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HomeMy WebLinkAboutRESOLUTIONS - 01011999 - 99-543 tole- 15 i THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on October 19, 1999 by at least a four-fifths vote as follows: AYES: SUPERVISORS GIOIA, UILKEMA, DESAULNIER AND CANCIAMILLA NOES: NONE ABSENT: GERBER ABSTAIN: NONE RESOLUTION NO. 99/ 543 (Gov. Code § 25365) SUBJECT: Conveyance of Real Property Assessor's Parcels 203-061-006, 203-061-022, and 203-061-053 (1596-3540) Danville area (CR Nos. 99-8, 99-9, and 99-10) The Board of Supervisors of Contra Costa County RESOLVES THAT: Contra Costa County acquired certain real property in the Danville area, located at 10 Conejo Lane, 225 Portola Drive and 34 Maximo Court, for the purpose of maintaining affordability of homes through the Somerset Density Bonus Program. This Board intends to convey to the Contra Costa County Redevelopment Agency said real property, described in Exhibit "A" attached hereto, in order to facilitate timely resale to eligible households. Proceeds from resale will be used to reimburse the Affordable Housing Special Revenue Fund, the source of funding for the original purchases. This Board hereby APPROVES and AUTHORIZES the conveyance of said property to the Contra Costa County Redevelopment Agency, pursuant to Government Code Section 25365, and the Board Chair is hereby AUTHORIZED to execute a Grant Deed on behalf of the County conveying said property to the Redevelopment Agency. The Board, as the Governing Body of the Redevelopment Agency, also AUTHORIZES the Deputy Director - Redevelopment to execute, on behalf of the County, the buyers' resale agreements imposing fifteen (15) year resale restrictions on the homes at the time of their sale to existing homebuyers, pursuant to the Somerset Density Bonus Program, in substantially the form attached hereto, with modifications as are approved by the Deputy Director- Redevelopment. G:GrpData\RealProp\1999-Files\99-9\BR1 O-Somerset2.doc I hereby certify that this is a true and correct Copy of an action taken and entered on the Orig.Dept: Public Works(R/P) minutes of the Board of Supervisors on the Contact: Nancy Wenninger(313-2227) date shown. County Administrator Auditor-Controller ATTESTED: OCTOBER 19, 1999 Assessor's Office PHIL BATCHELOR, Clerk of the Board of Community Development Dept. Supervisors and County Administrator. By Deputy RESOLUTION NO. 99/ 543 H:\Bdordrs\10199ConejoPortola X4.iximo.doc Somerset Affordable Housing + Contra Costa County to Contra Costa County Redevelopment Agency EXHIBIT "A's All that real property situated in the State of California, County of Contra Costa, described as follows: PARCEL ONE (Fee Title) Lot 6, as shown on Subdivision 7763, filed June 3, 1993, in Book 366 of Maps at Page 4, Contra Costa County Records. Excepting therefrom: All oil, gas, casinghead gasoline and other hydrocarbon substances of any kind below a point 600 feet below the surface of the lands, together with the right to take, remove, pass through and dispose of all said oil, gas, casinghead gasoline and other hydrocarbon and mineral substances, but without any rights whatsoever to enter upon the surface of said land or upon any part of said lands within 500 feet from the surface thereof. APN 203-061-006 PARCEL TWO (Fee Title) Lot 22, as shown on Subdivision 7763, filed June 3, 1993,-`in Book 366 of Maps at Page 4, Contra Costa County Records. Excepting therefrom: All oil, gas, casinghead gasoline and other hydrocarbon substances of any kind below a point 500 feet below the surface of the lands, together with the right to take, remove, pass through and dispose of all said oil, gas, casinghead gasoline and other hydrocarbon and mineral substances, but without any rights whatsoever to enter upon the surface of said land or upon any part of said lands within 500 feet from the surface thereof. APN 203-061-022 PARCEL THREE (Fee Title) Lot 138, as shown on Subdivision 7763, filed June 3, 1993, in Book 366 of Maps at Page 4, Contra Costa County Records. Excepting therefrom: All oil, gas, casinghead gasoline and other hydrocarbon substances of any kind below a point 500 feet below the surface of the lands, together with the right to take, remove, pass through and dispose of all said oil, gas, casinghead gasoline and other hydrocarbon and mineral substances, but without any rights whatsoever to enter upon the surface of said land or upon any part of said lands within 500 feet from the surface thereof. APN 203-061-053 NW U WS11SHARDATA1GrpDataVRea1Propl1999-FileslSomersetdesc.doc .September 29, 1999 000) BUYER'S RESALE AGREEMENT CONTRA COSTA COUNTY DENSITY BONUS PROGRAM ADMINISTRATIVE CHECKLIST (Remove Upon Completion) BLAM LINES: CHECKLIST Owner's Name and Address of Home Purchased,p 1 Date,p. 1, first paragraph Owner's Name,p. 1, first paragraph First Lender's Name,p. 2,Recital F Execution Date and Recording Date of First Lender Deed of Trust,p. 2,Recital F Home Address,p. 3, Section 2 Original Purchase Price of Home,p. 7,Section 11.A. , Signatures,p. 18 Include Exhibit A, Property Description Notary 861=123603.2 10/13/99 RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 When Recorded Mail To: County of Contra.Costa Community Development Department 651 Pine Street,4th Floor,North Wing Martinez,CA 94553-0046 Attn: Deputy Director-Redevelopment BUYER'S RESALE AGREEMENT CONTRA COSTA COUNTY DENSITY BONUS PROGRAM (Somerset Homes) Owner: Home: This Buyer's Resale Agreement(the "Agreement") is entered into as of this day of 1999,by and between the County of Contra Costa(the "County")and (the "Owner"). RECITALS A. California Density Bonus Law(California Government Code Sections 65915 - 65917)requires the County to grant density bonuses to developers who agree to construct affordable housing units as part of their developments. The California Density Bonus Law requires the County to ensure continued affordability of density bonus units for a minimum of ten years. B. Dame Construction Company, the developer of the Somerset Homes (the "Developer"),was granted a density bonus by the County and entered into a Developer Agreement dated April 28, 1993 to implement the requirements of the California Density Bonus Law. Pursuant to the Developer Agreement, the Developer sold fifteen percent(15%)of the Somerset Homes units to low and moderate income households at affordable prices (the "Density Bonus Units"). 