AgdaPkt 2011-09-19 - Laserfiche WebLink

Browse Search

6. 1. D. - Page 27 Article III Owner - Occupied Affordability Covenants Section 3.01 Transition to Owner - Occupied Units Upon conversion of the Project from a rental complex to an owner - occupied complex, the Rental Affordability Covenants Term shall expire and the Owner - Occupied Affordability Covenants Term shall commence. Upon sale of the Affordable Units to Qualified Buyers, each Qualified Buyer shall enter into a Resale Restriction Agreement and Option to Purchase with the City in substantially the same form as Exhibit "B" attached hereto and incorporated herein by this reference (the "Resale Restriction Agreement "). Section 3.02 Owner - Occupied Affordability Covenants During the Owner - Occupied Affordability Covenants Term, Declarant covenants that the Affordable Units shall be maintained as follows (the "Owner- Occupied Affordability Covenants "): the Affordable Units shall be sold to, owned, occupied and maintained affordable to persons and families of low or moderate - income, earning not more than one hundred twenty percent (120 %) of HUD's Area Median Income for San Mateo County ( "AMI "), as adjusted from time to time ( "Qualified Buyers ") during the Owner - Occupied Affordability Covenants Term. Qualified Buyers income shall be calculated on the basis of their "Gross Income ", as defined under Title 25, Section 6914, of the California Code of Regulations, as amended from time to time. In order to ensure compliance with this Declaration in connection with the sale and transfer of each Affordable Unit, Declarant and its successors shall obtain a copy of each prospective purchaser's federal income tax return for the taxable year immediately preceding the proposed purchase of an Affordable Unit and current income information such as wage statements or, if the prospective purchaser certifies and declares under penalty of perjury that he or she did not file a federal tax return, other evidence of Gross Income for such year acceptable to the City in its sole discretion and current income information such as wage statements, to substantiate that the prospective purchaser meets the eligibility requirements of Qualified Buyers. In the event the City is unable to make a determination that a prospective buyer is a Qualified Buyer based upon the information provided, the prospective purchaser shall be determined not to meet the requirements of Qualified Buyers and shall be disqualified from purchase. Section 3.03 Term of Owner - Occupied Affordability Covenants Declarant hereby agrees that the Owner - Occupied Affordability Covenants as described in Section 3.02, above, shall be effective as of the expiration of the Rental Affordability Restrictions, and shall remain in effect until the forty -fifth (45 anniversary of said date (the "Owner- Occupied Affordability Covenants Term "). REDW\0001 \DOC \022 -4. DOC 6/3/09 1200 HvT i u