AgdaPkt 2021.02.08 Joint SA PFA - Laserfiche WebLink

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6.B. - Page 71 of 113 It shall be the obligation of Owner to establish by sufficient evidence that any improvements are a Qualifying Improvement and the value thereof Habitat shall have the right to determine the value of any Qualifying Improvement in its sole and absolute discretion Further, in establishing any value of a Qualifying Improvement, Habitat shall have the right to consider any damage to capital improvements in the Home, and may offset the sale price of the Home by the reasonable cost of repair on such damage In order to be deemed a Qualifying Improvement, each improvement must satisfy the following qualifying criteria: (a) The cost of the improvement must exceed one percent (1%) of the Original Purchase Price; (b)The improvements must have a remaining expected useful life of at least five (5) years beyond the completion of the proposed transfer; (c)Owner shall present substantiating documentation showing the original cost of materials and the original cost of labor for the improvement, and the date of its installation as well as proof of payment; and (d) A Qualifying Improvement must add value to the home in the context of affordable housing, such as the addition of living space Upgrades to cabinetry, flooring, countertops, fixtures and landscaping are not considered capital improvements in this context. 6.6 Distribution of Sales Proceeds. In the event of a resale, closing and title insurance costs will be paid pursuant to the custom and practice in San Mateo County, California at the time of the closing of escrow The Owner shall bear the expense of providing a current written report of an inspection by a licensed structural pest control operator All work recommended in said report to repair damage caused by infestation or infection of wood -destroying pests or organisms found and all work to correct conditions that caused such infestation or infection shall be done at the expense of the Owner Upon the close of escrow, Owner shall receive the sale proceeds minus any closing costs that are the responsibility of the seller, any Transfer Fees due to Habitat, if applicable, and the amount necessary to remove any liens on the Home, including any outstanding mortgage balances secured by the Home The Owner shall not be entitled to receive any compensation for the value of Owner's "sweat equity" contribution toward the construction of the Home The Owner shall be entitled to receive the return of Owner's down payment and the cost of Qualifying Improvements 6.7 Sale of Home by Owner if Neither Habitat nor the City Exercise Option. In the event that neither Habitat nor City elects to purchase the Home pursuant to the Option, Owner may sell the Property directly to an Eligible Household at an Affordable Sales Price as determined in accordance with the Regulatory Agreement, taking into account any deferred financing that may be assumable by the Eligible Household purchasing the Home Excess Sales Proceeds received by the Owner from the sale of the Home shall be paid to Habitat at close of escrow and distributed by Habitat in accordance with Section 5 5 above. The purchaser of the Home 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 7. DEFAULT AND REMEDIES. 7.1 Events of Default. Failure or delay by Owner to honor or perform any material term or provision of this Agreement, the Habitat Deed of Trust, or the Habitat Note, or Owner's default under any Approved Junior Lien, including without limitation, the Homebuyer Deed of Trust executed for the benefit of City, shall constitute an "Event of Default' under this 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 67 of 109) M