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AG 19-026 - Pulley• �—� RETURN TO: Jeri-Lynn EXT: 2401 CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM 1. ORIGINATING DEPT./DIV: COMMUNITY SERVICES 2. ORIGINATING STAFF PERSON: JERI-LYNN CLARK EXT: 2401 3. DATE REQ.BY: 4/12/18 4. TYPE OF DOCUMENT(CHECK ONE): ❑ CONTRACTOR SELECTION DOCUMENT(E.G.,RFB,RFP,RFQ) ❑ PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT ❑ PROFESSIONAL SERVICE AGREEMENT ❑ MAINTENANCE AGREEMENT ❑ GOODS AND SERVICE AGREEMENT ❑ HUMAN SERVICES/CDBG ❑ REAL ESTATE DOCUMENT ❑ SECURITY DOCUMENT(E.G.BOND RELATED DOCUMENTS) ❑ ORDINANCE ❑ RESOLUTION ❑ CONTRACT AMENDMENT(AG#): ❑ INTERLOCAL x OTHER HOUSING REPAIR 5. PROJECT NAME: HOUSING REPAIR PROGRAM DEED OF TRUST,PROMISSORY NOTE,LOAN AGREEMENT,& HOMEOWNER/CONTRACTOR AGREEMENT-FINAL 6. NAME OF CONTRACTOR: DOROTHY PULLEY ADDRESS: 2527 S 288Th ST,UNIT 4-1,FEDERAL WAY,WA 98003 TELEPHONE 206-280-5919 E-MAIL: FAX: SIGNATURE NAME: TITLE: HOMEOWNERS 7. EXHIBITS AND ATTACHMENTS:❑ SCOPE,WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS/CERTIFICATE ❑ ALL OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN ❑ REQUIRED LICENSES ❑ PRIOR CONTRACT/AMENDMENTS 8. TERM: COMMENCEMENT DATE: UPON EXECUTION COMPLETION DATE UPON SALE OF HOME 9. TOTAL COMPENSATION$2A00.87 (INCLUDE EXPENSES AND SALES TAX,IF ANY) (IF CALCULATED ON HOURLY LABOR CHARGE-ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES) REIMBURSABLE EXPENSE:❑YES ❑NO IF YES,MAXIMUM DOLLAR AMOUNT: $ IS SALES TAX OWED ❑YES ❑NO IF YES,S PAID BY:❑CONTRACTOR❑CITY ❑ PURCHASING: PLEASE CHARGE TO: **THEY PAY US ** 119-7300-996-331-14-218 10. DOCUMENT/CONTRACT REVIEW I _.r.;. /D• ER VI'' ED INITIAL/DATE APPROVED PROJECT MANAGER L DIRECTOR RISK MANAGEMENT(IF APPLICABLE) ❑ LAW 12 i41r "TY 11. COUNCIL APPROVAL(IF APPLICABLE) COMMITTEE APPROVAL DATE: COUNCIL APPROVAL DATE: 12. CONTRACT SIGNATURE ROUTING ❑ SENT TO VENDOR/CONTRACTOR DATE SENT: DATE REC'D: ❑ ATTACH: SIGNATURE AUTHORITY,INSURANCE CERTIFICATE,LICENSE,EXHIBITS ❑ CREATE ELECTRONIC REMINDER/NOTIFICATION FOR 1 MONTH PRIOR TO EXPIRATION DATE (Include dept. support staff if necessary and feel free to set notification more than a month in advance if council approval is needed.) INITIAL/DATE SIGNED ❑ LAW DEPARTMENT /47 Se Za 9 ►•• JIGNATORY(MAYOR OR DIRECTOR) A ❑ CITY CLERK ;7 2.0 (Ci ❑ ASSIGNEDAG# AG# '9,paCo ❑ SIGNED COPY RETURNED DATE:SENT 3• • 11 COM NTS: CITY OF CITY HALL Federal Way 33325 8th Avenue South 41/4. Federal Way.WA 98003-6325 J (253)835-7000 www cityoffederalway corn CITY OF FEDERAL WAY HOME REPAIR PROGRAM (CDBG) HOMEOWNER LOAN AGREEMENT FINAL THIS LOAN AGREEMENT ("Agreement") is made this 13th day of April, 2018, between the CITY OF FEDERAL WAY, a municipal corporation("City"), and Dorothy Pulley("Borrower"). RECITALS si A. The CITY OF FEDERAL WAY is a municipal corporation and designated as an entitlement city in the United States Department of Housing and Urban Development (HUD) Community Development Block Grant(CDBG)Program to carry out federal CDBG grants and programs. B. The CITY OF FEDERAL WAY has undertaken the administration and execution of various programs utilizing funds made available from the HUD, which have as their objective, the repair of owner-occupied housing (Home Repair Program) for qualifying low- and moderate-income persons and families residing in the city limits of Federal Way. C. The City is willing to provide the Borrower a loan, to be used by the Borrower for repair work at the Borrower's property located at 2527 S 288th St, Unit 4-1, Federal Way, King County, Washington ("Property"), and more particularly described in Exhibit A attached hereto. The amount and terms of the loan are specified in the Promissory Note found in Exhibit B and secured by the Deed of Trust found in Exhibit C, both of which are made parts hereof by this reference. AGREEMENT In consideration of the mutual promises herein, the Borrower and the City agree as follows: 1. Total Rehabilitation Cost. a) The total cost of rehabilitation for this property is $2,214.55, which includes costs, fees, and expenses listed in paragraph 6 of this Loan Agreement. Of this, $2,214.55 is a loan, as provided herein and subject to the Promissory Note and the Deed of Trust. 2. Loan. The City agrees to make,and the Borrower agrees to take the Loan as provided herein. The Borrower agrees to have the Loan proceeds used to complete the work in accordance with all applicable code requirements and work plans described in the Homeowner & Contractor Agreement for Housing Repair Program attached hereto as Exhibit D. The loan will be evidenced by a Promissory Note(the"Note") to be executed by the Borrower. 3. Purpose of Loan. The Loan is to be used exclusively in connection with the repair of the Property in accordance with the objectives of the Home Repair Program and the applicable guidelines thereof. HRP Homeowners Loan Agreement 1 10/2017 CITY OF CITY HALL 333258t 8th Avenue South Federal Way Federal Way.WA 98003003 -6325 (253) 835-7000 www cityoffedera/woy COM 4. Security. a) Deed of Trust. As a security for the Note, Borrower shall make, execute, and deliver to the City, as Beneficiary, a Deed of Trust on the Property in form and substance satisfactory to the City in the full amount of the Loan. This Deed of Trust shall be subject to the following: i. A Deed of Trust to Mortgage Electronic Registration Systems, Inc. "MERS", solely as a nominee for Seattle Bank in the principal amount of Two Hundred Five Thousand Twenty- Six and NO/100 Dollars ($205,026.00),recorded April 17, 2009, under King County Auditor's File No. 20090417001010; and ii. A Deed of Trust to Secretary of Housing&Urban Development, solely as a nominee for Seattle Bank in the principal amount of Two Hundred Five Thousand Twenty-Six and NO/100 Dollars ($205,026.00),recorded April 17, 2009, under King County Auditor's File No. 20090417001010; and iii. Such additional encumbrances as the City may hereafter approve or waive in writing. b) Title and Fire Insurance. Borrower shall, at Borrower's expense, furnish the City with an acceptable Mortgagee's Prime Title Insurance Policy insuring the City in the amount of$2,400.87 and shall provide and maintain fire and extended coverage insurance on the Property in the amount of Two Thousand Four Hundred and 87/100 dollars ($2,400.87), naming the City as the beneficiary and additional loss payee, as its interests may appear and requiring the City be given thirty(30) days prior notice of any cancellation thereof. 5. Loan Proceeds. a) Upon execution of the Note and recording of the Deed of Trust and other required security instruments, and the satisfaction of anyother conditions precedent applicable to the Loan disbursement, the Loan proceeds will be disbursed in accordance with this Agreement. The Borrower has no right to the monies, other than to have the same disbursed in accordance with the terms of this agreement. The Loan will be disbursed in one payment as required under this Agreement (refer to Homeowner/contractor agreement Exhibit D) on disbursement requests approved by the Borrower and the City. b) The Borrower shall allow the Work to be accomplished through a licensed General Contractor (Contractor) pursuant to a written contract (Contract) with the Contractor, in form provided by the City, and through such written subcontracts as may be let by the Contractor with the prior concurrence of the City. The proceeds of the Loan shall be used only as necessary for payment of costs and expenses incurred in connection with administration of the loan and for payment of indebtedness incurred for labor performed and materials incorporated into the Work. Disbursements shall be made upon certification of completion of the Work. c) Before making any disbursements, the City shall be entitled to receive a true and correct statement of all costs incurred for the laborp erformed and materials ordered and/or delivered and HRP Homeowners Loan Agreement 2 10/2017 CITY OFCITY HALL 33325 8th Avenue South Federal Way Federal Way,WA 98003-6325 (253) 835-7000 www dtyoffederaiway coin shall have the right to inspect all records, books and accounts relating to the Work. The City may require lien waivers, releases, or receipts from the Contractor substantiating payment for all work, services, and labor performed and materials supplied. d) The City shall make any such payments to the Contractor engaged in rendering labor or materials in connection with the Work. e) Requests for payment shall be made through the City on forms acceptable to the City. f) No assignment may be made of any City Loan funds to be disbursed hereunder or of any rights of the Borrower under this Agreement, except upon prior written consent of the City. g) All change orders shall be subject to approval of the City prior to execution by the Borrower and the Contractor. If, as a result of the discovery of latent defects, or unforeseen conditions or health change order or orders which exceed the original and safety hazards, it is necessary to make a Contract price, the City has the right, at its option, and after consultation with the Borrower(s), to reevaluate the scope of assistance to be provided and, in conjunction therewith, order the elimination or reduction of certain work items set forth in the work schedule or work write-up, or increase the amount of the loan. h) These requirements are for the benefit of the City, and the City, as its option, shall have the right to waive such requirements. 6. Loan Documents; Fees. The Borrower shall execute at or prior to closing such documents, in form and content satisfactory to the City, including but not limited to, the Note, the Deed of Trust, this Agreement, and the Contract (collectively called "Loan Documents"). The Borrower shall be responsible for all of the City's costs in connection with the closing of the Loan, including, without limitation, recording fees, escrow fees, attorney's fees, loan fees, and other expenses associated with the Loan. Such fees are in addition to the cost for the Work and shall be added to the financial amount of the Loan and included in the total amount shown on and due in the Note. 7. Loan Repayment. Borrower agrees to repay the full loan amount in accordance with the terms of the Promissory Note attached as Exhibit B. 8. Cancellation of Commitment; Acceleration. a) At its option, the City reserves the right to cancel the Loan and terminate its obligation hereunder and under any other Loan Documents evidencing the Loan if, for a period of sixty(60) days from the date of execution of the this Agreement and Note, the Borrower shall have failed or refused to cause the commencement of the Work, or if the Borrower shall have failed or refused to allow completion the Work within a reasonable time as determined by the City, after commencing the Work. The City shall exercise this cancellation by sending written notice thereof to the Borrower at their mailing address set forth below. The City'sthis right failure to exercise of cancellation shall not be deemed a waiver thereof as long as the work remains incomplete. HRP Homeowners Loan Agreement 3 10/2017 ` CITY OF CITY HALL 33325 8th Avenue South Federal Way Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederalway coin b) The entire principal amount of the Note, and any other amounts secured by the Deed of Trust, shall become due and payable, at the option of the City, upon the Borrower's breach of, or failure to comply with, any covenant, agreement, term, or condition contained in this Agreement or any of the Loan Documents, or upon the occurrence of any of the following: i. An event of default as specified in the Note; ii. Failure to complete the Work within the sixty days specified in paragraph 8a as determined by the City; and iii. Borrower's death or if Borrower is a spouse or partner forming an acknowledged relationship, the death of both individuals. 9. Bidding Process. The City will acquire formal bids for Work to be completed and award the bid to the best-qualified low bidder. The successful bidder will be required to execute a Contract Agreement with the q �' City. The Borrower will be required to execute a Contractor Agreement for the Housing Repair Program with the Contractor. 10. Accomplishment of Work. a) The Borrower shall allow a licensed general contractor to carry out all Work specified in the approved bids. Borrower specifically agrees to approve all Work that, in the good faith opinion of the Contractor and the City,has been accomplished in accordance with generally accepted construction industry standards. b) The Borrower agrees that the Contractor will be paid only for the Contractor's actual cost of performing the Work. The Borrower represents and warrants that the Borrower will require the Contractor to so agree and provide such documentation as the City may reasonably require showing that the Contractor does not receive any payment in excess of the Contractor's approved contract amount for the completion of the Work. 11. Inspection of the Work. The City will have the right to inspect the Work at all reasonable times for the purpose of ascertaining whether the Work is in accordance with the requirements of the Contract and applicable laws and codes. The City, in order to protect its interest and the interest of the general public, will endeavor to bring to the attention of the Borrower and the Contractor work which is not performed in accordance with the Contract and applicable codes. It is understood and agreed that neither the City, nor their respective agents or employees shall be responsible for the Borrower's or Contractor's failure to perform the work in accordance with the Contract, or for the acts or omissions of the Borrower(s), the Contractor, subcontractors, any of their agents or employees, or any others performing any work. The Borrower shall take all steps necessary to assure that the City or its designee is permitted to examine and inspect the Work and all contracts, materials, equipment, payrolls, and conditions of employment pertaining to the Work, including all relevant data and records. HRP Homeowners Loan Agreement 4 10/2017 411/4 CITY OFCITY HALL Federal Wa 8th Avenue S0 y Feder Federal Way,WA 9800303 -6325 (253)835-7000 www cityoffederalway corn 12. Warranty for Work. The Borrower will require that the contractor give to the Borrower and the City a one(1) year unconditional warranty of the labor and materials used in the Work, on such forms as the City shall designate. 13. Records. The Borrower agrees to keep such records as may be required by HUD regarding the Work and agree to keep such records as may be required by HUD or the City. The Borrower will, at any time during normal business hours, and as often as the Secretary of HUD or an authorized representative of the City, may deem necessary, permit the Secretary and/or City officials, to have full and free access to the Borrower's records with respect to the utilization of the proceeds of the Loan, and will permit the Secretary and/or City Officials, to audit, examine and make excerpts or transcripts from Borrower's records and to review, inspect and make audits of all Work, contracts, invoices, materials, payrolls, records of personnel, conditions of employment, books of record and other documented data pertaining to the Loan and grant and Work. 14. Compliance with Applicable Laws and Requirements. In the performance of this Agreement and the completion of the Work, the Borrower shall comply, in all material respects with applicable Federal and State laws, orders, rules and regulations as determined by HUD or other agency having jurisdiction thereof, and the Borrower shall defend, protect and save harmless the City, their officers and employees, from and against all claims, suits, and actions, liability, loss, damage and expense arising from any failure of the Borrower or their architect, agent, contractor or subcontractors to comply with the same. Any such requirement under the applicable federal grant agreement, is required to be set forth in this Agreement is by this reference incorporated herein as though fully set forth at this point. 15. Limit of Liability, Property Maintenance, and Recapture Provisions. a) Limit of Liability. All liability and obligation of the City arising pursuant to this Agreement and any payment to be made by the City pursuant to this Agreement shall be satisfied exclusively and solely from federal funds made available for such purpose, and no creditor or other person or entity of whatever nature shall have any recourse to the assets, credits, or services of the City by reason of any liability or obligation arising out of this Agreement, and neither this Agreement nor any Note, Loan, or other documents hereunder shall constitute a debt or indebtedness of the City within the meaning of any constitutional, statutory, local, or charter provision. b) Borrower agrees: i. Keep in Good Condition. To keep the property in good condition and repair; to complete any building, structure, or improvement being built or about to be built thereon; to restore promptly any building, structure, or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions, and restrictions affecting the property. HRP Homeowners Loan Agreement 5 10/2017 44CITY OF CITY HALL 46, Federal8th Avenue South Way Federal Way.WA 98003-6325 (253)835-7000 www crtyoffederolway corn ii. Insurance. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire in an amount not less than the total debt represented by this Loan Agreement. iii. Pay Taxes and Other Obligations. To pay before delinquent all lawful taxes, assessments, insurance premiums, liens, encumbrances, obligations and other charges against or secured by the property. iv. Recapture Provisions. 1. Superior Interest. If the interest of the Borrower and City is subordinate to a superior interest enforceable against the property, including but not limited to taxes and any interest secured by a prior Deed of Trust, and if there should be a sale based upon non-payment of taxes, or foreclosure or transfer in lieu of foreclosure based upon a default in the obligation secured by the prior Deed of Trust, or any other seizure of the property in satisfaction of a superior interest, then in that event the Borrower's obligation to repay this loan is reduced and shall not exceed the amount of the net proceeds available to the Borrower after the sale, foreclosure, or transfer in lieu of foreclosure. 2. CITY OF FEDERAL WAY's Interest. If the Borrower defaults in any obligation due the City, and the City begins a non-judicial foreclosure and conducts a trustee's sale or accepts a deed or transfer in lieu of foreclosure, then in that event the Borrower's obligation to repay this loan is reduced and shall not exceed the amount of the net proceeds available to the Borrower after the sale or transfer in lieu of foreclosure. 16. Waiver of Personal Liability of Individuals. No member or employee of the City shall be personally liable to the Borrower or any successor in interest in the event of any default or breach by the City, for any amount which may become due to the Borrower or successor, or on any obligation under the terms of this Agreement. 