HARTFORD HOUSING AUTHORITY
Second Mortgage Deed
To All People To Whom These Presents Shall Come, Greeting:
Know Ye, That *, *, of the Town of *, County of *, and State of Connecticut, for the consideration of * ($*) DOLLARS received to * full satisfaction of the HOUSING AUTHORITY OF THE CITY OF HARTFORD, a public body politic and corporate of the City of Hartford, organized and existing under Chapter 128 of the General Statutes of Connecticut and having an office at 475 Flatbush Avenue, Hartford, Connecticut 06106, do* give, grant, bargain, sell and confirm unto the said * the following real property situated in the Town of *, County of *, and State of Connecticut:
* that certain piece or parcel of land, together with the buildings and improvements located thereon, situated in the City of Hartford, County of Hartford and State of Connecticut and being shown as Lot No. ____ on a map consisting of two sheets, one of which bears the designations "C-2" and "SUBDIVISION MAP SOUTH" and the other of which bears the designations "C-3" and "SUBDIVISION NORTH" entitled "CHARTER OAK TERRACE ‘D’ SECTION FOR THE HOUSING AUTHORITY OF THE CITY OF HARTFORD SUBDIVISION-ROADWAYS, UTILITIES & INCIDENTAL CONSTRUCTION" Date JAN. 17, 1997 Revisions 3/26/97 4/17/97 10/27/97 11/26/97 SCALE 1 inch=40 ft." Prepared by Torres Engineering, Inc., 137 Seymour Avenue, West Hartford, CT 06119 (Job No. 12569L), which map is on file in the Hartford Town Clerk’s Office as Map No. ___________, to which reference may be had.
Said premises are conveyed subject to those matters depicted on the above referenced subdivision map. Said premises are further subject to any and all provisions of any ordinances, municipal regulations, public or private law, building and building line restrictions as of record.
[Said premises are also conveyed together with and subject to the mutual rights of Grantor and the owner of the parcel shown on the aforesaid map as lot ____ to use the division wall on the side of the premises adjoining lot ___ as a party wall, as set forth in a deed from Grantor to ________________ dated _____ and recorded in Volume _____ at Page _____ of the Hartford Land Records.]
To Have and To Hold the above granted and bargained premises, with the appurtenances thereof, unto it, the said grantee and its heirs, successors, and assigns forever, to its and their own proper use and behoof. And also, *, the said grantor*, do* for * sel*, and * heirs, executors, administrators, and successors, covenant with the said grantee, and * heirs, successors, and assigns, that at and until the ensealing of these presents, * * is well seized of such premises, as a good indefeasible estate in FEE SIMPLE; and ha* good right to bargain and sell the same in manner and form as is above written and that the same is free from all encumbrances whatsoever, except as hereinbefore mentioned.
And Furthermore, *, the said grantor, do* by these presents bind *sel* and * heirs forever to WARRANT AND DEFEND the above granted and bargained premises to the said grantee, and * heirs, successors and assigns, against all claims and demands whatsoever, except as hereinbefore mentioned.
The Condition of this Deed is such, that whereas the said grantor is justly indebted to the said grantee in the sum of * ($*) DOLLARS as evidenced by grantor’s promissory note for said amount of even date herewith, payable to said grantee, or order which note shall become due and payable no later than the thirtieth anniversary of the execution of this Deed.
Said promissory note contains the following provisions with respect to the payment of interest:
"INTEREST. In the event the maker shall offer for sale, or shall receive a bona fide offer to purchase, the premises mortgaged to secure this note within the three year period after the date of this note, and such offer is accepted (even if such acceptance or the conveyance of title is after the third anniversary of the date of this note) the maker shall pay the holder hereof, as interest, an amount equal to one-half the positive difference, if any, between (1) the purchase price as offered and accepted at such time, minus (2) the purchase price of such premises in the original purchase and sale transaction between the maker and the original holder of this note. Such interest shall be payable immediately upon the conveyance of title to such premises in addition to any mandatory payment of principal hereunder.
