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percent (15%) of the total number of residential units proposed shall be affordable to moderate- <br /> income households based on the County of San Mateo median income; and <br /> WHEREAS, in accordance with the Precise Plan, a minimum of fifteen percent (IS%) of <br /> the condominium units, each containing one (I) bedroom and one (I) bathroom, have been <br /> reserved for purchase and occupation at affordable housing cost to families of moderate income, <br /> as those terms are defined under Heal[h and Safety Code sections 50052.5 and 50093, <br /> respectively (each, an "Affordable UniP' and collectively, the "Affordable Units") for a period of <br /> forty-five (45) years; and <br /> WHEREAS, Owner is a Qualified Buyer, as that term is hereinafter defined, and thereby <br /> eligible to occupy an Affordable Unit; and <br /> WHEREAS, [he purpose of this Resale Agreement is to place adequate controls on the <br /> Affordable Units, provide eligibility requirements for subsequent purchasers, and reserve unto <br /> the City a First Right of Refusal to purchase the Subject Affordable Unit, as that term is <br /> hereinafter defined. <br /> NOW THEREFORE, Owner declares that the Subject Affordable Unit described herein <br /> below is held and will be held, transferred, encumbered, used, sold, conveyed, leased and <br /> occupied subject to the covenants, restrictions and Iimitations set forth in this Resale Agreement, <br /> all of which are in accordance with the requirements of the Precise Plan. All of [he restrictions, <br /> covenan[s and limitations will run with the land and will be binding on all parties having or <br /> acquiring any right, title or interest in the Subject Affordable Unit described beiow, or any part <br /> thereof, and to any improvements related thereto, and will inure to the benefit of the City. Each <br /> grantee of a conveyance or purchaser under a contract or agreement of sale covering any right, <br /> [itle or interest in any part of the Subject Affordable Unit, by accepting a deed or a contract of <br /> sale or agreement of purchase, accepts the Subject Affordable Unit, subject to, and agrees to be <br /> bound by all of the restrictions, covenants and limitations set forth in this Resale Agreement. <br /> I Caoitalized Terms and Definitions. All capitalized terms not otherwise defined <br /> herein shall have the same meaning ascribed to them by the Precise Plan, unless the context <br /> clearly indicates a different meaning. For purposes of this Resale Agreement, the following <br /> [erms shall have the meaning set forth below: <br /> City - shall mean the City of Redwood City, a municipal corporation of the State of California. <br /> Closing Costs - shall mean the actual and reasonable costs to Owner, including real estate <br /> commissions or sales administrative fees, real estate transfer taxes, tide insurance, and escrow cos[s <br /> incurred by reasons of the Transfer of the Subject Affordable Unit by Owner, but shall not include <br /> the costs of repair or rehabilitation of the Subject Affordabie Unit for matters such as termite <br /> damage, appliance replacement, and the like. <br /> Eligible First Loan - shall mean a fully amortized fixed rate first mortgage loan with a term of <br /> up to thirty (30) years available from an institutional lender, including without limitation, <br /> commercial banks, savings banks, credit unions or similar lenders, which loan does not include <br /> Exhibit B <br /> Page 2 <br />