863\30\123603.2 10/13/99 1 C. Owner intends to purchase the property located at in the County of Contra Costa and more particularly described in Exhibit A attached hereto and incorporated herein(the "Home"). The Home is one of the Density Bonus Units which has been transferred to the County by the original purchaser. The County has transferred the Horne to the Contra Costa County Redevelopment Agency(the "Agency")in order that the Agency may sell the Home to the Owner. D. Pursuant to the California Density Bonus Statute,the County is required to ensure the continued affordability of the Horne as a Density Bonus Unit,and the County and the Agency therefore require the Owner to execute this Agreement as a condition of the Owner's purchase of the Home. The Owner has agreed to execute and comply with this Agreement in consideration of the Agency's agreement to sell the Home to the Owner at an affordable price which is below the fair market value of the Home. E. The purpose of this Agreement is to place resale controls on the Home and to require the payment of any excess proceeds of sale to the County. This Agreement also provides the County an option to purchase the Home at a restricted price, given in consideration of the economic benefits to the Owner resulting from purchase of the Home at a below market price under the County's Density Bonus Program. F. The Owner is receiving a first mortgage loan(the "First Mortgage Loan") from (the "First Lender"). The First Mortgage Loan is secured by a deed of trust dated , 19_, executed by the Owner in favor of First Lender and recorded in the County of Contra Costa on , 19—, and assigned Recorder's Serial No. (the "First Mortgage Deed of Trust"). C. This Agreement shall be secured by a deed of trust on the Home(the "County Deed of Trust"). This Agreement and the County Deed of Trust shall be subordinate to the lien of the First Mortgage Deed of Trust. NOW,THEREFORE, in consideration of the benefits received by the Owner and the County hereunder,the Owner and the County agree, as follows: 1. 12EF_ IIONS The following terms are specially defined for this Agreement and their definitions can be found in the sections indicated below: A. "Agreement" -First sentence of the Agreement on page 1 B. "County" -First sentence of the Agreement on page 1 863\301123603.2 10113/99 2 C. "County Deed of-Trust"- Recital G D. "County Option" - Section 10 E. "Eligible Purchaser" -Section 12B F. "Excess Sales Proceeds" - Section 13 G "Fair Market Value" -Section 11B H. "First County Response Notice" -Section 8 I. "First Lender" -Recital F J. "First Mortgage Deed of Trust" -Recital F K. "First Mortgage Loan" -Recital F L. "Home" -Recital C and Section 2 M. "Ineligible Purchaser" - Section 12E N. "Maximum Sales Price" - Section 11 O. "Owner" -First sentence of the Agreement on Page 1 P. "Owner's Notice of Failure to Locate Eligible Purchaser" - Section 12E y Q. "Owner's Notice of intent to Transfer" - Section 7 R. "Restricted Future Sales Price" - Section 11A S. "Second County Response Notice" - Section 12E T. "Transfer" - Section b 2. DESCRIPTION OF PROPE&TY This Agreement concerns the real property commonly known as , ,California ,which is more fully described in Exhibit attached hereto and incorporated in this Agreement by reference(the "Home"). 8631301123603.2 10/13/99 3 3. QMMR CERTIFICATIONS The Owner certifies that(a)the financial and other information previously provided in order to qualify to purchase the Home is true and correct as of the date first written above,and (b)the Owner shall occupy the Home as the Owner's principal place of residence. The Owner shall be considered as occupying the Home if the Owner is living in the unit for at least ten(10) months out of each calendar year. The Owner shall provide an annual written certification to the County that the Owner is occupying the Home as his or her principal place of residence. 4. LEASING OF HOME The Owner shall not lease the Home to another party. Any lease in violation of this Agreement is prohibited. 5. lviAINTENANCE AND INSURANCE REQUIREMENTS A. The Owner shall maintain the Home, including landscaping, in good repair and in a neat,clean and orderly condition and will not commit waste or permit deterioration of the Home. B. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Home(adjusted every five(5)years by appraisal, if requested by County), naming the County as an additional insured. Additional insurance requirements are set forth in Section 5 of the County Deed of Trust. 6. RESTRICTIONS ON RESALE OF THE HQME Any Transfer of the Home will be subject to the provisions of this Agreement including, without limitation, the County Option described in Section 10 below. "Transfer" means any sale,assignment or transfer,voluntary or involuntary,of any interest in the Home, including,but not limited to, a fee simple interest,a joint tenancy interest, a life estate, a leasehold interest,or an interest evidenced by a land contract by which possession of the Home is transferred and Owner retains title. Any Transfer without satisfaction of the provisions of this Agreement is prohibited. Transfers by devise or inheritance to an existing spouse, domestic partner,child, surviving joint tenant,or a spouse as part of a dissolution proceeding, or in connection with marriage shall not be considered a Transfer for the purposes of this Agreement. 