17. Notices and Demands. Any notice or demand which either party hereto is required or desires to give to or make upon the other shall be in writing and shall be delivered or made by United States registered or certified mail, return receipt requested, postage repaid, addressed in the case of the City to: CITY OF FEDERAL WAY Community Development Department- CDBG 33325 8th Ave South Federal Way, WA 98003 And addressed in the case of the Borrower to: Dorothy Pulley 2527 S 288th St, Unit 4-1 Federal Way, WA 98003 subject to the right of any such party to designate a different address by notice similarly given. Any notice or demand so sent shall be deemed to have been given or made when delivered as evidenced by the return receipt. HRP Homeowners Loan Agreement 6 10/2017 4411166 CITY OF CITY HALL 33325 Federal Way Feder 8th Avenue S Federal Way.WA 98003003 -6325 (253) 835-7000 www otyoffedera/Way Cor 18. Successor and Assigns. The terms of this Agreement shall be binding upon the parties hereto, their respective successors and assigns; it being agreed, however, the Borrower shall not assign or transfer any of their rights, duties, benefits, obligations, liabilities, or responsibilities under this Agreement without the express written consent of the City. 19. Conditions Precedent to the Obligation of the City to Provide Funds. The obligation of the City to provide or release any portion of the Loan funds under this Agreement shall, subject to such other terms and conditions of the Agreement as may be applicable thereto, also be contingent upon: a) Approval and execution of all Loan Documents relating to this Loan. b) Submission by the Borrower of a copy of the Contract between the Borrower and the Contractor for the work, which Contract shall bind the Contractor to complete the work at a cost not to exceed the amounts specified in such Contract. c) Receipt by the City of the ALTA Mortgagee's policy of Title Insurance as required by this Agreement. At the City's option, but at the Borrowers' expense, the City may request the Title Company to endorse its policy of Title Insurance at and as of the date of any disbursement by the City of Loan proceeds. d) Submission to the City as required by this Agreement of such forms of insurance policies in form acceptable to the City, including the City thereon as an additional insured as its interest may appear, which policies shall be continuously maintained at no cost to the City. e) Confirmation by the City that prior to the date of recording of the Deed of Trust no lienable work has been performed on, or materials delivered to or for the Property, or that all such work and materials have been fully paid for. IN WITNESS WHEREOF, the parties hereto have executed this document as of the day and year first written above. LENDER: CITY OF FEDERAL WAY: ATTEST: or Ferrell, Mayor ephanie Courtney, CMil ity Clerk APPROVED AS FORM: Po J. Ryan Call, City Attorney HRP Homeowners Loan Agreement 7 10/2017 411111‘, CITY OF CITY HALL 33325 8th Avenue South Federal Way Federal Way.WA 98003-6325 (253) 835-7000 www cilyoffederalway corn BORROWER: Signature—DO s•T PUL STATE OF WASHINGTON ) ss. COUNTY OF ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this � d ofSfil&AX/Y/K , 208 Notary's signature Notary's printed name��5UrI` `‘‘‘‘"��������ir �LYNN Notary Public and for the State of Washington. C 'Ir `55%litt4 <,9 / My commission expires 4410124 rO ,oT 4+tk,0, 7. ; (n - • _ y' L' `/f'llO'i�/AS4�\N t HRP Homeowners Loan Agreement 8 10/2017 CITY OF CITY HALL Federal Way "�..�, 33325 8th AvF96325 South Federal Way. www cityoffederalway corn EXHIBIT A Legal Description Unit 4-1, Building 4 Garden Townhomes, a condominium, according to the declaration thereof recorded under King County recording No. 20010611001784, and any amendments thereto, and in volume 175 of condominiums, page 8 through County of King, Washington. Situate in the A.P.N.: 269800-0130-06 HRP Homeowners Loan Agreement 9 10/2017 401/4. Federal Way CITY HALL 33325 8th Avenue South Federal Way,WA 98003-6325 (253)835-7000 www cityoffederalway corn EXHIBIT B PROMISSORY NOTE City of Federal Way Housing Repair Program (HRP) LENDER: City of Federal Way, a Municipal corporation 33325 8th Avenue South Federal Way, WA 98003 BORROWER: Dorothy Pulley, Homeowner HRP RESIDENCE: 2527 S 288th St, Unit 4-1 Federal Way, WA 98003 PRINCIPAL $1,863.20 AMOUNT: Fees: $351.35 Total$2,214.55 LOAN DATE: April 13, 2018 DUE DATE: The loan shall be due in accordance with the terms specified herein. In consideration for the mutual undertakings and covenants contained in this Promissory Note (the"Note"), Lender(also referred to hereinafter as the"City") and Borrower agrees as follows: 1. Purpose for Loan. Borrower is eligible to participate in Lender's Housing Repair Program ("HRP"), a program to assist eligible Homeowner with home repair needs that maybe of an emergency nature due to unforeseen circumstances that require immediate action to protect the health and safety of its occupants, or that will improve the living conditions for the homeowner and enhance the surrounding neighborhood. The program is funded by Community Development Block Grant funds that have been made available to the City. Loan proceeds are being used to fund repairs and improvements at the borrower's principal residence ("residence"). Borrower's application for a Housing Repair Program loan has been approved and the City is prepared to fund the loan upon Borrower's execution of the "Loan Documents," which include this Promissory Note, the Homeowner Loan Agreement, and a Deed of Trust. 2. Promise to Pay. For value received, on or before the Due Date, Borrower, including its assigns and successors, promises to pay Lender in lawful money of the United States of America, at Lender's principal place of business, or such other place as Lender may designate in writing from time to time, the Principal Amount listed above and, as shall have been advanced by Lender to or on behalf of Borrower under this Note, plus interest(in the event of Default) as provided in this Note. 3. Interest Rate. The unpaid Principal Amount shall bear interest at the rate of Zero Percent (0%) per annum (the "Effective Interest Rate") unless or until a Default. 4. Payments. No payments will be required to be made on the Principal Amount unless or until a Default occurs. In the event of Default, the entire unpaid balance of the Principal Amount as of the date HRP Homeowners Loan Agreement 10 10/2017 4111461, CITY OF CITY HALL Federal Way8th Avenue S� Feder Federal Way,WA 98003003 -6325 (253)835-7000 www ciryoffedera/way corn of Default shall immediately become due and payable and interest on the unpaid balance shall commence to accrue at the"Default Interest Rate" on the date of Default. 5. Repayment of loan. The loan is due upon sale of the property, quit claim deed, death of the borrower, or in the event of default, as defined in paragraph 7. 6. Occupancy/Use. The property must be the Borrower primary residence, and cannot be used as a rental home. 7. Default. Upon the occurrence of any of the following events ("Events of Default"), Lender, at its option, and without notice to Borrower, may declare the entire unpaid Principal Amount to be immediately due and payable: a. The Borrower rents out the home during the loan period. See Deed of Trust, paragraph 5.1. b. The Borrower fails to comply with City Codes and Land Use regulations. c. The Borrower no longer occupies the Residence as Borrower's primary residence; d. The Borrower sells the Residence or conveys the Residence in lieu of foreclosure, or forfeits the Residence in foreclosure,bankruptcy, or other insolvency proceeding; e. The Borrower makes, or is deemed to have made, any materially incorrect, false, fraudulent, or misleading representation, warranty, or certificate to the Lender, or makes, or is deemed to have made, any materially incorrect, false, fraudulent, or misleading representation in any statement or application to the Lender in connection with the Lender's consideration of Borrower's HRP application; f. The Borrower defaults under the terms of this Note or the Deed of Trust granted in connection herewith; g. The Borrower is enjoined, restrained, or in any way prevented by court order from continuing to reside in the Residence; h. Formal charges are filed against the Borrower under any federal, state, or municipal statute, law, or ordinance for which forfeiture of the Residence is a potential penalty, or the Residence is in fact so seized or forfeited; i. The Borrower fails to maintain the Residence, commits waste upon the Residence property, or allows the Residence or Residence property to become a nuisance; j. The Borrower: (i) makes an assignment for the benefit of creditors; (ii) consents to the appointment of a custodian, receiver, or trustee for itself or for a substantial part of its assets; or (iii) commences, consents to the commencement or continuation of, or has commenced upon it, voluntarily or involuntarily, any proceeding under any bankruptcy,insolvency, or similar laws of any jurisdiction; k. The Borrower defaults under the Deed of Trust executed in connection with this Note, it being understood and agreed that this Note, Homeowner Loan Agreement, and the Deed of Trust shall be interpreted and construed as a single integrated agreement between Lender and Borrower; or 1. Borrower's death, or if Borrower is a spouse or partner forming an acknowledged relationship, the death of both individuals. m. Any event of default specified in the Deed of Trust. The term "Default Date" shall mean the date on which an Event of Default has occurred or the date Borrower is no longer entitled to cure the Event of Default under the terms of this Note. HRP Homeowners Loan Agreement 11 10/2017 ,4%16, CITY OF CITY HALL Federal Way8th Avenue South Feder Federal Way,WA 98003-6325 (253) 835-7000 www crtyoffederalway coin 8. Default Interest Rate. Upon the occurrence of any Event of Default, the unpaid Principal Amount balance shall bear interest at the per annum interest rate for judgments provided by Washington law until the Note is satisfied in full. 9. Security. This Note is secured by and relates to a Deed of Trust of even date encumbering the Residence. 10. Default Remedies. Upon the occurrence of any Event of Default, Lender shall have and may exercise any one or more of the rights and remedies provided in this Note and the Deed of Trust relating to this Note. The remedies provided in this Note and Deed of Trust are cumulative to the full extent provided by law. 11. Application of Payments. All payments received on this Note shall first be applied against accrued and unpaid interest and "Costs and Fees" owed to Lender under this Note, and the balance against any unpaid Principal Amount. Borrower expressly assumes all risks of loss or delay in the delivery of any payments made by mail, and no course of conduct or dealing shall affect Borrower's assumption of these risks. 12. Costs and Fees. Borrower agrees to pay all of Lender's costs incurred in the collection,modification, review, monitoring, or termination of this Note, including actual attorney fees and those incurred in any foreclosure, bankruptcy, or other similar insolvency proceeding. 13. No Waiver. Acceptance by Lender of any payment in an amount less than the amount then due shall be deemed an acceptance on account only, and Lender's acceptance of any such partial payment shall not constitute a waiver of Lender's right to receive the entire amount due. 14. Consent. Borrower hereby jointly and severally: (a) waives presentment for payment, demand, notice of non-payment, notice of protest, or protest of this Note; (b) waives Lender's diligence in collection or bringing suit; and (c) waives consent to any and all extensions of time, renewals, waivers, or modifications as may be granted by Lender with respect to payment or any other provisions of this Note. The liability of the Borrower under this Note shall be absolute and unconditional, without regard to the liability of any other party. 15. Governing Law and Venue. This Note shall be interpreted, construed, and governed by, and in accordance with, the laws of the State of Washington. Venue for any action commenced by Borrower or Lender to interpret or enforce this Note or the Deed of Trust shall be in the Superior Court of the State of Washington, For King County, at the Maleng Regional Justice Center, Kent, Washington. 16. Entire Agreement. Except as otherwise expressly provided in this Note, the Homeowner Loan Agreement, this Note, and the Deed of Trust constitute the entire agreement of the Borrower and the Lender relating to its subject matter. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. HRP Homeowners Loan Agreement 12 10/2017 CITY OFCITY HALL Fe d e ra I Way8th Avenue South Feder Federal Way.WA 98003-6325 (253) 835-7000 www cityoffederalway coin Agreed to and accepted by: LENDER: CITY OF FEDERAL WAY: ATTEST: dir4a,frt, eiJ' errell, Mayor S . ie Courtney, CMC, ty Clerk APPROVED AS TO FORM: ETA-. 41-44 car J. Ryan Call, City Attorney BORROWER: Signature-DORO j:Y kaAiLLEY STATE OF WASHINGTON ) ss. COUNTY OF ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this 1Li ,ay of 1461 ' g ./ , 2013 Notary's signature ' - L4$Wkft/ Notary's printed name In1n e4 OA/I, - QL """ q Notary Public in and sr the State Qf Washington. =� oTAR %, ; My commission expires (112-612. s :o ? m% j ; A C, = z Nom = 0 15,/111+1,1-20-1V HRP Homeowners Loan Agreement 13 10/2017 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Federal Way 33325 8th Ave S Federal Way,WA 98003-6325 Attn:Jeri-Lynn Clark EXHIBIT C DEED OF TRUST Property Address: 2527 S 288th St, Unit 4-1, Federal Way, WA 98003 Grantor(s): PULLEY, DOROTHY Beneficiary: CITY OF FEDERAL WAY, a Washington Municipal Corporation Property Legal Description (abbreviated): Garden Townhomes Condominium PCT UND INT 2.78 First Add Complete Legal Description indicated below. Assessor's Tax Parcel ID#(s): 269800-0130 THIS DEED OF TRUST IS DATED April 13, 2018, between Dorothy Pulley, (referred to below as "Grantor"), whose address is 2527 S 288th St, Unit 4-1, Federal Way, WA 98003; CITY OF FEDERAL WAY, whose address is 33325 8th Ave S, Federal Way, WA 98003 (referred to below as "Lender"); and First American Title whose mailing address is 33600 6th Ave S #105, Federal Way, WA 98003 (referred to below as "Trustee"). 1. CONVEYANCE AND GRANT. For valuable consideration, Grantor irrevocably grants, bargains, sells and conveys to Trustee in trust,with power of sale and for the benefit of Lender as Beneficery, all of Grantor's estate, rights, title and interest, now owned or hereafter acquired, in and to the following real property located at 2527 S 288th St, Unit 4-1 St, Federal Way, WA 98003 in King County, Washington, and legally described below, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights and ditch rights (including stock in utilities with ditch and irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters (collectively "Real Property"). The Real Property legal description is: Unit 4-1, Building 4 Garden Townhomes, a condominium, according to the declaration thereof recorded under King County recording No. 20010611001784, and any amendments thereto, and in volume 175 of condominiums,page 8 through County of King, Washington. Situate in the A.P.N.: 269800-0130-06 2. DEFINITIONS. The following words shall have the following meanings when used in this Deed of Trust. Terms not otherwise defined in this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. • Deed of Trust means this Deed of Trust among Grantor, Lender, and Trustee. • Grantor means any and all persons and entities executing this Deed of Trust, including without limitation Dorothy Pulley. • Homeowner Loan Agreement means that agreement between the Grantor and the Lender for funds used in connection with home repairs for the property that is the subject of this Deed of Trust. • Improvements means and includes without limitation all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. • Indebtedness means indebtedness of Grantor to Lender, including all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Trustee or Lender to enforce obligations of Grantor under this Deed of Trust, together with interest on such amounts as provided in this Deed of Trust. The word "Indebtedness" also includes all renewals, modifications, extensions, future advances or increases in the amount of the Note. • Lender means the City of Federal Way, its successors and assigns. • Note means the Promissory Note dated, April 13, 2018, in the original principal amount of $2,214.55 from Grantor to Lender, together with all renewals, extensions, modifications, refinancing, and substitutions for this Note. • Property means collectively the Real Property. • Real Property means the property, interests and rights described above in the "Conveyance and Grant" section. • Related Documents means and includes without limitation the Homeowner Loan Agreement, all promissory notes, Housing Repair Program applications and disclosures, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. • Trustee means First American Title and any substitute or successor trustees. THIS DEED OF TRUST IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THE NOTE, THIS DEED OF TRUST AND OTHER RELATED LOAN DOCUMENTS. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS. 3. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents. 4. FORBEARANCE BY LENDER NOT A WAIVER. Extension of the time for payment or modification of the sums secured by this Deed of Trust granted by Lender to any successor in interest of Grantor shall not operate to release the liability of the original Grantor or Grantor's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify the sums secured by this Deed of Trust by reason of any demand made by the original Grantor or Grantor's successors of interest. Any forbearance by Lender in exercising any right or remedy as provided in the Note or otherwise shall not be a waiver of or preclude the exercise of any right or remedy. 5. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: 5.1 Possession and Use. Grantor shall occupy, establish and use the Property as Grantor's principal residence for a minimum of 12 continuous months prior to and at the time of execution of this Deed of Trust. The Grantor acknowledges that this Property is subject to certain land use and occupancy requirements, as provided in the Homeowner Loan Agreement and the Promissory Note, which shall be executed concurrently with the Deed of Trust. The Promissory Note restricts the Grantor's ability to rent the Property. 5.2 Duty to Maintain. Grantor shall not destroy, damage, or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Grantor shall maintain the Property in tenantable condition ion and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. 5.3 Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. As a condition to the removal of any Improvements, Lender may require Grantor make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. 5.4 Lender's Right to Enter. Lender and its agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interest and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust. Lender shall give Grantor notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 5.5 Forfeiture Action. Grantor shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in the forfeiture of the Property or otherwise materially impair the lien credited by this Deed of Trust. Grantor may cure such a default and reinstate, as provided in paragraph 13.11, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Grantor's interest in the Property or other material impairment of the lien created by this Deed of Trust. 5.6 False Application. Grantor shall be in default if Grantor, during the application process or during the period governed by the Housing Repair Program, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning (i) Grantor's occupancy of the Property as a principal residence, and (ii) Grantor's income;. 5.7 Hazardous Substances. Grantor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Grantor shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. 5.8 Environmental Cleanup. Grantor shall promptly comply with all statutes, regulations, and ordinances which apply to Grantor or to the Property and with all orders, decrees or judgments of governmental authorities or courts having jurisdiction which Grantor is bound by, relating to the use, collection, storage, treatment, control, removal or cleanup of hazardous or toxic substances in, on or under the Property or in, on or under any adjacent property that becomes contaminated with hazardous or toxic substances as a result of construction, operations or other activities on, or the contamination of, the Property, at Grantor's expense. Lender may, but is not obligated to, enter upon the Property and take such actions and incur such costs and expenses to effect such compliance as it deems advisable to protect its interest as Lender; and whether or not Grantor has actual knowledge of the existence of hazardous or toxic substances in, on or under the Property or any adjacent property as of the date hereof, Grantor shall reimburse Lender prior to Lender acquiring title to the Property through foreclosure or deed in lieu of foreclosure, in connection with such compliance activities. 5.9 Duty to Protect. Grantor agrees neither to vacate, abandon nor leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property as Grantor's principal residence are reasonable necessary to protect and preserve the Property. 5.10 Agricultural Use. Grantor agrees that the Property is not used principally or primarily for agricultural or farming purposes. 6. SALE OR TRANSFER. The following provisions relating to the sale or transfer of the Property are a part of this Deed of Trust. 