1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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income for an Eligible Purchaser; (2) the certifications required of an Eligible Purchaser: and (3) the Maximum Allowable Sales Price for the Home, calculated by the City in accordance with Exhibit B of this Agreement. Owner shall acknowledge receipt of the First City Response Notice in the form attached hereto and incorporated herein as Exhibit E. A. City Exercise of City Purchase Option. The First City Response Notice may notify the Owner that the City or an Eligible Purchase selected by the City ("City Designated Purchaser") elects to exercise the City Option to purchase the Home, which City Option shall proceed as set forth in Section 10 of this Agreement. The First City Response Notice shall include the City's calculation of the (i) Maximum Allowable Resale Price to be paid by the City or a City Designated Purchaser, calculated by the City in accordance with Exhibit B of this Agreement; and (ii) the transaction fee to be paid by the Owner pursuant to Section 10 below. B. Owner Sale at a Restricted Sales Price to Eligible Purchaser. Alternatively, the First City Response Notice may notify the Owner that the City or a City Designated Purchaser will not exercise the City Option to purchase the Home. Upon receipt of such notice, the Owner may proceed to sell the Home to an Eligible Purchaser at a price not to exceed the Maximum Allowable Resale Price pursuant to the procedure set forth in Section 9 below. In this event, the First City Response Notice shall include the following information: (1) the maximum qualifying income for an Eligible Purchaser; (2) the certifications required of an Eligible Purchaser; and (3) the Maximum Allowable Resale Price the Owner may receive for the Home, calculated by the City in accordance with Exhibit B of this Agreement. 9. SALE OF HOME TO ELIGIBLE PURCHASER AT RESTRICTED PRICE Following receipt of the First City Response Notice notifying the Owner of the Maximum Allowable Sales Price, the Owner may proceed to sell the Home in compliance with the following requirements: A. Marketing Period. The Owner shall have two hundred forty (240) days from the date of the First City Response Notice (the "Marketing Period") to market the Home and find an Eligible Purchaser. During the Marketing Period, the Owner shall use bona fide good faith efforts to sell the Home to an Eligible Purchaser in compliance with this Section 11, including listing the Home on the Multiple Listing Service, keeping the Home in an orderly condition, making the Home available to show to agents and prospective buyers, and providing buyers with Eligible Purchaser requirements, including income qualifications and the City's form of disclosure statement summarizing the terms of the buyer's Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase that will have to be executed by a Proposed Purchaser. A proposed purchaser ("Proposed Purchaser"), who the Owner believes will qualify as an Eligible Purchaser, shall be referred to the City for an eligibility determination. B. Local Preference. In selecting a Proposed Purchaser, to the extent permitted by applicable law including fair housing laws, Owner shall grant a preference to purchase the Home to Eligible Purchasers (as defined below) who (1) are displaced by any activity (including the exercise of police powers and code enforcement) of the City or as provided in I•MTKIElXillPM 1 ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 10 of 40)