RecDoc 2016-064205 - Laserfiche WebLink

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5. 1 Refinance Restriction . Owner may not, during the term of this Agreement, refinance the loan(s) used to purchase the Affordable Unit ("Original Loan"), without the express written approval of the City, which shall not be unreasonably withheld . The City's decision to approve or disapprove such refinancing shall be based upon such factors as whether the replacement loan (the "New Loan") provides a reasonable and tangible net benefit to Owner such as a reduction in the interest rate and monthly mortgage payment, or frustrates the City's ability to administer the covenants contained in this Agreement. Any New Loan approved by the City shall remain subject to this Refinance Restriction for the balance of the term of this Agreement. Notwithstanding the foregoing, the City shall permit a prepayment and refinance of the Original Loan and shall agree to subordinate this Agreement and the City Deed of Trust to the New Loan provided that: (a) following such refinance, the principal amount of all debt secured by the Property does not exceed ninety percent (90%) of the Affordable Sales Price; (b) the New Loan is a fully amortized fixed rate loan, is fully documented, and requires no balloon payments; (c) if the remaining balance of the Original Loan exceeds ninety percent (90% ) of the Affordable Sales Price, then the New Loan reduces the Owner's principal and interest payments; and (d) the total new housing cost to the Owner after the refinance does not exceed the Owner's ability to pay. 5.2 Home Equity Loan/Line of Credit Prohibition . Under no circumstances may Owner obtain a Home Equity Loan or Line of Credit secured by the Affordable Unit, during the Term . 5.3 Acknowledgement. Owner understands and agrees that the refinance restriction and Home Equity Loan or Line of Credit prohibition are not an unreasonable restraint on property alienation rights and are necessary in order to ensure that sufficient equity is maintained in the Affordable Unit to pay-off the existing loan balances in the event of a transfer of the Affordable Unit, taking into account the Affordable Sales Price of the Affordable Unit upon resale as set forth in Section 10 below. 6. Maintenance of Property. During such time as this Agreement is in effect, the Affordable Unit shall at all times be maintained in a neat and orderly condition, good order and repair, consistent with good ownership practices, and in accordance with all applicable Federal, State and local laws. 7. Taxes/Liens. Owner shall pay at least ten days prior to delinquency, all taxes and assessments on the Affordable Unit and shall keep the Affordable Unit free from all liens. 8. Sale Restrictions. Any transfer, sale or assignment of the Affordable Unit shall be subject to the provisions of this Agreement. Any transfer not in compliance with all provisions of this Agreement is prohibited. 9. Notice of Intended Transfer. In the event that Owner intends to transfer or REV: 04-20-16 VR Page 13 of 29 ATTY/AGR.2016.081/Fuller Street Partners, LLC Affordable Housing Agreement