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Form Approved
OMB No. 0575 -0190
MULTI FAMILY HOUSING PRESERVATION AND REVITALIZATION
RESTRUCTURING PROGRAM (MPR)
RESTRICTIVE USE
SUBORDINATION AGREEMENT
THIS SUBORDINATION. AGREEMENT "Agreement is made, as of October 1, 2014, by
and between Kemmerer Apartments, a Wyoming Limited Partnership "Owner and the United
States of America acting by and through the Rural Housing Service of Rural Development
"Agency United States Department of Agriculture.
RECITALS:
A. The Owner owns all of that certain real property located in the City of Kemmerer, in
the County of Lincoln, in the State of Wyoming, as more particularly described in Exhibit A
attached hereto and made a part hereof "Real Property on which is constructed that certain
rental apartment project known as Kemmerer Apartments, RHS Project No. 01 -9 (the "Project
and together with the Real Property (the "Property
B. The Property is encumbered by that certain mortgage loan "Loan made to the
Owner by the Agency which Loan is evidenced and secured by that certain Promissory Mortgage
Note dated September 23, 1985, in the original principal amount of SIX HUNDRED
THIRTEEN THOUSAND SEVEN HUNDRED Dollars ($613,700) (as amended or assigned
through the date hereof, the "Note and that certain Mortgage or Deed of Trust of even date
therewith and recorded on September 23, 1985 among the land records of the jurisdiction in
which the Property is located (the "Land Records (as amended or assigned through the date
hereof, the "Mortgage and certain other instruments executed in connection with the Loan (the
documents evidencing the Loan, including without limitation the Note and the Mortgage, shall
be referred to hereinafter collectively as the "Loan Documents
C. In connection with the Owner's participation in the section 515 MPR, the Owner and
the Mortgagee have agreed, among other things, that: (i) Agency shall cause payments on the
Loan to be deferred as is more fully set out in that Debt Deferral Agreement of even date
herewith; and (ii) the Project shall be subject to certain rental restrictions and other requirements,
as set forth in that certain Restrictive Use Covenant between the Owner and the Agency of even
date herewith and to be recorded in the Land Records.
According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid
OMB control number. The valid OMB control number for this information collection is 0575 -0190. The time required to complete this
information collection is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of information.
D. As a condition to the Agency's agreement to defer its loan, the Agency has agreed to
subordinate the Loan to the Restrictive Use Covenant.
NOW, THEREFORE, in consideration of the foregoing premises, the sum of Ten
Dollars ($10.00), or other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto, for themselves and for their respective successors
and assigns, hereby agree as follows:
1. Subordination. The lien, encumbrance, charge, operation and effect of the Loan are
hereby fully subordinated to the encumbrance, operation and effect of the Restrictive Use
Covenant and shall at all times hereafter be and remain inferior to the Restrictive Use Covenant
and any modifications or restatements of the Restrictive Use Covenant. The parties hereto agree
to enter into such further subordination instruments as may be necessary to cause the Loan to be
subordinate to any modification or restatement of the Restrictive Use Covenant.
2. Other Agreements. The Owner represents and warrants that it has not and will not
execute any other agreements with provisions contradictory or in opposition to the provisions of
this Agreement and that, in any event; the provisions of this Agreement are paramount and
controlling as to the rights and obligations set forth herein and supersede any other conflicting
requirements.
3. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and /or assigns.
4. Amendment. This Agreement may not be modified except by an instrument in
writing executed by each of the parties hereto.
5. Severability. Notwithstanding anything herein contained, if any one or more of the
provisions of this Agreement shall for any,reason whatsoever be held to be illegal, invalid or
unenforceable in any respect, such illegality, invalidity or unenforceability shall not affect any
other provision of this Agreement, but this Agreement shall be construed as if such illegal,
invalid or unenforceable provision had never been contained herein.
6. Headings. The headings and titles to the sections of this Agreement are inserted for
convenience only and shall not be deemed a part hereof nor affect the construction or
interpretation of any provisions hereof.
