Item 4 - Low-Income Prop Tx Ex. - Laserfiche WebLink

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outright to qualified Iow income families or leased though NEDCO's lease-to-own homeownership program. Units will be kept in NEDCO's lease-to-own housing inventory and leased to income eligible tenants until the unit is sold to a qualified lease-to-own tenant. Tenant and homebuyer eligibility is based on the current CDBG household income levels. 6. Metro Reversion of Ownership and Obligation to Pay Upon Breach of Covenant, In the event Metro fails to complete the Project within the time specified in Paragraph 4.2, or in the event Metro fails to comply with the provisions of Paragraph 4.3, Metro shall either be required to return the property to City or required to pay to City an amount equal to the fair market value (FMV) of the Property, determined and adjusted as follows: 6.1 In the event that Metro is unable to proceed with any aspect of the Project in a timely manner and no improvements are made to the Property and Metro has not transferred ownership of the two single family lots to NEDCO, and City and Metro determine that reasonable extension(s) for commencement will not remedy the situation, then the ownership of the Property shall revert back to City. Metro shall transfer the title of the Property by statutory special warranty deed, free of encumbrances suffered or created by Metro. City shall repay to Metro one dollar ($1.00). The Property shall be transferred within 45 days of the determination of Metro's inability to proceed. 6.2 In the event that Metro is unable to proceed with any aspect of the Project in a timely manner and no improvements are made to the Property and Metro has transferred ownership of the two single family lots to NEDCO, and City and Metro determine that reasonable extension(s) for commencement will not remedy the situation, then the ownership of the Property, less the two partitioned NEDCO single family lots, shall revert back to City. Metro shall transfer the title of the Property by statutory special warranty deed, free of encumbrances suffered or created by Metro. City shall repay to Metro one dollar ($1.00). The Property shall be transferred within 45 days of the determination of Metro's inability to, proceed. 6.3 The FMV shall be determined as of the date of the notice under Paragraph 6.5 and shall be the FMV of the land only, without regard to any improvements thereon, based on information from an appraisal conducted as of the date of notice. The appraisal shall be performed by a certified appraiser selected by City and Metro. 6.4 If the obligation to purchase arises because of a failure to comply with Paragraph 4.3, the purchase price determined under Paragraph 6.3 shall be adjusted based on the number of years that the Property qualified, pursuant to Paragraph 4.3, prior to the year in which the Property ceased to qualify. For example, if under Paragraph 4.3 the Property qualified for five consecutive years and ceased to qualify during the sixth year, the purchase price determined under Paragraph 6.3 would be reduced by 25 percent. 6.5 Any Property transfer or applicable payment shall be completed by Metro within 45 days after notice from City of a breach of either of the covenants in Paragraph 4. 7. NEDCO Reversion of Ownership and Obligation to Pay Upon Breach of Covenant. In the event that ownership of the two single family lots is transferred to NEDCO and NEDCO fails to comply with the provisions of Paragraph 5.3, NEDCO shall either be required to return Metro Apple Orchard Apartments Land Grant Agreement - 4