Milpitas City Council
June 17, 2025

a.

Grant
of
Option
to
Purchase.

Owner
hereby
grants
to
the
Authority
an
option
("Option")
to
purchase
all
of
Owner's
right,
title
and
interest
in
and
to
the
Property
upon
the
occurrence
of
an
Option
Event
(defined
in
Paragraph

3.c
below),
subject
to
the
terms
and
conditions
contained
herein.
b.

Assignment
of
the
Option.

The
Authority
may
assign
the
Option
to
another
government
entity,
a
non-profit
affordable
housing
provider
or
a
person
or
family
that
qualifies
as
an
Eligible
Household.

The
Authority's
assignment
of
the
Option
shall
not
extend
any
time
limits
contained
herein
with
respect
to
the
exercise
period
of
the
Option
or
the
period
within
which
the
Property
must
be
purchased.
.
c.

Events
Giving
Rise
to
Right
to
Exercise
Option.

The
Authority
shall
have
the
right
to
exercise
its
Option
upon
the
occurrence
of
any
of
the
following
events
(each,
an
"Option
Event"):
i.

Receipt
of
a
Notice
of
Intent
to
Transfer
(defined
in
Paragraph

3.d.i
below);
ii.

Any
actual,
attempted
or
pending
sale,
conveyance,
transfer,
lease
or
other
attempted
disposition
of
the
Property
or
of
any
estate
or
interest
therein,
except
as
provided
in
Paragraph
1 0
below;
iii.

Any
actual,
attempted
or
pending
encumbrance
of
the
Property,
including
without
limitation
by
way
of
mortgage
or
deed
of
trust,
or
by
judgment,
mechanics,
tax
or
other
lien,
except
as
provided
in
Paragraph
9 below;
iv.

Recordation
of
a
notice
of
default
and/or
notice
of
sale
pursuant
to
California
Civil
Code
section
2924
(or
successor
provisions)
under
any
deed
of
trust
or
mortgage
with
a
power
of
sale
encumbering
the
Property;
v.

Commencement
of
a
judicial
foreclosure
proceeding
regarding
the
Property;
vi.

Execution
by
Owner
of
any
deed
in
lieu
of
foreclosure
transferring
ownership
of
the
Property;
vii.

Commencement
of
a
proceeding
or
action
in
bankruptcy,
whether
voluntary
or
involuntary,
pursuant
to
Title
1 1
of
the
United
States
Code
or
other
bankruptcy
statute,
or
any
other
insolvency,
reorganization,
arrangement,
assignment
for
the
benefit
of
creditors,
receivership
or
trusteeship,
concerning
the
Owner;
or
viii.

Any
violation
by
Owner
of
any
provision
of
this
Agreement
including,
without
limitation,
the
conditions
set
forth
in
Paragraph
2 above.
d.

Method
of
Exercising
the
Option.
i.

Notice
of
Intent
to
Transfer.

If
Owner
desires
to
sell,
convey,
transfer
(other
than
pursuant
to
Paragraph
9),
lease,
encumber
(other
than
pursuant
to
Paragraph

1 0)
or
otherwise
dispose
of
the
Property
or
of
any
estate
or
interest
therein,
no
less
than
60 days
prior
to
the
date
of
such
proposed
sale,
conveyance,
transfer,
lease,
encumbrance
or
disposition,
Owner
shall
notify
Authority
in
writing
to
that
effect
(the
"Notice
of
Intent
to
Transfer").

The
Notice
of
Intent
to
Transfer
shall
be
in
substantially
the
form
attached
hereto
as
Exhibit
B.

In
the
case
of
a
proposed
sale
of
the
Property
to
an
identified
prospective
purchaser,
the
Owner
shall
submit
to
the
Authority,
together
with
the
Notice
of
Intent
to
Transfer,
a
copy
of
the
prospective
purchaser's
income
certification,
a
list
of
all
assets
owned
by
the
prospective
purchaser,
and
other
financial
information
reasonably
requested
by
Authority,
in
a
form
approved
by
the
Authority,
along
with
the
income
certification
to
be
provided
to
any
lender
making
a
loan
to
the
prospective
purchaser.

The
Authority
may
require
documentation
evidencing
and
supporting
the
income
and
other
financial
information
contained
in
the
certifications.
ii.

Notice
of
Exercise.

Upon
the
occurrence
of
any
Option
Event,
the
Authority
may
exercise
its
Option
by
delivering
notice,
pursuant
to
Paragraph
16 and
within
the
time
period
specified
in
Paragraph
3(d)(iv),
to
Owner
of
Authority's
intent
to
exercise
such
Option
pursuant
to
the
terms
of
this
Agreement
("Notice
of
Exercise").

The
Notice
of
Exercise
may
be
in
the
form
attached
hereto
and
incorporated
herein
as
Exhibit
C.
or
in
such
other
form
as
the
Authority
may
from
time
to
time
adopt.

