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CITY COUNCIL DRAFT <br />purchase price of the Property was true and correct at the time such information was provided, and <br />remains true and correct as of the Date of this Agreement. <br />2.2 Homebuyer agrees to occupy the Property as Homebuyer's primary residence. <br />3. RESTRICTIONS ON SALE OF PROPERTY. <br />3.1 Homebuyer covenants and agrees that during the Affordability Term, any resale <br />of the Property shall be to a Moderate Income Household for an amount that does not exceed an <br />Affordable Sales Price. <br />3.2 Prior to any Transfer of the Affordable Unit, Homebuyer shall provide the City <br />with a Notice of Intent to Transfer, in a form approved by the City, and the City shall have the <br />right to approve or disapprove of any Transfer, which approval shall not be unreasonably withheld. <br />3.3 Permitted Transfers. Prior to any Transfer of the Property, Homebuyer shall <br />obtain City's written consent pursuant to the requirements of Section 4 and 5, below, and subject <br />to the following: <br />(a) During the Affordability Term, the Homebuyer may Transfer the <br />Property to a Moderate Income Household for an Affordable Sales Price. <br />(b) Upon expiration of the Affordability Term, Homebuyer may sell the <br />Property without the affordability restrictions of this Agreement, subject to the satisfaction of the <br />City Promissory Note and City Deed of Trust. <br />3.4 Prohibited Transfers. Any Transfer of the Property without the City's written <br />consent or in violation of this Agreement is a Prohibited Transfer. <br />4. HOMEBUYER PROCEEDS FROM SALE OF PROPERTY. <br />4.1 This Agreement implements the provisions of the Density Bonus Agreement <br />for disbursement of funds from a sale of the Property, as further set forth below. <br />4.2 Permitted Transfers During the Affordability. During the Affordability <br />Term, a Homebuyer retains the proceeds from a Permitted Transfer after payment of the First <br />Lien, and reasonable closing costs and broker fees. The City Deed of Trust shall remain a lien <br />on the Property, or the Transferee shall executed a new Affordable Housing Resale Restrictions, <br />City Promissory Note, and City Deed of Trust. <br />4.3 Permitted Transfers Upon Expiration of the Affordability. Upon <br />expiration of the Affordability Term, the City Equity Share shall become due and payable upon a <br />Permitted Transfer, and the proceeds from a sale shall be used for payment of the City Equity <br />Share in satisfaction of the City Promissory Note. <br />4.4 Prohibited Transfers. Homebuyer agrees and acknowledges that a Prohibited <br />Transfer is a default of this Agreement and, in the event of such a default, the City shall be entitled <br />Exhibit B <br />Page 33 <br />5 53 94.0010 1 \43721567.2 <br />