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Bee Branch Creek Restoration_Acquisition of 517 E. 22nd StreetMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Purchase of Lot at 517 East 22nd Street DATE: September 1, 2011 Dubuque A1141meticaCity 2007 Housing and Community Development Department Director David Harris is recommending purchase of the lot at 517 East 22nd Street as part of the Bee Branch Creek Restoration Project. A property at 2227 Elm Street was purchased by the City for the Bee Branch Realignment project in January 2007. The house on the lot was sold to the Dubuque - Jackson County Chapter of Habitat for Humanity, in June 2010, and was moved to its present location at 517 East 22nd Street later that year. The house was substantially improved, with the interior remodeled, a new foundation, finished basement and all new mechanical systems. Subsequently, plans for the Bee Branch project were later amended and additional properties deemed necessary for acquisition, including the Habitat lot on East 22nd Street. An appraisal was commissioned and established value for the home at $93,000. And we began a search of available lots, in order to again move the Habitat house, to a new location. Agreement has been reached with Habitat to purchase a lot located in the North Grandview Estates subdivision, at 2973 North Grandview Avenue. The lot price is $25,000. The proposal is for the City to purchase the Habitat lot at 517 East 22nd and pay all other additional costs necessary to move the house and re- establish this residence for the Habitat family at the North Grandview location. The cost will include construction of a new 2 -car garage, extension of all utilities to the site, house mover costs, excavation, foundation, finished basement, driveway and sidewalks. This cost has been estimated at $137,500, including purchase of the lot. A purchase offer in this amount has been accepted by Habitat, contingent on City Council approval. The City will take title to the lot at 517 East 22nd and require Habitat to remove the house this year. Habitat, by accepting this offer, has accepted the estimated construction budget and the obligation to work within those cost constraints. This means if their use of volunteers can reduce costs, Habitat will be able to keep any 'surplus' funds. If costs exceed the estimate, Habitat will be responsible for providing additional funds needed to complete the project. The offer exceeds the appraised value of the property. As the Habitat family did not move into the home, a strict interpretation of the Federal (Uniform Relocation Act) and state regulations for relocation assistance would hold that the City is not responsible for full payment. However, the family did not move in at the City's request, pending finalization of amended plans for the north end of the Bee Branch corridor, and as a result has remained without the home they originally planned to move into this summer. For this reason, the decision was made to extend full relocation benefits. Maximum eligible relocation expenses under URA regulations, including the price differential for the replacement home and moving costs, total $25,000. Deconstruction of the house — should it not be moved — is estimated at $15,000. That total of $40,000, added to the $93,000 appraised value, equals $133,000. The proposed offer of $137,500 exceeds this total by only $4,500. I concur with the recommendation and respectfully request Mayor and City Council approval. J Michel C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director 2 Masterpiece on the Mississippi Dubuque krall AII•AmedeaCity 2007 TO: Michael Van Milligen, City Manager FROM: David Harris, Housing and Community Development Department SUBJECT: Purchase of Lot at 517 East 22nd Street DATE: 1 September 2011 Introduction The purpose of this memorandum is to request the City Council's approval of the attached resolution, authorizing purchase of a residential lot at 517 East 22nd Street, from Habitat for Humanity. Background A property at 2227 Elm Street was purchased by the City for the Bee Branch Realignment project in January 2007. The house on the lot was sold to the Dubuque - Jackson County Chapter of Habitat for Humanity, in June 2010, and was moved to its present location at 517 East 22nd Street later that year. The house was substantially improved, with the interior remodeled, a new foundation, finished basement and all new mechanical systems. Discussion Subsequently, plans for the Bee Branch project were later amended and additional properties deemed necessary for acquisition, including the Habitat lot on East 22nd Street. An appraisal was commissioned and established value for the home at $93 000. And we began a search of available lots, in order to again move the