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6. 1. D. - Page 40
<br />Safety Code sections 50052.5 and 50093, respectively (each, an "Affordable Unit" and
<br />collectively, the "Affordable Units ") for a period of forty -five (45) years; and
<br />WHEREAS, Owner is a Qualified Buyer, as that term is hereinafter defined, and
<br />thereby eligible to occupy an Affordable Unit; and
<br />WHEREAS, the purpose of this Resale Agreement is to place adequate controls
<br />on the Affordable Units, provide eligibility requirements for subsequent purchasers, and
<br />reserve unto the City an option to purchase the Subject Affordable Unit, as that term is
<br />hereinafter defined.
<br />NOW THEREFORE, Owner declares that the Subject Affordable Units described
<br />herein below is held and will be held, transferred, encumbered, used, sold, conveyed,
<br />leased and occupied subject to the covenants, restrictions and limitations set forth in
<br />this Resale Restriction Agreement and Option to Purchase (the "Resale Agreement "),
<br />all of which are in accordance with the requirements of the Precise Plan. All of the
<br />restrictions, covenants and limitations will run with the land and will be binding on all
<br />parties having or acquiring any right, title or interest in the Subject Affordable Unit
<br />described below, or any part thereof, and to any improvements related thereto, and will
<br />inure to the benefit of the City. Each grantee of a conveyance or purchaser under a
<br />contract or agreement of sale covering any right, title or interest in any part of the
<br />Subject Affordable Unit, by accepting a deed or a contract of sale or agreement of
<br />purchase, accepts the Subject Affordable Unit, subject to, and agrees to be bound by all
<br />of the restrictions, covenants and limitations set forth in this Resale Agreement.
<br />1 Capitalized Terms and._..Definitions All capitalized terms not otherwise
<br />defined herein shall have the same meaning ascribed to them by the Precise Plan,
<br />unless the context clearly indicates a different meaning. For purposes of this Resale
<br />Agreement, the following terms shall have the meaning set forth below:
<br />City - shall mean the City of Redwood City, a municipal corporation of the State of
<br />California.
<br />Closing Costs - shall mean the actual and reasonable costs to Owner, including real
<br />estate commissions or sales administrative fees, real estate transfer taxes, title insurance,
<br />and escrow costs incurred by reasons of the Transfer of the Subject Affordable Unit by
<br />Owner, but shall not include the costs of repair or rehabilitation of the Subject Affordable
<br />Unit for matters such as termite damage, appliance replacement, and the like.
<br />Eligible First Loan - shall mean a fully amortized fixed rate first mortgage loan with a
<br />term of up to thirty (30) years available from an institutional lender, including without
<br />limitation, commercial banks, savings banks, credit unions or similar lenders, which loan
<br />does not include any of the following: (i) a prepayment penalty, (ii) loan points in excess
<br />of two (2) points total, and (iii) additional processing, application and other loan - related
<br />fees (exclusive of customary San Mateo County escrow and title charges) to the extent
<br />such fees equal an amount greater than Dollars ($ .00). An
<br />ATTYIAGRI2010. 079aResale Restriction Agr
<br />09/27110
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