1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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F. Failure To Locate Eligible Purchaser: Notice to Citv. If, despite bona fide good faith marketing efforts, the Owner is unable to locate an Eligible Purchaser satisfactory to City during the Marketing Period and any extensions to the Marketing Period granted by the City, the Owner shall provide written notice to the City of this fact (the "Owner's Notice of Failure to Locate Eligible Purchaser"). Within thirty (30) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser, the City shall provide a second response notice to the Owner (the "Second City Response Notice") stating either (1) that the City will exercise the City Option to purchase the Home pursuant to Section 12 below, or (2) that the Owner may Transfer the Home to a person of the Owner's choosing (a "Market Purchaser") who is not an Eligible Purchaser, at fair market value of the Home without the restrictions set forth in this Agreement, supported by an MAI or other qualified appraisal (the "Unrestricted Fair Market Value"), but shall pay all Excess Sales Proceeds to the City as set forth in Section 10 below. 10. CITY PURCHASE OPTION A. Exercise of Option. If the Owner desires to Transfer or vacate the Home during the Term of this Resale Agreement but fails to locate an Eligible Purchaser to purchase a Home at or below the Maximum Allowable Sales Price, the City shall then have the option to purchase the Home (the "City Option") for the City Option Purchase Price, as defined below. The City Option may be exercised by the City in the First City Response Notice (as described in Section 8A) or in the Second City Response Notice (as described in Section 9E above), to be sent by the City to the Owner within thirty (30) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser. If the City exercises the City Option, the City shall purchase the Home within ninety (90) days of the date of the City notice to exercise the City Option. The City may, instead of purchasing the Home itself, assign its right to purchase the Home pursuant to the City Option to another public agency, a nonprofit corporation, or to an Eligible Purchaser. In the event of exercise of the City Option and purchase of the Home by the City or its designee, the Owner shall permit a final walk-through of the Home by the City in the final three (3) days prior to close of escrow on the Transfer. B. City Option Price. If the City exercises the City Option, the purchase price to be paid by the City shall be the Maximum Allowable Sales Price, calculated in accordance with Exhibit B of this Resale Agreement. 11. UNRESTRICTED SALES If the Second City Response Notice or other City notice states that the City will not exercise the City Option or the City or its designee fails to purchase the Home within ninety (90) days following the date of the City notice to exercise the City Option, the Owner may proceed to Transfer the Home to a Market Purchaser for Unrestricted Fair Market Value of the Home (supported by an MAI or other qualified appraisal). In the event that the Owner Transfers the Home to a Market Purchaser, the Owner shall pay all Excess Sales Proceeds to the City as set forth in Section 12 below. If the Owner Transfers the Home pursuant to this Section 11, the Market Purchaser shall not be required to execute a buyer's Occupancy, Refinancing, and Resale Restriction REV: 06-30-22 SK ATTY/AGR.2022.166/Hugo Alberto Zaroo Vargas & Andrea Vergara Cardenas (Page 13 of 40)