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Item HA 03 - Subordination Agreement and Lease Rider for FX Residences
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Item HA 03 - Subordination Agreement and Lease Rider for FX Residences
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6/10/2026 10:15:33 AM
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6/10/2026 10:15:00 AM
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City Clerk
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Community Development
Item #
HA 03
Date
6/16/2026
Destruction Year
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EXHIBIT 3 <br /> notwithstanding, the rights and benefits of the Department under this Agreement shall <br /> benefit and may be exercised by any Transferee or by the holder of any mortgage or deed <br /> of trust which may be given to secure a portion of the purchase price in any sale by the <br /> Department or its successor(s) after the Department acquires the Leasehold or enters into <br /> a New Lease under this Agreement. <br /> 8. Diligence of Department. So long as the Department is prevented by any process or <br /> injunction issued by any court or by any statutory stay, or by reason of any action by any <br /> court having jurisdiction of any bankruptcy or insolvency proceeding involving Landlord or <br /> Lessee, from commencing or prosecuting foreclosure or other appropriate proceedings in <br /> the nature thereof, the Department shall not be deemed for that reason to have failed to <br /> commence such proceedings or to have failed to prosecute diligently such proceedings, <br /> provided, however, that the Department shall use reasonable efforts to contest and appeal <br /> the issuance or continuance of any such process, stay or injunction. <br /> 9. Condemnation and Insurance Proceeds. <br /> a. Anything in the Lease notwithstanding, all fire and other hazard or casualty <br /> insurance proceeds shall be paid to the Department to the extent required by the <br /> Regulatory Agreement and subject to the rights of senior mortgage holders. In <br /> addition, in the event of any condemnation or partial condemnation, all condemnation <br /> award proceeds payable on account of such condemnation or partial condemnation <br /> shall be paid to the Department to the extent required by the Regulatory Agreement, <br /> subject to the rights of holders of senior mortgages, if any. <br /> b. During the term of the Loan, the Department shall have the right to participate in <br /> any settlement or stipulation of judgment with respect to any condemnation <br /> proceeding entered into with the condemnation authority affecting all or any portion <br /> of the Development or any agreement to sell all or any portion of the Development in <br /> lieu of condemnation, and no such settlement, stipulation or agreement shall be <br /> made or entered into without the Department's prior written consent, which consent <br /> shall be in the Department's sole and absolute discretion and may be conditioned <br /> upon the satisfaction of such terms and conditions as the Department may prescribe. <br /> Department shall also have the right (but not the obligation) to participate in any <br /> settlement, discussion, and/or arbitration proceeding between Landlord and Lessee <br /> with respect to the apportionment or application of any condemnation award. <br /> 10. Certificate by Landlord. Within fifteen (15) calendar days after written request by the <br /> Department, Landlord shall execute and deliver to the Department or to any proposed <br /> purchaser or encumbrancer of Lessee's estate a certificate declaring (i) the existence and <br /> validity of the Lease, or New Lease as the case may be, and amendments thereto, if any, <br /> remains in full force and effect; (ii) that all conditions under the Lease, or New Lease, have <br /> been satisfied, and that there are no defaults under the Lease or New Lease, or if there has <br /> NPLH Lease Rider Page 9 of 17 <br /> Rev:7/16/2024 <br /> Prep: 6/1/2026 <br /> Dev: Francis Xavier Residence <br /> Assessor's Identification Number:398-303-04,398-303-05,398-303-06 and 398-303-07 <br /> Loan No.: 18-NPLH-12673 <br />
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