7. NOTICE OF INTENDED TRANSFER: PREPARRABON OF HOME FOR SALE A. In the event the Owner intends to Transfer or vacate the Home,the Owner shall promptly give the County written notice of such intent(the"Owner's Notice of Intent to Transfer"). The Owner's Notice of Intent to Transfer shall be sent to the County by certified 8631;101123603.2 10/13/99 4 mail,return receipt requested at the address provided in Section 29 of this Agreement. The Owner's Notice of Intent to Transfer shall include the information necessary for the County to determine the Restricted Future Sales Price of the Home, including the following information: (1) the address of the Property; (2) the date of purchase of the Horne by the Owner; (3) the purchase price of the Home paid by the Owner at the time of his/her purchase; (4) a copy of the HUD-1 Settlement Statement or equivalent document from the close of escrow on the Owner's purchase of the Home; (5) if Owner has made eligible capital improvements to the Home that he/she wishes to include in the calculation of Restricted Future Sales Price, a description of the improvements,the date the improvements were made,a copy of the letter granting prior County approval of the improvements, evidence of cost of the improvements, and an appraisal of the value added to the Home by the improvements; (6) the date on which Owner intends to vacate Home; (7) the date Home will be placed on the market; and (8) the name and phone number of the person to contact to schedule inspection of the Home by the County. B. The Owner should not contract with a real estate broker to sell the Home until the Owner has received the First County Response Notice nLrsua_nt to Section 8A below.as the services of a broker will not be required if the County exercises the CouWy Oplign to pxsj- ase the Home V=uant to Sections 8A and 10 below. C. Following delivery to the County of the Owner's Notice of Intent to Transfer, the Owner shall prepare the Home for sale, as follows: (1) within thirty(30)days of delivery of the Owner's Notice of Intent to Transfer,the Owner shall obtain and deliver to the County a current written report of inspection of the Home by a licensed structural pest control operator; (2) within the sooner of(a) sixty(60) days from the date of the Owner's Notice of Intent to Transfer,or(b)prior to close of escrow on the Transfer, the Owner shall repair all damage noted in the pest report including damage caused by infestation or infection by wood-destroying pests; 8831301123603.2 10/13/99 5 (3) within thirty(30)days of the date of the Owner's Notice of Intent to Transfer,the Owner shall allow the County,or its designee,to inspect the Home to determine its physical condition; (4) if the Home is vacant,the Owner shall maintain utility connections until the close of escrow on the Transfer; (5) in the event of County purchase of the Horne,the Owner shall permit a final walk-through of the Home by the County in the final three(3)days prior to close of escrow on the Transfer. 8. COUNTY B SPONSE TO O R'S NOTICE OF INTENDED TRAANSFFR The County shall respond in writing(the"First County Response Notice")to the Owner's Notice of Intent to Transfer within sixty(60)days of County receipt of a complete Owner's Notice of Intent to Transfer that includes all information required under Section 7 above. The County Response Notice shall inform the Owner of the County's election to proceed under one of the following two alternatives: A. County Exercise of County Purchase_O ion. The First County Response Notice may notify the Owner that the County elects to exercise the County Option to purchase the Home,as granted in Section 10 below, and shall include the County's calculation of the Maximum Sales Price to be paid by the County pursuant to Section 11 below and the Transaction Fee to be paid by the Owner pursuant to Section 10 below. B. Owner Sale at Restricted Sale Price to Eligible Purchaser. Alternatively, the First County Response Notice may notify the Owner that the County will not exercise the County Option to purchase the Home and that the Owner may proceed to sell the Horne to an Eligible Purchaser at a price not to exceed the Maximum Sales Price,pursuant to the procedure set forth in Section 12 below. In this event,the First County Response Notice shall include the following information: (1)the maximum qualifying income for an Eligible Purchase; (2)the certifications required of an Eligible Purchaser; and(3)the Maximum Sales Price the Owner may receive for the Home,calculated by the County pursuant to Section I I below. 9. QMMR ACKNOWLEDGMENT OF COUNTY RESPONSE NOTICE No later than seven(7)days following the date of the First County Response Notice,the Owner shall acknowledge in writing to the County that he/she has received the County Response Notice and still intends to Transfer the Horne. 663\30\123603.2 10/13/99 6 10. CQI=.ElaCHASE OPTION The Owner agrees that the County shall have the option to purchase the Home(the "County Option")for an amount equal to the lesser of. (i)the Fair Market Value of the Home; or(ii)the Restricted Future Sales Price as set forth in Section 11 of this Agreement. The County may,instead of purchasing the Home itself,assign its right to purchase the Home pursuant to the County Option to another public agency,a nonprofit corporation,or to an Eligible Purchaser. The Owner shall pay the County a transaction fee equal to six percent(6%)of the sales price if the County(or its assignee)exercises the County Option and purchases the Home. The County Option may be exercised at two separate times as follows. a. The County Option may be exercised by the County in the First County Response Notice,as described in Section 8A above,to be sent by the County to the Owner within sixty(60)days of the County's receipt of a complete Owner's Notice of Intent to Transfer. If the First County Response Notice notifies the Owner that the County will exercise the County Option to purchase,the County shall purchase the Home within ninety(90)days of the date of the First County Response Notice. b. The County Option may also be exercised by the County in the Second County Response Notice(as described in Section 12E below),to be sent by the County to the Owner within fifteen(15)days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser. If the Second County Response Notice states that the County will exercise the County Option,the County shall purchase the Home within seventy-five(75)days of the date of the Second County Response Notice. 