7. Governing Law. This Agreement shall be governed by all applicable federal laws.
8. Counterparts. This Agreement may be executed in any number of counterparts, all
of which counterparts shall be construed together and shall constitute but one agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Subordination
Agreement to be executed and made effective as of the date first above written.
State of: Wyoming
County of: Lincoln
This instrument was acknowledged before me on a 2, /f by the following
John Bosley, Partner of WHG Partnership in its capacity as
General Partner of Kemmerer Apartments, A Limited Partnership.
John Bosley as attorney in fact for Constance M. Bosley,
Partner of WHG Partnership in its capacity as General Partner of
Kemmerer Apartments, A Limited Partnership.
John Bosley as attorney in fact for Michael Ryan,
Partner of WHG Partnership in its capacity as General Partner of
Kemmerer Apartments, A Limited Partnership.
LCxfi kulan Notary Public
�,�unly of
Li1 \at
f;i3itU015sinq Expires 2/2612015
State of
Wyoming
Kemmerer Apartments, A Limited Partnership
By: WHG Partnership, its general partner
BY:
BY:
ate:
osley, Partner,
i
v.
H P rtnership, by j
Constance M. Bosley, Partner,
John Bosley, as attorney in fact
d
BY:
Michael Ryan, Part 'er, WH
John Bosley, as attorney in fact
By:
Timothy D. B
Wyomin
Rura
Partnership,
'rtnership, by
Notary Public
My commission expires: G7� p /J
United States of America acting throu
United States Department of Agr ture
and by
s
ural Housing Programs Director
evelopment
izaz
c
BY:
John Bosley, Pa
e M. Bosley, Partner,
osley, as attorney in fa
IN WITNESS WHEREOF, the parti- hereto have caused this Subordinatio
Agreement to be executed and made effecti e as of the date first above written.
ohn Bosley, Partner WHG Partnership in its apacity as
eneral Partner of emmerer Apartments, A united Partnership.
John Bosley attorney in fact for Const
Partner of G Partnership in its cap
Kemmere Apartments, A Limited P
John osley as attorney in fact for Michael Ryan,
P er of WHG Partnership i its capacity as General Partner of
mmerer Apartments, A Limited Partnership.
Kemmerer Apartments, A Li ed Partnership
By: WHG Partnership, general partner
BY:
Consta
John
Michael Ryan, Partn WHG Partnership, by
John Bosley, as att
State of: Wyoming
Coun of: Lincoln
Th instrument was ackno edged before me on by the following
ce M. Bosley,
ity as General Partner of
ership.
By:
ney in fact
My commission expife�:
G Partnership, by
United States of America ac g through and by
United States De f 'cul
niiothy c rook
Wyoming Rural Housing Programs Director
Rural Development
Date: /0 c' (OI
EXHIBIT A
LEGAL DESCRIPTION
A portion of Block 11 of Lincoln Heights 4th Subdivision of the City of Kemmerer, Wyoming,
more particularly described as follows:
Beginning at the North radius point of the Northwest corner of said Block 11 thence North
90 °00'00" East, a distance of 146.42 feet to the point of curvature of a curve to the right; thence
along said curve to the right, the radius of which is 329.66 feet through a central angle of
24 °00'00" a distance of 138.09 feet; to the point of tangency; thence South 66 °00'00" East, a
distance of 9.40 feet to the point of curvature of a curve to the right, thence along said curve to
the right, the radius of which is 20.00 feet, through a central angle of 83 °23'04" a distance of
29.11 feet to the point of reverse curve of a curve to the left; thence along said curve to the left,
the radius of which is 439.00 feet; thence a central angle of 05 °31'36 a distance 42.35 feet;
thence South 76 °59'39" West, a distance of 317.50 feet to a point on the West boundary of said
Block 11; thence North 00 °00'00" East along the West boundary of said Block 11 a distance of
148.98 feet to the point of curvature of a curve to the right; thence along said curve to the right,
the radius of which is 20.00 feet, through a central angle of 90 °00'00" a distance of 31.42 feet to
the point of the beginning.