Agmt97 CDBG Pen. Habitat for Hu - Laserfiche WebLink

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other encumbrance is and shall be deemed to be null and void and shall not entitle any party to any rights, title or claim to or against the title to the Property. THEREFORE, the Property shall be held and sold by Grantee only to persons who qualify as Eligible Households as hereinat~er provided and defined, and the sale conveyance and/or transfer of the Property shall be made only by and pursuant to documents that restrict the future sale, transfer granting or encumbrance of the Property in a manner that provides the following: 1. The Grantee shall sell, transfer and convey the Property only to Eligible Households under the terms and conditions herein stated. 2. As the sale, conveyance or other transfer of the Property by the Owner thereof; or the further 6ncumbering of any Property, is contrary to the purpose and intention of the making available the Property to persons who qua/ify as Eligible Households affordable ownership housing, and the sale, transfer, conveyance, or further encumbrance thereof; will frustrate the basic purposes for which the Property was sold to the Owner, in the event that any Owner or other party should sell, convey, or otherwise transfer the Property or make, execute, deliver and/or record any mortgage, deed of trust, lien or other encumbrance or lien against the title of Property, other than the first deed of trust which constitutes the Habitat Loan, except as expressly otherwise permitted hereunder, such sale, conveyance or other transfer or mortgage, deed of trust, lien or other encumbrance or lien is and shall be deemed to be null and void and shall not entitle any party to any fights, title or claim to or against the title to the Property. 3. Each deed from Grantee to a purchaser who is a Eligible Household shall be expressly made subject to an Addendum to Grant Deed with Power of Termination (the Eligible Household Purchase Addendum), in form and content approved by Grantor, which provides that: a. Power of Termination. The establishment and preservation of'housing for persons who qua~%, as Eligible Households is the main and substantial purpose of Grantee ("Habitat"). It is not the intention of Habitat to provide housing ownership whereby persons will acquire an equity ownership in the manner that would provide any owner with any right to receive a profit upon the resale of the housing so provided by Habitat. Therefore, the Eligible Household Purchase Addendum shall provide that Habitat, or the City of Redwood City, if lgabitat chooses not to exercise its rights, with a right to repurchase the Property should the owner decide to sell or otherwise transfer the Property. Should the owner or any other party fall to comply with the provisions of the Eligible Household Purchase Addendum, then the Eligible Household Purchase Addendum shall provide that Habitat has a right and power of termination of the estate and title granted by the Grant Deed to which the Eligible Household Purchase Addendum is attached. b. Occupancy and Ownership Restricted to Elieible Ffouseholds. During the term of the Eligible Household Purchase Addendum, the owner of the Property must 2