If
the
Option
Event
relates
to
the
potential
foreclosure
of
a
mortgage
under
Paragraphs

3.c.iv,

3.c.v,
or

3.c.vi,
then
the
Authority
shall
also
deliver
the
Notice
of
Exercise
to
the
mortgagee
or
beneficiary
under
such
mortgage,
at
such
mortgagee's
or
beneficiary's
address
of
record
in
the
Office
of
the
Recorder
of
Santa
Clara
County.
iii.

Notice
of
Consent
to
Transfer.

If
the
Authority
does
not
exercise
the
Option,
it
may
give
its
consent
to
the
occurrence
of
the
Option
Event
("Consent
to
Transfer").

If
the
Option
Event
involves
a
proposed
sale
of
the
Property
to
a
prospective
purchaser,
the
Authority's
consentshall
be
conditioned
upon
(i)
the
proposed
purchaser's
qualification
as
an
Eligible
Household;
(ii)
the
sale
of
the
Property
at
a
price
not
to
exceed
the
Adjusted
Resale
Price;
(iii)
the
proposed
purchaser's
execution
of
a
Disclosure
Statement
in
the
form
attached
hereto
as
Exhibit
F
or
such
other
form
or
forms
as
may
be
promulgated
by
the
Authority
;
and
(iv)
the
proposed
purchaser's
assumption
of
Owner's
duties
and
obligations
under
this
Agreement
pursuant
to
a
written
assumption
agreement
in
a
form
acceptable
to
Authority,
or
execution
of
an
agreement
substantially
similar
to
this
Agreement,
within
sixty
(60)
days
after
the
Consent
to
Transfer
has
been
delivered
to
Owner
and
recordation
of
such
assumption
agreement
or
substitute
agreement.

If
the
prospective
purchaser
(i)
fails
to
qualify
as
an
Eligible
Household,
(ii)
fails
to
execute
and
deliver
the
Disclosure
Statement
to
the
Authority,
or
(iii)
fails
to
execute
and
deliver
to
the
Authority
an
assumption
agreement
or
an
agreement
substantially
similar
to
this
Agreement
within
such
sixty
(60)
day
period,
then
the
Consent
to
Transfer
shall
expire
and
the
Authority
may,
at
its
option,
either
notify
Owner
of
the
disqualification,
thereby
entitling
Owner
to
locate
another
purchaser
who
qualifies
as
Eligible
Household,
or
exercise
the
Option,
as
if
no
Consent
to
Transfer
had
been
delivered.
iv.

Time
Period
for
Notice.

The
Authority
shall
deliver
a
Consent
to
Transfer,
if
applicable,
not
later
than
sixty
(60)
days
after
the
date
that
it
receives
notification
of
an
Option
Event.

The
Authority
shall
deliver
a
Notice
of
Exercise,
if
applicable,
on
or
before
the
date
which
is
the
later
to
occur
of
the
following:
(i)
sixty
(60)
days
after
the
date
that
the
Authority
receives
notification
of
an
Option
Event
or
(ii)
thirty
(30)
days
after
a
Consent
to

Transfer
has
expired.

For
purposes
of
computing
commencement
of
the
delivery
periods,
the
Authority
shall
be
deemed
to
have
received
notification
of
an
Option
Event
on
the
date
of
delivery
of
a
Notice
of
Intent
to
Transfer,
pursuant
to
the
terms
of
Paragraph
1 6
below
or
on
the
date
it
actually
receives
notice
of
default,
summons
and
complaint
or
other
pleading,
or
other
writing
specifically
stating
that
an
Option
Event
has
occurred.

The
Authority
shall
have
no
obligation
to
deliver
a
Notice
of
Exercise
or
Consent
to
Transfer,
and
the
applicable
time
period
for
exercise
of
the
Option
shall
not
commence
to
run,
unless
and
until
the
Agency
has
received
notification
of
an
Option
Event
in
the
manner
specified
in
this
subparagraph.

If
there
is
a
stay
or
injunction
imposed
by
court
order
precluding
the
Authority
from
delivering
its
Consent
to
Transfer
or
Notice
of
Exercise
within
the
applicable
time
period,
then
the
running
of
such
period
shall
cease
until
such
time
as
the
stay
is
lifted
or
the
injunction
is
dissolved
and
the
Authority
has
been
given
written
notice
thereof,
at
which
time
the
period
for
delivery
of
a
Consent
to
Transfer
or
Notice
of
Exercise
shall
again
begin
to
run.
v.

Notice
of
Abandonment.

If
the
Authority
fails
to
deliver
a
Notice
of
Exercise
or
Consent
to
Transfer
within
the
time
periods
set
forth
in
paragraph

3.d.iv,
upon
request
by
Owner,
the
Authority
shall
cause
to
be
filed
for
recordation
in
the
Office
of
the
Recorder
of
Santa
Clara
County,
a
notice
of
abandonment,
which
shall
declare
that
the
provisions
of
the
Option
are
no
longer
applicable
to
the
Property.

Unless
Owner
requests
recordation
of
notice
of
abandonment
within
30 days
of
the
Authority's
failure
to
deliver
Notice
of
Exercise
or
Consent
to
Transfer,
the
Authority
shall
have
no
obligation
to
record
the
notice
of
abandonment.

