AgdaPkt 2021.02.08 Joint SA PFA - Laserfiche WebLink

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6.B. - Page 70 of 113 the Option If the City exercises its Option, it shall purchase the Property within sixty (60) days of the date it sends to Owner and Habitat the notice of exercise. In lieu of purchasing the Property itself, the City may assign the Option, in its sole discretion, to a Designated Purchaser selected by the City If the City elects not to exercise its Option, or assign the Option to a Designated Purchaser as provided above, then Owner shall have the right to sell the Property to an Eligible Household pursuant to the terms of this Agreement. Upon the sale of the Home to an Eligible Household by Habitat, the City, or Owner, this Agreement shall be terminated and the purchaser of the Property shall be required to execute a new Grant of Option to Repurchase and Resale Restriction Agreement and a new Homebuyer Deed of Trust for the benefit of City. If either the City or Habitat assigns its option to a Designated Purchaser, the Designated Purchaser, as a condition of purchasing the Property, shall be required to execute a Grant of Option to Repurchase and Resale Restriction Agreement on terms similar to this Agreement and a Homebuyer Deed of Trust for the benefit of City. 6.3 Effect of Failure to Record Waiver. If neither Habitat northe City elect to exercise the Option, Habitat shall deliverto Owner, a notice of waiver (the "Waiver Notice') within sixty (60) days afterthe earlier of (i) receipt from the City of notice of City's election not to exercise the Option, and (ii) expiration of the City Exercise Period, and shall record such Waiver Notice in the Official Records of San Mateo County; provided however, any subsequent purchaser of the Property from the then -record owner of the Property must be an Eligible Household, the Property must be sold at the Affordable Sales Price, and as a condition of purchase of the Property, the Eligible Household purchasing the Property shall be required to enter into a Grant of Option to Repurchase and Resale Restriction Agreement on terms substantially similar to the terms of this Agreement and a Homebuyer Deed of Trust for the benefit of City. The Waiver Notice shall not constitute a waiver of any other future Transfer of the Home. If the Waiver Notice is not recorded, it shall be presumed that the Option has not been waived 6.4 Resale by Habitat or City. If Habitat or City exercises the Option, Habitat or the City shall sell the Home to an Eligible Household selected by Habitat or City at an Affordable Sales Price as defined in the Regulatory Agreement. The Eligible Household acquiring the Home from Habitat or the City shall, as a condition of acquisition of the Home, be obligated to enter into a Grant of Option to Repurchase and Resale Restriction Agreement on terms substantially similar to the terms of this Agreement with a term of fifty-five (55) years and a Homebuyer Deed of Trust for the benefit of City 6.5 Sales Price. The sale price for the repurchase (or purchase) of the Home by Habitat, or the City shall be the lesser of: (A) the fair market value of the Home as determined by an appraisal taking into consideration the affordability restrictions applicable to the Home ("Fair Market Vaiue'�, less the cost to cure any outstanding impounds, liens, fines, or delinquent payments and the reasonable cost to repair any damage to the Home, as determined by Habitat or the City, as applicable, and (B) the Adjusted Purchase Price, calculated as set forth in this Section The "Adjusted Purchase Price" means the Original Affordable Sales Price adjusted by the value of Qualifying Improvements (as defined in Section 6 5 1 below) If there are any Qualifying Improvements, such shall be added, and the reasonable cost to repair any damage to the Property or cure any outstanding impounds, liens, fines, or delinquent payments, as determined by Habitat or the City, as applicable, shall be deducted. 6.5.1 Qualifying Improvements. A "Qualifying Improvement' shall be any capital improvement, as opposed to repairs and maintenance, made to the Home by Owner, which satisfies all the criteria set forth below The value of the Qualifying Improvements shall be limited to a total of ten percent (10%) of the Original Purchase Price The value of the Qualifying Improvements shall be the sum equal to the original cost of materials and labor prorated over the remaining useful life of the improvements REV: 01-22-21 PR 1619\01\2521032. 1 10/9/2020 OAK #4834-0642-2484 Q ATTY/AGR.2020.305/Habitat for Humanity Greater San Francisco (Grant Agreement w/ Exhibits) (Page 66 of 109) RE