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

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the property to City or required to pay to City an amount equal to the FMV of the Property, determined and adjusted as follows: 7.1 In the event that NEDCO is unable to proceed with any aspect of the rehabilitation in a timely manner and no improvements are made to either one or both of the two existing single family units, and City and NEDCO determine that reasonable extension(s) for commencement of the rehabilitation will not remedy the situation, then the ownership of the lot(s) shall revert back to City. NEDCO shall transfer the title to the individual lot(s) by statutory special warranty deed, free of encumbrances suffered or created by NEDCO except matters of record. 7.2 Based on the initial City investment of twenty five thousand dollars ($25,000) in federal CDBG grant toward the purchase of the Property, each single family lot received a CDBG contribution of twelve thousand five hundred dollars ($12,500). Based on NEDCO's initial contribution of fifteen thousand dollars ($15,000), each single family lot received a NEDCO contribution of seven thousand five hundred dollars ($7,500). Should either of the single family lots revert back to City, pursuant to Paragraph 7.1, City shall repay to NEDCO seven thousand five hundred dollars ($7,500) per lot. The individual lot(s) shall be transferred within 45 days of the determination of NEDCO's inability to complete the rehabilitation of the unit(s). 7.3 The fair market value (FMV) shall be determined as of the date of the notice under Paragraph 7.5 and shall be the FMV of the land and 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 NEDCO. 7.4 If the obligation to purchase either of the lots arises because of NEDCO's failure to comply with Paragraph 5.3, the purchase price determined under Paragraph 7.3 for each lot shall be the current FMV, as determined by a qualified appraiser selected by NEDCO and City, reduced by NEDCO's financial contributions, including the seven thousand five hundred dollars ($7,500) per lot attributable to NEDCO's contribution toward the original acquisition of the property and the amount of NEDCO funds invested in rehabilitation and any other improvements to the subject property as of the date of the notice. 7.5 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. 8. Recording of Memorandum of Agreement/Subordination. The parties agree that a memorandum of this agreement shall be recorded in the Deed of Records of Lane County, Oregon describing the covenants set forth in Paragraphs 4 and 5 and providing that such obligations will run with the land and be binding upon Metro and NEDCO's successors and assigns, with the following exceptions: 8.1 The rights of City under the recorded document and this agreement shall be subordinate to the lien of any trust deed or mortgage on the Property which secures any construction or permanent financing of improvements on the Property. Metro Apple Orchard Apartments Land Grant Agreement - 5