AgdaPkt 2006-04-24 - Laserfiche WebLink

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8A Page 33 Payment in full prior to the 55 year term shall cause first right of refusal to be offered to City of Redwood City 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 perform 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 Seven Hundred Forty Eight Thousand, Four Hundred Ninety Three and 67/100 Dollars ($748,493.67) plus any accrued equity based on the prorated City share of the HOME funds on the then current Fair Market value of the property. C. USE Contractor shall use the Property exclusively for special needs 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 (55 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 $748,493.67, 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. F, BREACH OF CONTRACT Applicable federal statutes and regulations, as referred to elsewhere herein govern this Agreement. Any material deviation by Contractor for any reason from the requirements thereof, or from any other provision of this Agreement, shall constitute a breach of this Agreement and may be cause for termination at the election of City or upon the direction of HUD. City may terminate this Agreement for cause after giving Contractor notice of any breach or default and 30 days to cure said breach or default, provided however, that in the event such breach or default cannot be cured within 30 days, Contractor shall have such additional time to cure said default as is reasonably required provided that 3 ......