11. DETERMIN TION OF MAXIMUM SALES ERTCE FOR CSO TNTY PURCHASEQR. RSSUI TED SALE If the County exercises the County Option,or if the Owner sells to an Eligible Purchaser, the maximum sales price(the"Maximum Sales Price")that the Owner shall receive from the County or the Eligible Purchaser for purchase of the Home shall be the Restricted Future Sales Price or the Fair Market Value,whichever is less. A. Restricted Future Sales Price. (1) The Restricted Future Sales Price of the Home means the sales price of the Home at the time of purchase by the Owner,which was Dollars($ }, increased by the percentage of increase in the Median Income from the date of the original purchase of the Home by the Owner to the date of receipt by the County of the Owner's Notice of Intent to Sell, and,where applicable,adjusted pursuant to subsection(2) below to reflect the value of capital improvements or the cost of deferred maintenance. "Median Income" shall refer to the median yearly income, adjusted for a household size of four,in the Oakland Primary Metropolitan Statistical Area as published by the California Department of Housing and Community Development("HCD"),or, in the event such income determination is no longer published by HCD, or has not been updated for a period of at least eighteen(18) 8631301123603.2 10/13M 7 months,the County may use or develop such other reasonable method as it may choose in order to determine the median yearly income in Contra Costa County. (2) '(Where applicable,the Restricted Future Sales Price shall include an upward adjustment reflecting the value of any substantial structural or permanent fixed improvements which the towner has made to the Home after purchase of the Home. No such adjustment shall be made except for improvements: (a)made or installed by the Owner which conform with applicable building codes; (b)approved in writing in advance by the County or its designee; and{c}whose initial costs exceed one percent(1%)of the purchase price paid for the Home by the fawner. The adjustment to the Restricted Future Sales Price for such improvements shall be limited to appraised increases in value to the Home as a result of the improvements (pursuant to an appraisal paid for by the Owner and approved by the County)and not the cost of construction of the improvements to the Home. The Restricted Future Sales Price shall include a downward adjustment,where applicable,in an amount necessary to repair any violations of applicable building,plumbing,electric, fire or housing codes or any other provisions of the Conga Costa County Building Code,as well as any other repairs needed to put the Home into a "sellable condition". Items necessary to put a Home into sellable condition shall be determined by the County or its designee,and may include cleaning,painting and making needed structural, mechanical,electrical,plumbing and fixed appliance repairs and other deferred maintenance repairs. B. Fly tMwIrA Value. In certain circumstances it may be necessary to determine the fair market value of the Home(the"Fair Market Value"). These circumstances include: (1)where the parties wish to determine if the Restricted Future Sales Price exceeds the Fair Market Value in order to determine the Maximum Sales Price pursuant to Section 11; (2) where the Owner is selling the Home to an Ineligible Purchaser at an unrestricted price pursuant to Section 12E; and(3)and where the parties wish to determine the value of capital improvements in order to calculate the Restricted Future Sales Price pursuant to Section 11 A. If it is necessary to determine the Fair Market Value of the Home, it shall be determined by a certified MAI real estate appraiser approved in advance by the County. If possible,the appraisal shall be based upon the sales prices of comparable properties sold in the market area during the preceding three-month period. The cost of the appraisal shall be shared equally by the County and the Owner,unless the appraisal is obtained from a new purchaser,or unless the appraisal is necessary because the Owner wishes to refinance the First Mortgage Loan pursuant to Section 23 below,in which event the Owner shall pay the cost of the appraisal. In the event that the Owner has made capital improvements to the Home(which have been approved in advance by the County pursuant to Section 11 A of this Agreement)which have increased the value of the Home or if damage or deferred maintenance has occurred while the Owner owned the Home which has decreased the value of the Horne,the appraisal shall specifically ascribe a value to these adjustment factors and state what the fair market value of the Home would be without such adjustments by utilizing the procedures outlined in Section 1 IA above for calculating the Restricted Future Sales Price. Nothing in this section shall preclude the Owner and the County from establishing the Fair Market Value of the Home by mutual agreement in lieu of an appraisal pursuant to this section. 