ANR HOMES INC. -2009 - Laserfiche WebLink

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conditions or contingencies of the type or nature commonly included within residential purchase escrows (including, but not limited to, financing contingencies, inspection rights, and preliminary title report approvals) to the obligation of the purchaser to purchase the Property from the then Owner, provided that any such conditions or contingencies (other than the status of title to the Property at the time of conveyance and other conditions which by their nature cannot be satisfied prior to closing) must be satisfied or waived on or before sixty (60) days after the opening of an escrow between the Owner and an income qualified purchaser. The purchaser's qualifications are subject to prior review and approval by the City. C. Affordable Sales Price. Owner shall have the right to sell the Property to a low or moderate income household, for an Affordable Sales Price, for use as owner-occupied housing upon terms and conditions that are mutually acceptable to the City and Owner and in accordance with the following restrictions: (a) The term "Affordable Sales Price" shall mean a purchase price which results in an Affordable Housing Cost to a Low or Moderate Income Purchaser. The Affordable Housing Cost for Low Income households will be the product of 30% times 65% of the Area Median Income adjusted for family size appropriate for the unit. For Moderate Income households, the Affordable Housing Cost will be the product of 35% times 100% of the Area Median Income, adjusted for family size appropriate for the unit. (b) Prior to any sale of the Property, Owner shall provide the City with all income certifications as provided in the Agreement. (c) At the closing of escrow for the Low or Moderate Income purchaser's purchase of each NSP Assisted Unit, the City will require each income qualified homebuyer of such Unit to execute the following documents: the Homebuyer Deed of Trust, Homebuyer Promissory Note, and Notice of Affordability (as applicable), as well as such further documents reasonably required by the City in a form provided by the City. The Promissory Note and Deed of Trust shall contain aforty-five (45) year term. All principal and interest shall be deferred until subsequent sale or transfer of the Property. The Deed of Trust will carry a 3% interest rate, and will be due and payable in forty-five (45) years. Interest will be forgiven at a rate of 1 /45th per year, at each anniversary date of the original sale, with all interest forgiven at the end of the forty-five (45) year affordability period. After expiration of the affordability period, the principal amount of the Note will be paid at transfer or sale. 'The covenants and restrictions must be fully explained to each Homebuyer and the entire explanation and execution of said document must be recorded by the Developer. A copy of said audio/visual recording shall be placed on a CD which shall be kept by the Developer and the City. (d) The deed of trust from Owner to any such proposed purchaser shall restrict the use of the Property to owner occupancy. 4. Severability. The provisions of this Deed of Trust shall be deemed independent and severable, and a determination of invalidity or partial invalidity or unenforceability of any one provision or portion hereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other provisions hereof. Article III. TAXES AND INSURANCE; ADVANCES 5