Habitat house, to a new location. Agreement has been reached with Habitat to purchase a lot located in the North Grandview Estates subdivision, at 2973 North Grandview Avenue. The lot price is $25 000. The proposal is for the City to purchase the Habitat lot at 517 East 22nd and pay all other additional costs necessary to move the house and re- establish this residence for the Habitat family at the North Grandview location. The cost will include construction of a new 2 -car garage, extension of all utilities to the site, house mover costs, excavation, foundation, finished basement, driveway and sidewalks. This cost has been estimated at $137 500, including purchase of the lot. A purchase offer in this amount has been accepted by Habitat, contingent on City Council approval. The City will take title to the lot at 517 East 22nd and require Habitat to remove the house this year. Habitat, by accepting this offer, has accepted the estimated construction budget and the obligation to work within those cost constraints. This means if their use of volunteers can reduce costs, Habitat will be able to keep any 'surplus' funds. If costs exceed the estimate, Habitat will be responsible for providing additional funds needed to complete the project. The offer exceeds the appraised value of the property. As the Habitat family did not move into the home, a strict interpretation of the Federal (Uniform Relocation Act) and state regulations for relocation assistance would hold that the City is not responsible for full payment. However, the family did not move in at the City's request, pending finalization of amended plans for the north end of the Bee Branch corridor, and as a result has remained without the home they originally planned to move into this summer. For this reason, the decision was made to extend full relocation benefits. Maximum eligible relocation expenses under URA regulations, including the price differential for the replacement home and moving costs, total $25 000. Deconstruction of the house — should it not be moved — is estimated at $15 000. That total of $40 000, added to the $93 000 appraised value, equals $133 000. The proposed offer of $137 500 exceeds this total by only $4500. Recommendation The recommendation is to offer Habitat $137 500 for the lot at 517 East 22nd Street. Using those funds, Habitat will move the house to the North Grandview location and situate the family in a like -new home. The City will take title to the East 22nd Street lot and use that property as part of a proposed parking area for persons using the completed Bee Branch hiking and biking trail. Action Step The action requested of the City Council is to approve the attached resolution, authorizing purchase of the residential lot at 517 East 22nd Street, from Dubuque - Jackson County Habitat for Humanity. cc: Crenna Brumwell, Asst City Attorney Deron Muehring, Asst City Engineer att RESOLUTION NO. 312 -11 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT 517 E. 22nd STREET, IN THE CITY OF DUBUQUE, IOWA WHEREAS, the City of Dubuque intends to acquire certain properties located in the Bee Branch Creek Re- Alignment area; and WHEREAS, an Offer to Buy has been finalized with the owner. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa hereby approves the acquisition of the following legally- described property: Lot 5 in Sanford's Subdivision in the City of Dubuque, Iowa according to the recorded plat thereof At the cost of One Hundred Thirty -Seven Thousand Five Hundred Dollars ($137 500). Section 2. That the City Clerk be and he is hereby authorized and directed to cause said Warranty Deed to be recorded in the Office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 3. That the City Clerk be and he is hereby authorized and directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. 2011. PASSED, APPROVED AND ADOPTED this 6th day of September Attest: evi Firnstah , Acting City Cler Roy('. Buol, Mayor IIII 0II II II0 lI0 III OIU IU IH III 100 II0 IIH II0 II II Doc ID 007198750004 Type GEN Kind DEED WITH RESOLUTION Recorded: 11/09/2011 at 10:46:03 AM Fee Amt: $246.20 Page 1 of 4 Revenue Tax: $219.20 Dubuque County Iowa Kathy Flynn Thurlow Recorder File 2011- 00016919 WARRANTY DEED (CORPORATE GRANTOR) THE IOWA STATE BAR ASSOCIATION Official Form No. 104 Recorder's Cover Sheet Preparer Information: (name, address and phone number) D. Flint Drake, 1005 Main Street, Suite 200, Dubuque, IA 52001, Phone: (563) 582 -2000 Taxpayer Information: (name and complete address) City of Dubuque, 50 West 13th Street, Dubuque, IA 52001 Return Document To: (name and complete address) Crenna Brumwell, Assistant City Attorney, Suite 330, Harbor View Place, 300 Main Street, Dubuque, IA 52001 -6944 Grantors: DUBUQUE AND JACKSON COUNTY HABITAT FOR HUMANITY