8631301123603.2 10/13M 8 12. SALE Qj HOMIE BY QY2MR IFCOSY Dz ESJJOT E-_XLRC:I E COL�t+�t�"Y OPTION TO Pj=HAS In the event the First County Response Notice notifies the Owner to proceed to sell the Home to an Eligible Purchaser at a price not exceeding the Maximum Sales Price,the Owner may proceed to sell the Home in compliance with the following requirements: A. Mu 'ng Period. The towner shall have sixty(60)days(the"Marketing Period")to market the Home and find an Eligible Purchaser. During the Marketing Period,the Owner shall use bona fide good faith efforts to sell the Home to an Eligible Purchaser in compliance with this Section 12, including keeping the Home in an orderly condition,making the Horne available to show to agents and prospective buyers,and providing buyers with Eligible Purchaser requirements, including income qualifications and the County's form of disclosure statement summarizing the terms of the buyer's resale agreement. If the Owner has not located an Eligible Purchaser within this sixty(60)day marketing period,the Owner may request an additional sixty(60)day marketing period. At any time during the marketing period or following expiration of the marketing period,the Owner may request that the County purchase the Home;provided,however,the County shall not be obligated to purchase the Home following such a request by the Owner. A proposed purchaser("Proposed Purchaser"),who the Owner believes will qualify as an Eligible Purchaser,shall be referred to the County for an eligibility determination. B. Elijzile Purchaser. A Proposed Purchaser shall qualify as an"Eligible Purchaser" if he or she meets the following requirements,as determined by the County: (1) jn n to Owner Occupy, The Proposed Purchaser shall certify that he or she will occupy the Home as his or her principal place of residence throughout his or her ownership. (2) Amcmenl to Sign Buyer's&sale A&=meat and to Coop with County. The Proposed Purchaser shall agree to sign a buyer's resale agreement restricting future resale of the Home and shall agree to cooperate fully with the County in promptly providing all information requested by the County to assist the County in monitoring the Proposed Purchaser's compliance with the buyer's resale agreement. e63\30k723603.2 iOil 3199 9 (3) Ino a ,li `bg iilily. The combined maximum income for all household members of the Proposed Purchaser shall not exceed one hundred twenty percent (120%)of the median yearly income,adjusted for household size, for a household in Contra Costa County as published by the California Department of Housing and Community Development("HCD")pursuant to Health and Safety Code Section 50093. In the event such income determinations are no longer published by HCD,or are not updated for a period of at least eighteen(18)months,the County shall provide other income determinations which are reasonably similar with respect to method of calculation to those previously published by HCD. The income of a household shall be calculated in accordance with 25 California Code of Regulations Section 6914 or a successor state housing regulation that sets forth a method of calculation of household income. C. Maximum Sales Price. The purchase price for the sale of the Home by the Owner to the Eligible Purchaser shall not exceed the Maximum Sales Price calculated by the County pursuant to Section 11 above, as set forth in the First County Response Notice. D. Disclosure and Submittals. The Owner and the Proposed Purchaser shall provide the following information and documents to the County: (1) The name, address and telephone number in writing of the Proposed Purchaser. (2) A signed financial statement of the Proposed Purchaser in a form acceptable to the County and any other supporting documentation requested by the County. The financial information shall be used by the County to determine the income eligibility of the Proposed Purchaser. (3) The proposed sales contract and all other related documents which shall set forth all the terms of the sale of the Home. Said documents shall include at least the following terms: (a)the sales price;and(b)the price to be paid by the Proposed Purchaser for the Owner's personal property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any. (4) A written certification,from the Owner and the Proposed Purchaser in a form acceptable to the County that the sale shall be closed in accordance with the terms of the sales contract and other documents submitted to and approved by the County. The certification shall also provide that the Proposed Purchaser or any other party has not paid and will not pay to the Owner, and the Owner has not received and will not receive from the Proposed Purchaser or any other party, money or other consideration, including personal property,in addition to what is set forth in the sales contract and documents submitted to the County. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the County,the County shall have the right to foreclose on the Home or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Proposed Purchaser for the return of any moneys paid or received in violation of this Agreement or for any costs and legal 863130%123603.2 MINN 10 expenses, shall be borne by the Owner and/or the Proposed Purchaser and they shall hold the County and its designee harmless and reimburse their expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement. (5) An executed buyer's resale agreement and deed of trust from the Proposed Purchaser in forms provided by the County. The recordation of the new deed of trust and buyer's resale agreement shall be a condition of the County's approval of the proposed sale. (6) the name of the title company escrow holder for the sale of the Home,the escrow number, and name,address,and phone number of the escrow officer. (7) Upon the close of the proposed sale, certified copies of the recorded County deed of trust and buyer's resale agreement, a copy of the final sales contract, settlement statement,escrow