RecDoc 2011-155321 - Laserfiche WebLink

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WHEREAS, the purpose of this Resale Restriction Agreement is to place adequate affordability controls on the Affordable Units, provide eligibility requirements for subsequent purchasers, and reserve unto the City the first option to purchase the Subject Affordable Unit, as that term is hereinafter defined. NOW THEREFORE, Owner declares that the Subject Affordable Unit described herein below is held and will be held, transferred, encumbered, used, sold, conveyed, and occupied subject to the covenants, restrictions and limitations set forth in this Resale Restriction Agreement. All of the restrictions, covenants and limitations of this Resale Restriction Agreement will run with the land and will be binding on all parties having or acquiring any right, title or interest in the Subject Affordable Unit described below, or any part thereof, and to any improvements related thereto, and will inure to the benefit of the City. Each grantee of a conveyance or purchaser under a contract or agreement of sale covering any right, title or interest in any part of the Subject Affordable Unit, by accepting a deed or a contract of sale or agreement of purchase, accepts the Subject Affordable Unit, subject to, and agrees to be bound by all of the restrictions, covenants and limitations set forth in this Resale Restriction Agreement. 1 Caaitalized Terms and Definitions. All capitalized terms not othervvise defined herein shall have the same meaning ascribed to them by the North Main Street Precise Plan, unless the context clearly indicates a different meaning. For purposes of this Resale Restriction Agreement, the following terms shall have the meaning set forth below: City - shall mean the City of Redwood City, a municipal corporation of the State of California. Closing Costs - shall mean the actual and reasonable costs to Owner, including real estate commissions or sales administrative fees, real estate transfer taxes, title insurance, and escrow costs incurred by reasons of the Transfer of the Subject Affordable Unit by Owner, but shall not include the costs of repair or rehabilitation of the Subject Affordable Unit for matters such as termite damage, appliance replacement, and the like. Deed-Restricted Resale Price — shall have the meaning set forth in Section 11 below. Eligible First Loan - shall mean a fully amortized fixed rate first mortgage loan with a term of up to thirty (30) years available from an institutional lender, including without limitation, commercial banks, savings banks, credit unions or similar lenders, which loan does not include any of the following: (i) a prepayment penalty, (ii) loan points in excess of two (2) points total, and (iii) additional processing, application and other loan-related fees (exclusive of customary San Mateo County escrow and title charges). An Eligible First Loan shall not exceed eighty percent (80%) of the sales price for the Subject Affordable Unit: An Eligible First Loan shall not allow adjustable rates or balloon payments.