Grantees: CITY OF DUBUQUE, IOWA Legal Description: See Page 2 Document or instrument number of previously recorded documents: D. Flint Drake WARRANTY DEED (CORPORATE GRANTOR) For the consideration of Ten and No /100 Dollar(s) and other valuable consideration, DUBUQUE AND JACKSON COUNTY HABITAT FOR HUMANITY, an Iowa non -profit corporation, organized and existing under the laws of Iowa does hereby Convey to the CITY OF DUBUQUE, IOWA the following described real estate in Dubuque County, Iowa: Lot 5 in Sanford's Subdivision in the City of Dubuque, Iowa, according to the recorded plat thereof. GRANTOR CONVEYS ALL OF ITS RIGHT, TITLE AND INTEREST IN AND TO THE UNDERLYING REAL ESTATE DESCRIBED ABOVE AND THE GARAGE LOCATED THEREON. GRANTOR EXPRESSLY RETAINS OWNERSHIP OF THE RESIDENTIAL STRUCTURE LOCATED ON THE ABOVE - DESCRIBED REAL ESTATE AND SHALL REMOVE SUCH RESIDENTIAL STRUCTURE PURSUANT TO THE TERMS OF A WRITTEN AGREEMENT BETWEEN GRANTOR AND GRANTEE. The Corporation hereby covenants with grantees, and successors in interest, that it holds the real estate by title in fee simple; that it has good and lawful authority to sell and convey the real estate; that the real estate is free and clear of all liens and encumbrances, except as may be above stated; and it covenants to Warrant and Defend the real estate against the lawful claims of all persons, except as may be above stated. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, according to the context. Dated: //— 6/ — 4i1 DUBUQUE AND JACKSON COUNTY HABITAT FOR HUMANITY, AN IOWA NON - PROFIT CO' .' ORATION By STATE OF IOWA, COUNTY OF DUBUQUE Eric :. Veltstra, Executive Director - This instrument was acknowledged before me on November 4, 2011, by Eric B. Veltstra, as Executive Director, of DUBUQUE AND JACKSON COUNTY HABITAT FOR HUMANITY, an Iowa non - profit corporation, o`PRl %� VALERIE R. WILLIS _ Notary Public, State of Iowa * * I Commission No. 787407 My Commission Expires /OM, March 31, 2014 bulL �a,tQrie g, WIws , Notary Public RESOLUTION NO. 312 -11 A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE LOCATED AT 517 E. 22nd STREET, IN THE CITY OF DUBUQUE, IOWA WHEREAS, the City of Dubuque intends to acquire certain properties located in the Bee Branch Creek Re- Alignment area; and WHEREAS, an Offer to Buy has been finalized with the owner. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City of Dubuque, Iowa hereby approves the acquisition of the following legally- described property: Lot 5 in Sanford's Subdivision in the City of Dubuque, Iowa according to the recorded plat thereof , • At the cost of One Hundred Thirty -Seven Thousand Five Hundred Dollars ($137 500). Section 2. That the City Clerk be and he is hereby authorized and directed to cause said Warranty Deed to be recorded in the Office of the Dubuque County Recorder, together with certified copy of the Resolution. Section 3. That the City Clerk be and he is hereby authorized and directed to forward a copy of this Resolution to the Dubuque County Assessor and the Dubuque County Auditor. 2011. PASSED, APPROVED AND ADOPTED this 6th day of September Attest: Kiev! Firnstah , Acting City Clerk Roy(. Buol, Mayor CERTIFICATE of the CITY CLERK STATE OF IOWA ) SS: COUNTY OF DUBUQUE I, Kevin S. Firnstahl, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 312 -11 is a correct copy of the original Resolution No. 312 -11 approved and adopted by the City Council of the City of Dubuque, Iowa, at a session held by said Council on the 6t" day of September, 2011. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 9th day of September, 2011. t.� 00 _ 0 F .., i :'SEAL) t -,E p ei o Kevin S. Firnstahl City Clerk 11111111111111111111111111111111111111111111111111111111111111111111111111111111 Doc ID 007198740001 Type GEN Kind RELEASE OF MORTGAGE Recorded: 11/09/2011 at 10:44:54 AM Fee Amt: $7.00 Page 1 of 1 Dubuque County Iowa Kathy Flynn Thurlow Recorder F11e2011- 00016918 Prepared by and returned to: Kris Neyen, Housing & Comm. Develop. Dept. 350 W. 6th St, Suite 312, DBQ, Iowa 52001- 589 -4239 RE: Lot 5 in Sanford's subdivision, in the City of Dubuque, Iowa, according to the recorded plat thereof — 517 E. 22nd Street RELEASE OF REAL ESTATE MORTGAGE The City of Dubuque, Iowa, Housing & Community Development Department is the present owner of the Real Estate Mortgage hereinafter described and encumbering the above - described real estate, hereby acknowledges that said Real Estate Mortgages, bearing date of September 8, 2010, made and executed by Dubuque and Jackson County Habitat for Humanity Corporation, mortgagor to the City of Dubuque Housing & Community Development Department, as mortgagee, and recorded in the records of the office of the Recorder of the County of Dubuque, State of Iowa, as Instrument No 2010 - 