RecDoc 2011-111464 - Laserfiche WebLink

Browse Search

Loan") provides a reasonable and tangible net benefit to Owner such as a reduction in the interest rate and monthly mortgage payment (ii) a reduction in [he amortization period, (iii) required due to an order of a court of competent jurisdiction, or (iv) frustrates the City's ability to administer the covenants contained in ihis Resale Agreement. In no event shall Owner be permitted to refinance into an Ineligible Loan. Any New Loan approved by the City shall remain subject to this Refinance Restriction for the balance of the term of this Resale Agreement. Any such refinance shall be subject to the terms and conditions of the City's Subordination Policy, as may be amended from time to time. Owner acknowledges and agrees that the Refinance Restriction is not an unreasonable restraint on property alienation rights and is necessary in order to ensure that there is sufficient equity maintained in the Subject Affordable Unit to pay-off loan balances in the event of a Transfer, taking into account the Transfer Amount of the Subject Affordable Unit upon resale as set forth in Section 1I. The Refinance Restriction shall not be consvued or unders[ood to confer any rights upon any third parties whatsoever, and exists solely for the benefit of the City to assist the City in the administration of this Resale Agreement. (b) Prohibition on Home Ectuitv Loans or Line(sl of Credit. Under no circumstances may Owner obtain a home equity loan or home equity Iines of credit secured by deeds of trust or similar security instruments upon the Subjec[ Affordable Unit (a "Line of CrediY'), during the [erm of this Resale Agreement. Owner understands and agrees that the prohibition against equity loans and Lines of Credit is not an unreasonable restraint on property alienation rights and is necessary in order to ensure that sufficient equity is maintained in the Subject Affordable Unit to pay-off the existing loan balances in the event of a Transfer of the Subject Affordable Units, taking into account the Transfer Amount of the Subject Affordable Unit upon resale as set forth in Section I I. 7. Sale Restric[ions. Any Transfer of the Subject Affordable Unit shall be subject to the provisions of this Resale Agreement. Any transfer not in compliance with all provisions of this Resale Agreement is prohibited and is null and void. The provisions of this Resale Agreement, however, shall continue to be in full force and effect. 8. Notice of Intended Transfer In the event that Owner intends to Transfer or vacate the Subject Affordable Unit, Owner shall prompQy notify the City in writing of such intent a[ least ninety (90) days prior [o the actual date of the Transfer or vacation of the Subject Affordable Unit. The Notice of Intended Transfer from Owner shall be delivered in the manner set forth in Section 24 of Ihis Resale Agreement. Following receipt of such notice, the City in its discretion, may either notify prospective Qualified Buyers of the Subject Affordable Unit that the Subject Affordable Unit is available for sale, or the City may exercise its option to purchase the Subject Affordable Unit, as described in Section 9 below. 9. Right of First Refusal. Owner agrees that the City shall and does hereby have a continuing "right of first refusal" to purchase the Subject Affordabie Unit on the terms and in the manner set forth in this Resale Agreement. The City shall within forty-five (45) days of receipt of the Notice of Intended Transfer specified in Section 8 above, notify Owner of its interest in purchasing the Subject Affordable Unit. The notice to Owner shall be sent in the manner set forth in Section 24 of this Resale Agreement. If the City does not respond to Owner within said Exhibit B Page 5