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each prospective purchaser's federal income tax return for the taxable year immediately preceding the proposed purchase of an Affordable Unit and current income information such as wage statements or, if the prospective purchaser certifies and declares under penalty of perjury that he or she did not file a federal tax return , other evidence of income for such year acceptable to the City in its sole discretion and current income information such as wage statements, to substantiate that the prospective purchaser meets the eligibility requirements of Qualified Buyers . In the event the City is unable to make a determination that a prospective buyer is a Qualified Buyer based upon the information provided , the prospective purchaser shall be determined not to meet the requirements of a Qualified Buyer and shall be disqualified from purchase. 3.3 Maximum Affordable Sales Price. In order to ensure compliance with this Article in connection with the sale and transfer of the Affordable Units, the Affordable Units shall be sold at a purchase price that would be considered affordable to a purchaser whose income does not exceed 80 percent of AMI, as calculated by the City, pursuant to California Health and Safety Code Section 50052.5, adjusted for household size, depending on the number of bedrooms (or bedroom size equivalent) (the "Affordable Sales Price"). 3.4 Resale Restriction Agreement. Upon sale of the Affordable Units to Qualified Buyers, each Qualified Buyer shall enter into a Resale and Refinance Restriction Agreement and Option to Purchase with the City for a 55 year term in substantially the same form as Exhibit B, attached hereto and incorporated herein by this reference (the "Resale Restriction Agreement"). Upon the closing and recordation of the Resale Restriction Agreement, Developer and its successors shall have no further obligations or liabilities to the City with respect to the particular Affordable Unit. 3.5 Prohibited Transfers of Affordable Units . Any sale or transfer of an Affordable Unit in violation of the terms and conditions of this Agreement is expressly strictly prohibited , shall be null and void , and shall constitute a default of Developer under this Agreement, entitling the City to exercise all remedies available at law or in equity, including without limitation, seeking injunctive relief to prevent or enjoin the prohibited transfer and/or damages as provided in this Agreement. 3 .6 Expiration of Rental Term . Upon conversion of the Project from a rental complex to an owner-occupied complex and the sale of the five Affordable Units in accordance with this Agreement, the Rental Term shall expire. Upon request by Developer, the City shall execute and record a release of this Agreement and Developer and its successors shall have no further obligations or liabilities to the City. Article IV General Provisions 4.1 Events of Default; Enforcement. In the event of a default in the performance or observance of any agreement or obligation as set forth in this Agreement, if such default remains uncured for a period of 30 days after notice to the Developer, or such longer period as may be approved by the City in writing in its sole i discretion, then the City may declare that an "Event of Default" has occurred hereunder REV: 04-20-16 VR Page 6 of 29 ATTY/AGR.2016.081 /Fuller Street Partners, LLC Affordable Housing Agreement