Agmt21 Home Program Affordable Housing Regulatory

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Department of Housing and Urban Development (HUD) pursuant to Title II of the National Affordable Housing Act of 1990. Owner has executed a promissory note in the amount Dollars ($ ) in favor of the City to evidence its share of the HOME Funds (the "HOME Homebuyer Note"), which is secured by a deed of trust on the Home executed by the Owner in favor of the City (the "HOME Homebuyer Deed of Trust"). H. Owner's title to the Home is subject to this Agreement and the "Power of Termination" as set forth in that certain Grant Deed with Power of Termination conveying the Home from Habitat to Owner (the "Grant Deed') whereby Habitat has a right and power to terminate the estate and title granted to Owner should Owner or any other party fail to comply with the provisions of this Agreement. This Agreement restricts the occupancy and resale of the Home in consideration of the economic benefits to Owner resulting from the Owner purchasing the Home at a price substantially below the market rate price of a comparable home and with financing provided by Habitat on more favorable terms than market rate financing. Specifically, this Agreement grants Habitat and the City an option to purchase the Home at a restricted price, requires that the Home be transferred only to an Eligible Household (as defined below), and requires that Owner pay Excess Sales Proceeds (as defined below) in the event Owner sells the Home in violation of this Agreement. J. The City provided certain grants and below market -rate financing to subsidize the cost of development of the Home, and Owners execution and recordation of this Agreement, the HOME Homebuyer Note, the HOME Homebuyer Deed of Trust, and the Homebuyer Deed of Trust (defined below) are requirements of such financing. AGREEMENT NOW, THEREFORE, Owner and Habitat hereby covenant and agree for themselves, their successors and assigns as follows: 1. DEFINITIONS. As used in this Agreement, the following words and terms shall have the meaning as provided in the Recitals or in this Section 1 unless the specific context of usage of a particular word or term may otherwise require: "Adjusted Household Income" means the Gross Income as defined in California Code of Regulations Title 25 Section 6914 of each individual or family residing in the Home, as adjusted based upon household size in accordance with the household income adjustment factors pursuant to California Code of Regulations Title 25 Section 6914, as amended, or in the event that this regulation is no longer published or is no longer applicable, any other appropriate adjustment factors as reasonably determined by Habitat and City. "Adjustment Period" is defined in Section 6.5. Affordable Housing Cost- means a monthly obligation to pay mortgage payments (principal and interest), property taxes, property insurance, mortgage insurance (if required by mortgage lender), utilities, and homeowners' association dues (if applicable) in an aggregate amount not greater than one -twelfth of thirty percent (30%) of household Gross Income. For the purpose of calculating Affordable Housing Cost, mortgage payments that the homeowner is required to pay on a current basis are included, but "silent" mortgages that do not require payment of principal and interest are excluded. Affordable Sales Price" means the sale price that will result in an Affordable Housing Cost to the homebuyer, as more particularly defined in the Regulatory Agreement. SF #4815-2365-6406 v1 REV: 05-19-20215K