tn..s,l~. Z44 With~thrt ia~a~+krWa and v[ ttii~ e~lar>atton Above, Ssiler{s) rind ) eutftarixe sn~ tnstevd ttrotcar ~1d and #~ ~tspanrons b ~ as aphis in this trra~s+wtlon. . - ,. 7A6 Slit' ~._.,- 8ttyer oows~ il~rrh ~~ ter rauyr a~~v.n the zaa DaSa Ds~ , MN: PI4~.i0dDT) fa^rp.nwf~IND1s't~~' sww.TewFOee~s.~ !OQ•4Q1•oB11 -37 MAY-26-2005 1?:23 fishMl,~ RQalt~ 763.7177238 P. 10 t9atb to G~UUa L;idJ;819 Klil~t-' WiL;18815 ;r1Lt'~P1LL' tfGl lRU! t~•lIJ Zi!! Add ~~~~.~e~+f~O~--. .,. 2ao s~qa r Gat. ~~~t y~ . ze1 t!'1'!~tltFl.~ 1h r s11r motte3~a trat~h ear ~ 2a2 2tli 2f4 Ztf0 pth4r~ddohdu maY'ba aQtratwdwttlClt i~~a mach a PaK ofttil~ lei ~1pt+ee~t, {Eta total atunba of paws a 2es this Pucohart A~ea~nf, tnai~ryo aadsnd., art ~ Mro Rf at I~ ~' t~3•? , 281 t, the awrNr ot• It+r props, •o've~t thla Purohaape t ^na~ euthorfs- tt,• Nra~+p f 1~ -~~,ersw p%a ~t a tt~ulca#. c~dsas lnslrtocted I haw r+rviawsd sA puss af'itbiis Purstnaes 1lpnatmet~ C! if dtenkrd, this Ftuch~ Agr+Nnnent t " berq(1~erAr~d~rrdttt~f. x (S~r 285 e.~. t r~•a laaro-? yea s x~r x (ii0lki'R>r!~ .2Q0 on,.n ,~ex,~1. S3N~lt"~ Aint~d lJarn~) 2dti (MCI B4-Iw1? aT0 pWiCl. A'CtiRr'TANGf1 tfA7'13 r.p-w- is pwohss. tt,.,~roq.-tvibr the ~Oa.nd on tFs~-tanm and oondittons set•fiorlh abavs. t hnw tsviaw~ed a1i panatof•t}tis pwcttase Ilgrs+n-~t. E +~,> v~~zp~as ~: l.+~c~~c..r. ~~ .~ .~: (i1 f'~ i~t lKe~110~ (MAl~oi $trr~us) 271 YHt~ ~ ~ ~ti.LX~lal[~itt~ rcKrRnteT ssrwEer eutri~sl_~! ~~: _. '~'~ IF Y~1T D~3~1! LRaA~: ~7R T/i7~ A1aY1GS, ~Vnrnei i anus ~-F~urtaaq ~ s --rv~rrw+...•••••~• s7s I At~iNGWLiIDOI>f THATI HaY! RltC~i! AhiD N1tVti I•t/tD Tklt d.TFC?ttTiAATY T41~~1~1fYTNS AJtB1rRA7?C~4t ~~+ G18otOS+t1Rq,~~lip!llS~~9YT!<tt Rr>l,1t N1~~1"1'I.IR~~r~rloNlu,-Rf~ArBM~ 1NNiCH i~ AID ~PTJONIU-. 4~ VitWtCfARY~ pi~tQlt;NOT!'AR7Ot~TFtlBPiiRCHAtYRAt3RtZ~MtiNT, 2.7e $l:EirLR{>t~ a1tYT;1i~} •• • ~~ h r 377 !!1'lf.L.tflij8} a Re~aaAtJttlve IMN: PM7 (D~0'!) ~.n~nr+Ka,ao~:'I1xuFomN" wwtixYrwFora+~.amN toclcaai~ ~l --3 ~ i4AY-26. 2009 ! 7~~ 23 f i shhll S Rea i ty 76371?7228 P .11 ~•~s~ ct cuua ,.aro.cRiv ~t.xa~rr Wi~litlllS triT.!'~riL~ 1lGLf4U1 p,t,i FINANCING AUDENQUM GONVENY'fC7NA4 CIA pRIVATr.L.Y „~"•-~~..`"' ""-° k[tiiAUALD GONY>~NTIC~NAL MCRTt~AU~ • rNa ronn Aypnfv~f by tb. Mtnnoa~ta A~aootrtlon a a~iaaAsF J}UTAGA'fIY ItMRLTIr )~AXAy wNchiUaohiYlKa~4y11tblggiar~autQty..crtrilwpvre~ta~m. ~ 2Q07 Mhtnr~ata Arreoolaltoef Gf M'tL1l.~'RM'. ~dJ7b tr1Ti 1. Dab .~ ~ ~01. '.:10n 2. t?apa ~ Addend6utl tb FW~Itgse A~ftiemertt ttetvveert parttea, dated ., g0 $~.-, gsttaiNrtq to the 4. punahaso ~pftd sofa of tlta pre(>•rty ttt .~ ~ A,,.kt •~ s, , 8, Thera IS I~ ~ Dflyertt ~lftatfalBlDlsafasura Jfatemdntsubmttted with this Purchase Aprserrttir~t. 7. Ansrofttq wRU ~s a F1RtIT iNCt~TQA46 arty ^ 1nRoT t+AO~RTtij~E ANf~ SUBQR WNA'~t:' iriNANCU@Q. ~ buyer shag apply tar and ssoure, at buy-ar's expanse, a 9. ~ CCNVi[NTIgN~L ^ PRIYaTt~Y Ii~It3tJ~t![D GONYCNT~Ct~IAC"^ ~ ~g~ a+~+~~-ti -. 1=irat tAOrtg4ffa 10. apnortlzed monthly a e: period ~of rtot mots than ~ years, with an lnlttal mortpapa. intQtesk f81e at 1!, no more thatlrJ.~7:~,cL. ~ . percent (!5) pef' tutnum. 12. The rr~rt~Wa sppNoattan W TO t'•L INAOE tM1'HIiV lrtViQ {i)1iLi>;INtitStl tl,41~ after the sxxoptanos of thta P~xohfaf 13,. Apreerttertt t3uy+ern~rest ttr tose beat efforts to seours a oommltmettt for such flnandng.and to 6u+toate ail dacumertte 14. rvqutteet ra ~orttlrrtrtrrtate eetd ttrtancinq. 96. FiNANCWp t~N'[ING6lICYs This Purchasr Agrsemens to oontlrttisrtt upon the toitowing and appitsa tc the frrat 16. moft~afle and any eubordtnaU tinanofrtg~ t~ (Dttsr~frr~fw~~ 18. For purposes of tftfs t7ofttinpsray, "1tlMt~a Zn~martt" rnaana a YVrtttsrr 8:ntgrnant~ prepared by BuYBta mortsls0a t9. ati0ina~o) orMrlder(aJ alter tha~Finai hoosptanoa Date btu Suyre is appiowdt4r tt7e iaants) speetftsd to rota Furohase 20. Apreatttent, tnduddnp bout tf~o first tnortpa.Qe and afty aubordtM~ts tinaaatnq, if argf, and tttlttinq that 8rf apphtlsai; 2t. sattshctory to the isMtder(a}, ttr'a~ttll~t camplatad and staBhQ oandttorts required ~ lendar(s).to close the loan. mt. [~ it 8uyrr oartrtot ancura eucfr mor~assp} stnd this Ptrrohaae Adtewmarit dean not olosa on tine trtosing 23, date specified, tltia Purc~utee Rgrwarnant Is. canaied. Buyer and tf~bUer sttaJl knrttediatoly sign a. Ca~ltatiori R~4. of Purtfiaes. ~er»en! flonflrrnin$ said Cenpeitailart snd dtrecttng aft rrmsst rnenoy paid honwrrt+dsr to be 2B. ^ r~Pi7ltDBD 70 BUYJrR~ F~f~1ctTEDTO tl[I.t,EA. .._...~......_._....-._._._.rc .nsJ---~...... - 2B. ~ Buyer ahel! provide Seiler, or Itoenaee rsprasentln4 or a~Es11n~ Seller, with the Written statement, o~n 2T. Of be'tore _ , 2~ ~..~.. . >'s.. Upon dapvnry ai ttts Wfltten Ststefnent to B.Ilor, ar Acvtteee repreesrrfft~ or tasaisttnq SsifsF, the ra8po~~aayr i?a. far~+tatisty~nfi alt Oondi~anr, .etc.pt werk ora.ru, rsquked by mor~aga ortSlnater(s) ar isndsr(s~ are daarnsd ~o, acaspled by guyafr, llpcn dallvary of cis Written Sb-temerst, if its lurch#ea,~~Mrrtdrtt cic~as not lea an tha 8t ~ eta-tQd civslrtp date for ANY RLAt~QN tglatirtg to tirtanrnq, othar tnarJ 3eBer'a tYtlur~ 40 ovtsipiete work orclora to 3iz, the aacbant required by triis iurenaso ~ree:nartt; irtt:lUdfnq bUt not ttmLat! to itnar,eat raps end dlscormt goints, 'rf 33. a~9ailvrmay,at8eilerEOpttoa,bttglaratitlsput~tgsaAflrasmultoattastsoLieawhiaktra#ethlsPUrahaaaA~trwtnvnt 34. _ trcftno~slvd. If t3a~r a.d.uss alas !'uraha~ ~prNmartt oanasisd, iiuy~ar and Eaitsr stla~ ErnrYtedlttofy elfin z~ 36. Cetrrcellatiott ofP'furh~wrr~a+menrovnfaZttlnq aetia oanoenttlon artd dtrscdr:p B~II estrrtott rnonsypedd hsrwnder 9b. tie bo 1bKsited to 9onor ee nquldatsd datr>nees. In th• attunattva, 8o8er mgr awk alt other ran+srAes auowvo by s'l, taw, 38. 1f the'PldtEert t~taiement~a rtai! ltrovtded by fns date spsaltise3 on Iim z7, tttic Pur#tase Agraemertt is canaeteo, 3P. Buyer end Sslter ahgti Itrtmocf~taly ~viQrt e. Garrca~ar/wr of Pur~tttae A~roerlnsntrxtrtfirm-nQ sold oencsAattan and 40, diractlrt~ GII octrrrrast rrrortsypetd harroundvr to as retundad to isuyer. ai. rH.~s to w ar~ltaAtlY ~tHDtnto cortTlaA~r nt~rtnf~i=r~ ~statrgt~(~o) awa BRt.Lt',ft(l3~. d2. If YBU t~illla LiEt3Al. ~tTJtX AOYIOt:, t70tWitJLTAN APPRQ~PE;IA'tE plfiOFf'~lt7t~lAL, ais:t~+.t tr.+on 4-3 MAY-26-?:009 17:24 ffshMLS Raalt:g 763?177228 P.12 ~•iaa as cuua it:~ainn ,,, ic~si~r wtttsaafs tn~a~~~ttti ,E~~.1Y+40I p.12 ~~t+t~a~awc~ ac~>~auw CONY~NTlC1NAL Op PIR11tAT[LY tN8Ui4Btt COIYw6NTE0ldilL MORTC~iAd[ 43, ~e 4+i. Property looe#sd al ,~s~~l~ ~±sz art - ~ ~• . ,••--.•-- aa. IIRtVA'1<'1S N{!AT'dAi~L IA1![1RANti>o>4 (E'[~ Pbtl nuy bN rrgWt'rd by the 1eAdinq lrisSltUiii~tta}. 8sryar agrsESa ~ pay +te. 4~ aUbsrigttatrlt yr~ra' ~q 1t+euntnce prernlttme sea required by the lsndtng InatPtutivn(s). Th• aeid niortpage 47. Inutirenns.pr8 tNtq hton~ ~Sd rnortgego~a~nount un~sa paid Itt Qe9H at ntonr~. 4s3. QISCGtJ3d7' l~Q3l~T8s 1} a3Nlor ~. aCrssd ti4 pay ests:a+unt points purauem 4o mte Purah~ A~ssmsnt. ~ I.7nrnclnq dSi. addarratum Ball~t"s ~frJbsrtivrt b Qloming Oaaro~iuld Ftaootxs! fblrrb moat bs atttaaltod, I~iothing In tftla Purchae+- Eta, Apnsmsntshail psnriR~it BuYartrom payingany mcr~aga s~aountpotnte. 51. 1.OCKiNQ fyF IfAORTQI~E iHTItRE~T ltATit (RATS): The RA#s Mho bo 1odaaci wltlt ihs Jendsr.(s~ by lluysr 5~. (d~oa~e»e}: 63. [~ VI(ITHiN !NC (Qy QU>!•ll~tei3 DAYS OF plA[AL AOQliaTJ4h1CE OFTliN3 PiJItQFtAiI>! a1+~iR8EMlANi'i OR 64, ~ AT A.NYTIM>' PfiiCi~ m CioRtNd OR 118 RIfEQUIR'ut dY L6Ha~R(S}. 6h, LiNCEFt COY1WTMtNT WORK •QAD~ptS: Nathtn~ In thla Purehea• Aprwemsnt shad be oonatrcl}d ~ss e ea, warranty that~8e~r sdx~rfl n^raPco rePsfro ragnlr+ed by tfia tender oaAUrdttttenG Hawsveh Salter morose to oaX up to ii7. ~ .._..,.+~i~.. t~ maiea~r air rsquir~d by the lender oommltr~nutt. Nthe ivnder conut~~rnsttt ss. is aWtr~pci W. wo . tor.whkh t~ oust masanq Bald ravarra ehail mad thsa itmourrl,.8alle'shad }tavatn. 5p, tvlivwx-g optfo tst ~Q. (=J malcittq tho ttiea~~eary tpp+ttra; or di . b rteyotiaiinq the oiut of meldAq sa(d rspalra with p~-yar; or 82. .~c} daolarinD thts PutoFuee Agt'eemant oanasTad. U1 ~+htah aaaa #:fs War'Cttrrra A9rspmart ~ own~isd.l~nr andilet~r ~, shaliinsn+ed1at61YetQnaCanaab'etNonQtlaurat-ae~eRt7reefie-+teanfTrn~~saidoa~nca!{~ion arxl:clln~l~alteaCtfoet 84. Abney paid: haevwndsr to bt rtfund+:ri tv t~,y.r, up ssr Buy~r praNd.a tar payrnerd at the ocst a# sait# repels cr 85. osoraw amounts ~I~ti lhsreio. abonte •tAs emnuni epsclfied oh Lino i37 of dhls A-dclsttdum. 88. pTH~'1u S7. 58. ea. T0. T1. 72. T3. T4. 7S. 76. 7~9. t.U.;~AGM~2 le+orl •~ t~7 int'1 to~M THIlt to A L[GALLY !ltNDR~it~ CghtTRADT!! ~ Ki!R BUYER(~AND SELL~H(t3j. IPYOiJ DgSIRS lEGA1.Ql~Ti~XAI~YIC[, CCENStA.T1lN APPRdP~1 TE PR~Irt~>ilOntAL. ~~~~ MAY-2S-2009 1'T d Z4 f i shMLS Rva l ty_ 7ti~'~ 17'228 `P.13 ~fOa Gi 4V.YV i1'.~7L1'il'4 ^• nos i~'T' 1111 i i LrlRti 1114M~'f'14`.1 dGt !Till - ~:. kS fN~tPBCTiON CONTtA1C+i~NCY a4Dt~NfaUM 'r'hla loon spprav~d by tAe IMnns~wdi Areocsi6on of REJ-ttvrsP, ~~ whfah tnyt Ilran~tgrarttlr~et~e1 W ormtuw of true roan,. d o0d! krlnasrrOtx A~seet.~tlon v) llsAt7pt~o, [sltn4 MN #h~~GR7TY 3lRALi'Y t~RK.89 1~ ~~tig 1.E.tI .lrs . ~l~t~~ - 4.. PKQi ~. ~H$ r!!0!"IEltTY,11~ HG'i >Kt'11N, CANNtYi' Bli iiXPECrEgrro 1"LE IfV NL'W CONDiTICN. d. RDI,1'fINH MAIPt7'XNANCE rfJlsAAB AR$ NGT PAf1Z' QP ~ ADDBtaDl3[id. ~ Addondutnto t~ut?oha~ae Aprt36rnent l~uwon ptu~oa, dated Nl Wit. ~o , , 201r'~ ~, pertaining e. to ti:a putoh+a~ ontl sslR c~! tta prvi~~'tY at ~.a'~.~~~ tl~'L-"'T,~~'~ $. 7. 8, This Pur+~srtavAprosmorit ~ oarillrportt upon a complete hone IrtaQ~oean(aj at'tttia p~roparty to datarntins 13s CArtditspn. 1a, Any and ~ ih;rpeattons pertarmod by Boyar shall tsonsiKuta a oomtslota ssame trtispaot;on(s}, ttl. Airy fnapaceen(a) shah ba dana by sn inapoc~or(s) of Buyofa ohotas. Tha faspectar(e) should be g3ra~iiad ro da tt~s t1. ~peotlbn(s,},asaaAderswdbi-alfastsveorprotsse6onaideargrwtton.ttwyersNeitslitlatyi'suysrertotha~uapilaat9ona f ~. t3! the isfepeolatp). 15. Said lnape~on(a) nlratl ba at t~tryer'ir onto ~»nai, 14, setlu ~s m make '~ proptrtY rl~onsblY avaptt>)a tar asJd tns~ootlott(s~). 1s. Anylnapvcdon(s) artesl~a) dune ~ PW~, I>riYA yr anyoit~ar ~ouanrnental itn[t atisil tae done la'utd paid forlri scoordsnora fd: with the opplloet~le afgutauone and ue rtatpart of this Inapeoglon Contlnpaney~kddandum. 17., tBuyfr shs)I nbt haw the~r~ht to da tnlruWw t~ttnp wlthaut the prbr rvrltton s~utttarisadan ai 13siirr. . 1 t3. Par pcrrpoaas of ~tltils lcrrn, "intrusive roabna' shed mean any tastll~, inapectt~n(s) .or lswa3tt~on(a) ttttt ahlingaa the 19. praparty horn its flrtgfiel oan~dOh ~ att~rrvia+9 damages the property. Z0. Bullet [~ DOL~D~~ wprao to ellt>yv Huysr t4 pvrtartl't Intrwtva isa#ins: yr inapso#tort(sF). 21. It answer k DO>~i, Hvyar s,¢ta•s that tfis property ahali be returned b' the same condttton fr wes 1n prior b t3uyar'a 7Z. (ntrust~stsatlrfQ~ttSuyrr'taol•wncpia;~-, ~. i?ssr the uses oftrite. A~isrrripm, l~l~,ralrless dlgre" shell end st 11:ag p,nt~ end do not ino(uds t3ttaatdrys, '24. Sundays ettd stele and fordaral ho[tdays. sa. Alit Inttpsctton~a) shaft tra riorre wltttirt ~~buelness days of tine! eanbptent:e bt th1! Purohees .Apreornerrt. 28: Buyer shell ttaYtt these aptlorw followlr-0 Inapsatlon(a}: 27. ('f) N r3ily-or, orllaetwee ropl'sssrntnq vr~datfr-~ 8uyar, 4dvntlttas stay issues peris~inQ to the property rees,itlnq 28. tr0rrt thi ft~paotlonts) and trrtwsds to npatlKta ih• iderittNad Issues with 8a-Isr, then t3uyar, Ot ltosnsso 29, teRn3oeittlnfl of ss~tsdnd irJuysr,, shaft notify ~ati.r, ar ilasnoee rsprassntir~ or aaaletinp~ 8elior, In wrtdnq, iii: dea?rlbtriB it» IosuN end proposal remedy, with+n ~ tjualneaa days after axpie~ation a} the ttitla ~i. piirtGd epecthuf'on lino 2b. 3Z. >i t3tiylrr, ar 1ic~nsaa t~aprsssrttlnp or aaslattrtp Bolter, notifies tiavar, yr Uvansvs rsprassnttr~ or aeaisting 93. $.allsr, dt' the ttlerrtiNad taiuaa and prapos•d . and H within ... a~ btr4lnese dreye attar auoh 34, rictlce f3uyarrir~d 9stwc hints oaf s~rsad In VYrninpto a reinstlyoftha tde(Stilted'Issua•, stk PurahsseAgromrwnt ~, Ie eaneaied Kiltlx>fJt fluffier hot2oa nqulnd. 8uysr and $anvr shad imtrtsdiataly a-pn s Gsnoa~tattoar of 3a 1'utotater+r Apidornirr! cortfint~inp said canarit+ttter+ and dlroottrtg all Ntrrrsk rnonay paid hereunder to ire 37, rvturldad to Buyer, and ttrorsaitsr rmktrer party shag htsvn ar+y turt~ar Ilaibl~ly to tna ocher. SB. Andlar; 313. 