Laserfiche WebLink
2890662.3 46 <br />assumes all obligations of Owner imposed by this Agreement; (3) the transferee <br />executes all documents reasonably requested by the City with respect to the <br />assumption of the Owner’s obligations under this Agreement, and upon City’s request, <br />delivers to the City an opinion of its counsel to the effect that such document and this <br />Agreement are valid, binding and enforceable obligations of such transferee; and (4) <br />either (A) the transferee has at least three years’ experience in the ownership, operation <br />and management of low-income rental housing projects of similar size to that of the <br />Project, without any record of material violations of nondiscrimination provisions or other <br />state or federal laws or regulations applicable to such projects, or (B) the transferee <br />agrees to retain a property management firm with the experience and record described <br />in subclause (A). <br />Consent to any proposed Transfer may be given by the ity Manager, unless the <br />City Manager, in his or her discretion, refers the matter of approval to the City Council. <br />The proposed Transfer shall be approved or disapproved by City in writing within thirty <br />(30) days following City’s receipt of written request by Owner. If rejected, City <br />representatives shall meet with Owner and the proposed transferee in good faith to <br />discuss the reasons for the disapproval. <br />8.3 Encumbrances. Owner agrees to use best efforts to ensure that any deed <br />of trust secured by the Project for the benefit of a lender other than City (“Third-Party <br />Lender”) shall contain each of the following provisions: (i) Third-Party Lender shall use <br />its best efforts to provide to City a copy of any notice of default issued to Owner <br />concurrently with provision of such notice to Owner (provided however, the failure to do <br />so shall not impair such Third-Party Lender’s rights and remedies); (ii) City shall have <br />the reasonable right, but not the obligation, to cure any default by Owner within the <br />same period of time provided to Owner for such cure extended by an additional 60 <br />days; (iii) provided that City has cured any default under Third-Party Lender’s deed of <br />trust and other loan documents, City shall have the right to foreclose City’s Deed of <br />Trust and take title to the Project without acceleration of Third-Party Lender’s debt; and <br />(iv) City shall have the right to transfer the Project without acceleration of Third-Party <br />Lender’s debt to a nonprofit corporation, a limited partnership with a nonprofit general <br />partner, or other entity which shall own and operate the Project as an affordable rental <br />housing Project, subject to the prior written consent of the Third-Party Lender. Owner <br />agrees to provide to City a copy of any notice of default Owner receives from any Third- <br />Party Lender within three (3) business days following Owner’s receipt thereof. <br />8.4 Mortgagee Protection. No violation of any provision contained herein shall <br />defeat or render invalid the lien of any mortgage or deed of trust made in good faith and <br />for value upon all or any portion of the Project or the Property, and the purchaser at any <br />trustee’s sale or foreclosure sale shall not be liable for any violation of any provision <br />hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall <br />be bound by and subject to this Agreement from and after such trustee’s sale or <br />foreclosure sale. Promptly upon determining that a violation of this Agreement has <br />occurred, City shall give written notice to the holders of record of any mortgages or <br />deeds of trust encumbering the Project or the Property that such violation has occurred. <br />68