AgdaPkt 2012-06-25 - Laserfiche WebLink

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6.1.K. - Page 20 5.1 Refinance Restricfion. �wner may not, during the term of fhis Agreement, refinance the laan(s} us�d to purchase the Affordable Unit ("Original Loan"), wifhout the express written appro�al af the City, which shall not be unreasonably withheld. The City's decision to appro�e or disappro�e such refinancing sF�all E�e based upon such factors as whether the replacement loan (the "New �oan") provides a reasonable and tangible r�et benefit to Owner such as a red�ction in the interest rate and monthly mortgage payment, ar frustrates the City's abifity ta administer the covenants contained in this Agreerner�t. Any New Loan approved by the City shalE remain subject to this Refinance Restriction for the balance of the term of this Agreement. Notwithstanding the foregoing, the C�ty shal{ permit a prepayment and refinance of the Origina! Loan and shall agree to subordinate fhis Agreement and the City Deed of Trust to the New Loan pro�ided �hat: {a) following such refinance, the principal amount af all debt secured by the Property does not exceed ninety percent (9Q%) af the Affordable Sales Price; (b) khe New Loan is a fully amor�ized fixed rate loan, is fufly docurrtented, and requires na balloon payments; (c} i� the remaining balance of the OriginaR Laan exceeds ninety percent (90%) of the Affordable 5ales Price, then the New Loan reduces the Owner's principal anc! interest payments; and (d) the tata� new housing cost ta the Owner after the refinance does not exceed th� Owner's ability to pay. 5.2 Home E uit Laan/Line of Credit Prohibition. UncEer no circumstances may Owner ob�ain a Home Equity Loar� or Line of Cr�dit secured by fhe Affordable Ur�it, during the Term. 5.3 Acknowledgement. �w�er understands and agrees that the refinance restriction and Home Equity Loan or Line of Credit prohibitio� are not an unreasonable restraint on property aEienatian rights and are �ecessary in �rder to �nsure that sufficient equity is maintained in the Affordable Unit to payWoff tl�e exisfing loan balances in the e�ent of a transter of tF�e Affordable Unit, taking into account the Affardable Sales Price of the Affordable Unit u�aon resale as set forth in Section �0 belaw. 6. Maintenance of Prapefii. During such tim� as this Agreement is in effect, the Affardable Unit shafl at all times be maintair�ed in a neat and orderly condition, good order and repair, consistenf with goad ownership practices, and in accorclance wfth all applicable Federal, State and IocaE laws. 7. TaxeslLiens. Owner shal[ pay at feast ten days prior to delinquency, alf taxes and assessments on the Affordable Unit and shafl keep the AfFordable Ur�it free from all liens. S. Sale Restrictions. Any transfer, sale or assignment of tf�e Affordabfe Unifi shalf be subject to the pro�isions of this Agreement. Any transfer �at in compliance with a!1 provisions of this Agreement is prohibited. 9. Natice of Intended Transfer. In the e�ent that Owner intends to transfer or �acate the Affordable Unit, Owner shalf promptly notify the City in writing of s�ch ir�tent Page t6 of 31