RecDoc 2011-111464 - Laserfiche WebLink

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19. RiQhts of Mortgacees: Morteaee Lender Acauisition. This Section 20 exists to accommodate and balance the City's interest in maintaining a supply of affordable housing units and the interest of property mortgage lenders ("Lender(s)") in selling Subject Affordable Unit if acquired through foreclosure action or deed in lieu of foreclosure (collectively, "Foreclosure"). Mortgagees shall notify the City within twenry (20) days of filing a Notice of Default against the Subject Affordable Unit. Before acquisition of the Subject Affordable Unit through Foreclosure, [he City shall have the option, but not the obligation, to cure such default. Upon acquisition of the Subject Affordable Unit by a Lender through Foreclosure, the Lender shall, at least sixry (60) days prior to selling, conveying, transferring or otherwise disposing of the Subject Affordable Unit, offer to sell the Subject Affordable Unit to the Ciry for a purchase price equal to the original purchase price of the Subject Affordable Unit paid by the defaulting Owner. In the event the City elects to purchase the Subject Affordable Unit, the City and Lender shall open escrow with a mutually agreeable escrow company and shall share equally in escrow related expenses except [hat City shall not pay any expenses customarily paid by sellers in San Mateo Counry, California. Such escrow period shall be no less than thirty (30) days. At any time between receipt of offer to purchase the Subject Affordable Unit and the close of escrow as described herein, even after the City notifies Lender that it exercises its option, the City may assign its right to purchase the Subject Affordable Unit to a person or entity of its choosing. The City may re-assign its right to purchase to succeeding persons or entities of its choosing in the event that the initial assignees withdraws or is disqualified from the purchase, provided that the close of escrow is within the original ninety (90) days or such additional period as is agreed to by Lender. If Ihe City or an assignee of the City fails to complete [he purchase for any reason, the City may withdraw from the purchase without penalty or liability and Lender may sell the Subject Affordable Unit as if the City had failed to exercise its option. In the event Ihe City declines to purchase the Subject Affordable Unit within sixty (60) days of receipt of a written offer to sell the Subject Affordable Unit to [he City, or the City elects not to purchase afier ninery (90) days in the event escrow is opened as provided herein, the Lender shall be permitted to sell the Subject Affordabie Unit, free of this Resale Agreement, to any third party willing to purchase the Subject Affordable Unit. In such event, in recognition of the Ciry's loss of the Subject Affordable Unit as an affordable housing unit, any sales proceeds received by a Lender in excess of those amounts due the Lender (including reasonable foreclosure expenses and closing costs), shall be remitted to the City concurrently with the close of escrow for the sale. In connection with such sale, the Ciry shall cooperate with the Lender in the timely execution of any documents reasonably necessary to terminate [his Resale A�reement with respect to the particular Subject Affordable Unit. 20. Maintenance of Propertv. During such time as this Resale Agreement is in effect, the Subject AfTordable Unit shall at all times be maintained in a neat and orderly condition, good order and repair, consistent with good ownership practices, and in accordance with all applicable Federal, State and local laws. 21. Notices. Any notice required to be given hereunder shall be given by personal delivery or by registered or certified mail at the addresses specified below or at such other addresses as may be specified in writing by the parties hereto: Exhibit B Page 10