6.1 Transfer of Property. If the Property or any part thereof, or any interest of the Grantor therein, is sold, leased or otherwise transferred, including any voluntary or involuntary transfer, or transfer by operation of law, upon death of the Borrower or the Borrower ceasing to physically occupy the property as Borrower's principal residence, excluding however (a) the creation of a lien or encumbrance on the property subordinate to the Deed of Trust, (b) the creation of a purchase money security interest for household appliance, or (c) a transfer by gift, devise, descent or operation of law to a surviving spouse, or to a co-borrower if the Borrower is more than one individual; then Lender may declare all sums secured by the Deed of Trust immediately due and payable. This provision shall apply to each and every sale, transfer, conveyance or encumbrance, regardless of whether or not Lender has consented or waived its rights, whether by action or inaction, in connection with any previous sale, transfer, conveyance or encumbrance, whether one or more. 6.2 Grantor Notice. If Lender exercises this option, Lender shall give Grantor and any Senior Lien Holder(s) prior written notice of acceleration. This notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Grantor must pay all sums secured by this Deed of Trust. If Grantor fails to pay these sums prior to the expiration of this period, Lender may invoke any remedy permitted by this Deed of Trust without further notice or demand on Grantor. 6.3 Senior Lien Holder(s) Notice. Notwithstanding Lender's right to invoke any remedy hereunder, Lender agrees that is will not commence foreclosure proceedings or accept a deed in lieu of foreclosure, or exercise any other rights or remedy hereunder until it has given any Senior Lien Holder(s) at least 60 days' prior written notice. 7. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Deed of Trust. 7.1 Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust. 7.2 Evidence of Payment. Grantor shall, upon demand, furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the property. 7.3 Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien,materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will, upon request of Lender, furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. 8. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. 8.1 Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurance value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form reasonably satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days' prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency (FEMA) as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. 8.2 Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or replacement exceeds $5,000.00. Lender may make proof of loss if Grantor fails to do so within fifteen(15) days of the casualty. Upon the election of Lender, Lender may receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner reasonably satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust,then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid without interest to Grantor as Grantor's interest may appear. 8.3 Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by this Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such Property. 8.4 Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (a) the name of the insurer; (b) the risks insured; (c) the amount of the policy; (d) the property insured, the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser reasonably satisfactory to Lender determine the cash value replacement cost of the Property. 9. EXPENDITURES BY LENDER. If Grantor fails to comply with anyprovision of this pY Deed of Trust, or if any action or proceeding is commenced that would materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender reasonably deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either(i)the term of any applicable insurance policyor (ii) the remainingterms of the Note, or (c) be treated as a balloon payment pYm which will be due and payable at the Note's maturity. This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. 10. COMPLIANCE WITH LAWS. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. 11. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust. 11.1 Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or, by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by the Trustee or Lender in connection with the condemnation, and subject to the terms of the First Mortgage or Deed of Trust. 11.2 Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice all at Grantor's expense, and Grantor will deliver or cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation. 11.3 Abandonment. If the Property is abandoned by Grantor, or if, after notice by Lender to Grantor that the condemner offers to make an award or settle a claim for damages, and Grantor fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums security by this Deed of trust, whether or not then due. 12. DEFAULT. Each of the following, at the option of the Lender shall constitute an event of default("Event of Default")under this Deed of Trust: 12.1 Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness or failure to perform any material obligation under the Note. 12.2 Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent failing of or to effect discharge of any lien. 12.3 False Statements. Any warranty, representation, or statement made or furnished to Lender by or on behalf of Grantor under this Deed of Trust, the Note or any Housing Repair Program application or disclosure document is false or misleading in any material respect, either now or at the time made or furnished. 12.4 Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral documents to create a valid and perfected security interest or lien) at any time and for any reason. 12.5 Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property. However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forfeiture proceeding, provided that Grantor give Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender. 12.6 Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender, including but not limited to the Note, that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. 13. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Trustee or Lender, at its option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: 13.1 Accelerate Indebtedness. Lender shall have the right at its option to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. 13.2 Foreclosure. With respect to all or any part of the Real Property, the Trustee shall have the right to exercise its power of sale and to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. 13.3 Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding or pending foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. 13.4 Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall at Lender's option either (a) pay a reasonable rental for the use of the Property, or(b) vacate the Property immediately upon the demand of Lender. 13.5 Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or by law. 13.6 Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Property or of the time after which any private sale or other intended disposition of the Property is to be made. Reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. 13.7 Sale of Property. To the extent permitted by applicable law, Grantor hereby waives any and all rights to have the Property marshaled. In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. 13.8 Waiver, Election of Remedies. A waiver by any party of a breach of a provision of this Deed of Trust shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy provided in this Deed of Trust, the Note, in any Related Document, or provided by law shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust after failure of Grantor to perform shall not affect Lender's right to declare a default and to exercise any of its remedies. 13.9 Attorney's Fees, Expenses. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorney's fees at trial on any appeal. Whether or not any court action is involved, all reasonable expenses incurred by Lender which in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorney's fees whether or not there is a lawsuit, including attorney's fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. 13.10 Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set forth in this Section. 13.11 Grantor's Right to Reinstate. If Grantor meets certain conditions, Grantor shall have the right to have enforcement of this Deed of Trust discontinued at any time prior to the earlier of(a) five (5) days, or such other period as applicable law may specify for reinstatement, before sale of the Property pursuant to any power of sale contained in this Deed of Trust; or (b) entry of a judgment enforcing this Deed of Trust. Those conditions are that the Grantor: (a) pays Lender all sums which then would be due under this Deed of Trust and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Deed of Trust, including, but not limited to, reasonable attorney's fees; and(d)takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's rights in the Property and Grantor's obligation to pay the sums secured by this Deed of Trust shall continue unchanged. Upon reinstatement by Grantor, this Deed of trust and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 5. 14. POWERS AND OBLIGATIONS OF THE TRUSTEE. The following provisions relating to the powers and obligation of Trustee (pursuant to Lender's instructions) are part of this Deed of Trust. 14.1 Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (a)join in preparing and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public; (b)join in granting any easement or creating any restriction on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust. 14.2 Obligations to Notify. Trustee shall not be obligated to notify any other party of a pending sale under any other trust deed or lien, or of any action or proceeding in which Grantor, Lender, or Trustee shall be a party, unless required by applicable law, or unless the action or proceeding is brought by Trustee. 14.3 Trustee. Trustee shall meet all qualifications required for trustee under applicable law. In addition to the rights and remedies set forth above with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. 14.4 Successor Trustee. Lender, at Lender's option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the recorder for the County in which the Real Property is located. The successor trustee, without conveyance of the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 15. NOTICES TO GRANTOR AND OTHER PARTIES. Subject to applicable law, and except for notice required or allowed by law to be given in another manner, any notice under this Deed of Trust shall be in writing, may be sent by telefacsimile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, certified or registered mail, postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. Any party may change its address for notices under this Deed of Trust by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. All copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's address, as shown near the beginning of this Deed of Trust. Nothing contained in this Section 15, shall be interpreted or construed as consent of Lender to Grantor's change of residence or a waiver of Grantor's promise and obligation to occupy of the Property. 16. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust: 16.1 Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire and final understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties should be to be charged or bound by the alteration or amendment. 16.2 Applicable Law. This Deed of Trust has been delivered to Lender and accepted by Lender in the State of Washington. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of Washington. 16.3 Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the provisions of this Deed of Trust. 16.4 Merger. There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. 16.5 Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Deed of Trust shall bind and benefit the successors and assigns of Lender and Grantor, subject to the provisions of paragraph 6. Grantor's covenants and agreements shall be joint and several. Any Grantor who co-signs this Deed of Trust, but does not execute the Note: (a) is co-signing this Deed of Trust only to mortgage, grant and convey the Grantor's interest in the Property under the terms of this deed of Trust; (b) is not personally obligated to pay the sums secured by this Deed of Trust; and (c) agrees that Lenders and any other Grantor may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Deed of Trust or the Note without the Grantor's consent. All obligations of Grantor under this Deed of Trust shall be joint and several, and all references to Grantor shall mean each and every Grantor. This means that each of the persons signing below is responsible for all obligations in this Deed of Trust. 16.6 Severability. If a court of competent jurisdiction finds any provision of this Deed of Trust to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Deed of Trust in all other respects shall remain valid and enforceable. 16.7 Successor and Assigns. Subject to the limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness. 16.8 Grantor's Copy. Grantor shall be given a copy of the Note, of this Deed of Trust. 16.9 Waivers and Consents. Lender shall not be deemed to have waived any rights under this Deed of Trust (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Deed of Trust shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, not any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future transactions. Whenever consent by Lender is required in this Deed of Trust, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required. 16.10 Applicability. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on their heirs, devisees, legatees, administrators, • executors, successors and assigns. The term Lender shall mean the holder and owner of the Note secured hereby,whether or not named as Lender herein. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR(S): Signature— V i • p THY PULo STATE OF WASHINGTON ) ) ss. COUNTY OF ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seat this '2,k • of , 20_ . • LY N N C t►�Notary Signature t`5� \\\ votary Printed Name IA o-4-- �� X0,4 . � Notary Public in and or the State of Washington. My commission expires ) bz)1 24 • . vis A /1''14?0-21���k� / • 1j1111\\\\��� G 1// O'�WASN\�\\`�� CITY OF CITY HALL ` Federal WayFeder 8th y,WA South003 Federal Way,WA 98003-6325 (253) 835-7000 www.cityoffederalway corn EXHIBIT D HOMEOWNER& CONTRACTOR AGREEMENT FOR HOUSING REPAIR PROGRAM WATERLINE REPAIR This Housing Repair Program ("HRP") Contractor Agreement ("Agreement") is made between the Dorothy Pulley ("Homeowner"), and AAM Construction, LLC., a Washington Limited Liability Company ("Contractor"). The Homeowner and Contractor (together "Parties") are located and do business at the below addresses which shall be valid for any notice required under this Agreement: AAM CONSTRUCTION, LLC: HOMEOWNER: Pavel Tislenok Dorothy Pulley 37939 20`h P1 S 2527 S 288th St,Unit 4-1 Federal Way,WA 98003 Federal Way,WA 98003 253-326-7455 (telephone) 206-280-5919 (telephone) paveltislenok_t@yahoo.com The Parties agree as follows: 1. RECITALS. Homeowner is the owner of residential real property located at 2527 S 288th St, Unit 4-1, Federal Way, WA 98003 ("Property"). 1.1 Homeowner and the City of Federal Way ("City" or "Lender") have agreed that Homeowner will borrow money from Lender, and Lender will lend money to Homeowner, to rehabilitate the Property. 1.2 Lender, acting through the City of Federal Way Housing Repair Programs, in the operation of its program of housing rehabilitation loans, is involved in the Project, as defined below, in its limited role as a lender administering home rehabilitation loans. 1.3 The Homeowner has selected and agreed to hire the Contractor, and the Contractor has agreed to engagement by the Homeowner, to accomplish the rehabilitation Work on the Property. 1.4 Homeowner wishes to hire Contractor, and Contractor wishes to work for Homeowner, with regard to certain general contractor services on the Property pursuant to the terms and conditions set forth below. 1.5 Contractor is a general contractor registered in the State of Washington. 2. DEFINITIONS. 2.1 Certificate of Acceptance shall mean a written statement issued by the City and signed by the City's inspector to be delivered to the Homeowner for execution stating that all Work has been generally completed in accordance with the Work Write-up for an Identified Project. HRP Homeowners Loan Agreement 26 11/2017 CITY OF CITY HALL � Federal Wa 33325 8th Avenue South ✓% � Federal Way,WA 98003-6325 (253)835-7000 www cilyoffederalway corn 2.2 Change Order shall mean an amendment to the Work and/or Contract Price pertaining to an Identified Project, submitted by Contractor and approved by a Homeowner and the City in accordance with the Project Documents and the HRP Guidelines. 2.3 City shall mean the City of Federal Way, and shall include its various departments, officers, employees, legal representatives, agents, and third party vendors. 2.4 Competitive Sealed Proposal shall refer to the project delivery method authorized by Chapter 39.04 RCW and the adopted City of Federal Way Contract and Purchasing Manual, Chapter 5, Section E (Limited Public Works Process) and required in connection with Reconstruction or Rehabilitation Projects under the Housing Repair Program (HRP), except in the cases of emergency conditions, at which time the City shall select a vendor based upon availability and/or price and as outlined in the City of Federal Way Contract and Purchasing Manual, Chapter 2, Section D. 2.5 Contract Price shall mean the price to be paid by the City to the Contractor for the performance of the Work in connection with an Identified Project. Any changes in the Contract Price shall result only from authorized Change Orders. The Contract Price shall be paid in the form of a single payment at the completion of the Work in accordance with the Notice to Proceed. 2.6 Contractor shall mean the contractor designated in the introductory paragraph of this Agreement. For Reconstruction Projects, the Contractor shall be selected utilizing the Competitive Sealed Proposal method, with sealed work plans and specifications in accordance with applicable laws and procedures, including the HRP Guidelines. 2.7 Contractor's Application for Payment shall mean that certain Application and Certificate for Payment submitted by Contractor requesting payment in accordance with the Notice to Proceed. Such Contactor's Application for Payment shall reflect the cost for successful delivery of the entire Work completed by Contractor, shall include the notarized signature of the Contractor, and otherwise be in form and substance acceptable to the City. 2.8 HRP shall mean the City's Housing Repair Program, funded by the Community Development Block Grant Program and being implemented by the City pursuant to Grant No. B-12-MC- 53-0015 between the City and the U.S. Department of Housing and Urban Development. 2.9 HRP Guidelines shall mean Housing Repair Guidelines adopted by CSD Community Services Division. 2.10 CSD shall mean the City's Community Services Division. 2.11 Homeowner shall mean a Homeowner of a Residence that qualifies under the HRP for the Rehabilitation of its Residence located on the Homeowner's Property. 2.12 Homeowner Loan Agreement shall mean the agreement by and between a Homeowner and the City, governing and executed in connection with an Identified Project. HRP Homeowners Loan Agreement 27 11/2017 �► CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederalway corn 2.13 Homeowner's Property shall mean the land of a Homeowner, all rights and appurtenances thereto; all improvements now or hereafter attached to the land or improvements, and all substitutions and replacements thereof; and additions and successions thereto. 2.14 HUD shall mean the U.S. Department of Housing and Urban Development and any successor government agency. 2.15 Identified Project shall mean the Rehabilitation of a specified Residence located on a specified Homeowner'sProperty pursuanttothe HRP. The Identified Project shall be subject to and governed by the terms and provisions of this Agreement and the Project Documents. 2.16 Manager shall mean the Manager of CSD or any other person(s) that may be designated to perform the various functions assigned to the Manager. 2.17 Notice to Proceed shall mean the written authorization issued by the City for the Contractor to proceed with the Work set forth in the Work Write-up for an Identified Project. 2.18 Payment Request shall mean the form prepared, signed and submitted to CSD by the Contractor. The Payment Request shall reflect the value of all the completed and approved Work on the specified line items by trade, the total of the line-item cost of all of the completed Work by trade listed. 2.19 Plans and Specifications shall mean a detailed itemized list approved by the City that provides instructions to the Contractor for an Identified Project, which may include drawings as applicable. Plans and Specifications may be amended by authorized Change Orders. 2.20 Project Documents shall mean this Agreement, the Homeowner Loan Agreement, the Plans and Specifications, the Notice to Proceed, the Final Inspection Form, and all other documents pertaining to, or executed in connection with, an Identified Project. 