instructions,and any other documents which the County may reasonably request. E. Failure To Locate Eligible Purchaser: Unrestricted Sale. If, despite bona fide good faith marketing efforts, the Owner is unable to locate an Eligible Purchaser during the Marketing Period and any extensions to the Marketing Period granted by the County, the Owner shall provide written notice to the County of this fact(the "Owner's Notice of Failure to Locate Eligible Purchaser"). Within fifteen(15) days of receipt of the Owner's Notice of Failure to Locate Eligible Purchaser,the County shall provide a second response notice to the Owner(the "Second County Response Notice") stating either(1)that the County will exercise the County Option to purchase the Home pursuant to Section 10, or(2) that the Owner may Transfer the Horne to a person of the Owner's choosing(an "Ineligible Purchaser")who is not an Eligible Purchaser, at an unrestricted price(supported by an MAI appraisal), but shall pay all Excess Sales Proceeds to the County as set forth in Section 13 below. If the Owner Transfers the Home pursuant to this Section 12E, the purchaser shall not be required to execute a buyer's resale agreement,and the County shall reconvey the liens of this Agreement and the County Deed of Trust from the Home,provided that the Owner pays the Excess Sales Proceeds to the County pursuant to Section 13 below. The Owner shall provide the County with the following documentation associated with such a Transfer: (1) the name and address of the purchaser; (2) the final sales contract and all other related documents which shall set forth all the terms of the sale of the Home. (3) The proposed sales contract and all other related documents which shall set forth all the terms of the sale of the Home. Said documents shall include at least the following terms: (a)the sales price; and(b)the price to be paid by the Ineligible Purchaser for the Owner's personal property, if any, for the services of the Owner, if any, and any credits, allowances or other consideration, if any. (4) A written certification, from the Owner and the Ineligible Purchaser in a form acceptable to the County that the sale shall be closed in accordance with the 8631.30112303.2 10/13/99 11 terms of the sales contract and other documents submitted to and approved by the County. The certification shall also provide that the Ineligible Purchaser or any other party has not paid and will not pay to the Owner,and the Owner has not received and will not receive from the Ineligible Purchaser or any other party, money or other consideration, including personal property, in addition to what is set forth in the sales contract and documents submitted to the County. The written certification shall also include a provision that in the event a Transfer is made in violation of the terms of this Agreement or false or misleading statements are made in any documents or certification submitted to the County,the County shall have the right to foreclose on the Home or file an action at law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred by the Owner and the Ineligible Purchaser for the return of any moneys paid or received in violation of this Agreement or for any costs and legal expenses, shall be borne by the Owner and/or the Ineligible Purchaser and they shall hold the County and its designee harmless and reimburse their expenses, legal fees and costs for any action they reasonably take in good faith in enforcing the terms of this Agreement. (5) A copy of the MAI appraisal for the Home. (6) Upon the close of the proposed sale,a copy of the final sales contract, settlement statement, escrow instructions, and any other documents which the County may reasonably request. 13. PAYMENT O UNTY OF EXCESS SALES PROCEEDS If the Owner Transfers the Horne at an unrestricted price pursuant to Section 12E above, or if the Owner makes a Transfer in violation of this Agreement, the Owner shall pay the Excess Sales Proceeds to the County. For purposes of this Agreement, "Excess Sales Proceeds" shall mean ninety-four percent(94%)of the amount by which the gross sales proceeds received by the Owner from the new purchaser exceed the Maximum Sales Price for the Horne(in the amount that was stated in the First County Response Notice). This amount shall be a debt of the Owner to the County, secured by the County Deed of Trust. The Owner acknowledges that the County shall have no obligation to cause reconveyance of this Agreement or of the County Deed of Trust until the Excess Sales Proceeds are paid to the County. The County shall utilize the Excess Sales Proceeds for County affordable housing programs. The Owner and the County acknowledge that the formula for calculation of the amount of Excess Sales Proceeds due from the Owner to the County is intended to cause the Owner to receive the same net sales proceeds (following payment by Owner of a standard broker's commission) from sale of the Home at an unrestricted price to an Ineligible Purchaser as the Owner would receive from sale of the Horne to the County or to an Eligible Purchaser at the Maximum Sales Price. 14. DEFAULTS A. The following events shall constitute a Default by the Owner under this Agreement: 8831301123603.2 10!13199 12 (1) The County determines that the Owner has made a misrepresentation to obtain the benefits of purchase of the Home or in connection with its obligations under this Agreement; (2) The Owner mares a Transfer in violation of this Agreement; (3) The Owner otherwise fails to comply with the requirements of this Agreement and such violation is not corrected to the satisfaction of the County within ten(10) days after the date of written notice by the County to the Owner of such violation; or (4) A notice of default is issued under.First.Mortgage Loan or other financing secured by the Home. (5) A lien is recorded against the Home other than the lien of a bone fide mortgage loan. B. Upon a declaration of Default by the County under this Agreement, the County may: (1) Declare all Excess Sales Proceeds immediately due and payable without further demand and may invoke the power of sale under the County Deed of Trust; (2) Apply to a court of competent jurisdiction for such relief at law or in equity as may be appropriate; (3) Declare a Default under the County Deed of Trust and pursue all County remedies under the County Deed of Trust; and (4) Exercise the County Purchase Option Upon Default as described in Section 16 below. 