612 Jefferson - Grant of Option to Repurchase and Resale Restriction Agreement Unit 603

Browse Search

5.4 Transfer by Owner. If neither Habitat nor City exercise its Option pursuant to Section 6, Habitat and City shall record and deliver to Owner a notice of waiver of Option pursuant to Section 6.3 below, and Owner may Transfer the Home to an Eligible Household for the then current Affordable Sales Price upon written approval of Habitat and City subject to the terms and conditions set forth in this Agreement, provided any such Eligible Household shall, as a condition of purchase of the Home, be required to execute a Grant of Option to Repurchase and Resale Restriction Agreement on terms similar to this Agreement with a term of fifty-five (55) years, a Homebuyer Deed of Trust for the benefit of City, a HOME Homebuyer Note for the benefit of the City, and a HOME Homebuyer Deed of Trust for the benefit of the City. 5.5 Assignment of Excess Sales Proceeds. If the Home is sold or otherwise Transferred by Owner, or any other party, in violation of this Agreement for more than the Adjusted Purchase Price as defined in Section 6.5, any proceeds of such sale or Transfer in excess of the Adjusted Purchase Price ("Excess Sales Proceeds") shall be deemed assigned to Habitat. Habitat shall be entitled to bring legal action to recover any Excess Sales Proceeds against any party who has received any Excess Sales Proceeds. Habitat's right to receive Excess Sales Proceeds shall be secured by the Habitat Deed of Trust recorded concurrently with this Agreement, and failure to pay such Excess Sales Proceeds shall entitle Habitat to exercise any of its remedies, including the power of sale. There shall be established a lien on the title to the Home so that if such Excess Sales Proceeds are not paid to Habitat, upon its demand, then Habitat has the right to enforce said lien on the Home pursuant to California Civil Code § 2924 et seq. As more particularly set forth in that certain Grant Agreement dated as of February 8, 2021 and executed by and between Habitat and City ("Grant Agreement'), Habitat shall pay to City twenty seven and 77/100 percent (27.77%) of Excess Sales Proceeds it receives, less costs of collection, based upon City's pro rata contribution toward the development cost of the Home taking into consideration the financial contributions of Habitat and other public agencies that have provided financing and that require payment of a share of Excess Sales Proceeds. If the financial contribution to the Project provided by City or other public agencies is modified, the City's share of Excess Sales Proceeds shall be modified accordingly. 6. OPTION. 6.1 Grant of Option. Owner grants to Habitat (and to City if Habitat chooses not to exercise its rights), the right and option to repurchase (or purchase) the Home, upon any proposed Transfer of the Home by Owner (the "Option"). Pursuant to the Option, Habitat, or the City, as applicable, shall be entitled to repurchase (or purchase) the Home for the price established pursuant to Section 6.5 below on the terms and in the manner set forth in this Agreement. Nothing in this Agreement shall constitute a waiver of any due on sale clause or other provisions contained in a deed of trust on the Home, in favor of, or which was authorized by, Habitat. 6.2 Option and Repurchase Period. If Habitat decides to exercise its Option, it shall, within sixty (60) days of receipt of the Transfer Notice (Wabitat Exercise Period,,), notify Owner and City in writing at the addresses listed in Section 10.4 that it chooses to exercise the Option (the "Exercise Notice"). If Habitat exercises its Option, it shall repurchase the Home within sixty (60) days of the date it sends the Exercise Notice. In lieu of purchasing the Home itself, Habitat may assign the Option, in its sole discretion, to the City or another public agency, a nonprofit organization, or another Eligible Household selected by Habitat (a "Designated Purchaser'). If Habitat has elected not to exercise the Option or assign the Option to a Designated Purchaser, Habitat shall inform the Owner and City in writing prior to the expiration of the Habitat Exercise Period. Thereafter, the City shall have the right to exercise the Option for an additional sixty (60) days after receipt of such notice from Habitat (the "City Exercise Period'). If the City decides to exercise its Option, it shall, within the City Exercise Period, notify Owner and Habitat in writing that it chooses to exercise the Option. If the City exercises its Option, it shall purchase the Property within sixty (60) days of the date it sends to Owner and Habitat the notice of exercise. In lieu of purchasing the Property itself, the City may assign the Option, in its sole discretion, to a Designated Purchaser selected by the City. If the City elects not to exercise its Option, or assign the Option to a Designated Purchaser as provided above, then Owner shall have the right to sell the Property to an Eligible Household pursuant to the terms of this Agreement. Upon the sale of the Home to an Eligible Household by Habitat, the City, or Owner, this Agreement shall be terminated and the purchaser of the Property shall be required to execute a new Grant of Option to Repurchase and Resale Restriction Agreement, a new Homebuyer Deed of Trust for the benefit REV: 08-10-22 SK ATTY/AGR.2022.247/Habitat 612 Jefferson 603 (031-10ME - Resale Restriction Agreement 603) (Page 7 of 17)