RecDoc 2011-155321 - Laserfiche WebLink

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. i ' . I, �� Covenants"): the Affordable Units shali be soid to, owned, occupied and maintained I . affordable to persons and families of low or moderate-income, eaming not more than one i hundred twenty percent (120%) of HUD's Area Median Income for San Mateo County i ("AMI"), as adjusted from time to time ("Qualified Buyers"). Qualified Buyers income shall i be calculated on the basis of their "Gross Income", as defined under Title 25, Section 6914, of the California Code of Regulations, as amended from time to time. i In order to ensure compliance with this Agreement in connection with the sale and I transfer of each Affordable Unit, OWNER and its successors shall obtain a copy of each prospective purchaser's federal income tax retum for the taxable year immediately preceding the proposed purchase of an Affordable Unit and_current income information such as wage statements or, if the prospective purchaser certifies and declares under , penalty of perjury that he or she did not file a federal tax return, other evidence of Gross ' Income for such year, acceptable to the City in its sole discretion, and current income i information such as wage statements, to substantiate that the prospective purchaser I meets the eligibility requirements of Quaiified Buyers. In the event the City is unable to make a determination that a prospective buyer is a Qualified Buyer based upon the I information provided, the prospective purchaser shall be determined not to meet the � requirements of Qualified Buyers and shall be disqualified from purchase. ; I Section 5.03. Term of Owner-Occuoied Affordabilitv Covenants. � � OWNER hereby agrees that the Owner-Occupied Affordability Covenants for each ! Affordable Unit as described in Section 5.02; above, shall be effective as of the expiration i of the Rental Affordability Restrictions for such Affordable Unit, and shall remain in effect until the forty-fifth (45�") anniversary of said date (the "Owner-Occupied Affordability Covenants Term"). Section 5.04. Determinina Maximum Affordable Unit Sales Price. In order to ensure compliance with this Article in connection with the sale and � transfer of the Affordable Units, the Affordable Units may not be sold to Qualified Buyers � for a purchase price which results in an annual "Affordabie Housing Cost" (as defined I below),, of iess than twenty-eight percent (28%) or more than thirty-five percent (35%) of � the actual Gross Income of the household. Affordable Housing Cost shall inciude all of the following components associated I with an Affordable Unit, to the extent such components are not duplicative of one another, I and shall be calculated on either a monthly or annual basis: 1. Principal and interest payments on an Eligible First Loan ("PI"); and � i 2. Any loan insurance fees associated therewith, including without I limitation, private mortgage insurance ("PMI") or mortgage i insurance premiums ("MIP"); and i 3. Principai and interest payments on an Eligible Second Loan (°SPI"); j and � 4. Property taxes ("Taxes"), calculated as 125% of the Affordable Unit I purchase price; and ! I i 9 I I I I �