1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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City may exercise the City Purchase Option Upon Default to purchase the Home pursuant to Section 10 below. B. In the event that the Owner breaches any of the covenants contained in this section and such default continues for a period of ten (10) days after written notice from the City with respect to graffiti, debris, waste material, and general maintenance or thirty (30) days after written notice from the City with respect to landscaping and building improvements, then the City, in addition to whatever other remedy it may have at law or in equity, shall have the right to enter the Home and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City shall be permitted (but is not required) to enter the Home and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas, and to attach a lien on the Home, or to assess the Home, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such cure, which amount shall be promptly paid by the Owner to the City, plus an administrative charge equal to fifteen percent (15%) of the cost of such work upon demand. C. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Home (adjusted every five (5) years by appraisal, if requested by City), naming the City as an additional insured and loss payee. Additional insurance requirements are set forth in Section 3 of the City Deed of Trust. 6. TRANSFER AND SALE RESTRICTIONS A. Transfer. Any Transfer of the Home will be subject to the provisions of this Agreement including, without limitation, exercise of the City Option pursuant to Section 10 below. "Transfer" shall mean any sale, assignment or transfer, voluntary or involuntary, of any interest in the Home, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, a leasehold interest, an interest evidenced by a land contract by which possession of the Home is transferred and Owner retains title, or a deed of trust. Any Transfer without satisfaction of the provisions of this Agreement is prohibited, and shall constitute a default for which the City may exercise the City Purchase Option on Default pursuant to Section 16 below. A Transfer shall not include a transfer: (i) by the Owner to a spouse or Domestic Partner where the spouse or Domestic Partner becomes the co-owner of the Home; (ii) between spouses as part of a marriage dissolution proceeding; (iii) to an existing spouse or Domestic Partner of Owner by devise or inheritance following the death of Owner; (iv) by Owner into an inter vivos trust in which Owner is the beneficiary; (v) by deed of trust or imposition of a lien subordinate to the Deed of Trust or (vi) refinance of the First Lender meeting the requirements of Section 25 of this Agreement; provided, however, that Owner shall provide written notice of all such transfers to City pursuant to Section 7 below; and Owner shall continue to occupy the Home as his or her principal place of residence (except where the transfer occurs pursuant to subsection (ii) or (iii) above, in which event the transferee shall owner -occupy the Home and affirmatively assume Owner's obligations under this Agreement. For the purposes of this Section 6, "Domestic Partner" shall be as defined in Section 297 of the California Family Code or successor provision. An individual shall be considered a Domestic Partner of Owner upon presentation of the Declaration of Domestic Partnership filed with the California Secretary of State. REV: 06-30-22 SK ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 7 of 40)