"INTEREST AFTER MAKER’S DEFAULT. In the event this note shall become due and payable pursuant to either of the two preceding paragraphs, the maker shall pay interest to the holder hereof from the date the principal becomes due until it is paid in full calculated at a variable rate of interest equal to four (4%) per cent per annum above the ‘Prime Rate’ of interest charged by major United States banks as reported in the ‘Money Rates’ column of the Wall Street Journal or, if such column or newspaper is no longer published or the term ‘Prime Rate’ is no longer in common usage, an equivalent published rate selected by the holder in good faith. No interest shall accrue prior to the time this note shall become due and payable."
Grantor, for *sel*, * heirs, administrators, personal representatives, and assigns further agrees with grantee and grantees successors and assigns as follows:
OTHER PROMISES OF GRANTOR(S). The grantor(s) hereof agrees to pay all taxes and assessments on the mortgaged premises; to keep the same free from mechanic’s liens; to keep in a good state of repair all buildings or personal property on the mortgaged premises; to keep the same insured against loss by fire or otherwise, in such forms of insurance as may be required by the grantee hereof; to keep and observe all of the covenants and conditions binding upon such owner under the deed from grantee hereof to the grantor(s) and, if there shall be a prior mortgage or mortgages on the mortgaged premises, to perform all agreements contained in such prior mortgage or mortgages and the note or notes secured thereby.
DUE ON TRANSFER CLAUSE; CONDITIONS ON WHICH NOTE AND MORTGAGE MAY BE ASSUMED. It is understood and agreed that in the event the owners of the equity of redemption of the mortgaged premises shall sell said premises to any purchaser except one approved in writing by the grantee hereof, the entire principal sum secured by this mortgage shall immediately thereafter, at the option of the grantee, become due and payable. As used in the preceding sentence, "sell" shall include any lease, license or occupancy agreement, and any transfer by gift, devise or the laws of intestacy to any person who is not the spouse or descendant of the grantor (or one of the grantors if there shall be more than one grantor) or who does not make the said premises his principal residence at the time of such transfer, and the transferee shall be deemed the "purchaser." The grantee hereof shall approve a proposed purchaser of such premises and shall release the grantor(s) and any other person liable for the payment of the debt secured by this mortgage up to that time, only if
(1) such purchaser is a head of a HUD Low or Very Low income, qualified household and, not less than sixty (60) days prior to the contemplated closing thereof, Grantor(s) shall give grantee notice thereof, and the name and address of the qualified purchaser. Grantor(s) shall include with such notice the following or comparable items: (a) the tax return of the purchaser for the immediately preceding year; (b) a current verification of the purchaser's employment; and (c) the pay stubs of the purchaser for the three months immediately preceding the month in which notice is given to grantee. No sale, transfer or other disposition shall be effective unless and until (i) such notice and accompanying documentation are received by grantee as aforesaid, and (ii) (A) grantee confirms in writing within sixty (60) days of receipt that the purchaser is a Low or Very Low Income Household or (B) grantee fails to respond in writing within sixty (60) days of its receipt of such notice, and the contents of such notice are true and complete as specified herein, in which case such failure on the part of grantee shall be deemed to constitute confirmation of such status. (2) such purchaser shall demonstrate to the satisfaction of the grantee that the purchase price is the fair market value of the premises and first obtain a commitment from an institutional lender for a first mortgage loan in the maximum amount supportable by the purchaser’s household income, using a 35% maximum monthly housing expense test (under which mortgage interest and principal, property taxes, private mortgage insurance and homeowners’ insurance [including fire, casualty and liability coverages] and utility charges [including gas, water, and electric charges] shall be included in determining monthly housing expenses) and shall provide the grantee financial statements or affidavits, copies of the commitment, appraisal report, tax returns, paycheck stubs and any other documentation it reasonably requests to determine the purchaser’s compliance with this requirement, (3) such purchaser shall sign an agreement assuming the responsibilities of the grantor(s) hereof, which agreement is acceptable to the grantee hereof in form and substance, and (4) the proceeds of the transaction shall be used first to pay any first mortgage and second to reduce the amount of the debt evidenced hereby so that the debt evidenced hereby shall be reduced by the greatest amount possible consistent with the purchaser’s income and housing expenses and the fair market value of the mortgaged premises. If the purchaser in such transaction has an income, housing expenses and a purchase price that qualifies him or her for a first mortgage larger than the seller’s first mortgage balance, compliance with the condition in clause (4) will require that the seller shall simultaneously with the sale pay over to the grantee hereof to reduce the debt hereby evidenced an amount equal to the difference between (X) the principal amount of the seller’s first mortgage secured by the mortgaged premises and (Y) the amount of the purchaser’s first mortgage plus (Z) the amount, if any, by which the amount paid by the purchaser for the premises exceeds the amount paid by the seller for the premises (exclusive of closing expenses and adjustments in each case).
