2025-012 - Density Bonus Agreement for Multi-Family Development

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DRAFT Affordable Sales Price. The Affordable Sales Price for Affordable Units shall be adjusted quarterly until all Affordable Units are sold and, thereafter, determined in connection with each re-sale, as applicable. 3.4 Notice to City. Prior to entering into an agreement for the transfer of an Affordable Unit,Developer shall provide at least thirty(30) days written notice to the City, along with a proposed written agreement setting forth the terns of the sale, including the proposed Affordable Sales Price, 3.5 Homebuyer Documents. The sale of each Affordable Unit is subject to satisfaction of the following conditions 3.5.1 Each Homebuyer shall execute the Affordable Housing Resale Restrictions, which shall be recorded against the Affordable Unit. 3,5.2 The Affordable Housing Resale Restrictions shall provide for the terms of resale and the distribution of proceeds from any sale, as follows: (a) The Homebuyer shall execute the City Promissory Note evidencing Homebuyer's agreement to pay the City Equity Share, and record the City Deed of Trust against the Affordable Unit to secure the City Promissory Note. (b) During the Affordability Term, prior to the Transfer of an Affordable Unit, each Homebuyer shall agree to the City Promissory Note, and execute the Affordable Housing Resale Restrictions, the City Deed of Trust, the Notice of Restrictions, and the Request for Default, which shall be recorded against each Affordable Unit. In the event a Homebuyer seeps to Transfer an Affordable Unit during the Affordability Term, the City, in its sole and absolute discretion,may approve an assignment and assumption agreement for subsequent sales of the Property to Eligible Households during the Affordability Term, The Affordable Housing Resale Restrictions shall provide that Affordable units shall only be Transferred to an Eligible Household for an Affordable Sales Price during the Affordability Term,and the City Deed of Trust scouring the City Promissory Note shall remain a lien on the Property. (c) During the Affordability Terrn, if a Transfer complies with the requirements of the Affordable Housing Resale Restrictions, then the Homebuyer selling the Affordable Unit shall be entitled to closing proceeds after payment of a First Lien for the Affordable Unit,and the City Equity Share shall be an obligation of the new Homebuyer,pursuant to the City Promissory Note and.City Deed of Trust recorded against the Property. (d) Following the expiration of the Affordability Tenn for the Affordable Unit, the City Equity Share shall become due and payable upon a Transfer of the Property. (c) The City Equity Share includes an amount equal to the "initial subsidy" and "proportionate share of appreciation," in accordance with California Government Code section 65915(c)(2), and shall be determined as follows: Page l l 5 5394,00 10 1 k43423 340.1