1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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Agreement or of the City Deed of Trust until the Excess Sales Proceeds are paid to the City. The City shall utilize the Excess Sales Proceeds for City affordable housing programs. The Owner and the City acknowledge that the formula for calculation of the amount of Excess Sales Proceeds due from the Owner to the City is intended to cause the Owner to receive the same net sales proceeds (following payment by Owner of a standard broker's commission) from sale of the Home at an unrestricted price to an Market Purchaser as the Owner would receive from sale of the Home to the City or to an Eligible Purchaser at the Maximum Allowable Sales Price. 13. DEFAULTS A. The following events shall constitute a Default by the Owner under this Agreement: (1) The City determines that the Owner has made a misrepresentation to obtain the benefits of purchase of the Home or in connection with its obligations under this Agreement; (2) The Owner fails to occupy the Home, as required pursuant to Section 3 above, and such failure continues following written notice by the City and sixty (60) days opportunity to cure following the date of such notice; (3) The Owner rents the Home in violation of Section 3B above, and such failure continues following written notice by the City and sixty (60) days' opportunity to cure; (4) The Owner fails to provide information to the City necessary to determine Owner's compliance with the requirements of this Agreement; (5) The Owner makes a Transfer in violation of this Agreement; (6) The Owner otherwise fails to comply with the requirements of this Agreement and such violation is not corrected to the satisfaction of the City within ten (10) days after the date of written notice by the City to the Owner of such violation; (7) A notice of default is issued under the First Lender Loan or other financing secured by the Home; (8) A lien is recorded against the Home other than the lien of a bona fide mortgage loan; (9) Owner places a mortgage on the Home in violation of Section 23 below; (10) Owner declares bankruptcy or makes an assignment of assets for the benefit of creditors; or (11) Owner defaults under the City Deed of Trust. I:i�RGY.!€I�bxi.1: ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 15 of 40)