Upon
recordation
of
a
notice
of
abandonment,
the
Option
shall
terminate
and
have
no
further
force
and
effect.

If
the
Authority
fails
to
record
a
notice
of
abandonment,
the
sole
remedy
of
Owner
shall
be
to
obtain
a
judicial
order.
instructing
prompt
recordation
of
such
a
notice.
vi.

Right
to
Reinstatement.

If
the
Option
Event
is
the
recordation
of
a
notice
of
default,
then
the
Agency
shall
be
deemed
to
be
Owner's
successor
in
interest
under
California
Civil
Code
Section
2924c
(or
successor
section)
solely
for
purposes
of
reinstatement
of
any
mortgage
on
the
Property
that
has
led
to
the
recordation
of
the
notice
of
default.

As
Owner's
deemed
successor
in
interest,
the
Authority
shall
be
entitled
to
pay
all
amounts
of
principal,
interest,
taxes,
assessments,
homeowners'
association
fees,
insurance
premiums,
advances,
costs,
attorneys'
fees
and
expenses
required
to
cure
the
default.

If
the
Agency
exercises
the
Option,
then
any
and
all
amounts
paid
by
the
Authority
pursuant
to
this
Paragraph
shall
be
treated
as
Adjustments
to
the
Base
Resale
Price
for
the
Property,
as
defined
in
Paragraph
5 below.
vii.

Inspection
of
Property.

After
receiving
a
Notice
of
Intent
to
transfer
or
delivering
a
Notice
of
Exercise,
the
Authority
shall
be
entitled
to
inspect
the
Property
one
or
more
times
prior
to
the
close
of
escrow
to
determine
the
amount
of
any
Adjustments
to
the
Base
Resale
Price.

Before
inspecting
the
Property,
the
Authority
shall
give
Owner
not
less
than
forty-eight
(48)
hours'
written
notice
of
the
date,
time
and
expected
duration
of
the
inspection.

The
inspection
shall
be
conducted
between
the
hours
of
9:00
a.m.
and
5:00
p.m.,
Monday
through
Friday,
excluding
court
holidays,
unless
the
parties
mutually
agree
in
writing
to
another
date
and
time.

Owner
shall
make
the
Property
available
for
inspection
on
the
date
and
at
the
time
specified
in
the
Authority's
request
for
inspection.

viii.

Escrow.

Promptly
after
delivering
a
Notice
of
Exercise,
the
Authority
shall
open
an
escrow
account
for
its
purchase
of
the
Property.

Close
of
escrow
shall
take
place
on
the
date
that
is
the
later
to
occur
of
the
following,
(a)
ninety
(90)
days
after
a
Notice
of
Exercise
has
been
delivered,
or
(b)
ten
(10)
days
after
Owner
has
performed
all
acts
and
executed
all
documents
required
for
close
of
escrow.

Prior
to
the
close
of
escrow,
the
Authority
shall
deposit
into
escrow
with
a
title
company
of
Authority's
choosing,
an
amount
equal
to
the
Adjusted
Resale
Price
as
defined
in
Paragraph
5 below
and
all
escrow
fees
and
closing
costs
to
be
paid
by
Authority.

Commissions
(not
to
exceed
6%
of
the
actual
sales
price),
closing
costs
and
title
insurance
shall
be
paid
pursuant
to
the
custom
and
practice
in
the
County
of
Santa
Clara
at
the
time
of
the
opening
of
escrow,
or
as
may
otherwise
be
provided
by
mutual
agreement.

Owner
agrees
to
perform
all
acts
and
execute
all
documents
reasonably
necessary
to
effectuate
the
close
of
escrow
and
transfer
of
the
Property
to
the
Authority.
ix.

Proceeds
of
Escrow;
Removal
of
Exceptions
to
Title.

Prior
to
close
of
escrow,
Owner
shall
cause
the
removal
of
all
exceptions
to
title
to
the
Property
that
were
recorded
after
the
Effective
Date
with
the
exception
of
(i)
taxes
for
the
fiscal
year
in
which
the
escrow
for
this
transaction
closes,
which
taxes
shall
be
prorated
as
between
Owner
and
Authority
as
of
the
date
of
close
of
escrow;
(ii)
quasi-public
utility,
public
alley,
public
street
easements,
and
rights
of
way
of
record,
and
(iii)
such
other
liens,
encumbrances,
reservations
and
restrictions
as
may
be
approved
in
writing
by
Authority
("Permitted
Exceptions").

The
purchase
price
deposited
into
escrow
by
the
Authority
shall
be
applied
first
to
the
payment
of
any
and
all
Permitted
Encumbrances
(as
defined
in
Paragraph
10)
recorded
against
the
Property
in
order
of
lien
priority,
and
thereafter
to
the
payment
of
Owner's
share
of
escrow
fees
and
closing
costs.

Any
amounts
remaining
after
the
purchase
price
has
been
so
applied,
if
any,
shall
be
paid
to
Owner
upon
the
close
of
escrow.