7IF11$ Ill A:I.;iQ~-L.LY HiNDiT3Li CQNTIIACT s$1'1N~N eUYI_'!t(8J AND sELLE>i~8). 40. 11%1-OU t?t'OifK i1G1tL. f3rt'CAX At71110E, tANl311E.T AH AP?t~dPAlA7Lt Frl1t3lXSHICNAL MN:1CM+ (e!07i ~/-~/. MAY-28=2009 17:24 fi•shMl$ R~a1L~ 7632147228 P.14 nab cc• t,uua ta~acnr, eti~Tti•!_1' Wltjlaf6'S~ ~lrt~e~-razy 11L2/~UL ~• L4 tKSpt4ro cl~~rrirtc;a~wcv a~DU~ Ai. ¢atrv ~._..~-~~- ~ s a 43. Prt~e~ii ~~ ~t • ~~ r mriy ur+itetton>iy W~1+1ii anY tfR11~Y, NalwlthWntdlftp tu1Y prot~ifitvri m >tie gontt'fruy a' any noitoe y1 4.~. {aI fx Naert~e ~~ fir aN~4 Std, n dt QvNr;~, er ttwn~ee raprswnttMt ar ~~, proMdltt~ @'+Ott B1ty,Ki 46. sim9 sollir, of q~pysr is wrtNr+g, v~tftNn tote time ~ an tle4f 33. ,~7. Mr!/or; ens •~ 0~eed an t~ tna+~tto~(a), 48. {3? (~o~rlthstq ~3" e>lhur pravitlvn of tHs r'sNOhetss !-yre ~+ ~Y ~~ or ~aatstinp ,Ig, fisda-e tl~>t Rueat~se J~r~amsfll aanated by ~'~ nddoa is seller, or tic.nsaa. rep~-t-s0 ~, tleAsr, vritriln ---~-~b~n~s.d~ri ~ ~-~~0n of ~+e ~+ Pa~~d ~d oft Nno 25, in~v,~tcfi- cae~ Bt. tt~ purohsea Agnernerre is o+a~p t52 U7 tt~ went Buyat derma tnss Purohl~aaoou~ ~ ~'dan srid dlt~ctt~tC III d~~ ~~ ~d ~. a t3 at r~ ~i~0~ a,l, i+mrsurtdet t4 br rafeltwad to Buyer. 85. It iSuyorletb flf havrthi Inapta} prfearfned wlthinth.ittne r~paali(ed tt+ tine 3ti, cx dace not notitySetler. or lecsnsea or asstetlr+p Better: vt !luysr'sdsoirion wtt~irrtite *arne speotlfrad th itnes ~ ~d ~~, Shen thta $pntlrtg~nay 36: rtpreaitdi~ snd ~}s F~urohatY A~reeA'f+arit ssha~ be tet iWI ivra+r twr-d ettc~t. 6"!. •shatl be eJt-smed remrswd smst:t S8. Noth117~ rui-NR irwort7idstae ~ ~ ~acl to In Nees 210-2'tSt of this PUt~7haae A~ fir ~t1slSrtQ Belf~r, j~Bi~lAl,1. s°<HAU.. t~T' f>~ tf+e ripttt b co~inva to ~Hvr Sft. li~fir, or ~nRVa repa..aufd~ _._...........~ btl. to ~rsAs ~ for seta urittl tt'fi3 Cgnttrr~srwt- n ~!1~~e .. Gt.~ ~1. tC~1r? ~,~ r0aM1 ~~ ~i3t~) 'iHiP 18 01 ~„gQ,ALLY BIhiD1~tO C~N'YItAL`'><' 1atHTW8ttt1 i~llsY~s} A~IO t{18t.1.~ERiB~. 83. urYt'lt3 t3H>Slt~ I.tf3J4t. l~1[714X ~~ tpp18ULT AW ~*pq~tPft1ATY }r~QiFP~itDN~[L• lS4. AiN:~L'A•~ idc+7't '~7 G, MAY-26-2009 17t24 fishMIS Roalty 76~?177228 P.iti 1't ~a',a L.A GLi1~7 33'i 3G1'7ft Attl 3L~!' 411111 d4Ib lTI LL'S,'T't t. `.! OLL lTU1 N~30 fish l~ ~~~, ~oorrt BUYEit. pURCNA~ING "A~ IS" ADDENDUM ,~ fnMn e~~or.e ar d+• n+inaaaie Assatetmes ds~rt--ro>~. '~ ~ ~A~och9oa d RFAI.'t~O+R~9A Pd6~e, M ~ 1, Dete~~~.,~ iRO4~ 2. P~ s ~d~M to f ~{t[Oha~ ~~~ bsMraart Partla, dttie~ ~~~ti~~ ----~---- n0 4 t0 the purotl~s ind 'safe pf tlts f~~ ~t -Z~,~~+L-,--~ ~~ - i 6~` ~~'.I.~V~~ ~QU11lEDi t.111ltsr Mlnnedt~ie EI1'!N, 8f1I~P~ tN rgftili7ritl~l P~eP~'r •X~pt by Walvar Cr letith flR111Q(t' 7 excep~t#t~,arsa6.ap~tted~adttaio~et~Pt~+P+~~wBuY~+~~ra~tatfaa~otwt+~l+As~elaiw~rat~a~ta+oukiNdvaetety t atu~ N~a~tth! edbud e~ v+d'at~n'Y t~uyer'e ctss a u~Ts~ym+M! of ~ pr$- ~+r s!stt i~ttd•d ua at'ths txope~4t 9~ a. tirhiidt ~-Iier4 ~. 8.uvh ~ dteaiown i• rots wutdnty ar a u~t~ of eny ftlttd by ~athrcr ifan+~ r+praenltrp t.4 v! asrist(nR sm pt~ h the#ru+esv~ott. t3eltar sSTcova W riotfy imY in w~ of eery rtiivo chen~ tf favor ~utY pct ~rdetffonstr~Irtp ~ propotty. i2 (Gl ~!~'~ ~boo~1: ~a ^ Buyer !+~ rsawad atd hee3 ei~ opQOrt~mity to reutew the SatJsr's Prt7peerty Dtscdori~ty Sfut+errtar#. u er 1a ~ 13uytr 11ss rec+etWd ettid hed sn eppartitinity to rsNew ftts ~slbte Dteo~osur+e Iit6smstMea inim. td ~NDiY[obl tit! dltO~tEltTYt Tl1e 13~~ l~isY auyvr, tn~udinp ~ r~w~litnjl, other knpoveirtat~ t7 end ~ctcveai. Is t,ot nsw prKl b being pbtrchased `A$1S". tB Auger ups lhst~+prop•rtyr aT dWfnsd abaw. w01 !ts purrfieasd in'~te catlcfttlott lt;ia itt >tltal rims al: Ru~ttsas ~ff 1~prasnant;tiuye-fhallha~s~tfpfttto+~weik-tBt+aet~hrwlswoffhf tsroA~- Prior to absfi0, To i~tv ex0ert~thsre gC to et tt4vtvrp~ ahattps in the ean~on ad tlw RraparfY srtetng ixdwemn Ihs date of the Pur+ohe~ Amt eu~oE the zt dosing date, Zsedhr shsU be rsepor>dbier t~ restiar~p 3hs Wottati~t_te substeat!>•1!y fheseme oondhfen itvves In artiha ~ ~. of ~ pyee~ ~~ tlut soller ~ hiva H~OO o~ur.~-naN a>~ t~~s~-ari~ u~ vie ~a air-ea rtfnq, IwitletQ. plumblc~ {frialudtr~ ~dtvldual sewaps treztment sya4e~, ~ rgtsU'ed by taws, tMtinp systems ar weus ort the pro ~y !r thsy ~It bMwssn the dais of Purchase Agtttrnent snd tt-e 2d dan d olOStnp. Thle provktan~vaiBa Imes 21 t-21~ ate Pur~h:se,4or+vamsnt, se RESK Dtr : ~'++ ttRlsic cif Loss provtsbn 1n the Purct~sia Owe is modlAed ss toilvws. t! theje Fs any foss 37 or dat~pe#othe)atap~Yaalw~ ~~~ur~aei o~ b.s shsA be fln .snas~ R~. ~'stulthiu. t~ as vee~tsrn, Heed. s~ ~ O~U~TtON O111l~t~~Iglt.)'!Y tD repbr orts~+deae oantrai RiraondiEhtttind. fteatsnp. Plumbing ~D indhrldttsl as eaRvagr mAltm+rst,tYststoa, anises othsrwiss rsttutnd by [sw~T t s7stNns orwige on ihdP~+~Y ~ thsyhi betwes++ si lhi dse etFurdteltl Aptset~ Rnd tfis dRtb of tlotinti. H tfi-s propelb is de>ib~vY*+i or {~ d'~d b1~t017 3z the dosMf~ ~M. the Puroheai Aprsvmen+ Is aanottsd, rtt BstY~s oF~ar4 by wrtt~ rertiof M Sstfer ar Itausest 33 repnsar~ e- asatsttng 3slfar. ~' BuY+r car-cef6 tfiis Purahaew A9rsomeiii. +ind teller sfiail Immadiataty stg~ 34 s C'bAddktlott a/ P~ssa i~rsimytt cor~iirrntng •eid ammcsllsti'oet Arid dQ s!I oesast monag+ l~ hslYlmder ~ to bs ratttnded fa ~~ ss ttKtr?iT t71~ INBPEt:TtON: $~ shaft henna tix rl~ttt to tnsPact the P~PenY or. do ha~re E ir~spiatsd by a perwa of a7 iluy~eds d>olas, ad 8tty+~~ e• 38 7th Is A. LILLY AA+t~7lt~ltl: t:ON7RAt:'t' AR71kAit~f 1><JYER(D~ AND~~tifsLLLltt~). ~6 ~ YQiJ pliitRi# l.IpsAt. QR TAX Ad1llZti, CON~LtKT AN ~pFltOirRIATA PRCFlttRgiCNAL. w~ar~--i ~uaat rr,e0«ad.afl~;Tri4larnw~' wwiwt'ni~An4..oen+ sow**rr-ftt ~-~3 MAY«a-`009~uu~~2$ i a a~rtr~ f rh~r~Qwz i~t lams 1noaSrx+aa tl~t /+rUl 76~3'7'1772~8 P~ 16.5 BUYS Pt~l~C:NASIN© "}~S. f~" A!?o~iDtlM 4b ~~ 41 PPD~- f omleeck et ~~sf C, jr, f~,g~ ~`1 ~ ~ • - - ax aE~TL~MB#r is Fu~at: it~l~aads~nto~d #~c suy~91c propn~ty'A~ Is.k ANYVUAF~RA~tTiLSoF PHY89Ctli. 4~ CflNC1~l'~ C!F THE plR~'Y~ GO1VTAlhlEQ IN TNiS F't1ftCHAS~ AGltEf6Mt~NT !lSC~{J~IFIG, BUT fi[~T LWffifLE~ a4 'TO. OD~'r'1~t1. AiR.COHpRtoNING, ?iLAT3N~t, Pt.UMBtNG~ YtittltiN~t, ~-f~t0 GONt~G'~lo~t TQ CtTYBE1iY~e alvo 45 C['fl!' WAl't,R ARE VOID 31hEa pEDlt~t1 ~!I surtiva da~+lery of ~f'~t tlgd or Oontr~at tar slued. !iU o~ttet rvammdta a~ a~~iffied In thapurcl~asc AQr~m~nt wm~dq die sawn, X17 QTFIEli: ~ - - - . f~ ~a sv ~1 67 33 84 lib 66 - ST W $t i posrNt R~,ptaant~tJn~ i~- iz cauien c~aw.n R~utir~.tly+ (~7 ~ T~~ raa~~a~.LY srwa~o coNY,~-a~g~ma~ ~u1rEp{~at~o ~~~a-t(s~, a tF YOtJ LlDA~. GR TAXJ-GVIC~ cx?NiUf.T aN ItPPROP fir 1~'l~+pfB~iOP1AL sp,„~,.rswynTtwsveot~" 1-~lR+.rom+...ua soR.JAaoaiZ `t - `~ MAY-26-2009 17:25 fishMLS Ra'alt6 7637177229 ~, ~-,-,... • . ., . ~~ii ~.yrly •IIYC=J lYa OCL l7ll'1 ~fifs~hML~ 6 T 8 a to i'~ i~ ~~ ,a ,a to f ~a ~~a ~~ so zt zs ~` zs ~x Se 26 2T Ze P.17 p. 1? aocl~+tpuM m ~uRC~asl~ a~t~ur=Hr Dtsc~,osUR~ ~ INFOt~+unpN o~ 4FJRn-~4Z~D P/kMTE' ADD Lt:Ai~•t3A~>~a PA!llfT HA~RDs~ TKs kKm std by ths'MO~neiota l~weisllgtt arRE~14'EWt-'~ whkh awy 0 oYtartiew o~missr d~dslhrgt Ii00041~,+».nwa ~aocMott dRR~1.TtaR9Q~ Ems. MN ---~---- Z• ~ Addendum tiD 9ttmh:ra ~ bstwssn pis, fisted „ ps~dnl~ to ahs purahaas .srsd sabr o-1ht. prcpert~r at ~a~.~? ~~I(~.~1f ~~ ~e~atiaq k fasd Waniit+tl #t+kbimar~ ~'rt-Ybet~wraFa,~y6:armprfiitnradn6~,~rn~v~anopwp/cn wi:tctr R r~liat wss auuc prior to tv7$ !s rretRrod thst+wr~h ProPerlX racy prrrr-r~t ~xAosvn~ ~lerd tirorr~ lad•based psrrr! ~-rat rr-ayFlsfle Young ttrlydr+rn st risk of rfeverop~ Need irds 1.rsdpax0~lrsq~syrvnpehitr~anm~sypmd+~psnn~rne~li~stuo~op~lc~l+~anr~. l~e~irQ lta-x~r,~ distbr6>diR ~duaad ~- ~~ bshavr~lt~rvt~iarrra~ ltnd ~ assrrrarY. 1.saU ~ sisa poasa. psriicut~rra~k to pr~rtant Yrvma». ti',. sv~r a~ arry IntfattNt ht st r~1 prapRrl~r is rsgWred to pvat~falr thr ~vY+r w~t't +uty rnforn-sfkvt on ltsEf-bated paint hstard+ trvm rlafr iAiasirrsr-taar. insAaatTo:rs 1~ tha ~r~tler~ bedA~theraret~slsao~d'~' rsadtn~d pert JNiz~r, A rlalraaavaamirrtar~rapac~tan fb~poa~rits plior~apia~haar~ 1[scloittltil cin ._.._... (a) l°r•~rtae a! taufbafed paint +rncilCr teed-bs>Atd ~In{ hl~sird~. (Ctfrsakane bsknvf ^ KtroweE ts.d.~aesd p~rttartid~ar lead-b,9ad c~ h~enis.rs ~wrna kt the r~ou~In~ t~~*~x ~E ~s>itirha~ ra.ta:ovyEsdge of lgad.tsaeaa punt aRdk+r lead. pabt h~ to th. hou-;na (b~ ft.atrdf snd~ mports svaltsBir to sfiv seAsr. l~+vkvr~e tsaaaw~ Seer h~ Tov(dad p~yerwlth sll •valisbis Tweak sn+~ T~paTto pvrtabntrip tb teid.b~a~ii'Paitrt andror ko~ssad paint heed! in 9» hQ (ttet dawrnarxas dam, ~rIIsT t1~• h0 ?ipGTtf CT rwofda pirtlihinQ t0 {eid.based pihtt: at+d/or ~efb~ti ftsz~s 11f t!» houNrr~ BUyfat's 1lddyttlMSt ~ktitrelj ap (c) Bt]yrer' has reotivsci aopla of aA infbanallon ltateoi abvva. 3i ~d) TlirasraCtlvs~8~epampf~ivt,Pfritse#Ya+xFsnafJyfnar+rLasdirtYaurFioms. a~ (e) 6uyss parr (ahsak ~ bolov-~ 33 ~ Rac+lvsd a Nn {11i) elay oppwlunky {4t ~ytus~y~rssd matt p to vvnduct • dsk asswament St or in~tEktt 1orihs pnrwca ci tad-tws~d p~rlnt a»arar ipd-bssed paint Fs~-ds al eJwelaut, ae ara won lr an p~ ~; or . ~, (5 Waived tlls apporivnnY !a catdu~ = e4eh sesssemsnt cr larti~ i~+~ or i+rad- s7 R+nsed pa~rlt andJo~ laad-tsaawb pail~t ~rsis, 71.)CSALl~1 i0J40! Falnryewllwlifr.Z'It~Folm" HIwn.ThUFotlrLpht 6CO.t9n-Yir1 -`t~ MAY-26-2x09 17:25 4SShMLS Aaalty 7671?7228 P.18 Rai G~ ~uUY1 1173'411T1 ~ Kls1lr 4i1t1Yaras 1P1LeCriLii ~lGlIRU1 r•ta AliOlfc>l'IDtAMt TO PURGI~IA~E AMRNT Dl~CL~btlR~ Oll~ WFOi~i'i~N OH i.f>sAll<7-~-SBa pA~1T~KND L~SAt3-B~l~EG Pa!!~rr rl~RO~ 38 ~~ ssi Propa~-ksoabd at ~o R+U l.,"s ~rt4wfedDe~t (+4rJHit~. qt ~ {fj tiaa~k s~ kt~~ has {ttifotmad Saiix of~S~a1's tl4fipttlvris <snder d2 U.S.C. ~EB.S' 2{d~ and IE 4a awatsrdaas~srr'= ratgarWlbilfly to us~wra corripttarrca. ~ Cet~tt~atitan OlAaawaayi +id 'fiC 1wo11otivY~~ haw T1YiM~WMd ~ tnfivtrtpKlor- at~ovq ~ ~1-Y~ b the ~m of lhir knawledpe, that t11a Infotrin+~on ~e thfsipnalory la true:nd ~CCUr 4a del ~ a7 ~~~ s ' ~~~ , :~ ~~ 49 oit l9t CplitkrII~ (lr~Rlil qty ~>rrstb~x wtater(Q) Ja d-eakad In ~rryor'i- Asl~'t4tr~FedgmMit eob~o~s:) Thin oatd~ad is ~ a tick aaasmant oa sn itn of tltf properflt fvr !ha pcossncs of la~at- baaed p~dn! sndlar palm haastds ~ t~ osx~dsabad ai Bcgwrl~ Mocp~a. !'!w a~aesmenf .ar Inapsdlon ~ sM~ ins t:aitrtpfat~ci wld'!in tMl ~4~ ~. r oalrndar ciaYS ~r scapen»ca at 7tta Pt~roitsse l~rartnattt fik tl2 Dontl it-aii !ae dvem•d ~~, n3 ~s +a Agraetts~q shaft be in tWl tAf+oa and t#(aat, uniesw payer or e4 rssl a~e+~ ~-~ ~'~~~ Bayer deti~rs tss Seller ~ raaE asta~ta Aa.n.sie s+aprewnlttWnr a~ltng i~ SeHeE, vvlNsln ttu+a~ {S} +C~landsr d>~ ~ !!»~ ~tca-ssstlint flt tttQ~YCFIOn ii thTSliy oomp~ded~ • 1+V1 itlt t~t~t3tlt ipaclf tC as dalfe]anoios anti ~ aatratatle?r~ tad. tv~attMr wtEh * oapy o~ my -iak m:nt at inapeadan t>~ If Salter es and Bayer havi not ~twd in ~~0 vvlthtn itu~a ~3} alsndat days s~ deit+r~y of the wrl~e-n pct of tagafrvd nort~ltona w that t~! aorrce ~ ati td thu tregtdrad ~cottaeBonR wm t» made: or {ta} r wsilvK thf dYfltlisrioi+a; or tC} ~ a~iPStcr>w-t tss ~ ths.ptxxd~e:! prla w~f bR trtsde; !n!s Fstaohua Aprwrnwtt fa t;mtastad• t3uyar ~ a~r~ theft 'rs+madlARary aidn a Ro Canarl~Uibf1 ad' Pu~as~r .4~mr17{' oatfk'mtry~ wld oanaellstion and dtnatltt8 afl stmast telortti}i paid heraun r to a~ t~raitsndadtali~yar.klsur~dersEuadtMs#8c~yermaytx>ilataraitywslvadwloks~atNtordrfitois~+vrr~r~tnuoaitfr~anay. it UnQ t aesisti~ t va ~n~~• ~hf11 the this ~ Od$4~~ yr tal rsls4e Ilan=ae "t~X~5AtE2 (0108} ~rmy.cyrripbyrTtwsa~." yNnwYrwFanrrswnl /9C.i9fi~tit111 `-1 ~ ~ tP MAY-26-~0~9 17:~t3 F1•ahMlS Ro'a~lty 767177229 f7.~1:1 G1 ~Ct~Utf• .t17.Y'fMt"1 _ t~t11lr'' msaassias anZ~~t-issue ocir~.ua ~~ ~~~~~ [sr~vrtN 1l~i91CT1~ItJM$iERs ~_ j1II.P[DL;{~S'iiJ 4Un a7~A.tiT t;siWt OawrttLoYn fierrl~S.I.i.C (~,) OFFER. AND ACGEP3ANCE: id srwuo t~Ttla« ~t3ow3AF ~ SMtls tus m~svsd tlu sib ~ melee multiple zouuha-off oailsis Ft'~~Y {~ ~r noav~ t~t+ tv oottt~sut tv o#3is ~'F~~' !br trle ttntll this o~ir has been ~~aaatly aoairted•in tsnitiai; ('ci} accoptRnca of that oft a ~S' aourxer~at~m hereto !s au~a~o ©crrea t+oaa tserviciug, ~,tC's +~eacr3sna"Comss>fttao': r~tavaji.(td! Tbls affier,d~rn expiry oa,~_ _ ac 3:oa Ip.IM.C sHs+~ve~Co~~i.