|
C. Advances by the City. A decrease in an amount equal to the sum of all costs advanced by
<br />the City for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's association
<br />fees and/or associated late fees, costs, penalties, interest, attorneys' fees, pest inspections, resale
<br />inspections, fixing violations of applicable building, plumbing, electric, fire, or other codes, and other
<br />expenses related to the Property, which Owner has failed to pay or has permitted to become delinquent.
<br />d. Adjusted Resale Price Not to Exceed Affordable Housinq Cost. The Base Resale
<br />Price as adjusted, is hereinafter referred to as the "Adjusted Resale Price." Notwithstanding any other
<br />provision hereof to the contrary, in no event shall the Adjusted Resale Price exceed the Affordable Housing
<br />Cost.
<br />13. Priority and Effectiveness of the Option.
<br />a. Recordation. This Agreement shall be recorded in the Office of the Recorder of the
<br />County of Alameda prior to any sale, conveyance, transfer or other disposition of the Property, or of any
<br />estate or interest therein, by Owner. The Option shall have priority over any subsequent sale, conveyance,
<br />transfer, lease, or other disposition or encumbrance of the Property, or of any estate or interest therein, and
<br />in the event of exercise of the Option by City, the City shall take the Property subject only to senior liens and
<br />encumbrances. Except as otherwise provided in Section 14(a), the exercise of the Option by the City at any
<br />time and from time to time shall not extinguish the Option or cause a merger of the Option into any estate or
<br />other interest in the Property, and the Option shall continue to exist and be effective with respect to the
<br />Property against any and all subsequent owners in accordance with the terms and conditions hereof.
<br />b. Request for Notice of Default. The City shall file a Request for Notice of Default for
<br />recordation in the Office of the Recorder of the County of Alameda promptly upon execution of this
<br />Agreement.
<br />14. Survival of Option Upon Transfer.
<br />a. In General. The City's right to exercise the Option shall survive any transfer of the
<br />Property by Owner. The Option may be exercised against the Property whether, owned, possessed or
<br />occupied by (i) an Eligible Household, (ii) any successor, transferee, assignee, heir, executor, or administrator
<br />of an Eligible Household, including a debtor-in-possession, debtor or trustee pursuant to Title 11 of the United
<br />States Code, or (iii) any person owning, possessing or occupying the Property who does not meet the
<br />eligibility criteria established by the City under the Program (collectively all referred to and defined herein as
<br />"Owner"). Notwithstanding the foregoing, the Option shall not survive (1) the sale and transfer of the Property
<br />under a judicial or non -judicial foreclosure or a deed -in -lieu of foreclosure pursuant to a mortgage or deed of
<br />trust recorded against the Property in the Office of the Recorder of the County of Alameda on or prior to the
<br />date of this Agreement, provided that the City has received timely notice of such Option event and has failed
<br />to either reinstate said mortgage or deed of trust or complete the purchase of the Property pursuant to its
<br />Option prior to the date of the foreclosure sale, or (2) the recording of an instrument conveying Owner's
<br />interest in the Property to the City, or its assignee, provided the conveyance is in accordance with the terms
<br />of this Agreement.
<br />b. HUD Insured or CaIHFA Held Mortgage. If Owner has acquired the Property by a
<br />mortgage insured by the Secretary of the United States Department of Housing and Urban Development or
<br />
|