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DRAFT <br /> 2. HOMEBUYER'S REPRESENTATIONS AND WARRANTIES AS TO THE SALE OF <br /> THE PROPERTY TO HOMEBUYER. <br /> 2.1 Homebuyer represents and warrants to City that the financial and other <br /> information which Homebuyer has provided to City with respect to Homebuyer's income and the <br /> purchase price of the Property was true and correct at the time such information was provided, and <br /> remains true and correct as of the Date of this Agreement. <br /> 2.2 Homebuyer agrees to occupy the Property as Homebuyer's primary residence. <br /> 3. RESTRICTIONS ON SALE OF PROPERTY. <br /> 3.1 Homebuyer covenants and agrees that during the Affordability Term, any resale <br /> of the Property shall be to a Very Low Income Household for an amount that does not exceed an <br /> Affordable Sales Price. <br /> 3.2 Prior to any Transfer of the Affordable Unit, Homebuyer shall provide the City <br /> with a Notice of Intent to Transfer, in a form approved by the City, and the City shall have the <br /> right to approve or disapprove of any Transfer,which approval shall not be unreasonably withheld. <br /> 3.3 Permitted Transfers. Prior to any Transfer of the Property, Homebuyer shall <br /> obtain City's written consent pursuant to the requirements of Section 4 and 5, below, and subject <br /> to the following: <br /> (a) During the Affordability Term, the Homebuyer may Transfer the <br /> Property to a Very Low Income Household for an Affordable Sales Price. <br /> {b) Upon expiration of the Affordability Term,Homebuyer may sell the <br /> Property without the affordability restrictions of this Agreement, subject to the satisfaction of the <br /> City Promissory Note and City Deed of Trust. <br /> 3.4 Prohibited Transfers. Any Transfer of the Property without the City's written <br /> consent or in violation of this Agreement is a Prohibited Transfer. <br /> 4. HOMEBUYER PROCEEDS FROM SALE OF PROPERTY. <br /> 4.1 This Agreement implements the provisions of the Density Bonus Agreement <br /> for disbursement of funds from a sale of the Property, as further set forth below. <br /> 4.2 Permitted Transfers During the Affordability Term. During the Affordability <br /> Term, a Homebuyer retains the proceeds from a Permitted Transfer after payment of the First <br /> Lien, and reasonable closing costs and broker fees. The City Deed of Trust shall remain a lien <br /> on the Property, or the Transferee shall executed a new Affordable Housing Resale Restrictions, <br /> City Promissory Note, and City Deed of Trust. <br /> 4.3 Permitted Transfers Upon Expiration of the Affordgbilit.Y Term. Upon <br /> expiration of the Affordability Term, the City Equity Share shall become due and payable upon a <br /> Page 31 <br /> Exhibit B <br /> 5 5394.00 1 0 114 3423 3 40.1 <br />