~Sell ~~i •aa~ ~mehtbar al5srgrtvs two 9uyrz~+:Captaace aad ~~ ~auaideitlon ofAetopts~' cttbla' ot]brtp 3e]iar, or 5e1[or's eieatt~ rsvoki t8tt oa~+at.e~-attbr. comdsue3aatios: olaaoapvlneted'd~ eemtu~'tstwf bozeaedvedt:y S~rltea'lnvvritiaipciortn tlsa etlod Anise tizart~lts»is apaottied tbave and~~goey be is the ~ oi; tYcrnm'la,s-usail-nr ~ QbPY vlt uss~ll ro loses rr rsc#ipt cf deliv~3' cazi be tamllrmed. . t il~~~ :} bale Price to i' rxAered m at 't Manay Dapou! pa' Ism F.ara+;i Moaay ~ ~ to osttttos. .Dtpod!"} to ba S, j~,~Q,,,attfso dSniaR o r (tli} Addltsanrl depvsiti(s) ~aelarfDa' to ba ztta'red to st `Addttionxt I?epoalt."J of b~ -'"" shat] •eltia. b'eF toiisiiso~ 1:patl tier ratat+~sl pr~ll iarpeatiaa ~etil~R' m° p~ y~, grin ~ttlmrtbi at elodusa. (fv} >yatssasa of±sbo bxtte prfoa in tte axrnmt'of s,E j f.~ (v) peltntttoa of D&PdSIT: "DF~'OSiT" ~hdl be u.sd 4d rafic to tlso itu»hnultrylcom4atnation v1' the 8artsest Deasy Depost#t; Additional Dapaeit(s) and ia>r other subtsq~ent a.egorste hold in erare+s+ alt oiltssv~iao fsitencSed m ba rppiied tvwud Sales price. The AEPOtiI'I' U samiriaod oa tie "hasd money" land ranreltsndabk v<~' flue exuptiaa of the Snancini aoatYaBessc3! and other .icoeptituu a laity bo dedacd Lter hcaain: (s~T iy.ltnlctan tit COtsTat Any unamp lnctn~ ~Y !]eyes in conzt+e~oa vr3th the ptacixwt oFtha subjaet'ptc:},ary, etss Coatrt+cs, a+tsdfor th! Addendum, ttscludiai buttaot litnixd to stasrnayia. tore, .~ ~t~usroo ~t d~tio~a vt c:,p~ir cow. A 1Svyt+r't ~tpasser sa da~d'hi PArAatep~>~t) (y~} D~tntilott•ai snxt~ All etirsrs on'the Cossttaat abd . be'ooliectiw]y to as "Suyer"~ ' (viii`} AIm~ dss~ oa oc WKara t~itu ~~~'~ in mvWan otthii Pt~t Atldsadasa'To Coamrot Ghaei~nn to b~ to ae "j ~ ~D eo~liats is w}wl. ac 6n. pees ~ ally ai •the >>z~ 4f the entee oantc~~iat ~, c •bo rn u tlCantrust") 6awrsn •BeYrr snd SaiEir. tbau Ilse p~r`ovitlour at tln instant Mdaedli~2t~t11P0~tr°t. ...21: V s'^1bMSd+l P.19 N.aa ~Yr~~~ C (ot vti~ae dt:b ~rtth tontr+cee a!•gurattiue:i~tteCbed btram) H ~j~~t~1'II~I,ER ACrREE AS FOLL4~: MAY-~6-2Q09 i?s26 fishMI;g Raalt~, ~ ~ 7637177228 P.20 I•Ii1=! C3 Ct1U3? ;i3rlM,iP'~ ,vatarYr YIIi iasn~ ar~argr~i43 oGir•rva ~+.cu {D1 .•,u~r.~Mtttt+~r aTf Cox'rAt~t"Ss 1ltcyer sbdt sfeithor W .rtghta avr~cLleran itr obttget~»e itMSiuadsr +~itbaat o~ t3alic~!e prlar ~titlaa oos~ N2Jeh br ~~1se1d in Setlai'i wk~ diuraticm. to ~o bleat any reifgawont sv8ava guyoc llrnu fts ob~S Ana cads tttGt Ceatte4L If Stayer s tc os aotwiSly aa•i~aa ~ .dds~ tha trontreert sad/oe vvittwut abtai~ Satler's paiar writtda t~teat, that both tba ~traae ssab I-ddRSl~aast ~ ba daim~ed seali and v~ at sdlla'e ~sdrtIo~. 3n the avenr that Se31~' alLOOter m t>ulll$+ for t;oatraet sad ~-ddandtun !bs t~ saseam, then 8alier shall aot ba ~xee~dsed to *afmul Doi-adt or Cores tv ~~. . .., vffi f PacpeGt~ iti herri>x drSstt-d to br 1~sa propesty~aasd ia~srea+eltutsla. !f atiy, ~lsieds #ra t6e avi~J>ret a~ thtr CoatrAtd? is b~ avid as~is, Whtisie~ assd rvldt ad fhaits. Huyrr !!other #t~uied~er aad~ amsitastsnde that the Pmgeztp vt#r .ecgairtd. by the Boiler througit~ itysralaraus awa~~, ~sosalDtR t'he ikltor vrzs nat rc owna~ocatpam# dttd itr is~4brmaltan ooaaprasttta t3ir ~d !q ~iotsdttlm i• Ilmltrd. Buyor u i~etssby in~asmad t5at 3etiar tr unrgvete of rae>3r i#trat dr~car in t o ~rapocq- yr a4Y 'fit +Y~'r- iaahsdle~ ~t nac ltanited to 1~lutubing. i~ea#in~ air cosx~tlaz~ aad•rlsatrecal rystaau; R~t~ii'er: ~v~'M, ~~ ~~. +.'e!t edsdttione, ~banda.Hen.~ siraahael #4-• rts~ ca-ditioea. pool or rued eq seila~ snslsa no >`epe>~ontatlm~a >tt e+s ~ m sn,Y of the abava, ttas asoauliaoa oi't~sr ProS-+rtY- ~thr Tsdpett5''r tyat4mr, dyo sarvicon~alcty at 8tteesa fos s petticul>r Haar ~' ~ Fropntq', os'anY t~~ of tha l'rap~eky Ituyss' ~'~ ~ in ooh m yam. tlu PtvPaet3'r Bay~-hea flat tal3ad to riz~ dust ~ aaF t~ryrrrsreta4ioa rsr wn~teney mado by 3~ii salfi~; std! p~4, .abs?d{ars+ ar a~iiate t3secsa~ or Huy of iiw oil. dirececns, ~playee•. its arropsr+e~tsti~ ~ 1{_._j{3)~alaCaalln~fx~~Mort~aBla~nclae ! ~ R'hie Cosatrrei # mbjarot taa the toast tts#i ost os betnca the dadliar p~3sufbr to isa te&rred to as "Deediiae`~ of ~~,[k~ Btrysr rhali ieaura. as theta ahail bf AiRda waiisbls to $syar, # written easstazi ttu a W ix #eoui~ed by a mu~ago of doed Of ~t1t11t bq tha p~cbyeK7 iA thr arAUluJt a! ~ f Or rualt fewer •avm ~aa Htlpes aoaaifas. IY Fbaadatr i7rclittrd Nvdtkaciost is ~d t ~etasr rafdDoxdglt~ae~d ~~ ~ethi~. Csastsaat aftall bacvmr rsall eAd void and Drya+ u} Cacn~tirsoat nor # Notiitoatiea la •psotidd ~' able of Br~ttt dat•. tlsaa lhia conwat ahs11 iemdn 6a ~ fcacv and ~cc witt?out ar{Y Ioaax roatitln8taoirr. ~~ . Btu ,ball, at auy~ar'r acpra~, + sil dcota sTY m graaasr• a ~8 ban, firo~~ may •ruutCa Atiy d+atr~ owaad by guyrot't Und+~r,:wbetherc a tesutt of i3 a,laot yr »~ shalt oonrtItwta • daS,vlt by Buy#=. tom? ~~ ~ Bul+~' bmbY a~harlasa the l.end,p+~(nadlor it's tnocraaoca ,~ ~~ tp Q~pur tkte'on Loea S , LI.C tlss be:yers lout s~rpiloariast lncludita~, bvt ads litaftQd tc, tha buyer's e~odit biatorY~~ tomtit 1?~ £ns~ur, dabtr ands t?+a pr0~lCrr OZtha rmts+a lout #gplicstitla. ~~} .. . ~ • gttyor kaAefry autilarize~ t~c~reti:I.Oaa SaViairs~, LI.C ar otha~ tnvutigatlee •aS~vY empiay+o4 bY't7cwen Lose Sesvioiaa;, I.LC to tavaatl~ato btty~ ~+'h7 m purabase ordst ti:e~ tasty sad mar of ~a odasdaot to ~mahsse acd Arid ~ ~ Edon of but mtlitaitad tQ thv order of a cto4lt history iii • cradlt rapottiue yia~Y ~ lriq ~t,~ ~r~ ~ d~iwl~osa~ea o~l~ t ~ ^nd ~a ~;~uv~oa~~'.~ tipsc4I~dara) MAY-2S-21309 17 :27 fY sh{`SL5 Ra a 1 t S ~ ~ ~ 7B3? f ?72'28 P . 21 r1i!! tl eUVn itia~4ntiK nrli+er• tutilaanc5 lrit.rgr•1~~ ocai'*v~ M~~; {.~~.-, {~~.1~~ts;! Tl1nlaCt~ 'i Ob~~ Tbh it au aiLoitb Ala and psuvbt~, end !e N4T oatahzgens upoa trot the pwvist>• o~t]~ F~svperty sagasdlest. eF eay mcrt~tH loco appllNdoa aucle by tt~ Sttysx to +my lvndin~ ~~• ~ „nd YBt.u slut ~~ dal2vlty of a eaasnslteseat tYs n~gt •lOra ~ ~ ioradi~ lusdendon nar tib. 8uyre'a eaesptafot of Wob r edsmttltenant wilt ln+csgravay ba s tcnditioa of HaYeri oali~loa wader #~ C,dntrtiet, 13uyet ~~ to titlirr Hatt III ba pstdok~Yt rY rsrellabtc flmda bo oom?~ ~ ! of tlr, ~ropa$: IP ~~ to waablM b eub~ic gels at Time ad' oiesing deco bo 5elltr, tbion 9~itrr ehe!! 6a enilttod to~vrttlfllha Dtposit. {~ ~.~~~~ R~t'IOet tp px!- Ai altaweble olatiAg cbrta on btdsalf of the Buysr, laeluding t5a Dots oP a letci«t# tide iaewesmv ~~ apgtlerbla. Buyrc ucderetaede tJu:i they i~Y alsx~ beve~ to pay catatcs pra~ayeble hot trot Ilntitrd sa, ~ ~ *6ert stet la~esee}, ttxee, water aad~aMer oJ:ergae. ~ oe 3'M(, BW+eruadiaft+aid~ lket ittbay obteta I~ FHA or PM2 a:ot, tlme ti21P ar PMI oaa ~vifl bes Itddod tv tf~s ~ ~t ere! tacnees heir moatbTy vxri~a g~~,yoc~~~~s SoSr coK tttd eupaASe, nod eft ~ellel''1 rPSlttao.zccspteiue of thu ofTer, r1+.3i ~vs tzte opgoia~afty to i:ispMOt tha I'ropesly lncliuting, but oat lia:ited Oa, aavitnnaliistal, sebestae, s+:daA beq, lµd part:mold, phyyiwtl'ds~ete !aalt~as e~h~rl dsttieq, toad bssemsnt, inscbeaioel ryetbme auah es )u~b aaui air aaAditiauia~r daotda~! ryitst~r, e+K'4N and ec~c . P~~ atsGriar esbe drrlsifiIIo„ iormit+imlc! otluttypos at'P~R ~ iataet ie1lssstloen:asduasga eapaed by tt:cb tatbetetion, wad baeadi~rys~+eyM. A~~tesd ai! voFl1 and axpssssm~aeNOCrttsd.eltlt fit in~.ea'ltoa r~trib+rreiMmd to ee "ice . LPtfiti ralo #bdlt to otare due to en issue ,8 $ars-tbir itsrpeottoa, Sa!!nr slnil not be 1Dgt~ tv. inlnsbutae Buyvc far iaepxttvn eoste. 8v14r does nat supply °etu~YUyi,1~d+~5' s~Ys os SgY~R t4 7cNCOVB~-GlC>a T(? OBTAIN TH8 $$R~+]iCEB 019' A Q?SJAL1sF't~D AND ElO'&'ll{7it1~C~'.f><ERCF~YC1~tAL 70 COPfitJCT IIYIfP$C'I7OJ~ AND TlI;BTB PitidR'TO ~ ~!F Tl~Ti "6TV1~•'Y (~ CAL&2'TDAII iQAY xi'II~t3tGTY0N Plt]i~ AS THE ~.t~ OF t~tr~ CONI]Grtl'1"t4lvfis n`c~cmnvo sv~r riOr zsttglct~D ~ xf[t7t~x LIBTS~D ABOY~. COULD CA7~ tillRTOt:Tti STS p~IRARC,i~ ~1-1D/QR A EtU~A1iTiAG RlIDUCT'ION W pRC?P1O[TY' VALIIE. Staler Ir harsby aot!!'.ed and aura tbxt ~llZytP ie ss~tlbJy r~possaible !br ~U' nqu~.d tsanadi~tt~eii tnd/ec refsitlt~ desn'e~e, iaeludin6+ but not Ji=aitad tn, atry ashen oa boetdt, due fi u coaditEaa ia, am ar ara:a+d the Pr'oi~y~ T{Suyet don spot ~ivs W salttt writtea aotice of emcriiation, $ar :wy rsttan, hY tha Blase of'buadaees da tlv deealtlao of tbo taepeetlaa pp~~lad es deflnod by tJse Sala Contreot nefber "lnspsv~an paned 6sed!!pe"] bar.vuet tiuyar sad ~e~tar, taon buyer shell wncfauwly be datraed to b*ve+ (~ ac~mgtllAld elI ~p.Crlaay~veatipsions,.tovtev atrppliotble•documeats•r~1•dirc•Ieetuw estd ironwv6d aA aoatln~atcito; f~ rlsctsd b proud adt>;t tha trasuaastbe; and tiii3 esanuad slI 1ie511lry, svagoesslbility, eacJ ~eaea ibr s+epalit ~ oos~rrctfOpr a11>~ tlua ~r ~t~ne tMSlCif Tailsf.ltes etbaClvbo eQreat is svrltip~,to xnpeir 4'r tosrtcti, ]'f 8uyrr tie>il~ ~objec;ta to thraobdittaat oCtlu PiopeetY by tha Ynepettiaa ]'eked desdllnt, tb~ 6tt}ror, ac tF~rir eok mrsy taa~ainate this ¢ostiract utd aritha P~tY id~el! b4vs ~Y !lutbies obll,~adeee hereto. As a eeaditlee: io 13~ntr'e tem$nation nadv ties iaspaortivri period, H~-' a~xYt to #obmit say end aA ,arattes:rspagis'as m sus isvspectiour witlsia throe (3} cdand~r dye f+sllawlu~ tht aloia oaf the iacpeetian >rerloA papdi;ns.a~r evlzieh Sma Salsa s~rU! hnmadlefely rsSitmd the Depoait m 33tty',s:t '~~~r.Ytl~'~ I~tW+d MAY-2G-2009 I7: ~7 f Y shMLS Raa 1 tyy. ~ ~ ~ ~ 7657177228 P . Z2~ (7i1~ Cl Cul)if lii.727!'111 na'laer 1Qisll~ms snot=rsya oclrTUt M•ct 8,. F~rparty ia~oa by oce ~~~POAdbliltY of tlu ~ ~ v~r1U bee vnda:~arr wblc8$u~r~i'~sva~~~d~'~+~''? notca a~urthaPraA~YRrtorac oblt~tidaw2ts~adat~ec.to ~ ~Y R,ePKirs~tc tl~ Prtpati}*. liuyor ~~ Clo~ing ibrt&a pmpv~ ataulchtg asrr~* ~ dtrsadotu wxboax A.iicee bxprats written conaat. ~ ~~~~~ NOTV~ILTHLTANriik18 AI~f XT . TO 'igi8 CCnVTEtAR.Y COIVTAINgD IN THIS !-t}~', ~ BUYER 3'~t IJt7C TsitM[bTA'fSI~ TIiIS A(StBF.MBNF ARID Jf+' THR $AL8 OF TYIS PRtai~Bl~liY T4. aQYER HAS Nt)T ABMIV' {;C7~U1~fMriTP,D POlt AI+Y RF.A50N OTHER TAN ~9SY,LER'S IaEFAL''L'C I73~DI3R THB A8'~, E8LY.ISR itIiAIS.)3E 39I+tTITi~ TO ~tB7'AtN TfIST~E~eIT A8 3{EI.I.BR'9 ~ DAt+dAOS9. THE 1-1iATIES .ACi~tBL' THAT 1T WOULD SE Il1~'KACTICAHLR AND BRTRS~Y DIfPICULx ZY~ ASCERTAIIJ TSB ACTUe~I. DAM~lt3gS StR'l'ERBD HX B$T~.$R AS A RB$ULT OF >3UY~'R Ra1Q.L'RB TO t;OkiPL$'FB.TiiB Pi,JRCEIASB OF 7EiB PRD~RT'Y PUR3iY7ANT 7'D TFIIB At~REE 'M2.~i A'~iD T8A1' Ut~R THS (~3TA'V~CE!!. ~L3 ~-B Ole TF~ DAT>r OB TI$S ,u#tl~MBPI'f, 'I'S>r L'TQIJIIIATBD JyAMA€tES F1tOVIDLD FQR It~i THIS SECTION R13PRE9Bh"TQ A ItF.A8.024AE~ E8~'IMAT& dF TFIS DAMAOEK. WBIC.Fi SBLL1dR WII.L II+iCxllt AS A ItHSUI.T t?B $UL'H FATL•tJRE; FRiCNIi1RT3, 7FmwS1-S~- rS~iT THiS PS,dVIS10N BKf+I•L N47' LB~C QFT StQ~S 3lIQH'I' '1C0 BEAM R,8111~iJR58M1aNT>»OAATT~RNEYS' FES8, IVOR WAIVE ORAFi~SCT~SIiI.LER'J R38lTf Ah'i} BL'YP3t'S II~D~1TY psL•iC}ATIC?IV~ Ul'd>7ER OTHER 9BCTIC?N8 QR T1lIIS AC}&ESM&NT. TKE p~ ~ AS A F RPEI't'17RE ORPp~t~T'Y~ BGT ~L~II~i` ~iD~ TD O~C.o~ ~2YST~IN~$ j,IQiJII7fAATSD UAMAGBS TA' .$ALi.BR IJOTWITHiTAI0~i4t3 THS FORBttOII+ia, ~ 1~U!'IIR 2NT8RFBR88 Wrl~I Alt M,AICES AN}(.ATt~PT TO IldTERF~RE wT[~I $Bt RSCBLV3NCr OR REI"AII~t1NQ, AS THE Cl1SB. b~AY SE, THP LiQUIDAT~ DAMAAO}ES PItOV'IDEU FOR IN THIS S15CTTdN, IIdCLt.~'DiNt3 WITPIQU7' I.IMTI'ATiCN. CtIYiN{t AI~tY 2~10'i`~t~ OR I}1dTRVCTIONIB ~T.D >:1fCRDW HQLD3'!I4 NOT TO DSLIVI~R TI1H DEM}BII' 9"0 BSGT,)~xRl. slfi.2.~3R 9[~A'l+t• HAYS TIiS PtIgHT TO. BY.I~C'Y' TQ it$Gt~iIER .THE• dRBATSR 4F I'I'fi ACTUAL ~,4aaA08a OR '[IiR Y,yn~(,npA~ ~ aY ONINQ ~ 'h'{ITICB 'CO 1#EJSfRi~. AND SFIAW: HA`VS ALL QTIIER AIpH'[S A1vD 3i.13M8DI1~ AOAINRT BUYER PRAVID~D f-T I.AW AND Dd P~i?.RFdRM SUX8R8 'BLS 0 LI{"iA'1ZON T'T~ER TE08 1~1~1T. THAT BL7Y8~ SP~f, ~~YFI~CA~LLY . ~~~fiC1l DWSet's Inwa.y ~~ ~ ~ v / ~ 4 tAoyt['~ IA~+W tenYez'~Idsl.b) Vf 1lf,AD'CY187A1t-4 AID I AId IN~UIY.UCOTO• V~YTBAT t AGC~w'=' i'C 1FAA? O1FT~ ~'j'~Z' ANb ADDirKDUAY. MAY-26-2009 14:27 •#ishA{L,9 Raalty ~~~ ~63'I1?•7228 P.23 ,,.r~ir s.a r.~au.i a a, u.,.ci.~ n~ra t rr-• u, l i i tams 1r1L@;',r'1L`,~ !lC;./4U J.. ~.'Z9 If ' b daaptats•sltede+~~, 3'~' vrili conttibuta ~ #o: ti) ~x~>hwKtdt 8t~ya't zyK?~R ctoda~ oo:a, d~sntt pviuts, ~,.~~ucable, b~-Yw~':l~roa- allowa a PHA~A Coate, {~) a Ems-- Rs K. amt to ~luyKr eat c ~' ~'eyer to paretrate a Aoro~c PtaterKols Plea; ead ~ 5,~,_,_.tawacde t terasite regorl. SattRr milli paY•s bmlceaa~ aawsaledt#a In ttcct~nienaa with tlsc ealoe oamnsltraica ax vizstt attea'6Sd ~ the ~~Sa~or~t batw~s+ ~* tittkt~ bra' ead tha ealfec '1'~ eexllm~bmlr+t, if eny, ie reovg~lxect bitow Sauer Iut+eby iata'aea .