15. NQI[ICE OF D .FA Ti T AND FORFC'r QSXiRF A request for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Home shall be recorded by the County in the Office of the Recorder of the County of Contra Costa for the benefit of the County. The County may declare a Default under this Agreement upon receipt of any notice given to the County pursuant to Civil Code Section 2924b,and may exercise its rights as provided in Sections 14 and 16. In the event of default and foreclosure, the County shall have the same right as the Owner to cure defaults and redeem the Home prior to the foreclosure sale. Nothing herein shall be construed as creating any obligation of the County to cure any such default,nor shall this right to cure and redeem operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage. 863!301123603.2 10113!99 13 If the County failed to file the request for notice of default,the County's right to purchase the Horne shall commence from the date a notice of default is given by the County to the Owner. 16. PURCHASE OjnjQN JTQN_DEFALTTU Notwithstanding,and in addition to,the remedies provided the County in Section 14,and the County Option provided to the County in Section 10,the Owner hereby grants to the County the option to purchase the Home following written notice by the County to the Owner of the declaration of a Default by the County under this Agreement.This option to purchase is given in consideration of the economic benefits received by the Owner resulting from ownership of the Home made possible by the County's Density Bonus Program.. The County shall have thirty(30)days after a Default is declared to notify the Owner and the First Lender of its decision to exercise its option to purchase under this Section 16. Not later than ninety(90)days after the notice is given by the County to the Owner of the County's intent to exercise its option under this Section 16,the County shall purchase the Home for the Maximum Sales Price calculated in the manner set forth in Section 11. 17. NQUTABI IT OF THE CQ= A. No Qhligation to,Fzemise Option. The County shall have no obligation to exercise any option granted it under this Agreement. In no event shall the County become in any way liable or obligated to the Owner or any successor-in-interest to the Owner by reason of its option to purchase under Sections 10 and 16 nor shall the County be in any way obligated or liable to the Owner or any successor-in-interest to the Owner for any failure to exercise its option to purchase. B. No In iabil�i y for Negligence. Loss.or Damage. Owner acknowledges, understands and agrees that the relationship between Owner and the County is solely that of borrower and lender,and that the County does not undertake or assume any responsibility for or duty to Owner to select,review,inspect,supervise,pass judgment on,or inform Owner of the quality,adequacy or suitability of the Home or any other matter. The County owes no duty of care to protect Owner against negligent, faulty,inadequate or defective building or construction or any condition of the Home and Owner agrees that neither Owner,or Owner's heirs,successors or assigns shall ever claim,have or assert any right or action against the County for any loss, damage or other matter arising out of or resulting from any condition of the Home and will hold the County harmless from any liability, loss or damage for these things. 663130\923603.2 90/13/99 14 C. I dcranily. Owner agrees to defend, indemnify, and hold the County harmless from all losses,damages,liabilities,claims, actions,judgments, costs, and reasonable attorneys fees that the County may incur as a direct or indirect consequence of (1)owner's failure to perform any obligations as and when required by this Agreement or the Deed of Trust; or(2)D. the failure at any time of any of Owner's representations to the County to be true and correct. 18. RESTRICTIONS TON ON ECL OSUREPR COEDS If a creditor acquires title to the home through a deed in lieu of foreclosure,a trustee's deed upon sale,or otherwise,the owner shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited to the creditor exceed the Maximum Sales Price. The Owner shall instruct the holder of such excess proceeds to pay such proceeds to the County in consideration of the benefits received by the owner through purchase of the Home under the County's Density Bonus Program. 19. RE MCTION QN INSURANCE PROCEEDS If the Home is damaged or destroyed and the Owner elects not to rebuild or repair the Home,the owner shall pay the County the portion of any insurance proceeds received by the Owner for such destruction or damage which is in excess of the Maximum Sales Price calculated pursuant to Section 11 above. 20. T:,R OF AQ EMENT All the provisions of this Agreement, including the benefits and burdens,run with the Home and this Agreement shall bind,and the benefit hereof shall inure to,the owner,his or her heirs, legal representatives,executors, successors in interest and assigns, and to the County and its successors,until the earlier of(i)fifteen(15)years from the date of purchase of the Home by Owner,or(ii)the date of Transfer of the Home to the County or another purchaser in compliance with this Agreement. 