2.21 Rehabilitation Project shall mean those repairs required to remove life, health, or safety hazards to a Residence on a Homeowner's Property. 2.22 Residence shall mean a single family detached dwelling located on, or to be rehabilitated on a Homeowner's Property, or a unit in a multi-family ownership complex, such as a condominium. 2.23 Subcontractor shall mean any person or entity that, pursuant to this Agreement, will perform Work at a Residence at the request of the Contractor. 2.24 Survey shall mean an identification of all relevant characteristics of a Homeowner's Property, including but not limited to a Homeowner's Property location, the location of improvements, and a description of a Homeowner's Property. 2.25 Work shall mean the labor and the materials necessary to complete the Identified Project pursuant to the Project Documents. 2.26 Work Write-up shall mean the form that specifies and quantifies the Work to be done in connection with an Identified Project, and includes the Plans and Specifications. HRP Homeowners Loan Agreement 28 11/2017 4111/4, CITY OF CITY HALL Federal Wa 33325 8th Avenue South Federal Way,WA 98003003 -6325 ira+M'` (253) 835-7000 www cityoffederatway corn 3. TERM. The term of this Agreement shall commence upon the effective date of this Agreement, which shall be the date of mutual execution, and shall continue until the completion of the Work, but in any event no later than May 16, 2018 ("Term"). This Agreement may be extended for additional periods of time upon the mutual written agreement of the Homeowner,the Contractor, and the City. • 4. WORK. 4.1 Work. The Contractor shall provide goods, materials, labor and services and otherwise perform the work more specifically described in Attachment A, attached hereto and incorporated by this reference ("Work" or "Identified Project"), performed to the Homeowner and City's satisfaction, within the time period prescribed by the Homeowner and City. 4.2 Side Agreements. All work to be performed and all specifications pertaining thereto will be identified in the Project Documents. CONTRACTOR SHALL PERFORM NO OTHER WORK UNLESS CHANGE ORDERS FOR ADDITIONAL WORK OR MATERIALS ARE ISSUED IN ACCORDANCE WITH THIS AGREEMENT AND THE PROJECT DOCUMENTS. All properly approved and executed Change Orders shall be made a part of Project Documents. The Contractor agrees not to enter into any side agreements for additional work or materials for a Residence over and above those specified in the Work Write-up, where such labor is to be performed or material to be supplied or installed prior to the issuance of a Certificate of Acceptance. 4.3 Warranties. The Contractor warrants that it has the requisite training, skill, and experience necessary to provide the Work and is appropriately accredited and licensed by all applicable agencies and governmental entities, including but not limited to obtaining a City of Federal Way business registration. The Contractor warrants it will provide services in a manner consistent with the accepted practices for other similar services within the Puget Sound region in effect at the time those services are performed. The Contractor warrants goods are merchantable, are fit for the particular purpose for which they were obtained, and will perform in accordance with their specifications and Contractor's representations to Homeowner and the City. The Contractor shall, at its sole cost and expense, correct all Work performed which the Homeowner and the City deems to have defects in workmanship and material discovered within one (1) year after the Homeowner and the City's final acceptance of the Work. This Agreement is subject to all warranty provisions established under the Uniform Commercial Code, Title 62A RCW. The Contractor shall furnish the Homeowner and the City with all manufacturer's and supplier's written guarantees, warranties and operating instructions covering materials and equipment furnished under the Project Documents for each Identified Project, together with any documentation required for validation. In the event any part of the goods is repaired, only original replacement parts shall be used; rebuilt or used parts are not acceptable. When defects are corrected, the warranty for that portion of the work shall extend for one (1) year from the date such correction is completed and accepted by the Homeowner and the City. The Contractor shall begin to correct any defects within seven (7) calendar days of its receipt of notice from the Homeowner and the City of the defect at no additional expense to the City or the Homeowner. If the Contractor does not accomplish the corrections within a reasonable time as determined by the City, the City may complete the corrections and the Contractor shall pay all costs incurred by the City in order to accomplish the correction. 4.4 Time, Documentation, and Inspection. The Work to be performed in connection with each Identified Project shall commence on the date specified in the Notice to Proceed issued in connection HRP Homeowners Loan Agreement 29 11/2017 CITY OF CITY HALL Aho, Fe d e ra I Way33325 8th Avenue South Federal Way,WA 98003-6325 (253)835-7000 www cityoffederalway corn with such Identified Project. The Work shall be completed within the time period specified in said Notice to Proceed. Work shall be subject, at all times, to observation and inspection by and with approval of the Homeowner and the City, but the making (or failure or delay in making) of such inspection or approval shall not relieve Contractor of responsibility for performance of the Work in accordance with this Agreement, notwithstanding the City's knowledge of defective or non-complying performance, its substantiality, or the ease of its discovery. 4.5 Clean Up. At any time ordered by the Homeowner and the City and immediately after completion of the Work, the Contractor shall, at its own expense, clean up and remove all refuse and unused materials of any kind resulting from the Work. In the event the Contractor fails to perform the necessary clean up, the City may, but in no event is it obligated to, perform the necessary clean up and the costs thereof shall be immediately paid by the Contractor to the City and/or the City may deduct its costs from any remaining payments due to the Contractor. 5. TERMINATION. 5.1 Termination with Cause. 5.1.1 The Homeowner and the City may terminate this Agreement for cause by giving written notice to the Contractor under any of the following circumstances: a. If Contractor neglects to perform the Work in connection with the Identified Project properly, or in a timely manner, or refuses or neglects to supply proper or sufficient materials or workers, or fails to perform any provision of any of the Project Documents pertaining to the Identified Project; b. If Contractor is adjudged bankrupt, makes a general assignment for the benefit of his creditors, or if a receiver is appointed on account of insolvency; c. If Contractor fails to make prompt payment to any Subcontractor for material or labor; or d. Contractor violates any public law or ordinance. 5.1.2. If the Homeowner and the City terminate this Agreement for cause, the Homeowner and the City may take possession of the Identified Project site or sites and utilize any and all materials and appliances to be provided under the respective Project Documents which are located on the site or sites to finish the Work. The Homeowner and the City shall not prejudice any of the Homeowner and the City's rights or remedies under this Agreement or the respective Project Documents, or by law, by terminating this Agreement for cause or by taking possession of the site or sites. 5.1.3. In case of termination of this Agreement for the Identified Project for cause pursuant to this subsection, the Contractor shall not be entitled to receive any payment Project ent for the Identified Project until the Work for such Identified Project is completed. Upon completion of the Identified Project, the Contractor shall be given any balance of the Contract Price less any damages and less the amount of expenses incurred by the Homeowner and the City in finishing the Work for the Identified Project, including any costs in addition to or in excess of those originally contemplated in the Project Documents for the Identified Project. If the cost in completing the Work for the Identified Project is greater than the original Contract Price, the Contractor shall pay the difference to the Homeowner and the City upon ten (10) days' written demand. HRP Homeowners Loan Agreement 30 11/2017 CITY OFCITY HALL Federal Way33325 8th Ave nue South Federal Way, www cityoffederalwoy corn 5.2 Termination Without Cause. The Homeowner and the City may terminate this Agreement in its entirety for the Identified Project without cause by giving written notice of said termination to the Contractor. In case of termination of this Agreement in its entirety for the Identified Project without cause pursuant to this subsection, the Contractor shall submit its final statement for all Work performed through the date of termination for the respective Identified Project or, in the case of the termination of this Agreement in its entirety, which shall be payable in the manner provided in Section 6 of this Agreement. 5.3 Acceptance of Inferior Work. In connection with the Identified Project, the Homeowner and the City may accept Work that appears to be incorrect if, in the City's opinion, it is impractical to have the Work corrected. In such case, the Homeowner and the City does not waive the defect, but rather may deduct a reasonable amount for the loss sustained from the Contract Price for said Identified Project. This subsection is not intended to limit the right of the Homeowner and the City to recover additional damages as may be permitted under this Agreement, the respective Project Documents, or by law. 5.4 Cessation of Work. Upon receipt of a notice to terminate from the Homeowner and the City, the Contractor shall discontinue all Work under this Agreement and all Project Documents for the Identified Project, unless the notice specifies a later termination date or that specific Work be completed prior to termination. 6. COMPENSATION AND APPROVAL OF WORK. 6.1 Contract Price. In return for the Work, the City shall pay the Contractor on behalf of the Homeowner an amount not to exceed a maximum amount and according to a rate or method as delineated in Attachment B, attached hereto and incorporated by this reference. The Contractor agrees that any hourly or flat rate charged by it for its services contracted for herein shall remain locked at the negotiated rate(s) for the Term. Except as otherwise provided in Attachment B, the Contractor shall solely be responsible for the payment of any taxes imposed by any lawful jurisdiction as a result of the performance and payment of this Agreement. 6.2 Change Orders. If the Contractor determines that a change in the Work or Contract Price is required; the Contractor may submit an estimate for increases or decreases due to such change. The Homeowner and the City shall review the requested change. If the Homeowner and the City elects to authorize the change, the Homeowner and the City will compute the reduction from or addition to the Contract Price due to said change and will authorize such change in writing by the issuance of a Change Order. The Contractor will not, and shall not have any obligation to, perform any change in the Work until a Change Order has been authorized and issued by the Homeowner and the City. Under no circumstances may the amount of the Contract Price, plus Change Orders exceed the maximum amount of assistance authorized under the HRP Guidelines. 6.2 Method of Payment. Once the Work has been completed, the Contractor shall submit a Payment Request in the form specified by the City, including a description of what Work have been performed, the name of the personnel performing such Work, and any hourly labor charge rate for such personnel. The Contractor will then schedule and conduct a walk-through inspection of the Residence together with the Homeowner, the City, and the Contractor. During the final inspection, the City's inspector will prepare a field report in which the City's inspector determines whether the Work has been satisfactorily completed in accordance with the Project Documents. He will discuss the warranty and any HRP Homeowners Loan Agreement 31 11/2017 CITY OFCITY HALL 33325 8th Avenue South Federal Way Federal Way,WA 98003003 -6325 (253)835-7000 www cityoffederahvav corn other outstanding issues with the Homeowner. The City's inspector and the Homeowner will make a list of items that are in need of correction or completion, based upon the Project Documents (the "Punch List"). The City's inspector will provide the Homeowner and Contractor with a copy of the Punch List. The Contractor will schedule and complete the Work on the Punch List within five (5) days of receipt thereof When the Work on the Punch List is complete, the Contractor, Homeowner and City's inspector will verify that all such Work has been completed. Upon completion of all Work on the Punch List and verification of the completion by the Contractor, the City's Inspector and the Homeowner, the City's Inspector will sign and forward the Payment Request for the final payment to the City CSD office for processing and payment, which final payment will be made to the Contractor after thirty (30) days from the date of the Payment Request. If the Work does not meet the requirements of this Agreement, the Contractor will correct or modify the work to comply with the Agreement. The City may withhold payment for such Work until the Work meets the requirements of the Agreement. 6.3 Defective or Unauthorized Work. If any goods, materials, or services provided under this Agreement are either defective, unauthorized, or otherwise do not meet the requirements of this Agreement, the Contractor will correct or modify the work to comply with the Agreement, and the Homeowner and the City reserves the right to withhold payment from the Contractor until the goods, materials, or services are acceptable to the Homeowner and the City. If the Contractor is unable, for any reason, to complete any part of this Agreement, the Homeowner and the City may obtain the goods, materials, or services from other sources, and the Contractor shall be liable to the Homeowner and the City for any additional costs incurred by the Homeowner and the City. "Additional costs" shall mean all reasonable costs, including legal costs and attorney fees, incurred by the Homeowner and the City beyond the maximum Contract Price specified above and in Attachment B. The Homeowner and the City further reserve the right to deduct these additional costs incurred to fulfill this agreement with other sources, from any and all amounts due or to become due the Contractor. 6.4 Non-Appropriation of Funds. If sufficient funds are not appropriated or allocated for payment under this Agreement for any future fiscal period, the Homeowner and the City will not be obligated to make payments for Work or amounts incurred after the end of the current fiscal period, and this Agreement will terminate upon the completion of all remaining Work for which funds are allocated. No penalty or expense shall accrue to the Homeowner and the City in the event this provision applies. 6.5 Final Payment: Waiver of Claims. Contractor's acceptance of final payment shall constitute a waiver of any and all claims, except those previously and properly made and identified by Contractor as unsettled at the time request for final payment is made. 7. INDEMNIFICATION. 7.1 Contractor Indemnification. The Contractor agrees to release indemnify, defend, and hold the Homeowner and the City, its elected officials, officers, employees, agents, representatives, insurers, attorneys, and volunteers harmless from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees, penalties expenses, attorneys' fees, costs, and/or litigation expenses to or by any and all persons or entities, including, without limitation, their respective agents, licensees, or representatives, arising from, resulting from, or in connection with this Agreement or the performance of this Agreement, except for that portion of the claims caused by the Homeowner and the City's sole negligence. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the HRP Homeowners Loan Agreement 32 11/2017 411/4. CITY OFCITY HALL Federal Wa 33325 8th Avenue South y Federal Way,WA 980038003 -6325 (253)835-7000 www cityoffederahvay corn event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the Homeowner and the City, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. Contractor shall ensure that each sub-contractor shall agree to defend and indemnify the Homeowner and the City, its elected officials, officers, employees, agents, representatives, insurers, attorneys, and volunteers to the extent and on the same terms and conditions as the Contractor pursuant to this paragraph. The Homeowner and the City's inspection or acceptance of any of Contractor's work when completed shall not be grounds to avoid any of these covenants of indemnification. 7.2 Industrial Insurance Act Waiver. It is specifically and expressly understood that the Contractor waives any immunity that may be granted to it under the Washington State industrial insurance act, Title 51 RCW, solely for the purposes of this indemnification. Contractor's indemnification shall not be limited in any way by any limitation on the amount of damages, compensation or benefits payable to or by any third party under workers' compensation acts, disability benefit acts or any other benefits acts or programs. The Parties further acknowledge that they have mutually negotiated this waiver. 7.3 Homeowner and City Indemnification. The Homeowner and the City agree to release, indemnify, defend and hold the Contractor, its officers, directors, shareholders, partners, employees, agents, representatives, and subcontractors harmless from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings,judgments, awards, injuries, damages, liabilities, losses, fines, fees, penalties expenses, attorneys' fees, costs, and/or litigation expenses to or by any and all persons or entities, including without limitation, their respective agents, licensees, or representatives, arising from, resulting from or connected with this Agreement to the extent solely caused by the negligent acts, errors, or omissions of the Homeowner and the City. 7.4 Survival. The provisions of this Section shall survive the expiration or termination of this Agreement with respect to any event occurring prior to such expiration or termination. 8. INSURANCE. The Contractor agrees to carry insurance for liability which may arise from or in connection with the performance of the services or work by the Contractor, their agents, representatives, employees or subcontractors performed under the Project Documents for the Identified Project for the duration of the Agreement and thereafter with respect to any event occurring prior to such expiration or termination as follows: 8.1. Minimum Limits. The Contractor agrees to carry as a minimum, the following insurance, in such forms and with such carriers who have a rating that is satisfactory to the City: a. Commercial general liability insurance covering liability arising from premises, operations, independent contractors, products-completed operations, stop gap liability, personal injury, bodily injury, death, property damage, products liability, advertising injury, and liability assumed under an insured contract with limits no less than $1,000,000 for each occurrence and $2,000,000 general aggregate. b. Workers' compensation and employer's liability insurance in amounts sufficient pursuant to the laws of the State of Washington; c. Automobile liability insurance covering all owned, non-owned, hired and leased vehicles with a minimum combined single limits in the minimum amounts required to drive under HRP Homeowners Loan Agreement 33 11/2017 411114116 CITY OF CITY HALL Federal Wa 33325 8th AvF96325 South YFederal Way, vww cityoffederahvay corn Washington State law per accident for bodily injury, including personal injury or death, and property damage. 8.2. No Limit of Liability. Contractor's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. The Contractor's insurance coverage shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with Contractor's insurance. 