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(c) In the event of a breach or threatened breach of this Section 5, City or its successors or <br />assigns shall be entitled to institute legal action to enforce performance of this Section and to obtain <br />an injunction prohibiting anyone who is not an eligible person or family from occupying the <br />Property and/or requiring Borrower to sell the Property to an eligible person or family. <br />Notwithstanding the foregoing, it shall not be a breach of this Agreement if the income of a person <br />or family whose household annual income was within the applicable limitation at the time such <br />person or family first obtained the Loans subsequently increases to an amount that exceeds the <br />applicable limitation. <br />6. Owner-Occupancy Requirement. <br />(a) Borrower shall occupy the Property as his/her/their primary residence, and the Property <br />shall be used as the principal residence of Borrower and Borrower's household. The maximum <br />occupancy of each dwelling unit on the Property shall not exceed two persons per bedroom plus <br />one additional person. <br />(b) City shall have the right to monitor whether the Property is owner-occupied by <br />requesting that Borrower provide City no more frequently than annually, with a written certification <br />under penalty of perjury that the Property is owner-occupied, accompanied by supporting <br />documentation reasonably satisfactory to City. <br />(c) In the event of a breach or threatened breach of this Section 6, the City or its successors <br />or assigns shall be entitled to institute legal action to enforce performance of this Section and to <br />obtain an injunction prohibiting anyone who is not an eligible person or family from occupying the <br />Property and/or requiring Borrower to sell the Property to an eligible person or family. <br />Notwithstanding the foregoing, it shall not be a breach of this Agreement if the income of a person <br />or family whose household annual income was within the applicable limitation at the time such <br />person or family first obtained the Loans subsequently increases to an amount that exceeds the <br />applicable limitation. <br />7. Notice of Sale: Assumption of CDBG Loan (ONLY) <br />(a) Within 5 days following entering into any agreement for the Sale of the Property (or, in <br />the event of an involuntary transaction constituting a Sale of the Property, within 5 days after such <br />involuntary transaction), Borrower shall notify the City in writing of (i) the nature of the Sale or <br />other transaction, (ii) when such Sale or other transaction occurred or is expected to occur, (iii) the <br />name of the person or persons to whom the Property was or is intended to be transferred (the <br />"Buyer") and the nature of any relationship between Borrower and Buyer, and (iv) whether the <br />Buyer desires to assume the CDBG Loan. <br />(b) The City shall request such additional information from Borrower and Buyer as the City <br />deems necessary under the circumstances. Such additional information may include: (i) a copy of <br />any agreement for the Sale of the Property; (ii) a written certification in a form that is reasonably <br />acceptable to the City, and signed by Borrower and Buyer under penalty of perjury, stating that <br />Borrower and Buyer have not paid, have no agreement to pay and will not pay, to the other party or <br />to any other person, any money or other consideration in addition to the consideration described in <br />Page 7 of 15 <br />20A-11