RecDoc 2010-115130 (2) - Laserfiche WebLink

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Section 2. Sale of Affordable Homes. 2.1 Expiration of Affordable Offer Period. As used in this Affordable Housing Plan, "offer for sale" means that a home will be listed on the Multiple Listing Service at the applicable Affordable Sales Price and disclosing the required affordable housing deed restriction and other applicable terms and requirements for a period of six (6) months (the "Affordable Offer Period "). If any home listed on the Multiple Listing Service at an Affordable Sales Price has not been sold to an Eligible Purchaser and an affordable housing deed restriction placed on same during the Affordable Offer Period, then upon the expiration of the Affordable Offer Period, Developer may sell such home as a "Converted Home" at market -rate and without any affordable housing deed restrictions, and upon payment of the applicable fee pursuant to Section 2.4 below, the number of Required On -Site Affordable Homes shall be reduced by the number of Converted Homes. For purposes of this Affordable Housing Plan "sold" shall mean that a sales transaction has occurred and relative to that transaction "close of escrow" has been completed. 2.2 City Right of First Offer The City shall have a right of first offer to purchase the On -Site Affordable Homes at the Affordable Sale Price as specified in the Multiple Listing Service in accordance with Section 2.1 above. Any exercise of such right shall be by written notice to Developer. The City's right of first offer shall be tendered to the Developer by the end of the Affordable Offer Period, thereby beginning a 45 -day "Commitment Period", within which time the City and the Developer shall negotiate in good faith on terms and conditions for a sale. In the event agreement is ratified by the City Council and the Developer by the end of the Commitment Period, a second, 90 -day "Closing Period" shall commence. The City's right of first offer shall terminate with respect to each On -Site Affordable Home if title to such home has not been transferred to City or City's assignee by the date which is the earlier of (i) 135 days following the end of the Affordable Offer Period, or (ii) 180 days following issuance of a certificate of occupancy for the home. Each home transferred to City or City's assignee pursuant to this Section 2.2 shall be counted toward satisfaction of Developer's obligation to provide On -Site Affordable Homes. Neither City's nor City's assignee's delay or failure to complete any purchase of an On -Site Affordable Home shall operate to extend the Closing Period unless Developer so agrees in writing in the exercise of Developer's sole discretion. If the City exercises its right of first offer to purchase one or more On -Site Affordable Homes, but escrow fails to close for the purchase of any such home within the period specified in this Section, then: (i) such unsold homes shall be considered Converted Homes that Developer may sell at market rate and without any affordable housing deed restrictions, (ii) the number of Required On -Site Affordable Homes shall be reduced by the number of such Converted Homes, and (iii) Developer shall not be obligated to pay the fee specified in Section 2.4 for such Converted Homes. 2.3 Developer's Right to Extend Affordable Offer Period In the exercise of Developer's sole discretion, Developer shall have the right to extend the Affordable Offer Period for each On -Site Affordable Home in ninety (90) day increments (each an S:ATTY /AGR/2010.111 EXHIBIT 2 2 9/28/10