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

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DRAFT "City Promissory Note"means the City Promissory Note, evidencing Homebuyer's agreement to pay the City Equity Share and dated on or about the same date hereof. "County"means the County of Orange, California. "Date of this Agreement"means the date in the first paragraph of this Agreement. "Default"means the failure of a party to perform any action or covenant required by this Agreement within the time periods provided herein following notice and opportunity to cure. The term default also includes an Ownership Default and a Maintenance Default as more fully defined and described herein. Notwithstanding the foregoing for purposes of acceleration of the City Promissory Note,or initiation of foreclosure proceedings there shall be a distinction between the types of default hereunder, including an "Ownership Default" and a "Maintenance Default." The term"Ownership Default"means the failure of Homebuyer to perform any action or covenant required by the Affordable Housing Resale Restriction related to ownership, owner-occupancy, lien priority,and restrictions on sale and resale of the Property subject to the notice and opportunity to cure provisions set forth herein. A default of any obligation secured by the First Lien shall be a cross-default and also constitute an Ownership Default. The term"Maintenance Default"means the failure of Homebuyer to perform any action or covenant required by this Agreement relating to a "Maintenance Deficiency," including the ongoing upkeep, maintenance, and use of the Property in decent, safe, sanitary, clean, and neighborly manner, subject to the notice and opportunity to cure provisions set forth herein(and expressly excluding an Ownership Default). "Developer"means MLC Holdings, Inc./Meritage Homes. "Eligible Household" means a Household whose income does not exceed the"Very Low Income Household" qualifying limit.as defined herein. "First Lien"means the lien of the m' stitution'making the purchase money mortgage loan to Homebuyer for the purchase of the Property. "Homebuyer" means the person or persons set forth in the first paragraph of this Agreement, and their successors and assigns. t "Housing Cost"means and includes all of the following costs associated with ownership of an Affordable Unit as defined in Title 25 of the California Code of Regulations Section 6920, and Santa Ana Municipal Code, including; (a) Principal and interest on a mortgage loan at the defined interest rate; (b) Property tax and assessments; (e) Fire and casualty insurance covering replacement value of property improvements; (d) Property maintenance and repairs; Page 29 Exhibit B 553 94.00101143423340.1