If
the
purchase
price
is
insufficient
to
satisfy
all
liens
and
encumbrances
recorded
against
the
Property,
the
Owner
shall
deposit
into
escrow
such
additional
sums
as
may
be
required
to
remove
said
liens
and
encumbrances.

In
the
event
that
the
Authority
agrees
to
proceed
with
close
of
escrow
prior
to
the
date
that
Owner
has
caused
all
exceptions
to
title
recorded
after
the
Effective
Date
other
than
Permitted
Exceptions
to
be
removed,
then
Owner
shall
indemnify,
defend
and
hold
Authority
harmless
from
any
and
all
.
costs
expenses
or
liabilities
(including
attorneys'
fees)
incurred
or
suffered
by
Authority
that
relate
to
such
exceptions
and
their
removal
as
exceptions
to
title
to
the
Property.

4. Base
Resale
Price.

Prior
to
adjustment
pursuant
to
Paragraph
5 the
base
resale
price
("Base
Resale
Price")
of
the
Property
shall
be
the
lowest
of:
$301,000.00
a.

Median
Income.

The
original
price
("Base
Price")
paid
by
Owner
for
acquisition
of
the
Property
pursuant
to
the
Program,
increased
(but
not
decreased)
by
an
amount,
if
any,
equal
to
the
Base
Price
multiplied
by
the
percentage
increase
in
the
median
household
income
("Median
Income")
for
Santa
Clara
County
published
by
the
California
Department
of
Housing
and
Community
Development,
Division
of
Housing
Policy
Development,
between
the
Effective
Date
and
the
date
that
the
Authority
receives
notification
of
an
Option
Event;
or
b.

Index
Price.

The
Base
Price
increased
(but
not
decreased)
by
an
amount,
if
any,
equal
to
the
Base
Price
multiplied
by
the
percentage
increase
in
the
Consumer
Price
Index

for
All
Urban
Consumers
for
the
San
Francisco-Oakland-San
Jose
published
by
the
U.S.

Department
of
Labor,
Bureau
of
Labor
Statistics
("Index")
between
the
Recording
Date
and
the
date
that
the
City
receives
notification
of
an
Option
Event;
or
c.

Fair
Market
Value.

The
fair
market
value
of
the
Property
as
determined
by
an
appraiser
selected
and
paid
for
by
Owner
and
approved
in
writing
by
the
Authority
d.

Compute
the
Base
Resale
Price,
the
Authority
may
use
the
Base
Resale
Price
Worksheet
attached
as
Exhibit
D
hereto,
or
such
other
form
as
the
Authority
may
from
time
to
time
adopt.

5. Adjustments
to
Base
Resale
Price.

Subject
to
the
Affordable
Unit
Cost
restriction
described
in
subparagraph
(d)
below,
the
Base
Resale
Price
shall
be
increased
or
decreased,
as
applicable,
by
the
following
adjustment
factors
("Adjustment"):
a.

Capital
Improvements.

An
increase
for
capital
improvements
made
to
the
Property,
but
only
if
the
amount
of
such
improvements
has
been
previously
approved
in
writing
by
the
Authority
after
Owner
has
submitted
original
written
documentation
of
the
cost
to
the
Authority
for
verification.

The
amount
of
the
Adjustment
shall
equal
the
original
cost
of
any
such
capital
improvements.
b.

Damages.

A
decrease
by
the
amount
necessary
to
repair
damage
to
the
Property,
if
any,
and
to
place
the
Property
into
saleable
condition
as
reasonably
determined
by
the
Authority
upon
Authority's
exercise
of
its
Option
hereunder,
including,
without
limitation,
amounts
attributed
to
cleaning;
painting;
replacing
worn
carpeting
and
draperies;
making
necessary
structural,
mechanical,
electrical
and
plumbing
repairs;
and
repairing
or
replacing
built-in
appliances
and
fixtures.

Owner
hereby
covenants
to,
at
Owner's
expense,
maintain
the
Property
in
the
same
condition
as
in
existence
on
the
date
of
Authority's
Notice
of
Exercise,
reasonable
wear
and
tear
excepted.
c.

Advances
by
the
Authority.

A
decrease
in
an
amount
equal
to
the
sum
of
all
costs
advanced
by
the
Authority
for
the
payment
of
mortgages,
taxes,
assessments,
insurance
premiums,
homeowner's
association
fees
and/or
associated
late
fees,
costs,
penalties,
interest,
attorneys'
fees,
pest
inspections,
resale
inspections
and
other
expenses
related
to
the
Property,
which
Owner
has
failed
to
pay
or
has
permitted
to
become
delinquent.
d.

Adjusted
Resale
Price
Not
to
Exceed
Affordable
Unit
Cost.

The
Base
Resale
Price
as
adjusted,
is
hereinafter
referred
to
as
the
"Adjusted
Resale
Price."
Notwithstanding
any
other
provision
hereof
to
the
contrary,
in
no
event
shall
the
Adjusted
Resale
Price
exceed
the
Affordable
Unit
Cost.

