RecDoc 2011-155321 - Laserfiche WebLink

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Term. Any such refinance shall be subject to the terms and conditions of the Ciry's Subordination Policy, as may be amended from time to time. Copies of the City's Subordination Policy are available on the City's website and from the CDBG/HOME Administrator. Owner acknowledges and agrees that the terms and conditions set forth in this Section 6(the "Refinance Restrictions") are not an unreasonable restraint on property alienation rights and are 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 Deed-Restricted Resale Price of the Subject Affordable Unit upon resale as set forth in Section 11. The Refinance Restrictions shall not be construed or understood 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 Restriction Agreement. (b) Prohibition on Home Eauitv Loans and Home Eauity Lines of Credit. Under no circumstances may Owner obtain a home equity loan or a home equity line of credit secured by deeds of trust or similar security instruments upon the Subject Affordable Unit, during the Term. Owner understands and agrees that the prohibitions against home equity loans and lines of credit are not unreasonable restraints on property alienation rights and are 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 Deed-Restricted Resale Price of the Subject Affordable Unit upon resale as set forth in Section 11. 7. Sale Restrictions. Any Transfer of the Subject Affordable Unit during the Term shall be subject to the provisions of this Resale Restriction Agreement. Any transfer not in compliance with all provisions of this Resale Restriction Agreement is prohibited. The provisions of this Resale Restriction Agreement, however, shall continue to be in full force and effect for the entire Term. 8. Notice of Intended Transfer In the event that Owner intends to Transfer or vacate the Subject Affordable Unit, Owner shall promptly notify the City in writing of such intent at least ninety (90) days prior to 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 21 of this Resale Restriction 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. Riqht of First Refusal. Owner agrees that the City shall and does hereby have a continuing "right of first refusal" to purchase the Subject Affordable Unit on the terms and in the manner set forth in this Resale Restriction 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.