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CITY COUNCIL DRAFT <br />with a proposed written agreement setting forth the terms of the sale, including the proposed <br />Affordable Sales Price. <br />3.5 Homebuyer Documents. The sale of each Affordable Unit is subject to satisfaction <br />of the following conditions: <br />3.5.1 Each Homebuyer shall execute the Affordable Housing Resale Restrictions, <br />which shall be recorded against the Affordable Unit. <br />3.5.2 The Affordable Housing Resale Restrictions shall include the following <br />occupancy requirements: The Owner shall occupy and continually use the Affordable Unit as the <br />Homebuyer's Primary Residence during the Total Affordability Term. On an annual basis, the <br />City's Program Manager will send the Homebuyer an Occupancy Recertification Form to be filled <br />out and returned to the City within thirty (30) days of receipt. The Owner shall affirm that they are <br />occupying the Affordable Unit as their Primary Residence. The Owner will be required to submit <br />copies of two current utility bills, or other evidence of occupancy that is acceptable to the City, as <br />part of the annual recertification process. <br />3.5.3 The Affordable Housing Resale Restrictions shall provide for the terms of <br />resale and the distribution of proceeds from any sale, as follows: <br />(a) The Homebuyer shall execute the City Promissory Note evidencing <br />Homebuyer's agreement to pay the City Equity Share, and record the City Deed of Trust against <br />the Affordable Unit to secure the City Promissory Note. <br />(b) During the Affordability Term, prior to the Transfer of an <br />Affordable Unit, each Homebuyer shall agree to the City Promissory Note, and execute the <br />Affordable Housing Resale Restrictions, the City Deed of Trust, the Notice of Restrictions, and <br />the Request for Default, which shall be recorded against each Affordable Unit. In the event a <br />Homebuyer seeks to Transfer an Affordable Unit during the Affordability Term, the City, in its <br />sole and absolute discretion, may approve an assignment and assumption agreement for subsequent <br />sales of the Property to Eligible Households during the Affordability Term. The Affordable <br />Housing Resale Restrictions shall provide that Affordable Units shall only be Transferred to an <br />Eligible Household for an Affordable Sales Price during the Affordability Term, and the City Deed <br />of Trust securing the City Promissory Note shall remain a lien on the Property. <br />(c) During the Affordability Term, if a Transfer complies with the <br />requirements of the Affordable Housing Resale Restrictions, then the Homebuyer selling the <br />Affordable Unit shall be entitled to closing proceeds after payment of a First Lien for the <br />Affordable Unit, and the City Equity Share shall be an obligation of the new Homebuyer, pursuant <br />to the City Promissory Note and City Deed of Trust recorded against the Property. <br />(d) Following the expiration of the Affordability Term for the <br />Affordable Unit, the City Equity Share shall become due and payable upon a Transfer of the <br />Property. <br />Page 12 <br />55394.00 10 1\43724951.1 <br />