~sa Ct4tEa$. agant t0 psy tbs brofctr~a QOmmL.lOr- az t:Iaiing vib ~~ ahCelq ~aaada anc to the lbilovell~ aompanite, ta. the mltow~in~ atnowatc 1~eibrral Fp.: pe~lblo to Ate; ~ ~ b g~~ ~S~ r:~ti>saa,~~ F«: i~e~.ble to Ama,~t; s (b ~r3 `~v salllt~&olnr Foa. F"a to Ansovae' ' 3 `~~~ progerlyMatta~eataitroe: ptryMhle co Attwu~t: S $eUae nsast4 task by alaaae a a< ~psnlal ar l.~ deod. trt •ttt aQuiv~t tbersQf (1hs'~epd'"}. Tbi etcaepteace~tho.Deed by tlm Buyot will bs~4eaaird to vonadtuoo ~ oo~+splfanoe, bYtba +~a11:a wWt all of tit. ia~r ttitd tlepcittiaas of tht Contntot sad fl~ie lit. Addendurc. ~8elkt e1~tll '1V't7T bo repowdisle ~6or nny vnpt{d neat aerate use ta9d/or eaeeea~.nsi, bvtet,lsomeoRraar aetinnirthxt lbee aad oturpa, ttt~ty of aqr ntbrx ah~er ant raWily obtdirsbb fmm a. title ieet~ prior bo olcein~. SPECII'iCAT~LY'. IN A'~ ANY 71ME AFTBR THE DATE OF G`Gd8IF1C3, ',1~iE I~UYER OR 'E'HEtR l1~S~?t3N5 b!lTAri+I aCT(TAL dR CO7dTRVCiIVB NpTiCs 4t< A.i+Ixr 6'OST,~i~8cbd8I~TT81yt7D~i8i+iT8 AS80t'~AT~SD P~ T~ 3UB7F~C7' P~tiCIP~RTY THAT WBitZ- Nat' OF RBCONJ AT TSE TIIr2B Oi+ 7HR CI.OBiNI3, It~CLtJDITVR HtJF 7QU'I' L TO C,t?D$ VICI.A'i'lON6, TAKES, UTILTfY ~TJiN'dT t7pNI)C3~IIN[t1M !!S'6lgsA~Tt'S, TFIE Ei73i)lR BFiAt•1• H~F.ESPt)Nt FOR PAYMllN.7 4P ~$ AIdD 1tSLIIAtlES'6t:LLBIt: PVR AID' AND AT,Y. LTABILITX iN• t;;QNN'ECTION '~, WR61:3~ltR Olt NOT TH$ ~BELI.ER o9Yh'ED T'~ PBQPSRTY *i3 TF•1z3 Tit SAID d09T9 ~IHttB ASSTill9>3b CR IIdLgJRRE~ AND Wf3SY'ItiER 11R 1VdT SlSftd'~ fiAb~ ACTUAL QR COId87ztUG'7TY~ NO'IxC$ VP Z3it: 87QHr8NC~t OF 8'~ C09rb/LTRi't~lAC1~888MF~NTBl7t7D4ASJ~N'~• 8~' !e tNpondble fac vetll~Isit ~Y poeslhla liearljudweeteeaauata that auy mot 6e of zr~ard and retesKe:8sI1eC frown anye~d ~l IiKbiliry tad rte also •set i3t the Rel~as caattiaab lureta is Paugtnpb W. Noss o~atu at' the C.oatract orti~a Fhat Acideadum• wlll survive rho dolivary oitht Detd a zata~le) ~ A~+~ TbaS~ar le~iratiGadto iaSe1 mpzeeentatioa at @~e cta:iaS eadmay aiachw l~•a~hseptwstttatio~ nt Auy+eri awn ~eate. Boyar ~ d:~r)gt4~er't itnda~'! Ytds Cotnpe~rl Attorney if tpplliu~bk, a~vae to caopenoe whh Baller't T ~Stng Compeuy at an actrl eaat~nte tQ tha 3eI[er. It fe 6eller't frn~tta• ,3rlivtx Aa Owt[vcs Titta.Iastlitutoa Ydio7lst flea atta etae4csKt Sri tAa otatansacy ~atacae, The Suy.r }u,~bp' escepte the i~yenaze'Cida lnacaenct PvIicyiri tiZa eisa abtcacs, ff apQliaab2e. The salter ttyrtar as psy tree phaslhum. ~r as t9wnen Poifoy only if t~ poltQy L ieeasd b~8allsr'e eeltoocd r~ae~aoela~ ca~r~o- ort~ title imYnrence +<e~ sellareltan pay ire tale oa {fie ro 8r1[o!''= 7~1!~ may, ae wet l ae a ramdard bete Oxaare Policy o~t3tle fiuatsztots psemluai ttesad ypoa ttra~>41At pria0. aupA1~ Ta tha anyaE by Boller entl3dIlK tlbali dio ipleot the gGe meat i ~• tlaiete otharrries~epeetlfed by Httyav, alt oto traaeeativne trill ba aoadaotadby 6a11yr'e TitW Cloeln~ many at s thae tat! laatiou eeleaoed~6y rt+r &tltt'~ Tideft:totrlst C . day, Buyer ahati Day ttsrtr else' of alt nwtomr, rr olwie~ feae and title lY+e oo f6e &ttir.ma~t sod doein8 ll'icle e~emt. It 9etler peuaits la wrldnd,l9uyar oc HgjKr'a I.endenTiW Con~my.Attottsey itaaptteabla, tv tut: A tiaa Selkr aslo~ CtaNtt,S.Ayeati~ T.UIe s~aazpeny ar Atlura.y if ep~pl9cable, tbaa.ll v~oeio trst~esatiaa sad title 9res ofbolb stns $1tYer sod 9eilarwlfi etttl•b. ebe buyon ratD~t~1' m PaY ~:~ D otoaiaaatt-temeut et t'iac lftas of otv:3ag, ~lilCl~t in¢tudp all Salter i'atst ehesSret by Setter's Atto~ay, lkiter'e 'IYtie air, a~sd esllert Clasi~ Comgeny ~ ~ * Kwy,., MAY-26-2009 14 s 26 f i shML$ Rs~a I ty ~t ''S I 763~7177~28' P, z4 .a~1u .~. r.vYw •r•««ri.r 0r ~~rl wrrr•«Mr ~aiv.. `1 a..., Yva• .Va r~lw4 ~>~s1i~ ~po c er tut~ie sobJad grtsperty aftha elaafag arc sot trtiriatbettbte,aud Dili sot be pttxa;ed'itt~Uoii~g•. ~ t~a~~drlt:at is discovered prier to olasinir ds:Ib tbr+t ~11~ t}sal! live the nNlsait~ d~la w be es~ed a a drirty t~3 dry axtewi en tivi3hiri wlt{ck to raotw ~- @d~ .~aepttotte ar dribatr or ts7hrr tld8 tunes which is ktl!'~Y {tnyttder ar ierspair >tailst'r ability to cparray4iQia ~ berefra 1'bia addktoQrt p~rivs! (3tl} drY psz{vd rb~rii turthuttrr bd isdtxrsd oa ~. "B~ttrxesiod~ Ptmfod". Ii; w3tbtn suolt $tt~~ Frond, the Srifar damrmiocr that it k tuwbte sx tuts~ritl{ttg, tt 1ts role dilccritiott, b resatvt msa;t usrttest thrn tha buyer atsy etscx~to: (!) take tEtle to !5e abieot propotsY In fra thrta ~ tTztnvb~ weivir+g rrsss+•tttia objcs:dotu, ar (Z} ~ ttte aoearsat lad ~oetr~ a reAtad of the Dopadt u d~a~d fn~~ $(~'~h b $uyor'r roh! atd.xsstnWr~r ramocFy agpsicd 80Wr ser 8at{dr irt~t~ty a ddlvoa' k tint rsad lkstty rolerrae n.~r ar idtiy rat forth 3a Peuditts~tt w oostriaed (Q.} BNytr'r e6li~foa tc o transeatioa it contln~tcrt ttgort Huyer ooodssctiag t rnk aeAeat»t yr inrpiattott oir i~+s Pcopvty Ecx t8o Vic. of I.e~~barad .gstittt ~ar Ittst=6erad psittt tsrtsrrr~s, st rho Bttyrr'a rata ooct aesd •xpapra, a¢s ar beff~r+r 3pm artsrtt tltsle ~ trot date tea t;I~ diyr >~ dts c'oattset fires (the "LBP Pert Ps;riad'~, lntsibt Srxd hued yaitst that it- In ~d eotidittots tr sot sse , " a b~rrd (reo tlss F~E'A petntihlet "Protest Yati-t !*itttttlY L~ iA XC~' " ~ ~~ bk T'his ooredn~rnay wtil termiaata st thr axFhstiott a3' tht LHP 'Cat Psttiod galore Sayer siativecs sa Seiler wrlr3ew. e+attea ltrdrg the epro{fie exh~ detlcivas:{a arxt oerrationr evaded, to~othar wis?L s Dopy of1Ue iieepiatiarr rttd~or rirk a»arrmrat rapoet t#olias ra-y, et.t;'ettat't rois dLarrtioar vr{tltht tre(!d}dryr. aRss ciitiwsY at' rite active, st+4s ib wtiiinS whether tv ootreat t2tr osszditiom(p} pcbo~r to aetttRtueett. If tieIIre' deob to evsreot the aanditint>< Sector r'haU, trpoo oompfitiaa of the eoar{ry> ~ards'h Ea i3tsyet' arttillettisxt $ttrn a tlek srsauor or lnspec~r dfat~ tit the gandittaa lsrs hews tsttsrc~sd, It tN1bt crow ant oleo tc ma3~ tho roprirr, at if Soper tra. &sY'or iluit hrva five (~ tlnys to terpond to the covatr= ot~n' or ramaw thin ooan:~onaY ased trSat !t>r Propa~y+ is "au is" cos~3tdan as tidr rt+a{l baoaeaa vt+fd. 8uyrr mry removr tlots aoneisyaacyst snytimw wtttzs,ut cane s Buytt actasowdsQaae tlut'it hs: litd tIlr oppetAesitp to tmcNrptko sistaia. istrpesst{oas or tavttW>pkttomt qt flea Ptoyarty rr St~yas dam*d eepatstry m .e4s{vsts ttfe pae4enae of least bases rtt~llrY btty4t19idnthrass~droAthePr+operpa TsrtheeXtBAf'ttslttStiyri'1»vvtlVgclQ=otherwiszdecOd the ~iT ~ ~ tsnch inepectiarsr ttnd 3avee~tiam es~3 ~ ttt tiw cotapladno of t6a c{aeieg tsssdq' ttw tsrtbs ot` this ~eersr~at, $ttyer• ~ ~Ht3' sfed ~~' dom. so. SAcyr timdrateads sad tse{:~WIa1Sw•that rise Property ttfep bmt: brim incite prior eo t973 t-ot'l Lead-bmrrxt peinr lead~syod p,c~ ttatttdr,~ tie p<tsent act tisah,apretzc In:aoardnQao tdtlt ttse 8evdaa i4tt of 1Ytie X, ittp Rdik~stis) LardnBareit Paiat Hrsrrd Red0att0o Art ar 1993, xtssahefd oo tMf• A,~arsfseas[ er Pacitlblt '~' elad ate~e pat! tta~ot, SrUrs •sttgWhts flu 13tsetaasrs o! Ti~trraffots. tier d..rti 8ari~! 8afat add/oC I~.M•d B~ Pllat ~Cle I,ad W.arSinj SdeUta~Ot. Sltior YlW!!i ~ssYi its r+rrpOnel6nlt310Y I4sbHity with saspact m ra}~ ssrch tk4~erreas:e c~iaad-based ~ Ft ie ttadarttavd~bi~ iba paeftea tint Saks dat net mate +a4Y raprersiseztiiax eC Wri~ras:t!'~ oxrtrrr or implied, as tv tbs ssjowscy or eorapttrtetkrr of rtsy itrM~sttoat aoalAlEtad it- srtlar's filor or iA tlsa iiaatutseeeh ptvtttued hY Ssi1er os its s~dr, ittrhtditt~r wltbone lieritstloa,. rs~ oavirvAmeatal rudit or report. $uyor aaimn~vied~es ~ Solktr tad Sotiar'cs dtiHatir sb~wtl trsve ~ oaeibility for the cs~catts red aeautrsy of snap. dirdaettrar, snd Euycr rdt'ece first the o4ti@tatiotsa oP S In cosmesxiva •vld- dte pnrsfusa of the kaapeskty rhrll bts ~~ ~ ~thla Agreameat lrrrrpssa~ve ofthe eoneerde of nayiuoh discbosarsa yr tite- eire3na:>r dotivary titaeeot: rya's Uthlshl MAY-38-200$ 17:2'.$. fishMl.~a Realt+~ ~ _ ~`~ 7837177228 P.25 .s.a.i ...~ ~.v.+v sa.vvl.~~ r:c'a~srr..wt~aJ,lR~iii- afl4rr~r•1~9 ocsl+ui ~.GtT Bi4 adt~4 bt tia4Mis of t$'t Sao w.~~~ sttdates gptaf5ad is the C~oairaot sad wy addenda, ~rider~ or tasrmdasat~ t1a+a~rsba. Ilds meant tint ~ daditda tta its 1a i>e atr3cd and abra>vrs. Lt th'a rreeet T~uy~ tYilt to atoaa tm ~ .ecb~edeLd rtaetc~ dtbt ttnq~u~s ao fwlt of the 8e1Jer- 3etier asst', lts !te diuxettaa sgea to mttead the cintta6 dose !bt ~ to lit da~-s. @t tlta aveat teller tgreet e3 eztaad tbt doting d:te- tx~tyer absZi p~y~ is addiWatta the ~ele Drive. s (1) St~0.o0 fbo2br iha~a~~ tend t2y a 9R ditm v~?h' diifl0A6 (;~130.n~ pwr dicta if chit ie a sub of4lor~ f~hr each dad test tfrse sloriag cbq 4 oatanded tb tBt tgaxiratutt a[ 1Dd~r ~ Io sddittea, tktacs efuti. bt a ptp ditto p+~+t1t3+ of SZt1.0~ dsziuctcd' ~ tlu aeW+ag t~irolaM'r wrcmisaioa fvr sash day shat tlss etaata~ l: atroded bryoad t4~ acbeduld ~~$ ~~ ail neaoelesy inibrm$tictt tq their ladder. lhttthrrmaxe, Buyer ttuil, Buyer un~s W YiabiIity iirprttvtd'laB esntaer sed ~ >3st~' it applicable. last tutlu=eap~sititl3ts' ~r it}lkt wttbe esiyai, ttnp 3agQet or mast~sae reprgtarust3vtr it~vt»d fn iimncin~ t}rts ~aasiast. ~sd wtttvr partq'e attomaY andl~ title tp eooesml !!slit thst'e is ao deist' la alctiag Pureheaer.r111 aot.ba slues poeeoeotaa, or may sot ooeupj-t~yarmifa! prior to cZai~~ attd dbbut~t~mant o~~ata grooeedt. ~ s Pur~ahe+Wa ilia!! 6e cor+ttdat'sd'ia tot tlu Contsae of t~k i>s tea trwat occvpiot or aitaes iba Qropaty yr .Y.~nsitt it 1o be altered va1o~ p:t~dad for tit also Coot~ot Sfr Seta or wttue PM m i~ o~ri aoaaws ]ue hies o'bt~aod frcm die $aUar, auyar tiit-tl be requirdd zd ratxu§0 the tabJectt geeperty lilac! Candltiot~ at ttudr aoarn sncpeata:~+rtd btatler to rtr to wriHrtg. ~ ~Rn~~r~ t~ 4~it1N F O 1n xhs eveoat rise Gbnftaet .tsrrairlattd by s•li+r pustumt m say pzavitien• of the Cotm+acti ei~{t RitQt Addeatd~. ea]' other a as is the event Heller it otimwits ussbIa to or eleotsiaaC to perForta tiw conb'a~ srller't sole liabitiiy to l3uya wail ba to r~tdilt s'a i~'t drgoidt, u wlsiah ssimt the E~oat~esct th*ll ooeas•red tesatiaate sad t;.llst~aad Buyatahail have std ~ oblisKti~+s, ]iabliittet o: reepantib~ia m ostir~t, ~ na~+xtt~L~Y If targpsotzaio~: of tisia hddarduta dtt]t bs ~rohibitrdby os trsval9d under sppfiaable Lw, euo!- p:w~doti4 t+tsa]t be iaef~ve only to rite exuat of sx-sh prohibitlaa os icvalWity; without favtliQatt~ i.amindar of tbisAdrlvadr.*m nr tiir tJalt:e~Coe~.at. 't Liti~) (Vh HOA A~~~l2l~iTa Hbh ueeasasetc:f absri bs buedoa the anlatiment tote its afEiwt a of the tottral data of Clatist~. .?lay apedsl oaea~eiwst Ssvied sad pRyabla izi i!l3tlllmrai. ib:ll be proassed to the Cloaiag bete dod ~Y ieattllm~na. dus ~s3~sr the attval dtte ad' clotlag ebai! b.F Paid by'Zittya'~ fn no avant ibzti 5sl ler be swpors~dble drr the j~ayttiaat of ssty ttpkvl+d u~wa*xnt panes tES of ttm actuel dxzs of ataaltY ti.Iakttsir) odu~.of tke gala of the fatty to tbs Htri~. Asta+as in coor~ratian of ~ellac t=a~~ ao fe~igad theptseafum !bs• the t;dt tatetxaoe yaiivy~ statipt~sitt+~icls: tt barohy satma~vl+idped, upon t7ta a3'lbCtiw deco oftlu Coaa+~ dose he~byreiesee said tt~oe tq icdtaaci~+, iibld basa~lear •aadfocovar diechat~tbe s-ilut. se oNnet of the Propsaty. tan ttt ofAOtic7. ~ployeet:. s date; eucaeryan and aedso~t, #~. ssty u-d ati etstima, liabilitieb or atttaes oiactiaa of oaa-lcfad tl~st the ~uy~ may now bsw or At Rity fitila la tba fisCtra iasdvdlas but sot ltntttEd tv t'ho~C-fltrr sad Aoaeptasisas (l'aragtspit ,Aj, tbt diet Ptavitiian (Pata~h C}. M;t~ntxens ittuq Q'~pb ~)~ R resetxe~oas (r.~apraptt 13}~ Fiaaacil:s C~mtinll~Y ars~aph p ). 