1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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Encumbrance Amount complies with this paragraph. A form of Refinance Request Notice for use by the Owner is attached hereto as Exhibit F. As part of its Refinance Request Notice, the Owner shall provide to the City a copy of the HUD -I Settlement Statement. C. Refinance of First Lender Loan. The City shall permit and approve a prepayment and refinance of the existing First Lender Loan and shall provide for the subordination of this Agreement and the City Deed of Trust to the refinanced First Lender Loan only if such refinance does not cause the total debt secured by the Home, including junior mortgage loan and equity lines of credit, to exceed the Permitted Encumbrance Amount. The City will not approve any mortgage loan, which includes negative amortization. D. Junior Loans and Equity Lines of Credit. Mortgage loans or equity lines of credit junior in lien priority to this Agreement and the City Deed of Trust are not permitted, except as when expressly approved by the City in writing. The City shall only approve junior mortgage loans or equity lines of credit which will not cause the total of all debt secured by the Home (calculated assuming a maximum permitted draw on any equity line of credit) to exceed the Permitted Encumbrance Amount. The City will not approve any mortgage loan or equity line of credit, which includes negative amortization. E. Request for Notice of Default. Any time an Owner enters into a new mortgage loan, including junior mortgage loans and equity lines of credit, the Owner shall cause to be recorded against the Home a request for notice of default, providing for notice of default under such loan to be delivered to the City. F. Purpose of Restrictions on Refinance and Junior Loans. The City and the Owner agree that the requirements of this Section 23 are necessary to ensure the continued affordability of the Home to Owner and to minimize the risk of loss of the Home by Owner through default and foreclosure of mortgage loans. Owner further acknowledges that violation of the provisions of this Section 23 shall constitute a Default under this Agreement for which the City may exercise the City's option upon default pursuant to Section 16 above. 24. NONDISCRIMINATION The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Home, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Home. The foregoing covenant shall run with the land. 25. MONITORING AND INSPECTION BY CITY A. The City (or its designee) may enter the Home for inspection following two (2) business days advance written notice. REV: 06-30-22 SK ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 20 of 40)