Laserfiche WebLink
B. REVERSION OF ASSETS <br /> <br /> If Contractor elects to sell or transfer the Properbj or any part, or portion thereof, ' <br /> or interest therein, or discontinue the affordable housing program and not <br /> perform the terms and/or conditions of their agreement with the City. Contractor <br /> shall pay to the City the sum of Two Hundred Fifty Eight Thousand, Nine <br /> Hundred Seventy Four and 00/100 Dollars ($258,974.00). <br /> <br /> C. USE <br /> <br /> Contractor shall use 11 units in the Property exclusively for affordable rental <br /> housing. These 11 units shall be designated as HOME units and shall remain <br /> affordable for a pedod of not less than 30 years from the date of recordation of <br /> this document. Location of said units shall be determined by City and <br /> Contractor in good faith prior to the funding of the City loan to the Contractor. If <br /> Contractor discontinues the above-stated use at the subject Property, or uses <br /> the Property or any portion thereof, for purposes other than what has been <br /> described in this Paragraph without first obtaining the pdor wdtten consent of the <br /> City, Contractor shall be in default of this Agreement and agrees to pay the City, <br /> upon demand, the full amount of HOME funds provided to assist in the <br /> rehabilitation of this property, provided however,, that Contractor shall have Thirty <br /> (30) Days to cure the default after receipt of a Notice of default is provided in <br /> writing by City. The restrictions imposed upon the Property (as set forth in <br /> Section 5, above) shall remain in full force and effect for the term of (30 years <br /> from the date of recordation of this loan) regardless of whether the Contractor's <br /> mortgage is paid off before its maturity date. <br /> <br /> Contractor warrants to City that it will use and account for all funds provided <br /> hereunder strictly in accordance with standards governing the use of, and <br /> accountability for, funds held and disbursed in trust. Contractor's program <br /> funded hereunder shall conform to the highest standards providing for programs <br /> of similar or like nature in the San Francisco Bay Area, and in conformance with <br /> Building Codes and Regulations. Contractor shall be responsible for, and hold <br /> City harmless from, any failure to adhere to such standards. Contractor shall <br /> verify that all activities funded hereunder benefit only residents within City's <br /> corporate limits. <br /> <br />D. NONPROFIT STATUS OF CONTRACTOR <br /> <br />Contractor agrees that the general partner of Contractor will maintain its status <br />as a nonprofit corporation and that its failure to do so shall be grounds for <br />termination of this Agreement, and acceleration of the Note. <br /> <br />F:Atty/Agr/Agr.083 <br />121002 14 <br /> <br /> <br />