00013563 on the 14th day of September 2010, is redeemed, paid off, satisfied and discharged in full. Dated `'f day of November 2011. State of Iowa ss: Dubuque County David Harris, Jr., Director Housing & Community Development City of Dubuque On this i4 (I 4N" day of November, 2011, before, me, Kristina L. Neyen, a Notary Public, in and for the state of Iowa, personally appeared David Harris, Jr., to me personally known, and, who being by me duly sworn, did say that he is the Housing & Community Development Director of the City of Dubuque, Iowa; and that the instrument was signed on behalf of the said City of Dubuque, Iowa, by David Harris, Jr., its Housing & Community Development Director and that said David Harris, Jr., acknowledged the execution of the instrument to be his voluntary act and deed and the voluntary act and deed of the City of Dubuque, I. by it voluntarily executed. Notary Public i and '•r said County aryl tat Kristina L. Neyen Commission Expires: 01-2- 20'^3 / /i11111��� CO-L) Cle,+rK_ 10 0 Doc ID 007198760002 Type GWH Kind GROUNDWATER HAZARD Recorded: 11/09/2011 at 10:46:14 AM Fee Amt: $0.00 Pape 1 of 2 Dubuque County Iowa Kathy Flynn Thurlow Recorder Q Fi1e2011- 00001 / % 08 REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT TO BE COMPLETED BY TRANSFEROR TRANSFEROR: Name DUBUQUE AND JACKSON COUNTY HABITAT FOR HUMANITY Address 2790 Ethel Avenue, Dubuque, IA 52001 Number and Street or RR City, Town or P.O. State Zip TRANSFEREE: Name CITY OF DUBUQUE, IOWA Address 50 W. 13th Street, Dubuque, IA 52001 Number and Street or Itlt City, I own or P.O. State Zip Address of Property Transferred: 517 E. 22nd Street, Dubuque, IA 52001 Number and Street or RR City, Town, or P.O. State Lip Legal Description of Property: (Attach if necessary) Lot 5 in Sanford's Subdivision in the City of Dubuque, Iowa, according tote recorded plat thereof. 1. Wefts (check one) V There are no known wells situated on this property. There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below or set forth on an attached separate sheet, as necessary. 2. Soli Waste Disposal (check one) There is no known solid waste disposal site on this property. _ There is a solid waste disposal site on this property and information related thereto is provided in Attachment #1, attached to this document. 3. Haz dous Wastes (check one) il There is no known hazardous waste on this property. There is hazardous waste on this property and information related thereto is provided in Attachment #1, attached to this document. 4. Underground Storage Tanks (check one) here are no known underground storage tanks on this property. (Note exclusions such as small farm and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.) There is an underground storage tank on this property. The type(s), size(s) and any known substance(s) contained are listed below or on an attached separate sheet, as necessary. FILE WITH RECORDER DNR form 542 -0960 (Sept. 1, 2010) aou -Iuct iq 5. Pri te Burial Site (check one) There are no known private burial sites on this property. There is a private burial site on this property. The location(s) of the site(s) and known identifying information of the decedent(s) is stated below or on an attached separate sheet, as necessary. 6. Priv Sewage Disposal System (check one) All buildings on this property are served by a public or semi - public sewage disposal system. _ This transaction does not involve the transfer of any building. There is a building served by private sewage disposal system on this property or a building without any lawful sewage disposal system. A certified inspector's report is attached which documents the condition of the private sewage disposal system and whether any modifications are required to conform to standards adopted by the Department of Natural Resources. A certified inspection report must be accompanied by this form when recording. _ There is a building served by private sewage disposal system on this property. Weather or other temporary physical conditions prevent the certified inspection of the private sewage disposal system from being conducted. The buyer has executed a binding acknowledgment with the county board of health to conduct a certified inspection of the private sewage disposal system at the earliest practicable time and to be responsible for any required modifications to the private sewage disposal system as identified by the certified inspection. A copy of the binding acknowledgment is attached to this form. There is a building served by private sewage disposal system on this property. The buyer has executed a binding acknowledgment with the county board of health to install a new private sewage disposal system on this property within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. _ There is a