1231 Warren - Notice of Affordability

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Legal Description of Property: See Exhibit A (Attached hereto) Assessor's Parcel Number of Property: 113-330-010 Summary of Affordable Housing Restrictions: • The Affordable Housing Restrictions restrict the sales price which may be charged for the sale of the ownership housing unit on the Property, as follows: The Property may only be sold to an Eligible Purchaser at the Maximum Allowable Sales Price. An "Eligible Purchaser" is a household of lower-income, whose income does not exceed 80% of area median income, as adjusted for family size appropriate to the unit. The "Maximum Allowable Resale Price" is a price that allows an Eligible Purchaser to buy the Property at an "affordable ownership cost" as defined in Section 29.2 of the Redwood City Zoning Code. • The Affordable Housing Restrictions restrict the income level of the buyer of the Property, as follows: The Property may only be sold to households of lower-income, whose income does not exceed 80% of area median income, as adjusted for family size appropriate to the unit. "Area Median Income" means the median income for households in San Mateo County, California, as published from time to time by the United States Department of Housing and Urban Development ("HUD") in a manner consistent with the determination of median gross income under Section 8 of the United States Housing Act of 1937, and California Health and Safety Code Section 50093. • The Affordable Housing Restrictions also provide that the City has an option to purchase the property at the Maximum Allowable Resale Price at the time the owner first notifies the City of their intent sell the Property, and in the event the City does not initially exercise its option, and the owner cannot sell the Property to an Eligible Purchaser at the Maximum Allowable Resale Price, the City or a purchaser designated by the City will again have an option to purchase the property at the Maximum Allowable Resale Price following notification of the owner's inability to sell the Property. • Term of Restrictions: 45 years, commencing on (date of recordation of the Affordable Housing Restrictions) and terminating on (45 years after the date of recordation). Affordable Housing Restrictions may be terminated and the owner may be able to sell the Property at an unrestricted price prior to the end of the 45 year term in the event that the owner of the Property is unable to sell the Property to an Eligible Purchaser at the Maximum Allowable Sales Price and the City does not exercise its option, provided that 90% of all "Excess Proceeds" (as defined in the Affordable Housing Restrictions) in excess of the Maximum Allowable Sales Price shall be paid to the City. REV: 07-07-22 SK ATTY/AGR.2022.170/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (1231 Warren, #105) (Page 2 of B)