Laserfiche WebLink
<br />C. USE <br /> <br />Contractor shall use the Property exclusively for special needs transitional housing. If <br />Contractor discontinues the above-stated use at the subject Property, or uses the <br />Property or any portion thereof, for purposes other than what has been described in this <br />Paragraph without first obtaining the prior written consent of the City, Contractor shall be <br />in default of this Agreement and agrees to pay the City, upon demand, the full amount of <br />CDBG/HOME funds provided to assist in the acquisition of this property plus any <br />accrued equity based on the prorated City share of the CDBG/HOME funds on the then <br />current Fair Market value of the Property, provided however, that Contractor shall have <br />Thirty (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 Section 5, <br />above) shall remain in full force and effect for the term of (55 years) regardless of <br />whether the Beneficiary's mortgage is paid off before its maturity date. <br /> <br />D. NONPROFIT STATUS OF CONTRACTOR <br /> <br />Contractor agrees to maintain its status as a nonprofit corporation and that its failure to <br />do so shall be grounds for termination of this Agreement, and acceleration of the Note. <br /> <br />E. TITLE POLICY <br /> <br />Contractor shall, at its own cost, secure at the close of escrow the issuance of a policy of <br />title insurance in the amount of the purchase price, clear of any title defects which would <br />prevent the operation of the proposed project. Contractor shall pay all recording fees, <br />escrow fees, the premium for the title insurance policy, all fees and cost for any new <br />financing, and shall pay any applicable transfer taxes. <br /> <br />F. BREACH OF CONTRACT <br /> <br />Applicable federal statutes and regulations, as referred to elsewhere herein govern this <br />Agreement. Any material deviation by Contractor for any reason from the requirements <br />thereof, or from any other provision of this Agreement, shall constitute a breach of this <br />Agreement and may be cause for termination at the election of City or upon the direction <br />of HUD. City may terminate this Agreement for cause after giving Contractor notice of <br />any breach or default and 30 days to cure said breach or default, provided however, that <br />in the event such breach or default cannot be cured within 30 days, Contractor shall <br />have such additional time to cure said default as is reasonably required provided that <br />Contractor has commenced to cure within the initial 30 day period and is diligently <br />prosecuting the cure. In the event of termination by whatever means, all finished and <br />unfinished work shall become the property of City, and the City shall have the right to <br />direct Contractor's actions with respect to access to materials. <br /> <br />City reserves the right to waive any and all breaches of this Agreement, and any such <br />waiver shall not be deemed a waiver of all previous or subsequent breaches. In the <br />event City chooses to waive a particular breach of this Agreement, it may condition <br />same on payment by Contractor of actual damages occasioned by such breach of <br />Agreement and shall make every effort to resolve the same quickly and amicably. <br /> <br />ATTY/AGR/2008.072 <br />081108 <br /> <br />4 <br />