building served by private sewage disposal system on this property. The building to which the sewage disposal system is connected will be demolished without being occupied. The buyer has executed a binding acknowledgment with the county board of health to demolish the building within an agreed upon time period. A copy of the binding acknowledgment is provided with this form. [Exemption #9] _ This property is exempt from the private sewage disposal inspection requirements pursuant to the following exemption [Note: for exemption #9 use prior check box]: _ The private sewage disposal system has been installed within the past two years pursuant to permit number Information required by statements checked above should be provided here or on separate sheets attached hereto: Signature: I HEREBY DECLARE THAT I HAVE REVIEWED THE INSTRUCTIONS FOR THIS FORM AND THAT TI INFORMATION STATED ABOVE IS TRUE AND CORRECT. g____. (Transferor gent) l 9 ) FILE WITH RECORDER Telephone No.: (56 3) S t-2 I DNR form 542 -0960 (Sept. 1, 2010) i1111111111111iii1111111111111111111111111111111111111111II II II iiiiiiii Doc ID 007198770004 Type GEN Kind MORTGAGE Recorded: 11/09/2011 at 10:46:51 AM Fee Amt: $22.00 Page 1 of 4 Dubuque County Iowa Kathy Flynn Thurlow Recorder F11e2011- 00016920 Prepared by and return to: Jane Glennon, City of Dubuque Housing & Community Development Dept., 350 W. 61h Street, Suite 312; DBQ, IA 52001; 589 -4239 REAL ESTATE MORTGAGE — IOWA THIS INDENTURE is made this `T day of November A.D. 2011 between Dubuque and Jackson County Habitat for Humanity, Corporation , mortgagor(s) of the County of Dubuque, and the State of Iowa, and the City of Dubuque, Iowa, through its Housing & Community Development Department, Mortgagee, of the County of Dubuque, and State of Iowa. WITNESSETH: That the Mortgagor(s), in consideration of Forty Thousand and 00/100 DOLLARS ($40,000.00) loaned by Mortgagee, received by Mortgagor(s), and evidenced by the promissory note hereinafter referred to, and such additional loan or loans at the option of the Mortgagee, referred to in Paragraph I, below, do SELL, CONVEY AND MORTGAGE, unto the Mortgagee (To create a joint tenancy for more than one Mortgage, use appropriate words) the following described Real Estate situated in the County of Dubuque, State of Iowa, to- wit: Lot 6 of North Grandview Estates No. 2, in the City of Dubuque, Iowa, according to the recorded plat thereof — 2973 Grandview Avenue. together with all personal property that may integrally belong to, or be or hereafter become an integral part of said real estate, whether attached or detached (such as, light fixtures, shades, rods, blinds, venetian blinds, awnings, storm windows, storm doors, screens, linoleum, water heater, water softener, automatic heating equipment and other attached fixtures), and hereby granting, conveying and mortgaging also all of the easements, servient estates appurtenant thereto, rents, issues, uses, profits and right to possession of said real estate, and all crops raised thereon from now until the debt secured thereby shall be paid in full. As to any such personal property, or fixtures, or both, a Security Interest is hereby given and attaches thereto. Said Mortgagor(s) hereby covenant with Mortgagee, or its successor in interest, that said Mortgagor(s) hold clear title to said personal property, and title in fee simple to said real estate; that they have good and lawful authority to sell, convey and mortgage the same; that said premises,are Free and Clear of all Liens and Encumbrances Whatsoever except as may be above stated; and said Mortgagor(s) Covenant to Warrant and Defend the said premises and the said personal property against the claims of all persons whomsoever, except as may be above stated. Each of the undersigned hereby relinquishes all rights of dower, homestead and distributive share in and to the above described premises and waives all rights of exemption, as to any of said property. CONDITIONED HOWEVER, That if Mortgagor(s) shall pay or cause to be paid to said Mortgagee, or it's successors, or assigns, said sum of money which shall be legal tender in payment of all debts and dues, public and private, at time of payment, all at the time, place and upon the terms provided by one promissory note of Mortgagor(s) to Mortgagee, of even date herewith, and as may be supplemented by loans under Paragraph 1 below, and shall perform the other provisions hereof, then these presents will be void, otherwise to remain in full force and effect. c C /t€ - - 2,6) 1. TAXES. Mortgagor(s) shall pay each installment of all.taxes and special assessments of every kind, now or hereafter levied against said property, or any part thereof before same become delinquent, without notice or demand; and shall procure and