8.3. Additional Insured, Verification. The City shall be named as additional insured on all commercial general liability insurance policies. Concurrent with the execution of this Agreement, Contractor shall provide certificates of insurance for all commercial general liability policies attached hereto as Attachment C and incorporated by this reference. At City's request, Contractor shall furnish the City with copies of all insurance policies and with evidence of payment of premiums or fees of such policies. If Contractor's insurance policies are "claims made," Contractor shall be required to maintain tail coverage for a minimum period of three (3) years from the date this Agreement is terminated or upon project completion and acceptance by the City. 8.4 Survival. The provisions of this Section shall survive the expiration or termination of this Agreement. 9. CONFIDENTIALITY. All information regarding the City obtained by Contractor in its performance of this Agreement shall be considered confidential subject to applicable laws. Breach of confidentiality by the Contractor may be grounds for immediate t-nnination. All records submitted by the City to the Contractor will be safeguarded by the Contractor. The Contractor will fully cooperate with the City in identifying, assembling, and providing records in case of any public records request. 10. WORK PRODUCT. All originals and copies of work product, including plans, sketches, layouts, designs, design specifications, records, files, computer disks, magnetic media or material which may be produced or modified by Contractor while performing the Work shall belong to the City upon delivery. The Contractor shall make such data, documents, and files available to the City and shall deliver all needed or contracted for work product upon the City's request. At the expiration or termination of this Agreement, all originals and copies of any such work product remaining in the possession of Contractor shall be delivered to the City. 11. BOOKS AND RECORDS. The Contractor agrees to maintain books, records, and documents which sufficiently and properly reflect all direct and indirect costs related to the performance of the Work and maintain such accounting procedures and practices as may be deemed necessary by the City to assure proper accounting of all funds paid pursuant to this Agreement. These records shall be subject, at all reasonable times, to inspection, review or audit by the City, its authorized representative, the State Auditor, or other governmental officials authorized by law to monitor this Agreement. 12. INDEPENDENT CONTRACTOR/EMPLOYEE CONDITIONS. 12.1 Independence. The Parties intend that the Contractor shall be an independent contractor and that the Contractor has the ability to control and direct the performance and details of its work, the City being interested only in the results obtained under this Agreement. The City shall be neither liable nor obligated to pay Contractor sick leave, vacation pay or any other benefit of employment, nor to pay HRP Homeowners Loan Agreement 34 11/2017 ` CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way,WA 98003-6325 (253)835-7000 www cityoffedera/way corn any social security, income, or other tax which may arise as an incident of employment, except as specifically provided in Section 4. Industrial or any other insurance that is purchased for the benefit of the City, regardless of whether such may provide a secondary or incidental benefit to the Contractor, shall not be deemed to convert this Agreement to an employment contract. If the Contractor is a sole proprietorship or if this Agreement is with an individual, the Contractor agrees to notify the City and complete any required form if the Contractor retired under a State of Washington retirement system and agrees to indemnify any losses the City may sustain through the Contractor's failure to do so. 12.2 Safety. Contractor shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors at the work site and in the performance of the contract work and shall utilize all protection necessary for that purpose. Contractor shall comply with all applicable provisions of federal, state, and local safety and health laws and codes, including without limitation, all OSHA/WISHA ,re uirementsSafetyand Health Standards for Construction Work q (Chapter 296-155 WAC), General Safety and Health Standards (Chapter 296-24 WAC), and General Occupational Health Standards (Chapter 296-62 WAC). Contractor shall erect and properly maintain, at all times: all necessary guards, barricades, signals and other safeguards at all unsafe places at or near the site for the protection of its employees and the public; safe passageways at all road crossings, crosswalks, street intersections; and post danger signs warning against known or unusual hazards and do all other things necessary to prevent accident or loss of any kind. Contractor shall protect from damage all water, sewer, gas, steam, or other pipes or conduits, and all hydrants and all other property that is likely to become displaced or damaged by the performance of the Work. The Contractor shall, at its own expense, secure and maintain a safe storage place for its materials and equipment and is solely responsible for the same. 12.3 Risk of Work. All work shall be done at Contractor's own risk, and Contractor shall be responsible for any loss of or damage to materials, tools, or other articles used or held for use in connection with the work. Industrial or any other insurance that is purchased for the benefit of the Homeowner and the City, regardless of whether such may provide a secondary or incidental benefit to the Contractor, shall not be deemed to convert this Agreement to an employment contract. Even though Contractor is an independent contractor, the work must meet the approval of the City and shall be subject to the City's general right of inspection to secure satisfactory completion. 13. CONFLICT OF INTEREST. It is recognized that Contractor may or will be performing professional services during the Term for other parties; however, such performance of other services shall not conflict with or interfere with Contractor's ability to perform the Services required under this Agreement. Contractor agrees to resolve any such conflicts of interest in favor of the City and Homeowner. Contractor confirms that Contractor does not have a business interest or a close family relationship with the Homeowner or City officer or employee who was, is, or will be involved in the Contractor's selection, negotiation, drafting, signing, administration, or evaluation of the Contractor's performance. HRP Homeowners Loan Agreement 35 11/2017 41111146, CITY OF CITY HALL 33325 8th Avenue South Federal VVa Federal Way,WA 98003-6325 Way (253) 835-7000 www cityoffederalway corn 14. EQUAL OPPORTUNITY EMPLOYER. In all services, programs, activities, hiring, and employment made possible by or resulting from this Agreement or any subcontract, there shall be no discrimination by Contractor or its subcontractors of any level, or any of those entities' employees, agents, subcontractors, or representatives against any person because of sex, age (except minimum age and retirement provisions), race, color, religion, creed, national origin, marital status, or the presence of any disability, including sensory, mental or physical handicaps, unless based upon a bona fide occupational qualification in relationship to hiring and employment. This requirement shall apply to, but not be limited to, the following: employment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Contractor shall comply with and shall not violate any of the terms of Chapter 49.60 RCW, Title VI of the Civil Rights Act of 1964, the Americans With Disabilities Act, Section 504 of the Rehabilitation Act of 1973, 49 CFR Part 21, 21.5 and 26, or any other applicable federal, state, or local law or regulation regarding nondiscrimination. 15. DEBARMENT AND SUSPENSION. Contractor certifies that the Contractor, including any person in a controlling capacity over the Contactor and any person in a position involving the administration of this Agreement; is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency; has not been suspended, debarred, voluntarily excluded. or determined ineligible by any federal agency within the past three (3) years; does not have a proposed debarment pending; and has not been indicted, convicted, or had a civil judgment rendered against said person, firm, association or corporation by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years (Executive Orders 12549 and 12689, "Debarment and Suspension"). 16. SUBCONTRACTS AND PURCHASES. 16.1 Subcontract Defined. "Subcontract" shall mean anycontract, other than this A eement gr between two entities to perform activities within the Scope of this Agreement, provided that the term "subcontract" does not include the purchase of(1) support services not related to the subject matter of this Agreement, or(2) supplies. 16.2 Approval Required. The Contractor shall not subcontract any portion of this Agreement without City approval. Said approval must be sought in writing by the Contractor prior to executing a subcontract. If the City approves in writing any subcontract, this Section shall nevertheless continue in full force and effect. Any subcontract without prior approval shall be void and not reimbursable under this contract. 17. GENERAL PROVISIONS. 17.1 Interpretation and Modification. This Agreement, together with any attached Exhibits, contains all of the agreements of the Parties with respect to any matter covered or mentioned in this Agreement and no prior statements or agreements, whether oral or written, shall be effective for any purpose. Should any language in any Attachments to this Agreement conflict with any language in this Agreement, the terms of this Agreement shall prevail. The respective captions of the Sections of this Agreement are inserted for convenience of reference only and shall not be deemed to modify or otherwise affect any of the provisions of this Agreement. Any provision of this Agreement that is declared invalid, inoperative, null and void, or illegal shall in no way affect or invalidate any other HRP Homeowners Loan Agreement 36 11/2017 ` CITY OF CITY HALL 33325 8th Avenue South Federal Way Federal Way,WA 9800303 -6325 (253) 835-7000 www cityoffederalway corn provision hereof and such other provisions shall remain in full force and effect. Any act done by either Party prior to the effective date of the Agreement that is consistent with the authority of the Agreement and compliant with the terms of the Agreement, is hereby ratified as having been performed under the Agreement. No provision of this Agreement, including this provision, may be amended, waived, or modified except by written agreement signed by duly authorized representatives of the Parties. 17.2 Assignment and Beneficiaries. Neither the Contractor nor the City shall have the right to transfer or assign, in whole or in part, any or all of its obligations and rights hereunder without the prior written consent of the other Party. If the non-assigning party gives its consent to any assignment, the terms of this Agreement shall continue in full force and effect and no further assignment shall be made without additional written consent. Subject to the foregoing, the rights and obligations of the Parties shall inure to the benefit of and be binding upon their respective successors in interest, heirs and assigns. This Agreement is made and entered into for the sole protection and benefit of the Parties hereto. No other person or entity shall have any right of action or interest in this Agreement based on any provision set forth herein. 17.3 Applicable Law. This Agreement is subject to all laws, regulations, and ordinances of the United States of America, the State of Washington, and the City, and all rules and regulations of any regulatory body or office having jurisdiction and in particular, without limitation, the federal regulations codified at 24 CFR Parts 92 and 570. 17.4 Compliance with Laws. The Contractor shall comply with and perform the Services in accordance with all applicable federal, state, local, and city laws including, without limitation, all City codes, ordinances, resolutions, regulations, rules, standards and policies, as now existing or hereafter amended, adopted, or made effective. If a violation of the City's Ethics Resolution No. 91-54, as amended, occurs as a result of the formation or performance of this Agreement, this Agreement may be rendered null and void, at the City's sole option. 17.5 Enforcement. Time is of the essence of this Agreement and each and all of its provisions in which performance is a factor. Adherence to completion dates set forth in the description of the Work is essential to the Contractor's performance of this Agreement. Any notices required to be given by the Parties shall be delivered at the addresses set forth at the beginning of this Agreement. Any notices may be delivered personally to the addressee of the notice or may be deposited in the United States mail, postage prepaid, to the address set forth above. Any notice so posted in the United States mail shall be deemed received three (3) days after the date of mailing. Any remedies provided for under the terms of this Agreement are not intended to be exclusive, but shall be cumulative with all other remedies available to the City at law, in equity or by statute. The failure of the City to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one or more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. Failure or delay of the City to declare any breach or default immediately upon occurrence shall not waive such breach or default. Failure of the City to declare one breach or default does not act as a waiver of the City's right to declare another breach or default. This Agreement shall be made in, governed by, and interpreted in accordance with the laws of the State of Washington. If the Parties are unable to settle any dispute, difference or claim arising from this Agreement, the exclusive means of resolving that dispute, difference, or claim, shall be by filing suit under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative process. If HRP Homeowners Loan Agreement 37 11/2017 CITY OF CITY HALL Federal Nay Feder 8th Avenue South Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederolway Con the King County Superior Court does not have jurisdiction over such a suit, then suit may be filed in any other appropriate court in King County, Washington. Each party consents to the personal jurisdiction of the state and federal courts in King County, Washington and waives any objection that such courts are an inconvenient forum. If either Party brings any claim or lawsuit arising from this Agreement, each Party shall pay all its legal costs and attorneys' fees and expenses incurred in defending or bringing such claim or lawsuit, including all appeals, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit the Parties' rights to indemnification under Section 7 of this Agreement. 17.6 Execution. Each individual executing this Agreement on behalf of the City and Contractor represents and warrants that such individual is duly authorized to execute and deliver this Agreement. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and with the same effect as if all Parties hereto had signed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it shall only be necessary to produce one such counterpart. The signature and acknowledgment pages from such counterparts may be assembled together to form a single instrument comprised of all pages of this Agreement and a complete set of all signature and acknowledgment pages. The date upon which the last of all of the Parties have executed a counterpart of this Agreement shall be the "date of mutual execution"hereof. [Signature page follows] HRP Homeowners Loan Agreement 38 11/2017 CITY OF CITY HALL Federal 33325 8th Avenue South F`(`�+ Way Federal Way,WA 980030o3 -6325 (253)835-7000 www cityoffederalway corn IN WITNESS, the Parties execute this Agreement below, effective the last date written below. DOROTHY PULLEY: ik Signature 6V/13 / / 8" Date STATE OF WASHINGTON ) ) ss. COUNTY OF �' ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual(s) described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this 12)n-day of 40 , 20 IS 1011,32., LY NJy ++ti Notary's ; :ame ignatur ,;••••����„��,C /// Notary's ' 'V't Vii Qom_ 4,�ss+oy4+'491 //6 Notary 'ublic in and for the State of y: Washington. 'Z ` • �• i'% .eG c My commission expires HRP Homeowners Loan Agreement 39 11/2017 lkih„ CITY OFCITY HALL Federal Way8th Avenue South Feder Federal Way,WA 98003-6325 (253) 835-7000 www cdyoffeder/way cont AAM CONSTRUCTION,�� LLC: By: )cl-.iic- ( ' <— ( I lA V 1 c Printed Name: trek 1 `S1 e-✓`J k Title: 11I'LG' DATE: ll / STATE OF WASHINGTON ) ) ss. COUNTY OF On this day personally appeared before me CkV , \1-S\E'ho --, to me known to be the ONAPNw- of WM C , that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said limited liability company, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument. GIVEN my hand and official seal this I(0,iday of Hyl`f , 20Q \‘‘\\\\\11111111 LYNN �1 Notary's signature �_,. ssio,v;i,„;To tary's printed name `, YI litY� l oi1v m- Notary Public in and for the State of Washington. co %; • Q,s % 4oe Lc ' ”" My commission expires LH/0Z/ "I � 1011 0;Z�```Gip ��!!''1jwASN`N`` HRP Homeowners Loan Agreement 40 11/2017 CITY OFCITY HALL t Federal Way33325 8th Avenue South nu Federal Way, nu 9800303 -6325 (253)835-7000 www cityoffederalway corn ATTACHMENT A WORK Identified Project Project Number: 18-002 Scope: See attached AAM Construction LLC Proposal dated 02/28/2018. HRP Homeowners Loan Agreement 41 11/2017 City of Federal Way 33325 8th avenue s Federal way, wa 98003 (253) 835-2401 Estimate # 000033 AAM Comstruction LLC Date 02/28/2018 37939 20th PI S Federal Way, Washington 98003 Phone: (253) 326-7455 Email: paveltislenok_t@yahoo.com Description Total Repair/ replace/ material $1,700.00 Replace Kitchen Faucet Repair Kitchen Sink cabinet Repair bathroom toilets Replace bathtub Faucet Repair/Replace bath vanity faucet Subtotal $1,700.00 Tax $163.20 Total $1,863.20 Notes: Address: 2527 S 288th St, Unit 4-1, Federal Way, WA 98003 Client: Dorothy Pulley Housing Repair RFB 18-002 Page 1 of 2 By signing this document, the customer agrees to the services and conditions outlined in this document. City of Federal Way Page 2 of 2 4111/41, CITY OFCITY HALL 33325 8th Avenue South Federal Way Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederaiwwy com ATTACHMENT B COMPENSATION Total Compensation: In return for the Work, the City shall pay the Contractor an amount not to exceed Two Thousand Forty-Nine and 52/100 Dollars ($2,049.52), which includes bid plus sales tax of One Thousand Eight Hundred Sixty-Three and 20/100 Dollars ($1,863.20) and 10 percent contingency fee of One Hundred Eighty-Six and 32/100 Dollars ($186.32) for unforseen repairs with approval by City of Federal Way Housing Repair staff. HRP Homeowners Loan Agreement 42 11/2017 CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederalwoy corn ATTACHMENT C INSURANCE CERTIFICATE (to be provided by Contractor) HRP Homeowners Loan Agreement 43 11/2W 7 g. DATE::MM D°-'ft Yr ACCPREP ( CERTIFICATE OF LIABILITY INSURANCE 1 �,-- � 4J12J20i8 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER,THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). (PRODUCER 'CONTACT r:NAME ALIMENT INSURANCE PHONE Ex.i (253) 874-2460 I FAX {253) 661 2343 !dC NG?: 33509 Pacific Hwy A ��-�IL altssalimenti.ns@earthlink.net Federal Way, WA 98003-6809 NSURERis) AFFORDING COVERAGE NACCe INsURERA Security National Ins. Co :INSURED AAM Construction LLC INSURER F.t• 37939 20th PL So ;INSURER C. Federal Way, WA 98003 ; INSURER D INSURER E I INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT.TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. (NSR' ..... ........_ ._ ...__._.._.__ ;ADO.I SUMi........ Pet.: Y '')i 1 Y.EES' i ......___..._...__ __,,,.._. .._.._ _ LTR TYPE OF INSURANCE MO I WVD POLICY NUMBER jIMMiDD'YYYY):IMM,DD'YYYYI, LIMITS t X'COMMERCIAL GENERAL LIABILITY ) 1 I EACH OCCURRENCE 10,000,000.00 1 CLAIMS MADE X 1 OCCUR ; UAMAISE IO ITt�A PREMISES s F�a Cu cur.ence) ;$10 0,0 0 0 0 0 it t ED EXP(Any one person) $ 5,000.00 A I _.._ A Y NA10 4 017 5 41/6/1711/6/VP,: PEsc�NAt_a ADV INJURY T x1,000,000,00 GENT AGGREGATE LIMIT APPLIES PER. GENERALAGGREGATE j $2 000,000,00 .._..... !PRG- r X POLI Y; PCT e.OC 00 00 w.__...,� .._ 'PRODUCTS..C:OMPiOPAGG S1,00O,O - ,'OTHER; $ ALiTOMOBILE LIABILITY COMBINED SINGLE LIMIT Is I :;Ea a�ridenfY ANYAUTO BODILY INJURY(Per ovum) I$ OWNED S HE'CSUL('cD AUTOS ONLY `AU FOS I € i E3OD,LY INJURY(Per acudan)J,$ HIRED NON-OWNED P+OPERTY C AMAOE _. AUTOS ONLY (AUTOS ONLY I (Pe'aCO10bn ' i I LMBREI..I.A LABi$ OCCUR 1 EACH OCCURRENCE i$ I EXCESS LIAB 'CLAIMS MACIE I I '- AGGREGATE $ i I I DED i :RETENTIONS $ WORKERS COMPENSATION - ' ' :AND EMPLOYERS'LIABILITY I _ ...-:STATUTE € ER ANY PROPRIETORMARTNeRiExECISTA,E ) 1 l : E L EACH ACCIDENT ! I QFFICER.M MenaF_ . aCLarlE m N)A ..' {Mandatary in NH} t EL.DISEASE-EA EMPLOYEE S i .._._.. _ .