6. Priority
and
Effectiveness
of
the
Option.
a.

Recordation.

This
Agreement
shall
be
recorded
in
the
Office
of
the
Recorder
of
the
County
of
Santa
Clara
on
or
as
soon
as
practicable
after
the
Effective
Date.

The
Option
shall
have
priority
over
any
subsequent
sale,
conveyance,
transfer,
lease
or
other
disposition
or
encumbrance
of
the
Property,
or
of
any
estate
or
interest
therein,
and
in
the
event
of
exercise
of

the
Option
by
Authority,
the
Authority
shall
take
the
Property
subject
only
to
Permitted
Exceptions.

Except
as
otherwise
provided
in
Paragraph

7.a,
the
exercise
of
the
Option
by
the
Authority
at
any
time
and
from
time
to
time
shall
not
extinguish
the
Option
or
cause
a
merger
of
the
Option
into
any
estate
or
other
interest
in
the
Property,
and
the
Option
shall
continue
to
exist
and
be
effective
with
respect
to
the
Property
against
any
and
all
subsequent
owners
in
accordance
with
the
terms
and
conditions
hereof.
b.

Request
for
Notice
of
Default.

The
Authority
shall
file
a
Request
for
Notice
of
Default
for
recordation
in
the
Office
of
the
Recorder
of
the
County
of
Santa
Clara
promptly
upon
execution
of
this
Agreement
(see
Exhibit
El.

7. Survival
of
Option
Upon
Transfer.
a.

In
General.

The
Authority's
right
to
exercise
the
Option
shall
survive
any
transfer
of
the
Property
by
Owner.

Each
transferee,
assignee
or
purchaser
of
the
Property
during
the
term
hereof
shall
be
required
to
execute
an
agreement
substantially
in
the
form
of
this
Agreement,
provided
that
the
term
of
any
such
agreement
shall
be
for-the
duration
of
the
term
hereof
as
of
the
date
of
any
such
transfer,
assignment
or
sale.

The
Option
may
be
exercised
against
the
Property
throughout
the
term
hereof,
regardless
of
whether
the
Property
is
owned,
possessed
or
occupied
by
Owner
or
any
successor,
transferee,
assignee,
heir,
executor,
or
administrator
of
Owner,
regardless
of
household
income
(if
applicable)
including
a
debtor-in-
possession,
debtor
or
trustee
pursuant
to
Title
1 1
of
the
United
States
Code.

Notwithstanding
the
'
foregoing,
the
Option
shall
not
survive
(i)
the
sale
and
transfer
of
the
Property
to
a
third
party
purchaser
pursuant
to
a
judicial
or
non-judicial
foreclosure
or
a
deed-in-lieu
of
foreclosure
under
a
power
of
sale
contained
in
a
mortgage
or
deed
of
trust
held
by
an
institutional
lender,
provided
that
the
Authority
has
received
timely
notice
of
such
Option
Event
and
has
failed
to
either
reinstate
said
mortgage
or
deed
of
trust
or
exercise
its
Option,
or
(ii)
the
recording
of
an
instrument
conveying
Owner's
interest
in
the
Property
to
the
Authority,
or
its
assignee,
provided
the
conveyance
is
in
accordance
with
the
terms
of
this
Agreement.
b.

HUD
Insured
Mortgage.

If
Owner
has
acquired
the
Property
by
a
mortgage
insured
by
the
Secretary
of
the
United
States
Department
of
Housing
and
Urban
Development,
and
a
notice
of
default
has
been
recorded
pursuant
to
California
Civil
Code
Section
2924
(or
successor
provisions),
then
this
Option
shall
automatically
terminate
if
title
to
the
Property
is
transferred
by
foreclosure
or
deed-in-lieu
of
foreclosure,
or
if
the
insured
mortgage
is
assigned
to
the
Secretary.

8. Voidable
Transfers.

As
long
as
the
Option
has
not
been
abandoned
pursuant
to
Paragraph

3.d.v,
any
actual
or
attempted
sale,
conveyance,
transfer
or
other
disposition
of
the
Property,
or
of
any
estate
or
interest
therein,
in
violation
of
the
terms
and
conditions
of
this
Agreement,
shall
be
voidable
at
the
election
of
the
Authority.

9. Permitted
Transfers.

Provided
that
the
transferee
assumes,
within
30 days
of
a
written
request
by
the
Authority,
all
of
Owner's
duties
and
obligations
under
this
Agreement
pursuant
to
a
written
assumption
agreement
in
a
form
acceptable
to
Authority,
or
at
Authority's
election,
execution
of
an
agreement
substantially
similar
to
this
Agreement,
the
following
transfers
("Permitted
Transfers")
of
title
to
the
Property,
or
of
any
estate
or
interest
therein,
shall

not
be
subject
to
the
Authority's
prior
approval,
shall
not
trigger
the
exercise
of
the
Option,
and
shall
not
be
considered
Option
Events:
(a)
a
good-faith
transfer
by
gift,
devise
or
inheritance
to
'
Owner's
spouse
or
issue;
(b)
a
taking
of
title
by
a
surviving
joint
tenant;
(c)
a
court-ordered
transfer
of
title
to
a
spouse
as
part
of
a
divorce
or
dissolution
proceeding;
(d)
a
transfer
by
Owner

into
an
inter
vivos
trust
in
which
the
Owner
is
a
beneficiary
and
the
Owner
continues
to
occupy
the
property
as
his/her
primary
residence;
(e)
an
acquisition
of
title,
or
of
any
interest
therein,
in
conjunction
with
marriage;
or
(f)
any
good
faith
transfer
to
an
Eligible
Household.

