SUBORDINATION AGREEMENT.PDF

WHEN RECORDED RETURN TO:
U.S. Department of Housing and Urban Development
451 7th Street SW, Room 4100
Washington, DC 20410
Attention: Office of the Assistant Secretary for
Public and Indian Housing - Rental Assistance
Demonstration
Housing Authority of Maricopa County
Recorder’s Stamp
AGREEMENT TO SUBORDINATE TO RENTAL ASSISTANCE DEMONSTRATION
USE AGREEMENT
CASA BONITAS – Father Fidelis – HOME (Maricopa County)
This Agreement to Subordinate to Rental Assistance Demonstration Use Agreement (the
“Subordination”) is entered into this ___________________, 2017, by the County of Maricopa,
a political subdivision of the State of Arizona (the “Lender”), and Housing Authority of
Maricopa County, a political subdivision of the State of Arizona (the “Project Owner”),
collectively, the “Parties.”
WHEREAS, the Parties executed that certain Deed of Trust and Promissory Note related
thereto (“Subordinate Document(s)”) dated as of __________________, 2017 and the Deed of
Trust was recorded in the Recorder’s Office of Maricopa County (“Recorder’s Office”) as
Instrument No. 2017-______________; and
WHEREAS, HUD has authorized the conversion of several Project Owner properties
collectively referred to as “Casa Bonitas” (the “Project”) including the real property known as
“Father Fidelis” described on Exhibit “A” attached hereto, from public housing to Section 8
assistance under the Rental Assistance Demonstration (“RAD”) program, pursuant to Public Law
112-55; and
WHEREAS, as a condition of the RAD conversion, the Project Owner executed a Rental
Assistance Demonstration Use Agreement dated and recorded as of substantially even date
herewith (the “RAD Use Agreement”) for the benefit of HUD; and
WHEREAS, HUD requires as a condition of the RAD conversion that the Parties agree to
subordinate the Subordinate Document(s) to the RAD Use Agreement; and

NOW THEREFORE, let it be known to all interested parties, that for good and valuable
consideration, the receipt of which is hereby acknowledged, the undersigned do hereby agree:
1. So long as the RAD Use Agreement, and all extensions thereto, be in effect, the
Subordinate Document(s) shall in all respects be subordinate.
2. Subordination extends to and continues in effect with respect to any future amendment,
extension, renewal, or any other modification of the RAD Use Agreement or the
Subordinate Document(s).
3. In the event of conflict between/among the Subordinate Document(s) and the RAD Use
Agreement, the RAD Use Agreement controls.
4. The following amendments to the Subordinate Document(s) require the prior written
consent of HUD: Any amendment to any HUD-required provisions in the Subordinate
Document(s), an increase in the interest rate, an increase of the total indebtedness, an
acceleration of the amortization or payment schedule, and any changes that would
preclude or impair a reasonable opportunity to cure any defaults by the Project Owner
under the Subordinate Documents.
5. This Subordination will survive bankruptcy and foreclosure.
6. This Subordination may be signed in counterparts.
7. The invalidity, in whole or in part, of any of the provisions set forth in this Subordination,
shall not affect or invalidate any remaining provisions.
8. This Subordination and every covenant hereof shall be binding upon the Parties and their
respective successors and assigns. This Subordination shall not be modified or amended
except by a written instrument executed by all parties hereto and approved in writing by
HUD.
[SIGNATURE PAGE(S) TO FOLLOW]
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In witness whereof, the Parties have executed this Subordination as of the date first
written above.
Lender/County
Maricopa County, a political subdivision of
the State of Arizona
By:___________________________
Name: Denny Barney
Title: Chairman
STATE OF ARIZONA
COUNTY OF Maricopa
I, _________________________, a Notary Public of the County and State aforesaid, certify that Denny
Barney, Chairman, either being personally known to me or proven by satisfactory evidence, personally
came before me this day and acknowledged that he, being authorized to do so, voluntarily executed the
foregoing Agreement to Subordinate to Rental Assistance Demonstration Use Agreement on behalf of
Maricopa County for the purposes state therein.
___________________________________
Notary Public
My commission expires: [Seal]
____________________
[SIGNATURE PAGE TO FOLLOW]
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Project/Owner
Housing Authority of Maricopa
County, a political subdivision of
the State of Arizona
By: __________________________
Gloria Munoz, Executive Director
STATE OF ARIZONA
COUNTY OF Maricopa
I, _________________________, a Notary Public of the County and State aforesaid, certify that Gloria
Munoz, Executive Director of the Project Owner, either being personally known to me or proven by
satisfactory evidence, personally came before me this day and acknowledged that she, being authorized to
do so, voluntarily executed the foregoing Agreement to Subordinate to Rental Assistance Demonstration
Use Agreement on behalf of the Project Owner for the purposes state therein.
___________________________________
Notary Public
My commission expires: [Seal]
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