21. SUPERIORITY OF AGR.EEMErt t The owner covenants that he or she has not,and will not,execute any other agreement with provisions contradictory to or in opposition to the provisions hereof, and that, in any event, this Agreement is controlling as to the rights and obligations between and among the owner,the County and their respective successors. 863\30\1 23603.2 10/13/99 15 22. SI.1EORDINATION Notwithstanding any provision herein,this Agreement shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Home in compliance with Section 22 of this Agreement. Notwithstanding any other provision hereof,the provisions of this Agreement and the County Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender,or such lender's assignee or successor in interest, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure,this Agreement and the County Deed of Trust shall be forever terminated and shall have no further effect as to the Horne or any transferee thereafter; provided,however, if the holder of such First Lender Deed of Trust acquires title to the Home pursuant to a deed or assignment in lieu of foreclosure,this Agreement and the County Deed of Trust shall automatically terminate upon such acquisition of title,only if(i)the County has been given written notice of default under such First Lender Deed of Trust with a sixty(60)day cure period and(ii)the County shall not have cured the default within such 60-day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First Lender. 23. RRF_IMANCE OF FIRST MMGA rE LOAN The County agrees to subordinate this Agreement and the County Deed of Trust to a deed of trust securing a refinanced First Mortgage Loan provided that, following such refinance,the principal amount of all debt secured by the Home will not exceed ninety percent(90%)of the Maximum Sales Price determined in accordance with Section 11 above. 24. NONDISCHIMINATION The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed,age,disability, sex,sexual orientation,marital status,ancestry or national origin in the sale,transfer,use,occupancy, tenure or enjoyment of the Home,nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use,occupancy, or transfer of the Horne. The foregoing covenant shall run with the land. 25. RIGHTS OF EENFFi 1ARIFS UNDER 12ERDS OF TRUSTS 8631301133603.2 10/13199 16 This Agreement shall not diminish or affect the rights of the County under the County Deed of Trust. Notwithstanding any other provision in this Agreement to the contrary,this Agreement shall not diminish or affect the rights of the California Housing Finance Agency("CHFA"), United States Department of Housing and Urban Development("HUD"),the Federal National Mortgage Association("FNMA"), or the Veterans Administration("VA")under the First . Mortgage Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Home in compliance with Section 23 above. Notwithstanding any other provisions in this Agreement to the contrary, all of the provisions of this Agreement shall terminate and have no further force and effect upon the occurrence of one of the following events: A. Title is acquired by CHFA,HUD,FNMA,VA,the First Lender or another party upon foreclosure of a deed of trust to the First Lender or CHFA, or a deed of trust insured by HUD or guaranteed by VA. B. Title is acquired by another party by a deed in lieu of foreclosure of the First Lender,CHFA,or FNMA deed of trust. 26. WTD FO EAR ANCE BELLEF Notwithstanding other provisions of this Agreement,the County Option on Default pursuant to Section 16 above shall not be exercised by the County when a deed of trust insured by HUD is secured by the Home, and: (i)the owner is undergoing consideration by HUD for assignment forbearance relief;or(ii) the owner is undergoing consideration for relief under HUD's Temporary Mortgage Assistance Payment(TMAP)program. 27. INVALID PROVISIONS If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect,then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 28. =ROLLING LAt�V The terms of this Agreement shall be interpreted under the laws of the State of California. 8631301123603.2 10/13/98 17 29. NOTICES All notices required herein shall be sent by certified mail, return receipt requested or express delivery service with a delivery receipt and shall be deemed to be effective as of the date received or the date delivery was refused as indicated on the return receipt as follows: To the Owner: At the address of the Home. To the County: Contra Costa County Redevelopment County 651 Pine Street,4th Floor,North Wing Martinez, CA 94553 Attn: Deputy Director-Redevelopment The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section. 30. 2aERkRETATjQE OF ACREEMENT The terms of this Agreement shall be interpreted so as to avoid speculation on the Home and to insure to the extent possible that its sales price and mortgage payment remain affordable to persons and families of moderate income. 31. EXHIBITS Any exhibits referred to in this Agreement are incorporated in this Agreement by such reference. IN WITNESS WHEREOF,the parties have executed this Agreement on or as of the date first written above. COUNTY: OWNER: By: Title: (Type Name and Title) (Type Name) 863130123603.2 10/13M 18 EXHIBIT A (Legal Description of the Home) 863`301123603.2 10/13M A-1 STATE OF CALIFORNIA } )ss COUNTY OF CONTRA COSTA ) On , 1999,before me, ,personally appeared personally known to me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s)or the entity upon behalf of which the person(s)acted, executed the instrument. WITNESS my hand and official seal. STATE OF CALIFORNIA } ) ss COUNTY OF CONTRA COSTA ) On , 1999,before me, ,personally appeared personally known to me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s) on the instrument the person(s)or the entity upon behalf of which the person(s)acted,executed the instrument. WITNESS my hand and official seal. 8631301123603.2 10/13/99