Notwithstanding
any
Permitted
Transfer,
the
Option
shall
remain
effective
with
respect
to
the
Property
for
the
duration
of
the
term
hereof.

10. Permitted
Encumbrances
and
Refinancing.

This
Option
shall
not
become
exercisable
as
the
result
of
Owner's
encumbering
the
Property
for
the
purpose
of
securing
financing
to
purchase
the
Property
pursuant
to
the
Program,
to
refinance
indebtedness
incurred
to
purchase
the
Property
pursuant
to
the
Program,
or
to
make
necessary
repairs
to
the
Property
in
an
amount
approved
by
Authority
pursuant
to
Paragraph
5a
("Permitted
Encumbrances").

The
maximum
aggregate
amount
of
such
encumbrances
outstanding
at
any
time
(the
"Permitted
Encumbrance
Amount")
shall
not
exceed
an
amount
equal
to
ninety
percent
(90%)
of
the
Base
Resale
Price
calculated
as
provided
in
Paragraph

4. The
Permitted
Encumbrance
Amount
shall
be
calculated
as
if
the
Authority
had
received
notification
of
an
Option
Event
on
the
earlier
of
(a)
the
date
on
which
the
deed
of
trust
or
mortgage
securing
the
indebtedness
is
filed
for
record
in
the
Office
of
the
Recorder
of
the
County
of
Santa
Clara,
or
(b)
the
date
the
Authority
receives
Notice
of
Intent
to
Transfer
pursuant
to
Paragraph

3.d.i
above.

Owner
hereby
covenants
and
agrees
that
he/she/they
shall
use
his/her/their
best
efforts
to
ensure
that
any
deed
of
trust
or
other
agreement
encumbering
the
property
shall
include
provisions
providing
for
notice
to
be
delivered
to
Authority
of
any
default
thereunder
and
for
Authority's
right
to
cure
such
default
at
Authority's
election.

11. Obligation
of
Owner
After
Option
Abandonment.

If
the
Authority
records
a
notice
of
abandonment
of
the
Option,
then
the
Property
may
be
sold
by
Owner
to
a
third
party
without
restriction
as
to
price;
however,
upon
such
sale,
Owner
shall
pay
to
Authority
an
amount
("Authority's
Share")
equal
to
eighty-five
percent
(85%)
of
the
difference
between
(a)
the
actual
sales
price
net
of
reasonable
and
customary
real
estate
commissions
paid
(such
commissions
not
to
exceed
six
percent
(6%)
of
the
actual
sales
price),
and
(b)
the
Adjusted
Resale
Price.

The
Authority's
Share
shall
be
paid
to
the
Authority
concurrently
with
close
of
escrow
on
the
sale
of
the
Property,
or
upon
receipt
by
Owner
of
the
sale
price
for
the
Property,
whichever
shall
first
occur.

12. Limits
on
Liability.

In
no
event
shall
the
Authority
become
liable
or
obligated
in
any
manner
to
Owner
by
reason
of
the
assignment
of
this
Agreement
or
the
Option,
nor
shall
Authority
be
in
any
way
liable
or
obligated
to
Owner
for
any
failure
of
the
Authority's
assignee
to
consummate
a
purchase
of
the
Property
or
to
comply
with
the
terms
of
this
Agreement
or
the
Option,
or
any
escrow
instructions
or
agreement
for
the
purchase
of
the
Property.

13. Insurance
Proceeds
and
Condemnation
Award.

In
the
event
the
Property
is
destroyed
and
insurance
proceeds
are
distributed
to
Owner
instead
of
being
used
to
rebuild
the
Property,
or,
in
the
event
of
condemnation,
if
the
proceeds
thereof
are
distributed
to
Owner,
any

y
*
n.
surplus
of
proceeds
remaining
after
payment
of
the
senior
liens
and
encumbrances
on
the
Property
shall
be
distributed
as
follows:
that
portion
of
the
surplus
up
to,
but
not
to
exceed,
the
net
amount
Owner
would
have
received
pursuant
to
Paragraph

3.d.ix
had
the
Authority
exercised
its
Option
on
the
date
of
the
destruction
of
condemnation
valuation
date
shall
be
distributed
to
Owner,
and
the
balance
of
such
surplus,
if
any,
shall
be
distributed
to
the
Authority.

