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WHEREAS, Owner is an eligible low-income purchaser under the Program, intends to live in the <br />Property as an owner occupant, and agrees to maintain the Property as Owner's principal residence; and <br />WHEREAS, In order to maintain and preserve the Property as affordable housing, it is necessary <br />to restrict the use and resale of the Property through imposition of the occupancy and resale restrictions set <br />forth herein. These restrictions are intended to prevent initial and subsequent purchasers from using the <br />Property for purposes incompatible with the Program and realizing unwarranted gains from sales of the <br />Property at unrestricted prices. The terms and conditions of this Agreement are intended to provide the <br />necessary occupancy and resale restrictions to ensure that the Property is used, maintained, and <br />preserved as housing affordable to eligible moderate -income purchasers; and <br />WHEREAS, The Property constitutes a valuable community resource by providing decent, safe, <br />and sanitary housing to persons and families of moderate income who otherwise would be unable to afford <br />such housing. To protect and preserve this resource it is necessary, proper, and in the public interest for <br />the City to administer the occupancy and resale controls by means of this Agreement. <br />AGREEMENT <br />NOW THEREFORE, in consideration of the benefits received by the Owner and the public <br />purposes served by the Program, Owner and City agree as follows: <br />1. Below -Market Unit. The real property, which is the subject of this Agreement, is more fully <br />described in Exhibit A attached hereto and incorporated by this reference. Said real property ("Property") <br />is hereby designated as a Below -Market Rate (BMR) unit and shall be subject to the terms and conditions <br />herein set forth. This Agreement runs with the Property and is binding on the parties hereto and their <br />successors and assigns and on all purchasers of the Property for that period of time the BMR unit is in <br />place and being used either wholly or partially for residential purposes. <br />Program Requirements. <br />a. Affordability Restrictions. Owner, by and for itself and any successors in interest, <br />hereby covenants and agrees that the Property shall be sold only to Eligible Households at a price not to <br />exceed the Adjusted Resale Price, as defined in Section 12, and that during the term of this Agreement all <br />of the requirements and restrictions of this Agreement shall apply. <br />b. Eligible Household. There shall be no sale or other transfer of the Property <br />without Certification by the City that the transferee is an eligible household and that the Property is being <br />transferred at a price not to exceed the adjusted resale price, which is capped at an "Affordable Housing <br />Cost." Any sale or other transfer of the Property in violation of this covenant shall be void. <br />C. Principal Residence Requirement. Each Transferee of the Property shall occupy <br />the Property as his/her/their principal residence for the duration of his/her/their ownership. Without limiting <br />the generality of the foregoing, any absence from the Property by Owner for a period of ninety (90) or more <br />days shall be deemed an abandonment of the Property as the principal residence of Owner in violation of <br />the conditions of this Section. Upon request by the City made from time to time, the Owner of the Property <br />shall submit an affidavit to the City certifying that the Property is the Owner's principal residence and <br />783016-2 112310 2 <br />