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costs, penalties, interest, attorneys'fees, pest inspections, resale inspections, fixing violations of applicable building, plumbing,
<br /> electric,fire,mother codes,and other expenses related to the Property,which Owner has failed to pay mhas permitted to become
<br /> dnUnquenL
<br /> d. Adiusted Resale Price Not to Exceed Affordable Housinq Cost. The Base Resale Price
<br /> as adjusted,is
<br /> hereinafter referred to as the"Adjusted Resale Price."Notwithstanding any other provision hereofto the contrary,innoevent shall
<br /> the Adjusted Resale Price exceed the Affordable Housing Cost.
<br /> 13. Priority and Effectiveness of the Ootion.
<br /> o. Recordation. This Agreement shall be recorded in the Office of the Recorder of the County of Alameda
<br /> prior to any sale,conveyance,transfer or other disposition of the Property,or of any estate or interest therein,by Owner. The Option
<br /> shall have priority over any subsequent sale,conveyance,transfer,lease,or other disposition or encumbrance of the Property,or of
<br /> any estate orinterest therein,and inthe event n/exercise ofthe Option the City shall take the Property subject only tosenior
<br /> liens and encumbrances. Emmp(oxotbanwioepmWdadinSectioo14(e).theoxomioeofthnDptinnbytheCityotonyUmeoodhom
<br /> time to time shall not extinguish the Option or cause a merger of the Option into any estate or other interest in the Property,and the
<br /> Option shall continue to exist and be effective with respect to the Property against any and all subsequent owners in accordance with
<br /> the terms and conditions hereof.
<br /> b. Request for Notice of Default. The City shall file e Requestfor Notice nfDefault for recordation inthe
<br /> Office of the Recorder of the County of Alameda promptly upon execution of this Agreement.
<br /> 14. Survival of Option Upon Transfer.
<br /> o. klGenerai. The City's right to exercise the Option shall survive any transfer of the Property by Owner.
<br /> The Option may be exercised against the Property whether owned,possessed or occupied by(i)an Eligible Household,(ii)any
<br /> successor,transferee,assignee,heir,executor,or administrator of an Eligible Household,including a debtor-in-possession,debtoror
<br /> trustee pursuant to Title 11 of the United States Code,or(iii)any person owning,possessing or occupying the Property who does not
<br /> meet the eligibility criteria established bythe City under the Program(collectively all referred band dcfinedherein an"Ownar").
<br /> Notwithstanding the foregoing,the Option shall not survive(1)the sale and transfer of the Property under a judicial or non-judicial
<br /> foreclosure or a deed-in-lieu of foreclosure pursuant to a mortgage or deed of trust recorded against the Property in the Office of the
<br /> Recorder of the County of Alameda on or prior to the date of this Agreement,provided that the City has received timely notice ofsuch
<br /> Option event and has failed to either reinstate said mortgage or deed of trust or complete the purchase nfthe Property pursuant to its
<br /> O[dionphortothodatoofthefoem|ooumuo|n.ur(2)thomoondingofanindmmantmonveyingOwmehsinhemutinthaPmpmdytoUhe
<br /> City,orits assignee,provided the conveyance ioinaccordance with the terms ofthis Agreement.
<br /> b. -HUD Insured or CaIHFA Held Mortgage, If Owner has acquired the Property by a mortgage insured by
<br /> the Secretary of the United States Department of Housing and Urban Development or held by the California Housing Finance Agency,
<br /> and provided that the City has received timely notice of such purchase option event(which notice could include a notice of default
<br /> recorded pursuant to California Civil Code Section 2924 or successor provisions),then this Option shall automatically terminate if title
<br /> to the Property is transferred by foreclosure or deed-in-lieu of foreclosure,or if the insured mortgage is assigned to the Secretary.
<br /> 15. Voidable Transfers. As long as the Option has not been abandoned pursuant to Section 6(e), any actual or
<br /> attempted sale,conveyance,transfer or other disposition of the Property,or of any estate or interest therein,in violation of the terms
<br /> and conditions o/this Agreement,shall bmvoidable atthe election o|the City.
<br /> 16. Permitted Transfers. The following transfers("Permitted Transfers")of title to the Property,or of any estate or
<br /> interest theoein, uheU not be subject to the City's prior approval, shall not trigger the exercise ofthe OpUon, and shall not be
<br /> considered Option Events:(a)taking of title by a surviving joint tenant;and(b)any good faith transfer to an Eligible Household. The
<br /> following inheritances are not unconditionally permitted, but do allow a compassion period: (c)inheritance of the unit by a Non-
<br /> Eligibleohi|dorob*pohi|d(atwhiohUmethoCitywi||aUowaonmYoeroompuuoionpohodbotweentheUmeth000teteinoeNedond
<br /> the time when the property must be sold to an Eligible Household);and inheritance by any other Non-Eligible person(at which time
<br /> the City shall require resale tnanEligible Household within 18Odayn).
<br /> 17. Permitted Encumbrances and Refinances. This Option shall not become exercisable outhe result ofOwners
<br /> encumbering the Property for the purpose of securing financing to purchase the Property pursuant to the Program,or to refinance
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