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TOTAL P,26 AGENDA ITEM # rj REPORT # 2S STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JUNE 15, 2009 REPORT PREPARED BY: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE REPORT PRESENTER: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of proposed revisions to the Transformation Home Loan Program. I. RECOMMENDED ACTION: By Motion,: Approve the revisions to the Transformation Home Loan Pro ram to increase loan amount to a maximum of $25,000. II. BACKGROUND The Transformation Home Loan Program-(the "Program") was implemented in 1993 to encourage homeowners to make significant investments in their properties, thereby increasing home values and regenerating older neighborhoods. The Program also helps retain families that desire more modern housing amenities. The Program provides azero-interest, forgivable loan of 15% of costs for projects valued at $50,000 or greater, up to a maximum loan amount of $15,000. The loan is forgiven after 30 years, provided the homeowner remains in the home. The Program has been successful, averaging nine loans annually and providing an almost five to one return on the public investment. In early 2009 a review of the Housing and Redevelopment Authority's (HRA) housing programs was conducted .through a matching grant sponsored by the 061509 Transformation Home Loan Program Revisions Urban Land Institute. One outcome of the review suggested that the Program be revised to increase the loan amount to account for inflation since the Program's inception. The increase would also encourage larger projects and the use of higher quality materials. Upon review of that recommendation, staff is requesting the HRA approve an increase in the Program to a maximum loan amount of $25,000. All other Program guidelines and requirements would remain the same including a minimum project valuation of $50,000. III. BASIS OF RECOMMENDATION A. POLICY • Encourage the use of quality, durable building and landscaping materials to maintain ahigh-quality standard in residential development. • Support the rehabilitation and upgrading of the existing housing stock. • Encourage the creation of "move-up" housing through new construction and home remodeling. • Support ongoing maintenance and .upkeep of residential properties. • Encourage improvements to the housing stock to better serve families with children and seniors. B. CRITICAL ISSUES • The Program increases home value and regenerates older neighborhoods. • The Program helps retain families who desire modern home amenities. There is a 10 to 1.6 ratio of return on public investment compared to private renovation investment. The average home value increase for taxes (06-08) was approximately $26,000 or 11 %. The loan amount has not been increased since the programs inception in 1993. C. FINANCIAL The 2009 Housing Fund budget provides sufficient funding to accommodate the proposed increase in funding for the remainder of the budget year. The 2010 proposed Housing Fund budget provides for four to ten loans. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ Do not approve the proposed revisions to the Program. Approve revisions with changes. V. ATTACHMENTS • ULI Housing Review Summary • .Transformation Home Loan guidelines with proposed changes. • Transformation Home Loan summary VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ti, i~ ~.~~9i?q~ ._... Urban Land Institute Minnesota/ Regional Council of Mayors J Opportunity City Pilot Program Summary Report City of Richfield ULI Minnesota & the Regional Council of Mayors Urban Land Institute (ULI) Mission: ULI provides responsible leadership in the use of land and in the creation of thriving communities worldwide. Urban Land Institute Minnesota (ULI MN): ULI Minnesota actively engages public and private sector leaders in land use planning and real estate development to learn, network and join in meaningful, strategic action. The future holds many challenges and opportunities; we need the diversity of ULI Minnesota's professional community to meet them wisely. Regional Council of Mayors (RCM) Supported by ULI Minnesota, the nationally recognized Regional Council of Mayors represents Minneapolis, Saint Paul and 36 municipalities in the developed and developing suburbs. This collaborative partnership provides a nonpartisan platform that engages mayors in candid dialogue and peer-to peer support, and builds awareness and action for a more connected, more sustainable and more prosperous region. Table of Contents • Opportunity City Pilot Program Summary -Richfield's Story ........................Page 3 • Housing Audit Process .................................................................................Pages 4-6 - City Goals & Policies .......................................................................... Page 4 - Key Community Factors ..................................................................... Page 4 - Program Review .................................................................................. Page 5 - Community Change Report Key Points .............................................. Page 6 - Site Evaluation Summary .................................................................... Page 7 • Recommendations ..................................................................................... Page 8 - 10 • Next Steps ....................................................................................................... Page 11 • Sponsors & Program Participants ................................................................... Page 12 • Appendix -Includes detail background surrounding all aspects of the housing audit process and detail on the review of housing programs, evaluation of their effectiveness and examples of best practices. Opportunity City Pilot Program Report Summary -Richfield's Story Progra`n Goals/Outco`nes: The goal of the Opportunity City Pilot Program is to build on the collaborative relationships among Regional Council of Mayors (RCM) and Urban Land Institute (ULl) professionals to identify and implement best practices that support a full range of housing choices for economic stability and regional prosperity. The City of Richfield is one of five metropolitan suburban communities selected to participate in the ULI MN/RCM Opportunity City Pilot Program. Richfield's Mayor, Debbie Goettel, is an active participant in the RCM. The Richfield HRA committed $5,000 to the Opportunity City Pilot Program as well as countless staff hours in the collection of information, evaluation of tools and strategies and coordination related to the housing audit. By working together and learning from each other, the expected outcome of the process is to develop an approach that identifies local housing tools and strategies that can serve as a model for other cities and be brought to scale at the regional level In addition, implementation of new tools and strategies Richfield's Story The City of Richfield is one of the oldest first-ring suburbs in the Twin Cities. Rich with history, the City is a post-WWII outgrowth of Minneapolis for those who wanted a simpler, quieter life away from the big city. Over the years, Richfield developed as a bedroom community with single family neighborhoods. Apartments were developed along the main transportation corridors. Richfield's infrastructure includes an established transportation system (roads, transit, pathways and bike paths) a variety of parks and both public and private school options. Its commercial base provides needed services within a few miles of the residential neighborhood. These are all key corraponents of a healthy community. Richfield is currently in a re-growth position. Diversity in age, housing affordability, race and ethnic background provides the basis for stable young family growth. This helps to balance the Richfield school base-a growing challenge for many first-ring suburbs. There will be little growth in new single family housing stock. Therefore, continuing to reinvest and reinvent the existing homes by offering quality tools and strategies that provide opportunities for new households will remain important. There is some choice in style, location, and affordability, but availability of existing housing is a key issue. There are few choices for young renters, since existing apartments are older and similar in style with limited amenities. Single family homes are attractive as starter homes and are mostly ~rr _.a~~.~....,. ~ ............. ........~ ..~....~t..,.... z~............. ..,, ~ .._,....~ ..~a,. Housing Audit Process: Housing Goals/Policies City Housing Goals and Policies: The Opportunity City Pilot Program has five key themes in support of a full range of housing choices: • Preservation and rehabilitation. • Production of housing units that support varied resident life cycles and incomes. • Use of regulatory incentives • Sustainability • Jobs/housing balance connected to transportation systems. The review of the City of Richfield's and policies indicates a wide range of support for these key themes. The various community goals are incorporated into the City's current comprehensive plan. Diversify housing stock-redevelopment and infill • Encourage "move-up" housing to retain families as they grow. • Do redevelopment that provides connections/integration of land uses and provides opportunities for social interaction. Maintain existing housing stock • Support maintenance. • Encourage quality materials and design. Provide a mix of housing types and values to accommodate a mix of incomes • Target renovation programs to families and seniors in need. • Review land use and zoning ordinances to allow housing diversity • Promote the development, management and maintenance of affordable housing. Maintain and enhance urban "home town" character of the City • Support walkability. • Provide housing that meets the changing resident needs. • Encourage green building. • Target density and scale that creates\preserves neighborhood character. Evaluate Community Factors Evaluate Community Factors: In every city, there are internal and external factors that hinder the city's ability to provide a full range of housing choices. In Richfield, several factors were evident, as determined through interviews with staff, program users, community activists/leaders and service providers. The City is fully developed • No land for development of new housing. • New housing on redeveloped sites is expensive. Middle-income housing is the predominant housing type with an older housing stock • Ongoing reinvestment required. • Smaller sized single-family homes are not attractive to growing families. • Need for more functional space requires a large private investment. • Old, worn apartment complexes-stagnant reinvestment and limited amenities • Limited variety in apartments mostly 1-2 bedroom, same style-not very marketable. • Limited opportw~ities for new single-family housing as families grow. • Limited supply of housing for lowest-income residents. There is an increasingly diverse population • Communication challenges for City services. • Large extended families in small homes. There is limited funding • HRA levy maximum is not enough to address large-scale housing issues. • Subsidy required to rehab and/or build affordable housing is significant-property-by- property process with limited City capacity to implement existing and new programs. The Richfield Housing Audit included several phone interviews with key stakeholders and housing service providers. The interviews provided excellent background into the city's community history and changes as well as feedback on the success and challenges of existing programs. The interview questions and answers are attached to the summary report. Special thanks to the following who participated in the interviews. • Suzanne Sandahl. Richfield HRA Chair • Susan Rosenberg. Former Richfield Councilmember • Camillo DeSantis, Attainable Housing Committee Chair • Jeremy Larson. Resident Richtield Rediscovered User • Dave Schaeffer, Richfield Remodeling Advisor • Jim Graham, County CDBG Program Manager • Rick Regneir. City Building Official • Suzanne Snyder. Greater Metropolitan Housing Corporation 4 Program Review Housing Reinvestment, New Housing, Land Use ~ Official Controls Program Review: Richfield HRA supports a variety of housing programs for home renovation and redevelopment. The programs target a wide range of household incomes and specific housing issues from health and safety items to large renovations and infill development. Redevelopment has been a key priority for many years and has resulted in new multifamily units many targeting the senior population. The following is a summary of the programs reviewed as part of the housing audit. Details regarding the program evaluation are provided in the appendix 5 of this report. Kids G Home Program. This program provides rent subsidy to residents who are not eligible for section 8 but require subsidy due a specific household situation. The goal is to keep home stability and reduce frequent family moves. • The program supports self sufficiency, and assistance per household is low compared to the renovation programs. • The program specifically serves households with children to reduce school turnover (served 25 families and 55 children in 2008). • The City invests an estimated $200,000 annually to