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A•2018-199
<br />AN GE NOTRE0UIRED
<br />Vu's:11W IiAAY PHOCE ED
<br />Ci.rni'iry OF COUNCAL
<br />NOV 2 7 2018
<br />C9AC0 RECORDING REQUESTED BY
<br />-Sk� Gtj �f;,V6ND WHEN RECORDED RETURN TO:
<br />Davis Wright Tremaine LLP
<br />885 S. Figueroa Street
<br />Suite 2400
<br />Los Angeles, CA 90017
<br />Attn: Nancy B. Clapp, Esq.
<br />SUBORDINATION AGREEMENT
<br />(CITY HOME LOAN)
<br />NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR RIGHTS
<br />UNDER CERTAIN AGREEMENTS RELATING TO CERTAIN REAL PROPERTY
<br />BECOMING SUBJECT TO, AND OF LOWER PRIORITY THAN, THE LIEN OF A
<br />SECURITY INTEREST.
<br />THIS SUBORDINATION AGREEMENT (this "Agreement'), made as of the 71h day of December,
<br />2018, by and among the CITY OF SANTA ANA ("Subordinating Party"), whose address is 20 Civic
<br />Center Plaza, Santa Ana, California 92701, and MUFG UNION BANK, N.A., a national banking
<br />association ("Bank"), whose address is 3151 E. Imperial Highway, 1s' Floor, Brea, California 92821,
<br />Attention: Manager— Loan Administration Department, is made with reference to the following facts:
<br />A. Unless expressly defined herein, all capitalized terms used herein shall have the
<br />meanings ascribed to them in Appendix I or Exhibit "B" attached hereto and made a part hereof.
<br />B. Borrower is the owner (or, concurrently with the recording of this Agreement, will be the
<br />owner) of the Property, which Property is more particularly described in Exhibit "A" attached hereto and
<br />made a part hereof.
<br />C. Borrower and Subordinating Party have heretofore entered into or, concurrently herewith,
<br />are entering into, those certain loan documents more particularly described in Exhibit "B" attached hereto
<br />("Subordinating Party's Loan Documents"), pursuant to the terms of which Subordinating Party shall
<br />make to Borrower a Three Hundred Fifty -Two Thousand Nine Hundred Sixty -Two and 90/100th Dollar
<br />($352,982.90) loan ("Subordinating Party's Loan") which Subordinating Party's Loan is secured by,
<br />among other things, that certain City HOME Deed of Trust and Assignment of Rents dated August 21,
<br />2018 ("Subordinating Party's Deed of Trust"), executed by Borrower for the benefit of Subordinating
<br />Party, and recorded as Instrument No. 2018000341749 in the Official Records of Orange County,
<br />California, and encumbering the Property and all Improvements to be constructed thereon and those
<br />certain Affordability Restrictions on Transfer of Property dated August 21, 2018 ("Subordinating Party's
<br />Restrictions"), and recorded as Instrument No. 2018000341751 in the Official Records of Orange
<br />County, California, pursuant to the terms of which Borrower agreed, among other things, for Itself and its
<br />successors and assigns, to operate the Project as a low income apartment project in accordance with the
<br />terms and conditions set forth therein. Subordinating Party's Deed of Trust and Sections 3.5 and 18 of
<br />Subordinating Party's Restrictions are sometimes collectively referred to as "Subordinating Party's
<br />Security Documents".
<br />D. Concurrently herewith, Borrower and Bank are entering into the Loan Agreement,
<br />pursuant to the terms of which Bank shall make to Borrower the Loan to cover a portion of the cost of
<br />constructing the Improvements and certain other costs related thereto, which Loan is evidenced by the
<br />Note, made by Borrower to the order of Bank, and secured by, among other things, the Deed of Trust,
<br />4821-4251-8639v.4 0096250-000012
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