-._... _._ .. ....._...... i If yes.describe x3ndQr : .... DESCRCPTION OF OPERATIONS betas :E .DISEASE-POLICY LIMO DESCERPTION OF OPERATIONS-LOCATIONS.VEI IICLES(ACORD 1C .A. ,uu.:a'.Remarks Snedu(e.may be abeebed te'rum sprKe'._ e;tsi.e:^,( City of Federal Way is an Additional Insureds, Primary Additional Insured & Waiver of Subrogation apply if required by contract, per attached form #49- 0108.07,11. This certificate of insurance surpercedes & replaces the certificates previously send CERTIFICATE HOLDER CANCELLATION City of Federal Way SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN 33325 8th Ave So. ACCORDANCE Wi"IH THE POLICY PROVISIONS Federal Way, WA 98003 AUTHORIZE1.RRYPRFBEN1ATP✓E /ill 1988-2015 ACORD CORPORATION, All rights reserved_ ACORD25i20716103) The ACORD name and logo areregistered marks of ACORD THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY BLANKET ADDITIONAL U����KK�������� ----' .... ~~~ " °"��=°v " o��x���u~ "om����o�����*p - ����������� LESSEES OR CONTRACTORS _ - - ' '--' --~' ~~~~�~~~°~=~w° This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE _- -- - Policy Number: NA 10401750* Endorsement Effective: r 12:01 Named Insured Authorized Representative: | AAM CONSTRUCTIONuC *1111279A.----- � SCHEDULE Name of Person or Organization: Any person or organization that the named insured is obligated by virtue of a written contract or agreement to provide Insurance such as is afforded by this policy. Location: (/fnnentry appears above, information required tocomplete this endorsement will beshown inthe"=^/a'm---honxao applicable to this endorsement.) A. Section II—Who Is An Insured is amended to include as an insured the person or organization shown in the @chadu|e, but only to the extent that the person or organization shown in the Schedule is held liable for your acts or omissions arising out of your ongoing operations performed for that insured. B. With respect to the insurance afforded to these additional insureds, the following exclusion is added: 2. Exclusions This insurance does not apply to'bodily injury"or"property damage"occurring after: (Y) AI/work, including materialsparts or equipment furnished in connection with such work on the project(other than service, maintenance or repairs)to be performed by or on ' behalf of the additional insured(s)at the site of the covered operations has been completed; or (2) That portion of"your work"out of which the injury or damagrises has been put to its intended uaebyenyperwpnorother than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. C. The words"you"and''your"refer to the Named Insured shown in the Declarations. D. "Your work" means work or operations performed by you or on your behalf; end materials, parts or equipment furn/ahedinconnection w�hsuch work o,ope/abono. ~—' Primary V'Vonding If required by written contracor agreement: Such insurance as is afforded by this policy shaH be primary insurance, and any insurance or self-insurance maintained by the above additional insured(s)shall be excess of the insurance afforded to the named insured and shall not contribute to it, Waiver of Subroqation if required by written contract or agreement: We waive any right of recovery we may have against an entity that is an additional insured per the terms of this endorsement because of payments we make for injury or damage arising out of^yoorvvork" done under a contract with that person or organization, 49-0108 07 11 May Include Copyrighted Material of insurance Services Offbeu. Inc. Page 1 of 1 Used with permission 41CITY OF CITY HALL ,. Feder Federal Way F38th Avenue S Federal Way,WA 98003003 -6325 (253) 835-7000 www cityoffederalwey coin CITY OF FEDERAL WAY HOME REPAIR PROGRAM (CDBG) HOMEOWNER LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made this 13th day of April, 2018, between the CITY OF FEDERAL WAY, a municipal corporation("City"), and Dorothy Pulley("Borrower"). RECITALS A. The CITY OF FEDERAL WAY is a municipal corporation and designated as an entitlement city in the United States Department of Housing and Urban Development (HUD) Community Development Block Grant(CDBG) Program to carry out federal CDBG grants and programs. B. The CITY OF FEDERAL WAY has undertaken the administration and execution of various programs utilizing funds made available from the HUD, which have as their objective, the repair of owner-occupied housing (Home Repair Program) for qualifying low- and moderate-income persons and families residing in the city limits of Federal Way. C. The City is willing to provide the Borrower a loan, to be used by the Borrower for repair work at the Borrower's property located at 2527 S 288th St, Unit 4-1, Federal Way, King County, Washington ("Property"), and more particularly described in Exhibit A attached hereto. The amount and terms of the loan are specified in the Promissory Note found in Exhibit B and secured by the Deed of Trust found in Exhibit C, both of which are made parts hereof by this reference. AGREEMENT In consideration of the mutual promises herein, the Borrower and the City agree as follows: 1. Total Rehabilitation Cost. a) The total cost of rehabilitation for this property is $2,400.87, which includes costs, fees, and expenses listed in paragraph 6 of this Loan Agreement. Of this, $2,400.87 is a loan, as provided herein and subject to the Promissory Note and the Deed of Trust. 2. Loan. The City agrees to make, and the Borrower agrees to take the Loan as provided herein. The Borrower agrees to have the Loan proceeds used to complete the work in accordance with all applicable code requirements and work plans described in the Homeowner & Contractor Agreement for Housing Repair Program attached hereto as Exhibit D. The loan will be evidenced by a Promissory Note(the"Note")to be executed by the Borrower. 3. Purpose of Loan. The Loan is to be used exclusively in connection with the repair of the Property in accordance with the objectives of the Home Repair Program and the applicable guidelines thereof. HRP Homeowners Loan Agreement 1 10/2017 CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederalway corn 4. Security. a) Deed of Trust. As a securityfor the Note, Borrower shall make, execute, and deliver to the City, Y, as Beneficiary, a Deed of Trust on the Property in form and substance satisfactory to the City in the full amount of the Loan. This Deed of Trust shall be subject to the following: i. A Deed of Trust to Mortgage Electronic Registration Systems, Inc. "MERS", solely as a nominee for Seattle Bank in the principal amount of Two Hundred Five Thousand Twenty- Six and NO/100 Dollars ($205,026.00), recorded April 17, 2009, under King County Auditor's File No. 20090417001010; and ii. A Deed of Trust to Secretary of Housing & Urban Development, solely as a nominee for Seattle Bank in the principal amount of Two Hundred Five Thousand Twenty-Six and NO/100 Dollars($205,026.00), recorded April 17, 2009, under King County Auditor's File No. 20090417001010; and iii. Such additional encumbrances as the City may hereafter approve or waive in writing. b) Title and Fire Insurance. Borrower shall, at Borrower's expense, furnish the City with an acceptable Mortgagee's Prime Title Insurance Policy insuring the City in the amount of$2,400.87 and shall provide and maintain fire and extended coverage insurance on the Property in the amount of Two Thousand Four Hundred and 87/100 dollars ($2,400.87), naming the City as the beneficiary and additional loss payee, as its interests may appear and requiring the City be given thirty(30) days prior notice of any cancellation thereof. 5. Loan Proceeds. a) Upon execution of the Note and recording of the Deed of Trust and other required security instruments, and the satisfaction of any other conditions precedent applicable to the Loan disbursement, the Loan proceeds will be disbursed in accordance with this Agreement. The Borrower has no right to the monies, other than to have the same disbursed in accordance with the terms of this agreement. The Loan will be disbursed in one payment as required under this Agreement (refer to Homeowner/contractor agreement Exhibit D) on disbursement requests approved by the Borrower and the City. b) The Borrower shall allow the Work to be accomplished through a licensed General Contractor (Contractor)pursuant to a written contract(Contract) with the Contractor, in form provided by the City, and through such written subcontracts as may be let by the Contractor with the prior concurrence of the City. The proceeds of the Loan shall be used only as necessary for payment of costs and expenses incurred in connection with administration of the loan and for payment of indebtedness incurred for labor performed and materials incorporated into the Work. Disbursements shall be made upon certification of completion of the Work. c) Before making any disbursements, the City shall be entitled to receive a true and correct statement of all costs incurred for the labor performed and materials ordered and/or delivered and HRP Homeowners Loan Agreement 2 10/2017 411CITY OF CITY HALL �►. 33325 8th Avenue South Federal Way Federal Way,WA 98003-6325 (253)835-7000 www crtyoffederalway can shall have the right to inspect all records, books and accounts relating to the Work. The City may require lien waivers, releases, or receipts from the Contractor substantiating payment for all work, services, and labor performed and materials supplied. d) The City shall make any such payments to the Contractor engaged in rendering labor or materials in connection with the Work. e) Requests for payment shall be made through the City on forms acceptable to the City. f) No assignment may be made of any City Loan funds to be disbursed hereunder or of any rights of the Borrower under this Agreement, except upon prior written consent of the City. g) All change orders shall be subject to approval of the City prior to execution by the Borrower and the Contractor. If, as a result of the discovery of latent defects, or unforeseen conditions or health and safety hazards, it is necessary to make a change order or orders which exceed the original Contract price, the City has the right, at its option, and after consultation with the Borrower(s), to reevaluate the scope of assistance to be provided and, in conjunction therewith, order the elimination or reduction of certain work items set forth in the work schedule or work write-up, or increase the amount of the loan. h) These requirements are for the benefit of the City, and the City, as its option, shall have the right to waive such requirements. 6. Loan Documents; Fees. The Borrower shall execute at or prior to closing such documents, in form and content satisfactory to the City, including but not limited to, the Note, the Deed of Trust, this Agreement, and the Contract (collectively called "Loan Documents"). The Borrower shall be responsible for all of the City's costs in connection with the closing of the Loan, including, without limitation, recording fees, escrow fees, attorney's fees, loan fees, and other expenses associated with the Loan. Such fees are in addition to the cost for the Work and shall be added to the financial amount of the Loan and included in the total amount shown on and due in the Note. 7. Loan Repayment. Borrower agrees to repay the full loan amount in accordance with the terms of the Promissory Note attached as Exhibit B. 8. Cancellation of Commitment; Acceleration. a) At its option, the City reserves the right to cancel the Loan and terminate its obligation hereunder and under any other Loan Documents evidencing the Loan if, for a period of sixty(60) days from the date of execution of the this Agreement and Note, the Borrower shall have failed or refused to cause the commencement of the Work, or if the Borrower shall have failed or refused to allow completion the Work within a reasonable time as determined by the City, after commencing the Work. The City shall exercise this cancellation by sending written notice thereof to the Borrower at their mailing address set forth below. The City's failure to exercise this right of cancellation shall not be deemed a waiver thereof as long as the work remains incomplete. HRP Homeowners Loan Agreement 3 10/2017 CITY OF CITY HALL 4...1). Federal Way 33325 8th Avenue South Federal Way.WA 98003-6325 (253) 835-7000 www cityoffederalway corn b) The entire principal amount of the Note, and any other amounts secured by the Deed of Trust, shall become due and payable, at the option of the City, upon the Borrower's breach of, or failure to comply with, any covenant, agreement, term, or condition contained in this Agreement or any of the Loan Documents, or upon the occurrence of any of the following: i. An event of default as specified in the Note; ii. Failure to complete the Work within the sixty days specified in paragraph 8a as determined by the City; and iii. Borrower's death or if Borrower is a spouse or partner forming an acknowledged relationship, the death of both individuals. 9. Bidding Process. The City will acquire formal bids for Work to be completed and award the bid to the best-qualified low bidder. The successful bidder will be required to execute a Contract Agreement with the City. The Borrower will be required to execute a Contractor Agreement for the Housing Repair Program with the Contractor. 10. Accomplishment of Work. a) The Borrower shall allow a licensed general contractor to carry out all Work specified in the approved bids. Borrower specifically agrees to approve all Work that, in the good faith opinion of the Contractor and the City, has been accomplished in accordance with generally accepted construction industry standards. b) The Borrower agrees that the Contractor will be paid only for the Contractor's actual cost of performing the Work. The Borrower represents and warrants that the Borrower will require the Contractor to so agree and provide such documentation as the City may reasonably require showing that the Contractor does not receive any payment in excess of the Contractor's approved contract amount for the completion of the Work. 11. Inspection of the Work. The City will have the right to inspect the Work at all reasonable times for the purpose of ascertaining whether the Work is in accordance with the requirements of the Contract and applicable laws and codes. The City, in order to protect its interest and the interest of the general public, will endeavor to bring to the attention of the Borrower and the Contractor work which is not performed in accordance with the Contract and applicable codes. It is understood and agreed that neither the City, nor their respective agents or employees shall be responsible for the Borrower's or Contractor's failure to perform the work in accordance with the Contract, or for the acts or omissions of the Borrower(s), the Contractor, subcontractors, any of their agents or employees, or any others performing any work. The Borrower shall take all steps necessary to assure that the City or its designee is permitted to examine and inspect the Work and all contracts, materials, equipment, payrolls, and conditions of employment pertaining to the Work, including all relevant data and records. HRP Homeowners Loan Agreement 4 10/2017 Nib, CITY OP CITY HALL South Federal Way Federal3325 h y,WA 8003 Federal Way,WA 98003-6325 (253) 835-7000 www cityoffederahvay corn 12. Warranty for Work. The Borrower will require that the contractor give to the Borrower and the City a one (1) year unconditional warranty of the labor and materials used in the Work, on such forms as the City shall designate. 13. Records. The Borrower agrees to keep such records as may be required by HUD regarding the Work and agree to keep such records as may be required by HUD or the City. The Borrower will, at any time during normal business hours, and as often as the Secretary of HUD or an authorized representative of the City, may deem necessary, permit the Secretary and/or City officials, to have full and free access to the Borrower's records with respect to the utilization of the proceeds of the Loan, and will permit the Secretary and/or City Officials, to audit, examine and make excerpts or transcripts from Borrower's records and to review, inspect and make audits of all Work, contracts, invoices, materials, payrolls, records of personnel, conditions of employment, books of record and other documented data pertaining to the Loan and grant and Work. 14. Compliance with Applicable Laws and Requirements. In the performance of this Agreement and the completion of the Work, the Borrower shall comply, in all material respects with applicable Federal and State laws, orders, rules and regulations as determined by HUD or other agency having jurisdiction thereof, and the Borrower shall defend, protect and save harmless the City, their officers and employees, from and against all claims, suits, and actions, liability, loss, damage and expense arising from any failure of the Borrower or their architect, agent, contractor or subcontractors to comply with the same. Any such requirement under the applicable federal grant agreement, is required to be set forth in this Agreement is by this reference incorporated herein as though fully set forth at this point. 15. Limit of Liability, Property Maintenance, and Recapture Provisions. a) Limit of Liability. All liability and obligation of the City arising pursuant to this Agreement and any payment to be made by the City pursuant to this Agreement shall be satisfied exclusively and solely from federal funds made available for such purpose, and no creditor or other person or entity of whatever nature shall have any recourse to the assets, credits, or services of the City by reason of any liability or obligation arising out of this Agreement, and neither this Agreement nor any Note, Loan, or other documents hereunder shall constitute a debt or indebtedness of the City within the meaning of any constitutional, statutory, local, or charter provision. b) Borrower agrees: i. Keep in Good Condition. To keep the property in good condition and repair; to complete any building, structure, or improvement being built or about to be built thereon; to restore promptly any building, structure, or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions, and restrictions affecting the property. HRP Homeowners Loan Agreement 5 10/2017 CITY OF CITY HALL Federal Way 33325 8th AvF96325 South Federal Way. wwwcrtyoffederalway corn ii. Insurance. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire in an amount not less than the total debt represented by this Loan Agreement. iii. Pay Taxes and Other Obligations. To pay before delinquent all lawful taxes, assessments, insurance premiums, liens, encumbrances, obligations and other charges against or secured by the property. iv. Recapture Provisions. 1. Superior Interest. If the interest of the Borrower and City is subordinate to a superior interest enforceable against the property, including but not limited to taxes and any interest secured by a prior Deed of Trust, and if there should be a sale based upon non-payment of taxes, or foreclosure or transfer in lieu of foreclosure based upon a default in the obligation secured by the prior Deed of Trust, or any other seizure of the property in satisfaction of a superior interest, then in that event the Borrower's obligation to repay this loan is reduced and shall not exceed the amount of the net proceeds available to the Borrower after the sale, foreclosure, or transfer in lieu of foreclosure. 2. CITY OF FEDERAL WAY's Interest. If the Borrower defaults in any obligation due the City, and the City begins a non-judicial foreclosure and conducts a trustee's sale or accepts a deed or transfer in lieu of foreclosure, then in that event the Borrower's obligation to repay this loan is reduced and shall not exceed the amount of the net proceeds available to the Borrower after the sale or transfer in lieu of foreclosure. 16. Waiver of Personal Liability of Individuals. No member or employee of the City shall be personally liable to the Borrower or any successor in interest in the event of any default or breach by the City, for any amount which may become due to the Borrower or successor, or on any obligation under the terms of this Agreement. 