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5. Affordabilitv Deed Restriction Contractor shall record an Affordability Deed Restriction containing the provisions of Addendum to Grant Deed, incorporated herein as Exhibit C at the time of sale when Beneficiary acquires title to the dwelling to be built on the site being funded under this Agreement. The term of said deed restriction shall be twenty (20) years from date of recordation of sale to Beneficiary but no earlier than the date when the mortgage is paid in full. Payment in full prior to the 20 year term shall cause first right of refusal to be offered to Peninsula Habitat for Humanity, Inc. who will select another eligible buyer to purchase the property in accordance with the Addendum to Grant Deed, and shall stand independent of this Agreement. B. DUE ON SALE If Contractor elects to sell the property and not pertorm the conditions of their agreement, the sale must be no less than at Fair Market Value as established by an appraisal completed in accordance with federally accepted appraisal practices. The appraiser must be approved by City. The Contractor shall be responsible for the cost of said appraisal. Contractor shall pay to the City the sum of Two Hundred Sixty Thousand and no Dollars ($260,000.00). and the Redevelopment Agency One Hundred Thousand ($100,000) plus any accrued equity based on the prorated City share of the HOME funds , and Redevelopment Agency funds on the then current Fair Market value of the property. C. USE Contractor shall use the Property exclusively for ownership housing. If Contractor discontinues the above-stated use at the subject Property, or uses the Property or any portion thereof, for purposes other than what has been described in this Paragraph without first obtaining the prior written consent of the City, Contractor shall be in default of this Agreement and agrees to pay the City, upon demand, the full amount of HOME funds provided to assist in the acquisition of this property, provided however, that Contractor shall have Thirty (30) Days to cure the default after receipt of a Notice of default is provided in writing by City. The restrictions imposed upon the Property (as set forth in Section 5, above) shall remain in full force and effect for the term of(20 years) regardless of whether the Beneficiary's mortgage is paid off before its maturity date. D. NONPROFIT STATUS OF CONTRACTOR Contractor agrees to maintain its status as a nonprofit corporation and that its failure to do so shall be grounds for termination of this Agreement, and acceleration of the Note. E. TITLE POLICY Contractor shall, at its own cost, secure at the close of escrow the issuance of a policy of title insurance in the amount of not less than $360,000, clear of any title defects which would prevent the operation of the proposed project. Contractor shall pay all recording fees, escrow fees, the premium for the title insurance policy, all fees and cost for any new financing, and shall pay any applicable transfer taxes. 3 _... ._ _ _ _ . ... _.,._ _ ___... .T _.. _