the program. Single-Family Reinvestment Approach. Several programs target single-family renovation. The City invests an estimated $300,000 to single-family renovation annually. ~ CDBG home renovation. Targets health and safety renovation and serves lower incomes. The City's household base is a good market for the use of the program, but funds have not been fully utilized in the last few years. ~ Energy Advantage. Targets energy-related improvements to help increase home sustainability and reduce maintenance costs. The program has limited success. ~ Transformation Loan Program. Increases home value and regenerates older neighborhoods. The program helps retain families who desire modern home amenities. There is a ] 0 to 1.6 ratio of return on public investment compared to private renovation investment. The average home value increase for taxes (06-08) was approximately $26,000 or I l %. New Single-Family Opportunities. The City offers varied options for infill housing that provide new single-family choices. The City invests an average $400,000 annually to single-family infill development. ~ Richfield Rediscovered. Provides up to $70,000 in grants to demolish and build new homes on scattered sites in the City. Helps regenerate neighborhoods and remove housing blight. For 2008, there will be an estimated 22% increase in value on the parcels redeveloped as a result of the program. ~ Senior Housing Regeneration. The City provides an estimated $15,000 in gap funds for the purchase of existing homes from seniors. The homes are renovated and resold to first time homebuyers in the City at an affordable price. The program promotes new affordable ownership by young families and reduces deferred home maintenance. Two 2 homes have been purchased. ~ New Home Program. The City provides gap funds to non-profit developers for the purchase; renovation and/or rebuilding of new single families homes on scattered sites. Many of the homes support long-term affordability through the West Hennepin Affordable Housing Land Trust and Habitat for Humanity. Thirty -three homes have been completed under this program. Housing Services. The City financially supports and promotes the use of three separate housing service providers. The service providers administer low-interest home loans and provide varied levels of remodeling advice. They serve as an extension of City staff. • Center for Energy & Environment (CEE). Administers the City's Energy Advantage loans and state renovation loans. CEE provides remodeling advisors but the City does not access this service. Fees for processing these loans are covered by administrative fees charged to the resident. ]n 2008, a total of four Energy Advantage Loans .(supported by a grant from the HRA) and 14 state loans were processed through CEE. • Housing Resource Center (HRC). Administers state renovation loans and provides construction and loan consultation. The service is free to residents with an annual HRA investment of $7,000. In 2008, 1 18 services, including 39 home construction consultations were provided to 79 residents. In addition, two state loans were processed through the HRC. • Remodeling Advisor. The remodeling advisor makes home visits and provides advice regarding home renovation. The service is free of charge to residents, with an annual HRA investment of $6,000. In 2008, the contracted advisor made 31 home visits, answered 48 calls regarding home renovation and sent 18 informational packets on City programs. The remodeling advisor does not process or administer loans. Cif1~ Offrcirrl Controls & Land Use Strategies. In addition to specific housing programs, the City uses several methods through its land use and official controls to support and promote redevelopment and reinvestment of the City's housing stock and reuse of land. • Planned Unit Development (PUD). The City uses the PUD process for mined use and redevelopment projects to allow more flexibility in the use of the land when redeveloped. • Tax Increment Financing (TIF) The City uses TIF for redevelopment and has a policy that dedicates up to 20% of the project proceeds to a housing fund when there is no affordable housing provided in the project. • Housing & Redevelopment Authority (HRA) Levy. The City makes an annual commitment to housing by adopting the maximum HRA levy. The levy supports housing reinvestment, redevelopment and affordability. • Point-of-Sale and Rental Licensing. The City supports the use of both point-of--sale and rental licensing inspection programs to help ensure minimum housing maintenance standards. 5 Community Change Report -Key Points Community Change-Key Points: The City of Richfield has a diverse and balanced base of households with a sizable number of householders in each age category. The City enjoys a high homeownership rate for households under age 35, which can provide some stability to local schools, commercial businesses, and services. During period 2004 to 2007, there was a net gain in younger households in both new and existing housing units. However, fewer than 3% of households (ages 45 to 74) in owner occupied housing moved during this 3 year period. This is the large base of mid-to-older homeowners that are "aging in place". With a sizable number of middle-aged households nearing retirement age in the city, there is concern that the lack of move-up housing and more varied senior housing options may accentuate a recent drop in turnover among households age 45 to 74. Low turnover reduces the availability of housing needed by younger replacement households. This aging of existing households more than offsets increases in younger residents entering the city through turnover. Half of all households moving into the city were under the age of 34 and 33% were between the ages of 35-54. A total of 25% of resident movers ended up finding another home in the city. But just 15% of those moving from single family detached homes chose another single family detached home in Richfield. This could be the result of a lack of move- up housing and/or attractive options for down-sizing in the City. The positive news is that a significant number (25%) of households leaving rental housing ended up in single family detached housing. The City should market its existing ownership housing stock to those living in rental housing as an ownership alternative within the community. There is strong demand for both owner and rental housing across all age groups in the City. However, with an aging housing stock housing choice is limited. Almost 90% of single family dwellings are more than 40 years old and only 3.8% of these older homes turned over in the 3 years (2004- 07). A large majority of that turnover was those under the age of 35. With older single family homes attractive to young and first time buyers, the city should continue to provide opportunities for young buyers to purchase homes as they become available as well as provide additional choices for older residents for downsizing type housing. The majority of the city housing stock is middle income housing with only 5% of the homes valued under $180,000 in 2007 and 2.4% valued above $300,000. A third of the City's single family detached housing units are valued at or less the 2007 Metropolitan Council's affordability limit $207,800. Access and usage of affordable housing appears to be equally distributed across all age groups. According to the American Community Survey data (2005-07) Richfield's non-white population at 32% is above the majority of developed communities at 15-20%. In addition, 22% of Richfield's population speaks a different language. Rithfield Householder Ages Dlstrlbution of Households by Householder Age (2OD7) (Data set covers 14,798 Rkhtfeld hou5ehold5ln 20tl7*) 5°uree;Excen5u5t(C 700 sw ~ ~ ' ~. j ` ~ I i MedianHousehblderApe ~-{ i ~ l j j'~ I~ i ~~ in 2007wes46yesrs i°° ~ '. All Households ~ ~ ~ ~ ~. j ~I z~, 'I~ !~ 1a0 % of All Households ~ I ~ ~ i I I 22.1 % 40d% 24'2°/i I !1 ° I _z. _ _ ~_~ _.~~ ..... o -- Jrtl~a~s5. ~ -~'-.-.- ;~<5~s". Aae~SOiOver -100 v ~ F, M w m ~ ., ., ~ N W N r+ ~ M ~ .. ~ r~ r; NouteholAe~Arei EX(tNSUS" The following are key statistics from the demographic change report provided for Richfield. The full change report is provided in appendix 6 of this report. • 62% of the City's households are under age 55 and that includes a strong base (22.1 %) of younger householders under the age of 35. • Single-family detached usage by households under the age of 35 is very high at 47.6%. • 68% of all new households that have moved into the City between 2004 and 2007 are renters. • There were 1,186 homeowners age 75 or older living in homes built before 1960. • 34.4% of all owner-occupied single-family detached homes are affordable based on the 2007 Metropolitan Council's threshold value of $207,800. 44% of homeowners under age 3~ succeeded in finding homes in the "affordable" range. • 44% of all households in larger apartment developments are under the age of 35, while householders age 55 and older occupy 25%. • During 2004-2007, 47.1 % of all new households were under the age of 35. • During 2004-07, 25% of residents that moved ended up in another home within the City. Retention was higher for households looking for apartments (45%) than for those seeking single-family housing (20%). These findings coupled with the increasing diversity of residents provide opportunities to regenerate Richfield neighborhoods. Due to the age of the homes and households that are aging in-place it will be important to focus on tools and strategies that help to maintain home value and choice in the city. The recent economy and increase in foreclosures may result in households remaining in their homes longer and increasing the need for rental housin~~. 6 Site Evaluation Summary Opportunity Site Evaluation. ULI MN/RCM have prepared community site principles that support a full range of housing choices and utilize best practices to maximize efficient land use, connect housing to jobs and provide access to transportation networks. As part of the Opportunity City Program, a team of ULI professionals reviewed four sites in Richfield that have a future land use designation for medium -to high-density housing. The sites for evaluation were selected by Richfield city staff. The following is a summary of the team's recommendations for the sites considering the 11 community site principles. (See appendix 7 for details on the site evaluation and community site principles.) 72 `D c~ Penn Ave. This site would be a good location for higher-density housing such as apartments with modern amenities targeting single and young professionals. By providing higher-density residential, the open space on the site could be maximized and serve as an amenity for the residents. There is good access to parks, transportation (bus line), schools and employment. With this location being close to Best Buy, new apartments would provide a rental housing option not currently available in the city. Lyndale Garden Center The site is an excellent opportunity for the city to create a mix of medium- to high-density housing types incorporating public activity spaces. With a good mix of housing types and uses, the area could be a focal point for the city-a Richfield ``Centennial Lakes." A suggestion is to open up the site and provide public gathering spaces at the lake, incorporate housing at various income levels and attracting commercial uses that are a destination. Based upon the site's future potential, it should be a high priority for the city. 66`x' & Portland The site is not the most attractive site of the four reviewed for medium-density housing. The area lacks walkability, is not desirable due to adjacent auto use and has site challenges due to its narrow depth. An option could be for affordable senior apartments or accessible housing for tenants with limited mobility. The site would have more housing and/or mixed use opportunity if the corner parcel were part of the redevelopment. Washburn Avenue (66`x' - 70"') The area seems to be a stable, well-maintained neighborhood. Evaluating better access to the retail area may be beneficial to the neighborhood to support walkability. Due to the city's limited financial and staff -•esources and the complexity of site redevelopment, it was not recommended as an opportunity site unless redevelopment of Southdale and the other retail areas were to occur. 