17. Notices and Demands. Any notice or demand which either party hereto is required or desires to give to or make upon the other shall be in writing and shall be delivered or made by United States registered or certified mail, return receipt requested, postage repaid, addressed in the case of the City to: CITY OF FEDERAL WAY Community Development Department- CDBG 33325 8th Ave South Federal Way, WA 98003 And addressed in the case of the Borrower to: Dorothy Pulley 2527 S 288th St, Unit 4-1 Federal Way, WA 98003 subject to the right of any such party to designate a different address by notice similarly given. Any notice or demand so sent shall be deemed to have been given or made when delivered as evidenced by the return receipt. HRP Homeowners Loan Agreement 6 10/2017 41%bh, CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way.WA 98003-6325 (253) 835-7000 www_dtyoffederalway COM 18. Successor and Assigns. The terms of this Agreement shall be binding upon the parties hereto, their respective successors and assigns; it being agreed, however, the Borrower shall not assign or transfer any of their rights, duties, benefits, obligations, liabilities, or responsibilities under this Agreement without the express written consent of the City. 19. Conditions Precedent to the Obligation of the City to Provide Funds. The obligation of the City to provide or release any portion of the Loan funds under this Agreement shall, subject to such other terms and conditions of the Agreement as may be applicable thereto, also be contingent upon: a) Approval and execution of all Loan Documents relating to this Loan. b) Submission by the Borrower of a copy of the Contract between the Borrower and the Contractor for the work, which Contract shall bind the Contractor to complete the work at a cost not to exceed the amounts specified in such Contract. c) Receipt by the City of the ALTA Mortgagee's policy of Title Insurance as required by this Agreement. At the City's option, but at the Borrowers' expense, the City may request the Title Company to endorse its policy of Title Insurance at and as of the date of any disbursement by the City of Loan proceeds. d) Submission to the City as required by this Agreement of such forms of insurance policies in form acceptable to the City, including the City thereon as an additional insured as its interest may appear, which policies shall be continuously maintained at no cost to the City. e) Confirmation by the City that prior to the date of recording of the Deed of Trust no lienable work has been performed on, or materials delivered to or for the Property, or that all such work and materials have been fully paid for. IN WITNESS WHEREOF, the parties hereto have executed this document as of the day and year first written above. LENDER: CITY OF FEDERAL WAY: ATTEST: Jim Ferrell, Mayor Stephanie Courtney, CMC, City Clerk APPROVED AS TO FORM: J. Ryan Call, City Attorney HRP Homeowners Loan Agreement 7 10/2017 CITY OF CITY HALL "�.,.. 33325 8th Avenue South Federal Way Federal Way,WA 9800303 -6325 (253)835-7000 www:cityoffederafway coin BORROWER: Signature—DOO TH PULLEY STATE OF WASHINGTON ) ss. COUNTY OF ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN my hand and official seal this '?j day of S' '>t ` , 20 13 ,‘,.����,‘iti11 Notary's signature \ dr, %,%,- 1LYN 1�I , � Iy�,Rgotarys printed name Nva 0qf✓f,` :a,Mlssf°,y 4a,,�!', ii Notary 'ublic in and or the Sttt j of Washington. -'a �'O T4,to. % My commission expires /b312.1 0 s, • , m c, co *LI '4r! G �Iif SH1S6 HRP Homeowners Loan Agreement 8 10/2017 Nib, CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way.WA 98003-6325 (253)835-7000 wwww cityoffederalwny com EXHIBIT A Legal Description Unit 4-1, Building 4 Garden Townhomes, a condominium, according to the declaration thereof recorded under King County recording No. 20010611001784, and any amendments thereto, and in volume 175 of condominiums, page 8 through County of King, Washington. Situate in the A.P.N.: 269800-0130-06 HRP Homeowners Loan Agreement 9 10/2017 CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way,WA 98003003 -6325 .«•"" (253) 835-7000 www cityoffederalway corn EXHIBIT B PROMISSORY NOTE City of Federal Way Housing Repair Program(HRP) LENDER: City of Federal Way, a Municipal corporation 33325 8th Avenue South Federal Way, WA 98003 BORROWER: Dorothy Pulley, Homeowner HRP RESIDENCE: 2527 S 288th St, Unit 4-1 Federal Way, WA 98003 PRINCIPAL $2,049.52 AMOUNT: Fees: $351.35 Total$2,400.87 LOAN DATE: April 13, 2018 DUE DATE: The loan shall be due in accordance with the terms specified herein. In consideration for the mutual undertakings and covenants contained in this Promissory Note (the"Note"), Lender(also referred to hereinafter as the"City") and Borrower agrees as follows: 1. Purpose for Loan. Borrower is eligible to participate in Lender's Housing Repair Program ("HRP"), a program to assist eligible Homeowner with home repair needs that maybe of an emergency nature due to unforeseen circumstances that require immediate action to protect the health and safety of its occupants, or that will improve the living conditions for the homeowner and enhance the surrounding neighborhood. The program is funded by Community Development Block Grant funds that have been made available to the City. Loan proceeds are being used to fund repairs and improvements at the borrower's principal residence ("residence"). Borrower's application for a Housing Repair Program loan has been approved and the City is prepared to fund the loan upon Borrower's execution of the "Loan Documents," which include this Promissory Note, the Homeowner Loan Agreement, and a Deed of Trust. 2. Promise to Pay. For value received, on or before the Due Date, Borrower, including its assigns and successors, promises to pay Lender in lawful money of the United States of America, at Lender's principal place of business, or such other place as Lender may designate in writing from time to time, the Principal Amount listed above and, as shall have been advanced by Lender to or on behalf of Borrower under this Note,plus interest(in the event of Default) as provided in this Note. 3. Interest Rate. The unpaid Principal Amount shall bear interest at the rate of Zero Percent (0%) per annum (the"Effective Interest Rate") unless or until a Default. 4. Payments. No payments will be required to be made on the Principal Amount unless or until a Default occurs. In the event of Default, the entire unpaid balance of the Principal Amount as of the date HRP Homeowners Loan Agreement 10 10/2017 CITY OF CITY HALL Federal Way 33325 8th Avenue South Federal Way.WA 980038003 -6325 (253) 835-7000 www ctyoffederahvay corn of Default shall immediately become due and payable and interest on the unpaid balance shall commence to accrue at the"Default Interest Rate" on the date of Default. 5. Repayment of loan. The loan is due upon sale of the property, quit claim deed, death of the borrower, or in the event of default, as defined in paragraph 7. 6. Occupancy/Use. The property must be the Borrower primary residence, and cannot be used as a rental home. 7. Default. Upon the occurrence of any of the following events ("Events of Default"), Lender, at its option, and without notice to Borrower, may declare the entire unpaid Principal Amount to be immediately due and payable: a. The Borrower rents out the home during the loan period. See Deed of Trust, paragraph 5.1. b. The Borrower fails to comply with City Codes and Land Use regulations. c. The Borrower no longer occupies the Residence as Borrower's primary residence; d. The Borrower sells the Residence or conveys the Residence in lieu of foreclosure, or forfeits the Residence in foreclosure, bankruptcy, or other insolvency proceeding; e. The Borrower makes, or is deemed to have made, any materially incorrect, false, fraudulent, or misleading representation, warranty, or certificate to the Lender, or makes, or is deemed to have made, any materially incorrect, false, fraudulent, or misleading representation in any statement or application to the Lender in connection with the Lender's consideration of Borrower's HRP application; f. The Borrower defaults under the terms of this Note or the Deed of Trust granted in connection herewith; g. The Borrower is enjoined, restrained, or in any way prevented by court order from continuing to reside in the Residence; h. Formal charges are filed against the Borrower under any federal, state, or municipal statute, law, or ordinance for which forfeiture of the Residence is a potential penalty, or the Residence is in fact so seized or forfeited; i. The Borrower fails to maintain the Residence, commits waste upon the Residence property, or allows the Residence or Residence property to become a nuisance; j. The Borrower: (i) makes an assignment for the benefit of creditors; (ii) consents to the appointment of a custodian, receiver, or trustee for itself or for a substantial part of its assets; or (iii) commences, consents to the commencement or continuation of, or has commenced upon it, voluntarily or involuntarily, any proceeding under any bankruptcy, insolvency, or similar laws of any jurisdiction; k. The Borrower defaults under the Deed of Trust executed in connection with this Note, it being understood and agreed that this Note, Homeowner Loan Agreement, and the Deed of Trust shall be interpreted and construed as a single integrated agreement between Lender and Borrower; or 1. Borrower's death, or if Borrower is a spouse or partner forming an acknowledged relationship, the death of both individuals. m. Any event of default specified in the Deed of Trust. The term "Default Date" shall mean the date on which an Event of Default has occurred or the date Borrower is no longer entitled to cure the Event of Default under the tennis of this Note. HRP Homeowners Loan Agreement 11 10/2017 CITY OF CITY HALL 33325\r!, Federal der` l Way Feder I38Avenue 8003 (w� vae Federal Way,WA 98003-6325 (253)835-7000 wwww cityoffederahvay corn 8. Default Interest Rate. Upon the occurrence of any Event of Default, the unpaid Principal Amount balance shall bear interest at the per annum interest rate for judgments provided by Washington law until the Note is satisfied in full. 9. Security. This Note is secured by and relates to a Deed of Trust of even date encumbering the Residence. 10. Default Remedies. Upon the occurrence of any Event of Default, Lender shall have and may exercise any one or more of the rights and remedies provided in this Note and the Deed of Trust relating to this Note. The remedies provided in this Note and Deed of Trust are cumulative to the full extent provided by law. 11. Application of Payments. All payments received on this Note shall first be applied against accrued and unpaid interest and "Costs and Fees" owed to Lender under this Note, and the balance against any unpaid Principal Amount. Borrower expressly assumes all risks of loss or delay in the delivery of any payments made by mail, and no course of conduct or dealing shall affect Borrower's assumption of these risks. 12. Costs and Fees. Borrower agrees to pay all of Lender's costs incurred in the collection, modification, review, monitoring, or termination of this Note, including actual attorney fees and those incurred in any foreclosure, bankruptcy, or other similar insolvency proceeding. 13. No Waiver. Acceptance by Lender of any payment in an amount less than the amount then due shall be deemed an acceptance on account only, and Lender's acceptance of any such partial payment shall not constitute a waiver of Lender's right to receive the entire amount due. 14. Consent. Borrower hereby jointly and severally: (a) waives presentment for payment, demand, notice of non-payment, notice of protest, or protest of this Note; (b) waives Lender's diligence in collection or bringing suit; and (c) waives consent to any and all extensions of time, renewals, waivers, or modifications as may be granted by Lender with respect to payment or any other provisions of this Note. The liability of the Borrower under this Note shall be absolute and unconditional, without regard to the liability of any other party. 15. Governing Law and Venue. This Note shall be interpreted, construed, and governed by, and in accordance with, the laws of the State of Washington. Venue for any action commenced by Borrower or Lender to interpret or enforce this Note or the Deed of Trust shall be in the Superior Court of the State of Washington, For King County, at the Maleng Regional Justice Center, Kent, Washington. 16. Entire Agreement. Except as otherwise expressly provided in this Note, the Homeowner Loan Agreement, this Note, and the Deed of Trust constitute the entire agreement of the Borrower and the Lender relating to its subject matter. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. HRP Homeowners Loan Agreement 12 10/2017 CITY OF CITY HALL 411i6V Way 8th Avenue South FederalFederal Way,WA 98003-6325 (253)835-7000 wvw cityoffederalway coin Agreed to and accepted by: LENDER: CITY OF FEDERAL WAY: ATTEST: Jim Ferrell, Mayor Stephanie Courtney, CMC, City Clerk APPROVED AS TO FORM: J. Ryan Call, City Attorney BORROWER: Air Signature—DORO PUL' EY STATE OF WASHINGTON ) ,/ ) ss. COUNTY OF ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN,Kwhwitioland official seal this of 4 I/,A, , 2013. 410.7NAlf c i ry s signature 0� •.�°TA,p ',�+�; t y's printed name 1w CS OWL_ • Notary Public in and for the State of Washington. �'* ``_ 2 My commission expires /// 4.,;'?0 �Cs ' (0 `higgH\N\` HRP Homeowners Loan Agreement 13 10/2017 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Federal Way 33325 8`h Ave S Federal Way,WA 98003-6325 Attn:Jeri-Lynn Clark EXHIBIT C DEED OF TRUST Property Address: 2527 S 288th St, Unit 4-1, Federal Way, WA 98003 Grantor(s): PULLEY, DOROTHY Beneficiary: CITY OF FEDERAL WAY, a Washington Municipal Corporation Property Legal Description (abbreviated): Garden Townhomes Condominium PCT UND INT 2.78 First Add Complete Legal Description indicated below. Assessor's Tax Parcel ID#(s): 269800-0130 THIS DEED OF TRUST IS DATED April 13, 2018, between Dorothy Pulley, (referred to below as "Grantor"), whose address is 2527 S 288th St, Unit 4-1, Federal Way, WA 98003; CITY OF FEDERAL WAY, whose address is 33325 8th Ave S, Federal Way, WA 98003 (referred to below as "Lender"); and First American Title whose mailing address is 33600 6th Ave S #105, Federal Way, WA 98003 (referred to below as"Trustee"). 1. CONVEYANCE AND GRANT. For valuable consideration, Grantor irrevocably grants, bargains, sells and conveys to Trustee in trust, with power of sale and for the benefit of Lender as Beneficery, all of Grantor's estate, rights, title and interest, now owned or hereafter acquired, in and to the following real property located at 2527 S 288th St, Unit 4-1 St, Federal Way, WA 98003 in King County, Washington, and legally described below, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights and ditch rights (including stock in utilities with ditch and irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters (collectively "Real Property"). The Real Property legal description is: Unit 4-1, Building 4 Garden Townhomes, a condominium, according to the declaration thereof recorded under King County recording No. 20010611001784, and any amendments thereto, and in volume 175 of condominiums, page 8 through County of King, Washington. Situate in the A.P.N.: 269800-0130-06 2. DEFINITIONS. The following words shall have the following meanings when used in this Deed of Trust. Terms not otherwise defined in this Deed of Trust shall have the meanings attributed to such terms in the Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America. • Deed of Trust means this Deed of Trust among Grantor, Lender, and Trustee. • Grantor means any and all persons and entities executing this Deed of Trust, including without limitation Dorothy Pulley. • Homeowner Loan Agreement means that agreement between the Grantor and the Lender for funds used in connection with home repairs for the property that is the subject of this Deed of Trust. • Improvements means and includes without limitation all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. • Indebtedness means indebtedness of Grantor to Lender, including all principal and interest payable under the Note and any amounts expended or advanced by Lender to discharge obligations of Grantor or expenses incurred by Trustee or Lender to enforce obligations of Grantor under this Deed of Trust, together with interest on such amounts as provided in this Deed of Trust. The word "Indebtedness" also includes all renewals, modifications, extensions, future advances or increases in the amount of the Note. • Lender means the City of Federal Way, its successors and assigns. • Note means the Promissory Note dated, April 13, 2018, in the original principal amount of $2,400.87 from Grantor to Lender, together with all renewals, extensions, modifications, refinancing, and substitutions for this Note. • Property means collectively the Real Property. • Real Property means the property, interests and rights described above in the "Conveyance and Grant" section. • Related Documents means and includes without limitation the Homeowner Loan Agreement, all promissory notes, Housing Repair Program applications and disclosures, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. • Trustee means First American Title and any substitute or successor trustees. THIS DEED OF TRUST IS GIVEN TO SECURE (1) PAYMENT OF THE INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF GRANTOR UNDER THE NOTE, THIS DEED OF TRUST AND OTHER RELATED LOAN DOCUMENTS. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS. 3. PAYMENT AND PERFORMANCE. Except as otherwise provided in this Deed of Trust, Grantor shall pay to Lender all amounts secured by this Deed of Trust as they become due, and shall strictly and in a timely manner perform all of Grantor's obligations under the Note, this Deed of Trust, and the Related Documents. 4. FORBEARANCE BY LENDER NOT A WAIVER. Extension of the time for payment or modification of the sums secured by this Deed of Trust granted by Lender to any successor in interest of Grantor shall not operate to release the liability of the original Grantor or Grantor's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify the sums secured by this Deed of Trust by reason of any demand made by the original Grantor or Grantor's successors of interest. Any forbearance by Lender in exercising any right or remedy as provided in the Note or otherwise shall not be a waiver of or preclude the exercise of any right or remedy. 5. POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor's possession and use of the Property shall be governed by the following provisions: 5.1 Possession and Use. Grantor shall occupy, establish and use the Property as Grantor's principal residence for a minimum of 12 continuous months prior to and at the time of execution of this Deed of Trust. The Grantor acknowledges that this Property is subject to certain land use and occupancy requirements, as provided in the Homeowner Loan Agreement and the Promissory Note, which shall be executed concurrently with the Deed of Trust. The Promissory Note restricts the Grantor's ability to rent the Property. 5.2 Duty to Maintain. Grantor shall not destroy, damage, or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. 5.3 Removal of Improvements. Grantor shall not demolish or remove any Improvements from the Real Property without the prior written consent of Lender. As a condition to the removal of any Improvements, Lender may require Grantor make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. 5.4 Lender's Right to Enter. Lender and its agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interest and to inspect the Property for purposes of Grantor's compliance with the terms and conditions of this Deed of Trust. Lender shall give Grantor notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 5.5 Forfeiture Action. Grantor shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in the forfeiture of the Property or otherwise materially impair the lien credited by this Deed of Trust. Grantor may cure such a default and reinstate, as provided in paragraph 13.11, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Grantor's interest in the Property or other material impairment of the lien created by this Deed of Trust. 5.6 False Application. Grantor shall be in default if Grantor, during the application process or during the period governed by the Housing Repair Program, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning (i) Grantor's occupancy of the Property as a principal residence, and (ii) Grantor's income;. 5.7 Hazardous Substances. Grantor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Grantor shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. 