If the purchaser is not a head of a HUD low or very low income qualified household then the purchaser shall have no right to assume the note and entire principal sum of the note secured hereby shall become immediately due and payable.
Nothing contained herein shall be construed to require the grantee to advance or readvance funds to the owners of the equity of redemption at any time.
DEFINITION OF LOW OR VERY LOW INCOME HOUSEHOLDS. "Low or Very Low Income Households" shall be defined as households that have gross family income at or below the United States Department of Housing and Urban Development ("HUD") income guidelines by family size, which are promulgated on a county basis and adjusted from time to time by HUD. If the HUD guidelines discussed in this section are no longer available, grantee, in conjunction with HUD will determine another appropriate index to satisfy the intent of this section.
CHANGE IN HOUSEHOLD COMPOSITION AND INCOME. In the event that, as the result of one or more additional individuals becoming members of the grantor’s household, there shall be an increase in the grantor’s household income, and on each succeeding occasion on which there shall be such an event, the grantor(s) agrees promptly (1) to give grantee notice of the occurrence of such event, (2) within sixty (60) days after the additional individual commences residency at the premises, to apply, together with the individual(s) having income in the household as co-borrower(s), to an institutional lender for a first mortgage loan in the maximum amount supportable by the grantor’s household income at such time, using a 35% maximum monthly housing expense test (under which mortgage interest and principal, property taxes, private mortgage insurance and homeowners’ insurance [including fire, casualty and liability coverages] and utility charges [including gas, water, and electric charges] shall be included in determining monthly housing expenses) and shall provide the grantee financial statements or affidavits, copies of the commitment, appraisal report, tax returns, paycheck stubs and any other documentation it reasonably requests to determine the purchaser’s compliance with this requirement and (3) within ninety (90) days after the additional individual commences residency at the premises to consummate such mortgage loan and use the entire proceeds thereof, net of closing expenses, to prepay the indebtedness secured hereby. For purposes of verifying Grantor’s compliance with its agreements in this paragraph, Grantor(s) agrees to submit, and to cause each member of grantor’s household residing at the premises to submit, within thirty (30) days after the grantee hereof shall request the same in writing, sworn affidavits and/or financial statements, together with copies of tax returns, paycheck stubs and any other documentation grantee reasonably requests to verify the number, identity and income of persons residing at the premises. It is further understood and agreed that in the event the grantor(s) or their heirs, successors, personal representatives or assigns shall fail to perform any of the obligations contained in this paragraph, and such failure shall continue for thirty days after the grantee hereof has given such owners notice of such failure, the entire principal sum shall immediately thereafter, at the option of the grantee hereof, become due and payable.
RESTRICTIONS ON OTHER MORTGAGES. It is further understood and agreed that in the event the grantor shall without the prior written consent of the grantee, further encumber such premises, the entire principal sum shall immediately thereafter, at the option of the grantee, become due and payable.
Now Therefore, if said note shall be well and truly paid according to its tenor, and all the other terms and conditions of said note and this mortgage are duly performed, then this deed shall be void, otherwise to be and remain in full force and effect.
In Witness Whereof, *, *, ha* hereunto said * hand this * day of *, l99*.
Signed, sealed and Delivered
in the presence of:
STATE OF CONNECTICUT )
) ss. * *, l99*
COUNTY OF * )
Personally Appeared * signer(s) of the foregoing Instrument, and acknowledged the same to be * free act and deed, before me.
COMMISSIONER OF THE SUPERIOR COURT
NOTARY PUBLIC-My Commission Expires
I am an attorney admitted to practice in Connecticut and represented the consumer in the transaction of which the foregoing agreement is a part.