7 Recommendations Recommendations to Increase the City's Capacity to Provide a Full Range of Housing Choices: Several key themes emerged through the Opportunity City Process in Richfield. Overall, the City has made a long term investment in its housing and should continue to target its efforts toward preservation and reinvestment in the older housing stock. The City offers several programs that address single-family housing with great success. Additional investment in the future should also be focused on the older apartment complexes. It is essential to ensure that existing programs and any new efforts are properly funded-particularly when there is limited funding and staff capacity. The following is a summary of recommendations resulting from the housing audit, program review, community change information and review of City goals, policies and community factors. (See appendix 5 for details on the program evaluation and specific program recommendations). Communication and Education. Create an HRA communication and marketing plan for its programs to help achieve cite Due to the increasing diverse resident base, the City will need to expand its communication and education efforts regarding City housing programs, ownership and rental opportunities and expectation for home maintenance. The following is a swnmary of ideas to include in the communication and marketing plan. • Partner with the School District and the School Family Multicultural Resource Center. • Support an educational approach to code enforcement, eg. Shoreview 's SHINE. • Provide a single staff contact\community liaison (consider bilingual) to reduce the communication barriers as a result of the increased diversity of residents. • Provide educational sessions/fact sheets in multiple languages on alternate home ownership options such as Land Trust, Habitat for Humanity and the Senior Housing Regeneration program. • Include health and cost benefits of incorporating energy efficiency i-nprovements in all marketing materials. • Increase internal department coordination for a more holistic approach in addressing neighborhood issues, eg. Brooklyn Park's Neighborhood Action Committee. • Expand connections of the current and future housing opportunities to local jobs by working with employers to determine housing needs and evaluating links between employment wages and housing values. • Increase partnerships with non-profit and for-profit resources to expand the City's capacity to address housing issues. Program Improvements. Richfield has built a strong base of diverse housing programs and is able to provide entry-level housing to young families and for older adults as they age in place. Specifically, the Richfield Rediscovered, Transformation Homes and New Home Programs have made a positive impact in reinventing existing singe family neighborhoods and attracting and retaining young households many first ring suburbs desire. These programs should continue to be part of the tools and strategies offered to provide a full range of housing choices. To enhance the existing tools in the tool box, implementation of the following recommendations will help to provide options for move-up housing as families grow, redevelop and renovate the existing housing stock and use the City's financial investment as effectively as possible. • Evaluate one-stop shop approach for financial and remodeling adviser services to reduce homeowner confusion and increase efficiency. Currently, there are three services providers the HRA is financially supporting and residents are USlllg. • Evaluate additional methods to increase the use of the City's CDBG funded prams. Hennepin County began administering CDBG funds for the City in ?005. Based upon the evaluation, there was a much higher resident use of the CDBG program when the City internally administered the program funds prior to 2005. If the City takes responsibility for administering the program, there could be opportunities to subcontract with housing service providers to administer the loans. This option may help to increase the use of the funds and provide the City with additional oversight on the marketing to meet the City's needs. Examples of the home service providers that could administer the funds on behalf of the City include the Greater Metropolitan Housing Corporation and the Center for Energy and Environment These are organizations that the City currently has relationships with. However, as noted above, using ogle organization would help to provide aone-stop-shop approach to housing services for the City. 8 Recommendations • Continue to fund the Kids(a~Home Program and explore options to increase funding through non-profit and foundations sectors. • Continue to fund neighborhood reinvestment in older homes through Transformation Homes and Richfield Rediscovered programs. Increase the maximum Transformation Loan amount to $25,000. This provides an adjustment for inflation since the program was created in 1993 at $15,000. Consider the benefits of incorporating sustainability into existing_pro rains-expand program requirement to include incentives for energy efficiency and renewable products. The incentive could include up to $5,000 in additional funds based upon the cost of adding energy efficient and renewable products, eg. Woodbury Goes Green Loan. • Market home purchase and renovation programs through local employers. Encourage employers to include the City purchase and renovation programs within new employee and recruiting materials. • Evaluate options for providing homeowner architectural assistance to help increase modern renovations that are more amactive to the younger and move-up housing generations, eg. St. Louis Park's partnership with AIA. • Expand options for single-family capacity and increased marketability by encouraging the addition of egress windows, allowing ease for front yard expansions and expediting the permit process for single-family home renovation. • Expand use and funding for the H.O.M.E. program (Household and Outside Maintenance for Elderly) to help those who are aging in place with maintenance and other household needs. • Establish a small emer enema ($500 per case) to resolve minor code violations rather than having homeowners go through a time consuming citation and abatement process. • Expand opportunities for seniors interested in selling their single family home. 1. Expand the Senior Housing Regeneration Program by increasing funding from $15,000 to $25,000 in gap funds per home. 2. Establish a deferred loan program for family members purchasing a senior home to rectify code deficiencies noted in the point of sale inspection or to the seniors who wishes to put their home on the market but need to address code deficiencies first to make the home more marketable. Apartment Reinvestment c~ Redevelopment. Apartments in Richfield are its most affordable housingas well as some of the oldest and unmarketable housing. This housing type serves a great need for a broad range of residents, particularly younger households. Expanding the City's capacity to improve the apartment stock will be important to the future success of City efforts. Initiating redevelopment in a sensitive, cost-efficient manner that increases value and sustainability should be a key goal. The recommendations to ~~ `! ~~ 4~.., increase apartment renovation and redevelopment include the following. ~, ' ?~1k • Dedicate financial assistance (grant deferred or low-interest loans) to an ~ ~ apartment renovation pro rg am_ Evaluate ways to increase the city's financial ~' ~~ capacity to improve older apartments. Proactively seek out partnerships with p ~ non-profit/for-profit organizations that specialize in older apartment ~ ~~ preservation/renovation and redevelopment. Seek Minnesota Housing ~ _~ ~B funding specifically to renovate lower income apartments with the goal to ~ ;~ retain existing households. ~> ~ • Determine if there are ways to effectively ensure that older apartments ~__~~~ ~.~~ become more marketable/sustainable by combining units to increase bedroom ~~~~ d counts, adding modern amenities and energy efficie-~cies, linking residents to ~~_>~~ ,. ~ ~ social services and ensuring proper connections to t--ansportation. parks. ~~.. ~ ~ ,_.._.. recreation and essential services. ,- w +'~ • Adopt a rental relocation policy that would address the concern over ...; `~'" ~ ~~ displacement of apartment residents when they are considered for redevelopment and provides low-income households with similar cost housing alternatives within the City, eg. Brooklyn Park's Relocation Policy. Land Use Controls and Other Housing Maintenance & Renovations Strategies. City leaders have a variety of public tools a-~d strategies they use to determine their participation in land use decisions, maintenance standards and the facilitation of redevelopment and renovation. Continuing to be part of the solution and helping to change the way land is used and buildings are maintained takes strong local leadership and vision. Many decisions that policy leaders make are controversial. Understanding the long-term effect of those decisions will help prepare the City for future growth and re- Recommendations growth. Richfield has made great progress in redevelopment of their community by understanding the issues and educating their residents. Additional recommendations relating to specific public policy decisions are: • Continue to fund and implement the Poiilt of Sale and Rental Licensing~ro_r~ that help provide consistent maintenance standards for existing housing stock. Even in a time of economic uncertainty, providing methods to ensure that existing homes are property maintained is essential. • Evaluate alternate ways to zone land that would better mana e~promote redevelopment. Form-Based or Performance-Based zoning is an option that supports more walkable, mixed-use development. Form- and performance-based zoning provide a framework for how future uses fit into the surrounding area through the placement and design of buildings on the site, rather than tying the land to a specific future use. • Support building and land development requirements that promote sustainability and long-term energy efficiency. Such efforts include revising local building codes to allow green building standards, allowing smaller street designs and req~iiring energy-efficient products for all publically funded programs. Local efforts can help reduce the regional carbon footprint, increase long-term affordability (through lower utility and maintenance costs) and support healthy living. • Evaluate options to add new small-lot single-/multi-family move-up housing and higher-densit~aparnnents with modern amenities to add a housing type that would retain growing families and attract local workers. • Reduce or waive City fees to allow more affordability for lower-income housing projects. • Proactively acquire and land-bank substandard and/or vacant housingfor later infill housing opportunities - specifically targeting foreclosed properties that are candidates for demolition. • Consider using Housing Improvement Area local government authority to address older common interest communities and promote an affordable renovation option. 