1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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B. Inheritance. In the event a Transfer occurs by devise or inheritance due to death of the Owner, the administrator of the Owner's estate or the person inheriting the Home shall provide written notice to the City of the Owner's death within thirty (30) days of the date of death and the following procedures shall apply: (1) The person inheriting the Home (the "Inheriting Owner") shall provide the City with income information, to be verified by the City, so that the City may determine if the Inheriting Owner is an "Income Eligible Household." The Inheriting Owner shall be an Income Eligible Household if at the time the Inheriting Owner takes possession of the Home, his or her household is in the same Income Category as Owner as set forth on page 1 of this Agreement. If the Inheriting Owner fails to provide required financial information and/or documentation within thirty (30) days of taking possession of the home, he or she shall be deemed not to qualify as an Income Eligible Household. If the Inheriting Owner qualifies as an Income Eligible Household, he or she shall succeed to the Owner's interest and obligations under this Agreement and the City Deed of Trust, provided that, unless the Inheriting Owner is a surviving spouse or Domestic Partner, the Inheriting Owner shall sign a new buyer's Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase restricting future resale with a new forty-five (45) year Term, and a new City Deed of Trust. In the event the Inheriting Owner is a surviving spouse or Domestic Partner, that Inheriting Owner shall enter into a new buyer's Occupancy, Refinancing, and Resale Restriction Agreement with Option to Purchase restricting future resale that will remain in effect for the remainder of the Term of this Agreement, and a new City Deed of Trust. The new documents shall be executed between the Inheriting Owner and the City and recorded against the Home. If the Inheriting Owner fails to qualify as an Income Eligible Household, he or she shall be required to Transfer the Home to an Eligible Purchaser at a price not exceeding the Maximum Allowable Resale Price, pursuant to the procedures set forth in Sections 7 through 13 below and the City may exercise the City Option pursuant to Section 10 below, and must provide the City with Owner's Notice of Intent to Transfer within sixty (60) days of taking possession of the Home. The Inheriting Owner may own and occupy the Home while conducting the resale process in accordance with Sections 7 through 13, provided that the Inheriting Owner remains in compliance with the requirements of this Agreement and the City Deed of Trust. The Inheriting Owner shall not be required to occupy the Home during this time period, but shall not rent the Home except as provided in Section 3B above. (2) Failure of an Inheriting Owner to follow the procedures and file the notices described in this Section 6 shall constitute a Default under this Agreement and the City may then exercise any of the remedies set forth in Section 15 below, including, without limitation, exercise of the City Purchase Option upon Default. 7. NOTICE OF INTENDED TRANSFER; PREPARATION OF HOME FOR SALE A. In the event the Owner intends to transfer (including without limitation all "Transfers" as defined in Section 6) or vacate the Home, the Owner shall promptly give the City written notice of such intent (the "Owner's Notice of Intent to Transfer") in the form shown in the attached Exhibit D. The Owner shall give the City the Owner's Notice of Intent to Transfer prior to notifying real estate brokers or lenders of Owner's intent to REV: 06-30-22 SK ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 8 of 40)