Laserfiche WebLink
EXHIBIT D <br /> any Affordable Unit, Developer shall provide the City with at least thirty(30)days' written notice <br /> of the determined amount, and the City shall have ten (10) days to approve or disapprove of the <br /> proposed Affordable Sales Price. The Affordable Sales Price for Affordable Units shall be <br /> adjusted quarterly until all Affordable Units are sold and,thereafter,determined in connection with <br /> each re-sale, as applicable. <br /> 3.4 Notice to City. Prior to entering into an agreement for the transfer of an Affordable <br /> Unit, Developer shall provide at least thirty (30) days written notice to the City, along with a <br /> proposed written agreement setting forth the terms of the sale, including the proposed Affordable <br /> Sales Price. For the initial sale of an Affordable Unit from Developer to a Homebuyer,Developer <br /> shall also provide a proposed equity share promissory note and a deed of trust. <br /> 3.5 Homebuyer Documents. The sale of each Affordable Unit is subject to satisfaction <br /> of the following conditions: <br /> 3.5.1 City and Homebuyer shall enter into the Homebuyer Loan Agreement, <br /> which memorializes a loan from the City to Homebuyer in the amount equal to the difference <br /> between(a) the Affordable Sales Price for the Affordable Unit and(b) the fair market value of the <br /> Affordable Unit without any restrictions on affordability or resale price as set forth herein, which <br /> amount shall be the amount of the City Promissory Note. The Homebuyer Loan Agreement shall <br /> also set forth the terms of the Affordable Housing Resale Restrictions, the City Deed of Trust,and <br /> the Notice of Affordability Restrictions (collectively, the "City Loan Documents"). The Parties <br /> agree and understand that the Homebuyer Loan Agreement does not require the payment of funds <br /> from City to Homebuyer,but rather evidences a promise to pay the amount of the City Promissory <br /> Note in the event of a breach of the obligations, covenants, and restrictions set forth in the City <br /> Loan Documents. <br /> 3.5.2 Each Homebuyer shall execute the Affordable Housing Resale Restrictions, <br /> the City Deed of Trust, and the Notice of Affordability Restrictions, each of which shall be <br /> recorded against the Affordable Unit. <br /> 3.5.3 Each Homebuyer of an Affordable Unit shall execute the City Promissory <br /> Note, which shall be secured by the City Deed of Trust. <br /> 3.6 Equity Sharing Agreement. The Affordable Housing Resale Restrictions for each <br /> initial sale from Developer to a Homebuyer shall include an equity sharing agreement in <br /> accordance with California Government Code § 65915(c)(2)(A). The City and Developer agree <br /> that Developer shall recapture the equity share pursuant to Government Code § 65915(c)(2)(C). <br /> the amount of the equity share shall be determined in accordance with this Section 3.6, and shall <br /> be evidenced by a promissory note secured by a deed of trust in favor of Developer. <br /> 3.6.1 Except in the event of a conflict with requirements of another public funding <br /> source,the following provisions of the equity sharing agreement shall be enforced when the initial <br /> Homebuyer sells an Affordable Unit: <br /> (i) The Homebuyer selling the Affordable Unit shall retain the <br /> value of any improvements and the down payment that were paid for by the seller, and the <br /> seller's proportionate share of appreciation. <br /> 11 <br /> 55394.00101\42405923.1 <br />