5.8 Environmental Cleanup. Grantor shall promptly comply with all statutes, regulations, and ordinances which apply to Grantor or to the Property and with all orders, decrees or judgments of governmental authorities or courts having jurisdiction which Grantor is bound by, relating to the use, collection, storage, treatment, control, removal or cleanup of hazardous or toxic substances in, on or under the Property or in, on or under any adjacent property that becomes contaminated with hazardous or toxic substances as a result of construction, operations or other activities on, or the contamination of, the Property, at Grantor's expense. Lender may, but is not obligated to, enter upon the Property and take such actions and incur such costs and expenses to effect such compliance as it deems advisable to protect its interest as Lender; and whether or not Grantor has actual knowledge of the existence of hazardous or toxic substances in, on or under the Property or any adjacent property as of the date hereof, Grantor shall reimburse Lender prior to Lender acquiring title to the Property through foreclosure or deed in lieu of foreclosure, in connection with such compliance activities. 5.9 Duty to Protect. Grantor agrees neither to vacate, abandon nor leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property as Grantor's principal residence are reasonable necessary to protect and preserve the Property. 5.10 Agricultural Use. Grantor agrees that the Property is not used principally or primarily for agricultural or farming purposes. 6. SALE OR TRANSFER. The following provisions relating to the sale or transfer of the Property are a part of this Deed of Trust. 6.1 Transfer of Property. If the Property or any part thereof, or any interest of the Grantor therein, is sold, leased or otherwise transferred, including any voluntary or involuntary transfer, or transfer by operation of law, upon death of the Borrower or the Borrower ceasing to physically occupy the property as Borrower's principal residence, excluding however (a) the creation of a lien or encumbrance on the property subordinate to the Deed of Trust, (b) the creation of a purchase money security interest for household appliance, or (c) a transfer by gift, devise, descent or operation of law to a surviving spouse, or to a co-borrower if the Borrower is more than one individual; then Lender may declare all sums secured by the Deed of Trust immediately due and payable. This provision shall apply to each and every sale, transfer, conveyance or encumbrance, regardless of whether or not Lender has consented or waived its rights, whether by action or inaction, in connection with any previous sale, transfer, conveyance or encumbrance, whether one or more. 6.2 Grantor Notice. If Lender exercises this option, Lender shall give Grantor and any Senior Lien Holder(s) prior written notice of acceleration. This notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Grantor must pay all sums secured by this Deed of Trust. If Grantor fails to pay these sums prior to the expiration of this period, Lender may invoke any remedy permitted by this Deed of Trust without further notice or demand on Grantor. 6.3 Senior Lien Holder(s) Notice. Notwithstanding Lender's right to invoke any remedy hereunder, Lender agrees that is will not commence foreclosure proceedings or accept a deed in lieu of foreclosure, or exercise any other rights or remedy hereunder until it has given any Senior Lien Holder(s) at least 60 days' prior written notice. 7. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are a part of this Deed of Trust. 7.1 Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, special taxes, assessments, charges (including water and sewer), fines and impositions levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of all liens having priority over or equal to the interest of Lender under this Deed of Trust, except for the lien of taxes and assessments not due and except as otherwise provided in this Deed of Trust. 7.2 Evidence of Payment. Grantor shall, upon demand, furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the property. 7.3 Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials. Grantor will, upon request of Lender, furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. 8. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Deed of Trust. 8.1 Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurance value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form reasonably satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at least ten (10) days' prior written notice to Lender. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. Should the Real Property at any time become located in an area designated by the Director of the Federal Emergency Management Agency (FEMA) as a special flood hazard area, Grantor agrees to obtain and maintain Federal Flood Insurance for the full unpaid principal balance of the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. 8.2 Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or replacement exceeds $5,000.00. Lender may make proof of loss if Grantor fails to do so within fifteen(15) days of the casualty. Upon the election of Lender, Lender may receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property. If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner reasonably satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Deed of trust. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Deed of Trust, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid without interest to Grantor as Grantor's interest may appear. 8.3 Unexpired Insurance at Sale. Any unexpired insurance shall inure to the benefit of, and pass to, the purchaser of the Property covered by this Deed of Trust at any trustee's sale or other sale held under the provisions of this Deed of Trust, or at any foreclosure sale of such Property. 8.4 Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (a) the name of the insurer; (b) the risks insured; (c) the amount of the policy; (d) the property insured, the then current replacement value of such property, and the manner of determining that value; and (e) the expiration date of the policy. Grantor shall, upon request of Lender, have an independent appraiser reasonably satisfactory to Lender determine the cash value replacement cost of the Property. 9. EXPENDITURES BY LENDER. If Grantor fails to comply with any provision of this Deed of Trust, or if any action or proceeding is commenced that would materially affect Lender's interests in the Property, Lender on Grantor's behalf may, but shall not be required to, take any action that Lender reasonably deems appropriate. Any amount that Lender expends in so doing will bear interest at the rate provided for in the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses, at Lender's option, will (a) be payable on demand, (b) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either(i) the term of any applicable insurance policy or (ii) the remaining terms of the Note, or (c) be treated as a balloon payment which will be due and payable at the Note's maturity. This Deed of Trust also will secure payment of these amounts. The rights provided for in this paragraph shall be in addition to any other rights or remedies to which Lender may be entitled on account of the default. Any such action by Lender shall not be construed as curing the default so as to bar Lender from any remedy that it otherwise would have had. 10. COMPLIANCE WITH LAWS. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. 11. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Deed of Trust. 11.1 Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or, by any proceeding or purchase in lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all reasonable costs, expenses, and attorneys' fees incurred by the Trustee or Lender in connection with the condemnation, and subject to the teens of the First Mortgage or Deed of Trust. 11.2 Proceedings. If any proceeding in condemnation is filed, Grantor shall promptly notify Lender in writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice all at Grantor's expense, and Grantor will deliver or cause to be delivered to Lender such instruments as may be requested by it from time to time to permit such participation. 11.3 Abandonment. If the Property is abandoned by Grantor, or if, after notice by Lender to Grantor that the condemner offers to make an award or settle a claim for damages, and Grantor fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums security by this Deed of trust, whether or not then due. 12. DEFAULT. Each of the following, at the option of the Lender shall constitute an event of default("Event of Default")under this Deed of Trust: 12.1 Default on Indebtedness. Failure of Grantor to make any payment when due on the Indebtedness or failure to perform any material obligation under the Note. 12.2 Default on Other Payments. Failure of Grantor within the time required by this Deed of Trust to make any payment for taxes or insurance, or any other payment necessary to prevent failing of or to effect discharge of any lien. 12.3 False Statements. Any warranty, representation, or statement made or furnished to Lender by or on behalf of Grantor under this Deed of Trust, the Note or any Housing Repair Program application or disclosure document is false or misleading in any material respect, either now or at the time made or furnished. 12.4 Defective Collateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including failure of any collateral documents to create a valid and perfected security interest or lien) at any time and for any reason. 12.5 Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Grantor or by any governmental agency against any of the Property. However, this subsection shall not apply in the event of a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the foreclosure or forfeiture proceeding, provided that Grantor give Lender written notice of such claim and furnishes reserves or a surety bond for the claim satisfactory to Lender. 12.6 Breach of Other Agreement. Any breach by Grantor under the terms of any other agreement between Grantor and Lender, including but not limited to the Note, that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Grantor to Lender, whether existing now or later. 13. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of any Event of Default and at any time thereafter, Trustee or Lender, at its option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law: 13.1 Accelerate Indebtedness. Lender shall have the right at its option to declare the entire Indebtedness immediately due and payable, including any prepayment penalty which Grantor would be required to pay. 13.2 Foreclosure. With respect to all or any part of the Real Property, the Trustee shall have the right to exercise its power of sale and to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. 13.3 Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Property, with the power to protect and preserve the Property, to operate the Property preceding or pending foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. 13.4 Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall at Lender's option either (a) pay a reasonable rental for the use of the Property, or(b) vacate the Property immediately upon the demand of Lender. 13.5 Other Remedies. Trustee or Lender shall have any other right or remedy provided in this Deed of Trust or the Note or by law. 13.6 Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Property or of the time after which any private sale or other intended disposition of the Property is to be made. Reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. 13.7 Sale of Property. To the extent permitted by applicable law, Grantor hereby waives any and all rights to have the Property marshaled. In exercising its rights and remedies, the Trustee or Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. 13.8 Waiver, Election of Remedies. A waiver by any party of a breach of a provision of this Deed of Trust shall not constitute a waiver of or prejudice the party's rights otherwise to demand strict compliance with that provision or any other provision. Election by Lender to pursue any remedy provided in this Deed of Trust, the Note, in any Related Document, or provided by law shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Deed of Trust after failure of Grantor to perform shall not affect Lender's right to declare a default and to exercise any of its remedies. 13.9 Attorney's Fees, Expenses. If Lender institutes any suit or action to enforce any of the terms of this Deed of Trust, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorney's fees at trial on any appeal. Whether or not any court action is involved, all reasonable expenses incurred by Lender which in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorney's fees whether or not there is a lawsuit, including attorney's fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. 13.10 Rights of Trustee. Trustee shall have all of the rights and duties of Lender as set forth in this Section. 13.11 Grantor's Right to Reinstate. If Grantor meets certain conditions, Grantor shall have the right to have enforcement of this Deed of Trust discontinued at any time prior to the earlier of(a) five (5) days, or such other period as applicable law may specify for reinstatement, before sale of the Property pursuant to any power of sale contained in this Deed of Trust; or (b) entry of a judgment enforcing this Deed of Trust. Those conditions are that the Grantor: (a) pays Lender all sums which then would be due under this Deed of Trust and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Deed of Trust, including, but not limited to, reasonable attorney's fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's rights in the Property and Grantor's obligation to pay the sums secured by this Deed of Trust shall continue unchanged. Upon reinstatement by Grantor, this Deed of trust and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 5. 14. POWERS AND OBLIGATIONS OF THE TRUSTEE. The following provisions relating to the powers and obligation of Trustee (pursuant to Lender's instructions) are part of this Deed of Trust. 14.1 Powers of Trustee. In addition to all powers of Trustee arising as a matter of law, Trustee shall have the power to take the following actions with respect to the Property upon the written request of Lender and Grantor: (a) join in preparing and filing a map or plat of the Real Property, including the dedication of streets or other rights to the public; (b)join in granting any easement or creating any restriction on the Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or the interest of Lender under this Deed of Trust. 14.2 Obligations to Notify. Trustee shall not be obligated to notify any other party of a pending sale under any other trust deed or lien, or of any action or proceeding in which Grantor, Lender, or Trustee shall be a party, unless required by applicable law, or unless the action or proceeding is brought by Trustee. 14.3 Trustee. Trustee shall meet all qualifications required for trustee under applicable law. In addition to the rights and remedies set forth above with respect to all or any part of the Property, the Trustee shall have the right to foreclose by notice and sale, and Lender shall have the right to foreclose by judicial foreclosure, in either case in accordance with and to the full extent provided by applicable law. 14.4 Successor Trustee. Lender, at Lender's option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the recorder for the County in which the Real Property is located. The successor trustee, without conveyance of the Property, shall succeed to all the title, power, and duties conferred upon the Trustee in this Deed of Trust and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 15. NOTICES TO GRANTOR AND OTHER PARTIES. Subject to applicable law, and except for notice required or allowed by law to be given in another manner, any notice under this Deed of Trust shall be in writing, may be sent by telefacsimile (unless otherwise required by law), and shall be effective when actually delivered, or when deposited with a nationally recognized overnight courier, or, if mailed, shall be deemed effective when deposited in the United States mail first class, certified or registered mail, postage prepaid, directed to the addresses shown near the beginning of this Deed of Trust. Any party may change its address for notices under this Deed of Trust by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. All copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust shall be sent to Lender's address, as shown near the beginning of this Deed of Trust. Nothing contained in this Section 15, shall be interpreted or construed as consent of Lender to Grantor's change of residence or a waiver of Grantor's promise and obligation to occupy of the Property. 16. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Deed of Trust: 16.1 Amendments. This Deed of Trust, together with any Related Documents, constitutes the entire and final understanding and agreement of the parties as to the matters set forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust shall be effective unless given in writing and signed by the party or parties should be to be charged or bound by the alteration or amendment. 16.2 Applicable Law. This Deed of Trust has been delivered to Lender and accepted by Lender in the State of Washington. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of Washington. 16.3 Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpret or define the provisions of this Deed of Trust. 16.4 Merger. There shall be no merger of the interest or estate created by this Deed of Trust with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. 16.5 Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Deed of Trust shall bind and benefit the successors and assigns of Lender and Grantor, subject to the provisions of paragraph 6. Grantor's covenants and agreements shall be joint and several. Any Grantor who co-signs this Deed of Trust,but does not execute the Note: (a) is co-signing this Deed of Trust only to mortgage, grant and convey the Grantor's interest in the Property under the terms of this deed of Trust; (b) is not personally obligated to pay the sums secured by this Deed of Trust; and (c) agrees that Lenders and any other Grantor may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Deed of Trust or the Note without the Grantor's consent. All obligations of Grantor under this Deed of Trust shall be joint and several, and all references to Grantor shall mean each and every Grantor. This means that each of the persons signing below is responsible for all obligations in this Deed of Trust. 16.6 Severability. If a court of competent jurisdiction finds any provision of this Deed of Trust to be invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances. If feasible, any such offending provision shall be deemed to be modified to be within the limits of enforceability or validity; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Deed of Trust in all other respects shall remain valid and enforceable. 16.7 Successor and Assigns. Subject to the limitations stated in this Deed of Trust on transfer of Grantor's interest, this Deed of Trust shall be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Property becomes vested in a person other than Grantor, Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Deed of Trust and the Indebtedness by way of forbearance or extension without releasing Grantor from the obligations of this Deed of Trust or liability under the Indebtedness. 16.8 Grantor's Copy. Grantor shall be given a copy of the Note, of this Deed of Trust. 16.9 Waivers and Consents. Lender shall not be deemed to have waived any rights under this Deed of Trust (or under the Related Documents) unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by any party of a provision of this Deed of Trust shall not constitute a waiver of or prejudice the party's right otherwise to demand strict compliance with that provision or any other provision. No prior waiver by Lender, not any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or any of Grantor's obligations as to any future transactions. Whenever consent by Lender is required in this Deed of Trust, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required. 16.10 Applicability. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on their heirs, devisees, legatees, administrators, executors, successors and assigns. The term Lender shall mean the holder and owner of the Note secured hereby, whether or not named as Lender herein. EACH GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST,AND EACH GRANTOR AGREES TO ITS TERMS. GRANTOR(S): Signature—DOROT P LL STATE OF WASHINGTON ss. COUNTY OF ) On this day personally appeared before me, Dorothy Pulley, to me known to be the individual described in and who executed the foregoing instrument, and on oath swore that she executed the foregoing instrument as her free and voluntary act and deed for the uses and purposes therein mentioned. L GIVEN my hand and official seat this , • of__ 20 I ? ‘‘‘‘‘N\,\k11%111irr Notary Signature • \�y NC� rn/Nota Printed Name hvi Urx � ,'�' No .. Public in and for the State of Washington. T My commission expires ' N�,i11/, Aif I`' Z - / �J .= Op ` �O._ 111111 �` _� //Ill, O`WAS�`�.��