14. Effective
Date.

The
rights
and
obligations
of
the
Authority
and
Owner
set
forth
in
this
Agreement
shall
be
effective
as
of
the
Effective
Date.

15. Term
of
Agreement
and
Option.

The
restrictions
contained
herein
and
the
Authority's
option
to
purchase
the
Property
shall
continue
for
a
period
of
forty-five
(45)
years
commencing
on
the
Effective
Date.

16. Notices.

Except
as
otherwise
specified
in
this
Agreement,
all
notices
to
be
sent
pursuant
to
this
Agreement
shall
be
made
in
writing,
and
sent
to
the
Parties
at
their
respective
addresses
specified
below
or
to
such
other
address
as
a
Party
may
designate
by
written
notice
delivered
to
the
other
Party
in
accordance
with
this
Section.

All
such
notices
shall
be
sent
by:
(a)
personal
delivery,
in
which
case
notice
shall
be
deemed
delivered
upon
receipt;
(b)
certified
or
registered
mail,
return
receipt
requested,
in
which
case
notice
shall
be
deemed
delivered
two
(2)
business
days
after
deposit,
postage
prepaid
in
the
United
States
mail;
(c)
nationally
recognized
overnight
courier,
in
which
case
notice
shall
be
deemed
delivered
one
(1)
day
after
deposit
with
such
courier;
or
(d)
facsimile
transmission,
in
which
case
notice
shall
be
deemed
delivered
on
transmittal,
provided
that
a
transmission
report
is
generated
reflecting
the
accurate
transmission
thereof.

Agency:

City
of
Milpitas
Housing
Authority
455
Calaveras
Boulevard
Milpitas,
CA
95035
Attn:

Executive
Director
Owner:

Danny
Dias
1377
Coyote
Creek
Way
Milpitas,
CA
95035
\

17. Remedies
Upon
Breach.
a.

Specific
Performance.

Owner
acknowledges
that
any
breach
in
the
performance
of
its
obligations
under
this
Agreement
shall
cause
irreparable
harm
to
the
Authority.

Owner
agrees
that
the
Authority
is
entitled
to
equitable
relief
in
the
form
of
specific
performance
upon
its
exercise
of
the
Option,
and
that
an
award
of
damages
shall
not
be
adequate
to
compensate
the
Authority
for
Owner's
failure
to
perform
according
to
the
terms
of
this
Agreement.

b.

Other
Remedies.

Authority
shall
have
all
of
the
remedies
provided
for
at
law
or
equity.

18. General
Provisions.
a.

Attorneys'
Fees.

If
either
party
initiates
legal
proceedings
to
interpret
or
enforce
its
rights
under
this
Agreement,
the
prevailing
party
in
such
action
shall
be
entitled
to
an
award
of
reasonable
attorneys'
fees
and
costs
in
additions
to
any
other
recovery
to
which
it
is
entitled
under
this
Agreement.
b.

No
Joint
Venture;
No
Third-Party
Beneficiary.

No
joint
venture
or
other
partnership
exists
or
is
created
between
the
Parties
by
virtue
of
this
Agreement.

Except
as
expressly
stated
herein,
this
Agreement
does
not
benefit
any
third
party.
c.

Successors;
Assignment.

This
Agreement
shall
inure
to
the
benefit
of
and
shall
be
binding
upon
the
Parties
to
this
Agreement
and
their
respective
heirs,
executors,
[
administrators,
successors
and
assigns.

Authority
shall
have
the
right
to
assign
all
of
its
rights
and
obligations
under
this
Agreement
without
the
consent
of
Owner.
d.

Entire
Agreement;
Amendment.

This
Agreement
constitutes
the
entire
agreement
of
the
Parties
with
respect
to
the
subject
matter
hereof,
and
supersedes
any
and
all
other
prior
negotiations,
correspondence,
understandings
and
agreements
with-Tespect
thereto.

There
are
no
representations,
promises,
agreements
or
other
understandings
between
the
Parties
relating
to
the
subject
matter
of
this
Agreement
that
are
not
expressed
herein.

This
Agreement
may
be
modified
only
by
an
instrument
in
writing
executed
by
the
Parties
or
their
respective
successors
in
interest.
e.

Survival;
No
Merger.

All
of
the
terms,
provisions,
representations,
warranties
and
covenants
of
the
Parties
under
this
Agreement
shall
survive
the
close
of
escrow
of
any
sale
of
the
Property
and
shall
not
be
merged
in
any
deed
transferring
the
Property.
f.

Authority
And
Execution.

Each
Party
represents
and
warrants
that
it
has
full
power
and
authority
to
enter
into
this
Agreement
and
to
undertake
all
of
its
obligations
hereunder,
that
each
person
executing
this
Agreement
on
its
behalf
is
duly
and
validly
authorized
to
do
so.
g.

Severability.

The
invalidity
or
unenforceability
of
any
term
or
provision
of
this
Agreement
shall
not
impair
or
affect
the
remainder
of
this
Agreement,
and
the
remaining
terms
and
provisions
hereof
shall
not
be
invalidated
but
shall
remain
in
full
force
and
effect.
h.

