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CDBG funds are drawn down and the City has entered project completion <br /> information into HUD's disbursement and information system. <br /> The Covenant will incorporate the followinq provisions: <br /> a. Affordable Deed Restriction. Contractor shall record an Affordability Deed <br /> Restriction containing the provisions of Addendum to Grant Deed, incorporated <br /> herein as Exhibit C at the time of sale when Eligible Households acquire title to <br /> the dwellings to be built on the site being funded under this Agreement. The term <br /> of said deed restriction shall be thirty (30) years from date of recordation of sale <br /> to Eligible Households but no earlier than the date when the mortgage is paid in <br /> full. Payment in full prior to the 30 year term shall cause first right of refusal to be <br /> offered to Contractor who will select another eligible buyer to purchase the <br /> property in accordance with the Addendum to Grant Deed, and shall stand <br /> independent of this Agreement. <br /> b. Subordination. The Affordability Covenants shall be subordinate to any <br /> mortgage or Deed of Trust and the affordability period shall be terminated in the <br /> event of a foreclosure of transfer in lieu of foreclosure if the foreclosure or <br /> transfer recognizes any contractual or legal rights of the City to take actions that <br /> would avoid the termination of low-income affordability. However, this <br /> affordability restriction shall be revived if, during the original term hereof, the <br /> owner of record before the foreclosure or other transfer, or any entity that <br /> includes the former owner or those with who the former owner has or had family <br /> or business ties, obtains ownership interest in the property. Contractor/Owner <br /> grants to the City of the right to take any and all legal action necessary to enforce <br /> the provisions of this restrictive covenant, and owner will be responsible for all <br /> reasonable legal expenses incurred by the City in the enforcement of this <br /> restrictive covenant. W�hin the CDBG program guidelines, the City will have the <br /> right to waive any and all breaches of the terms of the Affordability Covenants, <br /> but any such waiver shall not be deemed a waiver of any previous or subsequent <br /> breaches. <br /> c. Affirmative Marketinq. Projects containing five or more units, regardless of <br /> funding source, must comply with affirmative marketing responsibilities that meet <br /> federal and state requirements. Contractor shall give preference to qualified first <br /> time homebuyer applicants that are either current residents of the City of <br /> Redwood City or will move closer to employment based in Redwood City. <br /> Contractor shall include as part of its marketing efforts, outreach to homeless and <br /> at-risk of being homeless households transitioning through one of the various <br /> homelessness assistance programs operating in the City of Redwood City. <br /> Contractor shall market accessible uniUs to persons with disabilities and make <br /> every effort to ensure accessible unit/s are purchased by disabled households. <br /> Prospective applicants must demonstrate willingness to pay and ability to partner <br /> in the construction of self-help ownership housing. Qualified applicants may not <br /> have owned nor had any ownership interest in any real property, whether or not <br /> REV:02-05-15 VR <br /> Page 22 of 33 <br /> ATTY/AGR.2015.025/Habitat for Humanity GSF Jefferson Site Acquisition <br />