deliver to said Mortgagee, on or before the fifteenth day of October of each year, duplicate receipts of the proper officers for the payment of all such taxes and assessments then due. 2. INSURANCE. Mortgagor(s) shall keep in force insurance premiums therefore to be prepaid without notice or demand, against loss by fire, tornado and other hazards, casualties and contingencies as Mortgagee may require on personal property as herein referred to, and on all buildings and improvements, in companies to be approved by Mortgagee in an amount not less than the full insurable value of such personal property and improvements or not less than the unpaid balance herein, whichever amount is smaller, with such insurance jointly payable to Mortgagor(s) and Mortgagee, as their interest may appear. Mortgagor(s) shall promptly deposit such certificate of insurance /binder with proper riders with the Mortgagee, shall keep in effect for full term of mortgage, and give written notice of cancellation or material change within 10 days of change. 3. REPAIRS TO PROPERTY. Mortgagor(s) shall keep the building and other improvements on said premises in as good repair and condition as same may now be or are hereafter placed, ordinary wear and tear only excepted; and shall not suffer or commit waste on or to said security. 4. ATTORNEY'S FEES. In case of any action, or in any proceedings in any court, to collect any sums payable or secured by this mortgage, or to protect the lien or title herein of the Mortgagee, or in any other case permitted by law in which attorney fees may be collected from Mortgagor(s), or charged upon the above described property, Mortgagor(s) agree to pay reasonable attorney fees. 5. CONTINUATION OF ABSTRACT. In event of any default herein by Mortgagor(s), Mortgagee may, at the expenses of Mortgagor(s) procure an abstract of title, or continuation thereof, for said premises, and charge and add to the mortgage debt the cost of such abstract or continuation with interest upon such expense at the highest legal rate applicable to a natural person; or if the Mortgagor is a corporation, then at the default rate provided in the note secured hereby. 6. ADVANCES OPTIONAL WITH MORTGAGEE. It is expressly understood and agreed that if the insurance above provided for is not promptly effected, or if the taxes or special assessment assessed against said property shall become delinquent, Mortgagee (whether electing to declare the whole mortgage due and collectible or not), may (but need not) effect the insurance above provided for and need not, but may and is hereby authorized to pay said taxes and special assessments (irregularities in the levy or assessment of said taxes being expressly waived), and all such payments with interest thereon at the highest legal rate applicable to a natural person (or if the Mortgagor is a corporation, then at the default rate provided in the note secured hereby) from time of payment shall be a lien against said premises. 7.1. ACCELERATION OF MATURITY AND RECEIVERSHIP. It is agreed that if default shall be made in the payment of said note, or any part of the interest thereon, or any other advance or obligation which may be secured hereby or any agreed protective disbursement, such as taxes, special assessment, insurance and repairs, or if Mortgagor(s) shall suffer or commit waste on or to said security, or if there shall be a failure to comply with any and every condition of this mortgage, then, at the option of the Mortgagee, said note and the whole of the indebtedness secured by this mortgage, including all payments for taxes, assessments or insurance premiums, shall become due and shall become collectible at once by foreclosure or otherwise after such default or failure, and without notice of broken conditions; and at any time after the commencement of an action in foreclosure, or during the period of redemption, the court having jurisdiction of the case shall, at the request of the Mortgagee, appoint a receiver to take immediate possession of said property, and of the rents and profits accruing therefrom, and to rent or cultivate the same as he may deem best for the interest of all parties concerned, and shall be liable to account to said Mortgagor(s) only for the net profits, after application of rents, issues and profits upon the costs and expenses of the receivership and foreclosure and the indebtedness, charges and expenses hereby secured and herein mentioned. And it is hereby agreed, that after any defaults in the payment of either principal or interest, such sums in default secured by this mortgage shall draw interest at the highest legal rate applicable to a natural person; or If the Mortgagor is a corporation, then at the default rate provided in the note secured hereby. 