10 Next Steps Next Steps: The Opportunity City Program is only the first step in supporting a full range of housing choices in the community. Key policy leaders need to support next steps that make valuable changes to the way that the tools and strategies are delivered throughout the City. Many of the recommendations have budget implications and affect staff resources. Prioritization of the recommendations is essential. Suggestions for next steps associated with implementation of the recommendations include: • Gain acceptance of the UU MN/RCM Opportunity City report by the HRA and City Council. • Prepare a work program that outlines the steps and time needed to effectively implement the recommendatio~ls. Determine how the recommendations affect land use codes, program service providers and staff work load. Include performance targets to track the progress of program changes and additions. Setting performance targets and tracking the progress of local tools and strategies against benchmarks will provide a level of understanding to public officials and residents that become critical during the annual budgeting process. (Detail regarding performance measures as it related to housing tools and strategies are attached.) • Evaluate budget and staff resource implications tied to each recommendation. • Prioritize recommendationsthat will have the largest impact in supporting housing goals for a full range of housing choices. • Evaluate need to amend the City's comprehensive plan based upon implementation of recommendations. • Discuss the broader meaning of the demographic data as it compares to current market conditions and evaluate how the data relates to the region. Incorporate future data updates and online neighborhood level data tool. 11 Program Sponsors F~ Participants Thank you to the following participants in the ULI MN/RCM Housing Initiative Opportunity City Pilot Program. • Richf~elrl HRA Commissioners -Suzanne Sandahl, David Gepner, Joan Helmberger, Doris Rubenstein, Steven Quam • City of Richfield Staff -Karen Barton, John Stark, Kirsten Partenheimer • Site Evaluation Team: o Colleen Cary, The Cornerstone Group o Mark Koegler_ Hoisington Koegler Group o Gretchen Nicholls, LISC o Bob Streeter, City of Oakdale • UL[ Minnesota Consulting Team o Caren Dewar, ULI Minnesota Executive Director o Cathy Bennett, Bennett Community Consulting o Dennis Welsch, CPPP o John Carpenter, Excensus ~pecial thanks to the Opportunity City Pilot gram Sponsors. Without their financial ~tribution, the program would not be ~sible • Family Housing Fund • Metropolitan Council • Richfield Housing & Redevelopment Authority 12 / ~ 6/2009 Transformation Home Loan Program Guidelines A "home transformation" means a major home remodel, increasing its livable space and its value. Residents who enjoy their neighborhood, like the schools, and know the benefits of the community are choosing to adapt their existing homes to meet their current needs. The Transformation Homes Loan was- developed to provide incentives for homeowners or homebuyers in Richfield to begin major remodeling activity. Program features include: ~ Remodeling Advisor Services. Dave Schaffer will provide initial remodeling advice as well as on-going assistance as you flan your project. Leave a message for Dave on the Remodeling Connection: 6~-861-9772. ~ The Transformation Loan. The Richfield H °~~i ~g and Redevelopment Authority (HRA) characterized the Transformation °' ~an as an "incentive loan". The incentive is just a little more financing with ternfic~rms, so that a homeowner may feel equipped to move forward ~ their remodelin project. To apply for the loan, the cost of your remodelin~~ o ct must be $000 or more. The loan may be,~0%_of your remodelinproject, when the cost of r~modelin~_is_$50,000___._.--~ Deleted: l5 or more. The maximum loan amount is 5,000 __ IYs_ interest-_free;__and is___,____ Deleted: l5 ~^--- payable upon sale of your \~~~~roperty, or forg\ven after 30 years If you have questions, call 612-861-9760 Funds are iimite~. ~~~ Application Procedure: 1. Prior to starting your proiect, ot~t~n ~°~his ~ application package which includes the program conditions, contractor requirements~~summary of design considerations, loan application form, and a Remodeler Form for remodelers who have not worked under the program previously. 2. Submit a complet~~''~'cation. A commitment of funds can only be made when all required items have been re iV~ Please note: The City of Richfield's Inspections Division must approve all building pla ~~ d may have requirements independent of loan requirements. All setback and zoning requr _ is must also he met. 3. Applicattions will be teviewed on first-co~~, first-served basis, with priority being given to projects thatare most ready to move forw~ Project readiness will be determined by those that have completed drawings, have total project funding in place (e.g. have a loan commitment or have closed on mortgage finarZcing), and/or have a remodeler under contract. Funding will not be ~ ~~eld for projects there not wady. ~~\\\\ 4. Once an application?ar~ other required documents have been received. and reviewed, a loan corn rn itr»ent will be m " ~ ~~ 5. After yoZ~~plicati(~~~ s been approved, you should contact the program administrator at 612- 861-9760 schec~~ a loan closing. Conditions of the Transformation Incentive Loan: 1. Loans will not be considered for work in progress or work completed. The Transformation Loan can only be considered for projects not yet begun. 2. Submitted applications will be reviewed for appropriateness and completeness. Projects generally must be value-added improvements such as expanding space. Plans will be reviewed for design considerations. 3. An applicant's project cost must be a minimum of $50,000. All aspects of the project must be completed within a reasonable period of time such that all the work may be considered part of one project. r r ~ 6/2009 4. Sweat equity may be allowed. The estimated loan amount would be the combination of contractor and material cost, but cannot include the value of homeowner labor. Sweat equity projects must be completed within one year. 5. The loan will be calculated at up to 15% of the initial contract price if the contract price for remodeling is $50,000 or more, but not to exceed $15,000. No interest will accrue on the loan; no monthly payments are required. 3. Loan funds are available on a limited basis. You may want to call ahead of time to find out if funds are still available. The HRA is not responsible for the availability of loan funds to the homeowner. 4. APre-Remodeling Condition Report is required by the HRA to meet city financing and auditing requirements. A property evaluator (not an appraiser) co,~~racted by the HRA will spend approximately an hour at your home to assess the age of mechari cal systems, measure square footage, and otherwise note the condition of the home prior to remodeling. This is a one-time report for HRA records and incurs no cost to the homeowner. Based on the degree of substandardness revealed by the Pre-Remodeling Condition report,~t~e HRA may choose to reject an application and not fund a project. °~ o 5. You will be sent a commitment letter verifying the„teservation of funds to be provided at closing. A copy of the letter may also be provided to your Ider. 6. Copies of lien waivers for the full amount of `the payment xnust~be provided at tide time of final disbursement. An HRA staff person may place a n ir~rour yard that says,`"We're Remodeling!" The sign will be removed upon. remodeling completion. or soarer. o~. For applicants obtaining mortgage financing, the fug Loan amount will be placed in an escrow account held by the Lender. The escrow account will be drawn upon in prorated increments, simultaneously as fins ale drawn upc1 from the primary .Loan to make payments to the Remodeler. Payr~n .will be disbursed ~`t the discretion of the Lender, upon HRA satisfactory verification of wo~.in progress~~+vhich may require lien waivers, site inspection, etc.). Before the Loan payment can be provided ~p tr,e Lender, as part of closing and before any draws on the Loan can be made, the Homeowner-dust sign the Promissory Note, an example of which is attached. 9. In thole situations where the Homeo~rn~,~'is riot utilizing the services of a Lender, partial and/or final Toan 'pa~~~ents will be issued to the homeowner at or near the end of the project. Payments will,,,k~°~~~made upon HRA approval of homeowner submitted documentation which will include a \~etailed list of expenditures, supplier and contractor invoices or receipts, and lien waivers. 10. Before final payment is issued, ~Y Lender or HRA) inspections will be required by both the Riceld Remodeling Advisor (as requested by the HRA) and the City Building Inspector. Upon satisfactory verification of work in progress, or upon completion, payments will be disbursed at the discretion ofe lender or tfie HRA. 11. Payment of the L~~n r~~ust be made in full within 30 days upon the sale, conveyance, assignment, lease or transfer~°f .the property. A Satisfaction of Mortgage in recordable form will be provided upon receipt of payment. The Loan may also be paid in full at any time. 12. If the Homeowner still owns and occupies the property, the lien created by the Loan will be forgiven 30 years from the date of the Promissory Note and Deed.• 13. The Loan is a lien against the property. However, the HRA will subordinate its position as long as the Homeowner can clearly substantiate that total indebtedness of the property does not exceed 80% of the total value and other conditions are met. Please consult the Richfield Housing and Redevelopment Authority (HRA) Subordination and Satisfaction Policy, available at www.ci.richfield.mn.us or by calling 612-986-9760. 14. Only one Loan is available to a Homeowner at any given property location. f~ 6/2009 Please be informed that financial data submitted to the HRA for purposes of the loan application is considered private, according to Minnesota Statute Chapter 13. However, the fact that you apply for a loan and the final loan amount is considered public data according to the same statute. General Remodeler And Design Criteria: The HRA does not recommend any particular remodeler. Selected remodelers must complete a Remodeler Form, and comply with the general criteria established by the Richfield HRA and the City of Richfield. Summary of Remodeler Requirements -~ It is the homeowner's responsibility to check on contractors thoroughly b~fare selecting them. Your builder should: 1: Demonstrate financial capability by providing a statement from financial institution of sufficient construction capital. 2. Possess adequate Builder's Risk, Comprehensive General Liability and Worker's Compensation insurance coverage. 3. Have a written warranty policy to be shared with the meowner or writter~~evidence of commitment to perform warranted repairs required by Minnesota State Statute.- , 4. Provide State Building/Remodeling~ontractor license number. 5. Provide the following references: °~ • Five satisfied customers: • Three major suppliers or ,bcontractors; • Names c~~~uilc~ng officials ~~ m two cities ~o last th~~ ears \\ ~\O ~~ where` the Remodeler has worked in the If the remodeler has -riot participated...in the Transformation Homes Program previously, the HRA will require a Remodeler Form to be completed. A form is~attached. Summary of Housing Design ~~~ °~\ moo` The HRA will rewire the following: Each home shall be a detached single-family dwelling. Exceptions to this may be approved by the ~~',. 2. At a mirtrmum, off-street p\~s~ed parking must be provided on the site in accordance with the zoning code. \\ 3. .Three-and fbu\~droona homes as a result of remodeling are preferred. However, a minimum of two finished bedroo?ns and space for a third bedroom that could be easily finished will be acceptable. ~~~~.. 4. Two full bathrooms a~ a result of remodeling are preferred. However, a minimum of one full bath and a 1/2 bath roughed in will be acceptable. 5. House design and appearance is a critical concern to the HRA. The house building lines, rooflines, doors and window placement should minimize blank wall mass. House and garage orientation to the street must present a balanced and pleasing view from all sides. Wherever possible, .the garage presence must be minimized. New garages should be flush with or behind the front elevation of the house. 6. If exterior work is included, exterior materials should be low maintenance. Masonite siding materials are not acceptable. ~ / (o 6/2009 7. The site must be fully landscaped upon completion, including attractively placed foundation plantings and complete sod installation, lot line to lot line. 8. Adjoining properties must not be disturbed by the construction process. Construction planning is important since five-foot side yard setbacks limit construction space. 9. The construction process, site grading, and the finished structure must improve or not have a detrimental impact on storm water drainage patterns in the neighborhood. Re-working an existing site grade to improve neighborhood drainage may be requested. If a roof is pitched towards neighboring homes, gutters may need to be installed to divert storm water, in addition to improved grading. Design Plan Review: ~\\ , The HRA must be provided with a set of the building plans, including building elevations, and a copy of the land survey or site plan. HRA staff will review the plans to ensure.~formance with the Housing and Site Development Criteria. Plan review by the building official is a parate rocess. 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