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d. Adjusted Resale Price Not to Exceed Affordable Housing Cost. The Base Resale Price as adjusted,is
<br /> hereinafter referred to as the'Adjusted Resale Price.'Notwithstanding any other provision hereof to the contrary,in no event shall
<br /> the Adjusted Resale Price exceed the Affordable Housing Cost.
<br /> 13. Priority and Effectiveness of the Option.
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<br /> a. 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 otherdisposition 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 or interest therein,and in the event of exercise of the Option by City,the City shall take the Property subject only to senior
<br /> liens and encumbrances. Except as otherwise provided in Section 14(a),the exercise of the Option by the City at any time and from
<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 a Request for Notice of Default for recordation in the
<br /> Office of the Recorder of the County of Alameda promptly upon execution of this 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 Property by Owner.
<br /> The Option may be exercised against the Property whether owned, possessed or occupied by(1)an Eligible Household, i any
<br /> successor,transferee,assignee,heir,executor,or administrator of an Eligible Household,including a debtor-in-possession,debtor or
<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 by the City under the Program(collectively all referred to and defined herein as'Owner').
<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 of such
<br /> Option event and has failed 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 interest in the Property to the
<br /> City,or its assignee,provided the conveyance is in accordance with the terms of this 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 of this Agreement,shall be voidable at the election of the City.
<br /> 16. Permitted Transfers. The following transfers('Permitted Transfers')of title to the Property,or of any estate or
<br /> interest therein, shall not be subject to the City's prior approval, shall not trigger the exercise of the Option, 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 /> Eligible child or step child(at which time the City will allow a one-year compassion period between the time the estate is settled and
<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 to an Eligible Household within 180 days).
<br /> 17. Permitted Encumbrances and Refinances. This Option shall not become exercisable as the result of Owner's
<br /> encumbering the Property for the purpose of securing financing to purchase the Property pursuant to the Program,or to refinance
<br /> existing indebtedness incurred to purchase the Property pursuant to the Program. The maximum amount (the 'Permitted
<br /> Encumbrance Amount')of any refinancing permitted by this section shall not exceed an amount equal to ninety percent(90%)of the
<br /> Base Resale Price calculated as provided in Section 11,as modified by this section. The Permitted Encumbrance Amount shall be
<br /> the Base Resale Price calculated as if the City has received notification of an Option Event on the earlier of(a)the date on which the
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