7.2. SIX MONTHS' AND 60 DAY PERIOD FOR REDEMPTION. It is further agreed that if this mortgage covers less than 10 acres of land, and in the event of the foreclosure of this mortgage and sale of the property by sheriffs sale in such foreclosure proceedings, the time of one year for redemption from said sale provided by the statues of the State of Iowa shall be reduced to 6 months provided the Mortgagee, in such action files an election to waive any deficiency judgment against the Mortgagor(s) which may arise out of the foreclosure proceedings; this redemption period shall be reduced to 60 days if all of the three following contingencies develop: (1) The mortgaged real estate herein is less than 10 acres in size; (2) the Court finds affirmatively that said real estate has been abandoned by the owners and those persons personally liable under this mortgage at the time of such foreclosure; and (3) the Mortgagee in such action files an election to waive any deficiency judgment against the Mortgagor or their successor in interest in such action. If the redemption period is so reduced, the Mortgagor(s) or their successor in interest or the owner shall have the exclusive right to redeem for the first 30 days after such sale, and the time provided for redemption by creditors as provided in Sections 628.5, 628.15 and 628.16 of the Code shall be reduced to 40 days. Entry of appearance by pleading or docket entry by or on behalf of the Mortgagor(s) shall be presumption that the property is not abandoned. Any such short redemptive period shall be consistent with all of the provisions of Chapter 408, 62nd G.A., amending Chapter 628, Code of Iowa. 8. DEFINITION OF TERMS. Unless otherwise expressly stated the word "Mortgagor(s) ", as used here, includes successors in interest of such "Mortgagor(s)"; the "Mortgagee ", as used herein, unless otherwise expressly stated, includes the successors in interest of such "Mortgagee ". All words referring to "Mortgagor" or "Mortgagee" shall be construed to be of the appropriate gender and number, according to the context. This construction shall include the acknowledgment hereof. 9. The address of the Mortgagee is 350 W. 6th Street, Suite 312, Dubuque, Iowa 52001. 10. LIENS. Mortgagor(s) shall not create, incur or suffer to exist any lien, encumbrance, security interest or charge on the Mortgaged Property or any part thereof, without the prior written consent of Mortgagee, other than the lien of current real estate taxes and installments of special assessments with respect to which no penalty is yet payable. Mortgagor(s) shall pay, when due, the claims of all persons supplying labor or materials to or in connection with the Mortgaged Property. 11. INSPECTIONS. Mortgagee, and its agents, shall have the right at all reasonable times, to enter upon the Mortgaged Property for the purpose of inspecting the Mortgaged Property or any part thereof. Mortgagee shall, however, have no duty to make such inspection. Any inspection of the Mortgaged Property by Mortgagee shall be entirely for its benefit and Mortgagor(s) shall in no way rely or claim reliance thereon. 12. ADDITIONAL PROVISIONS. a. The following additional provisions are hereby incorporated herein: The date of the final payment of the promissory note above referred to is January 1, 2021 . b. Full payment of remaining balance due on the Promissory Note secured by this instrument is due if either a) the title to the property identified above is transferred, or if b) a land installment contract is executed by the owners with the intention to transfer title, and c) if occupancy of the property changes from the use at the time of execution of this instrument (i.e. changes from owner- occupied single family to any other form of occupancy), or if d) other changes in terms and conditions of the note, mortgage or security agreement are made at the request of the borrower. This mortgage is subject only to prior recorded mortgage(s) and/or lien(s): N/A IN WITNESS WHEREOF, said Mortgagor(s) have hereunto set their hands the day and year first above written. Dated: November , 2011 Dubuque and Jackson County Habitat for Humanity Nancy l r, Treasurer I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS MORTGAGE, I VOLUNTARILY GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS MORTGAGED PROPERTY WITH RESPECT TO CLAIMS BASED UPON THIS MORTGAGE. Dated: November 4, 2011 STATE OF IOWA, COUNTY OF DUBUQUE This instrument was acknowledged before me on Nancy Miller Dubuque and Jackson County Habitat for Humanity an 1 'ller, Treasurer November T as Treasurer , 2011, by Dubuque and Jackson County Habitat for Humanity . VALERIE R. WILLIS Notary Public, Slate of Iowa Commission No. 767407 My Commission Expires March 31, 2014 of Notary Public in and for the State of Iowa .JStistipa - L— Neyen-' - S