Waiver;
Modification.

No
waiver
or
modification
of
this
Agreement
or
any
covenant,
condition,
or
limitation
herein
contained
shall
be
valid
unless
in
writing
and
duly
executed
by
the
Party
to
be
charged
therewith.

No
evidence
or
any
waiver
or
modification
shall
be
offered
or
received
in
evidence
in
any
proceeding,
arbitration,
or
litigationbetween
the
Parties
arising
out
of
or
affecting
this
Agreement
or
the
rights
or
obligations
of
any
Party
hereunder,
unless
such
waiver
or
modification
is
in
writing
and
duly
executed
as
aforesaid.

The
provisions
of
this
section
may
not
be
waived
except
as
herein
set
forth.

A
waiver
or
breach
of
any

I
covenant,
condition
or
provision
of
this
Agreement
shall
not
be
deemed
a
waiver
of
any
other
covenant,
condition
or
provision
hereof.
i.

Construction.

The
section
headings
and
captions
used
in
this
Agreement
are
for
convenience
of
reference
only
and
shall
not
modify,
define,
limit
or
amplify
any
of
the
terms
or
provisions
hereof.

This
Agreement
shall
not
be
construed
as
if
it
had
been
prepared
by
one
of
the
Parties,
but
rather
as
if
both
Parties
have
prepared
it.
j.

Governing
Law.

This
Agreement
shall
in
all
respects
be
governed
by
and
construed
in
accordance
with
the
laws
of
the
State
of
California.
k.

Time
of
the
Essence.

Time
is
of
the
essence
in
this
Agreement
as
to
each
provision
in
which
time
is
an
element
of
performance.

1. Further
Assurances.

Each
Party
will,
upon
reasonable
request
of
the
other
Party,
execute,
acknowledge,
and
deliver,
or
cause
to
be
executed,
acknowledged,
and
delivered,
such
further
instruments
and
documents
as
may
be
reasonably
necessary
in
order
to
fulfill
the
intents
and
purposes
of
this
Agreement.
m.

Counterparts.

This
Agreement
may
be
executed
in
counterparts,
each
of
which
shall
be
deemed
an
original,
and
all
which
together
shall
constitute
one
and
die
same
instrument.

IN

WITNESS

WHEREOF,
the
undersigned
have
caused
this
Agreement
to
be
executed
as
of
the
date
first
written
above.

OWNER(S):

Danny
Dias
AUTHORITY:

CITY
ILPITA

AUTHORIT
OUSING
illiams,
Executive
Director

ACKNOWLEDGMENT
State
of
California
County
of
_
Santa
Clara
J
On
/X
lo/c/
before
me,
Kathy
Ynegas,
Notary
Public
_
(insert
name
and
title
of
the
officer)
personally
appeared
ÿ
n
ÿ
_
,
_
_
,
who
proved
to
me
on
the
basis
of
satisfactory
evidence
to
be
the
person£s}=whose
namejÿ
is/ateÿ
subscribed
to
the
within
instrument
and
acknowledged
to
me
that
he/ÿta£ft£ÿ
executed
the
same
in
his/hÿfftjjef?
authorized
capacityÿ®),
and
that
by
his/lÿi#}&rf
signaturejÿon
the
instrument
the
personfcj'or
the
entity
upon
behalf
of
which
the
persorj|«ÿcted,
executed
the
instrument.

I
certify
under

PENALTY
OF

PERJURY
under
the
laws
of
the
State
of
California
that
the
foregoing
paragraph
is
true
and
correct.

WITNESS
my
hand
and
official
seal.

Signa
(SealT
KATHY
YNEGAS
Commission
#
2017728
i
Notary
Public

California
I
Santa
Clara
County
KATHY
YNEGAS
|
Commission
#
2017728
I
Notary
Public
-
California
I
Santa
Clara
County
-
My
Comm.

Expires
Apr
5,
2017
1

ACKNOWLEDGMENT
State
of
California
County
of
_
Santa
Clara
_
)
On
Qfifiatne
/r
20/"/
before
me,
Kathy
Ynegas,
Notary
Public
_
(insert
name
and
title
of
the
officer)
personally
appeared
_
7/fo
/-//<?.

T
,
faJ
/L
C
//W-JS
_
,
who
proved
to
me
on
the
basis
of
satisfactory
evidence
to
be
the
personj&f
whose
namÿi
\slcjfe&
subscribed
to
the
within
instrument
and
acknowledged
to
me
that
executed
the
same
in
his/tÿstftkÿir
authorized
capacity£ie££
and
that
by
his/ÿeT/tjJjeff
signatureÿon
the
instrument
the
personÿ
or
the
entity
upon
behalf
of
which
the
person(ÿScted,
executed
the
instrument.

I
certify
under

PENALTY
OF

PERJURY
under
the
laws
of
the
State
of
California
that
the
foregoing
paragraph
is
true
and
correct.

KATHY
YNEGAS
Commitaion
#
2017728
Notary
Public

California
Santa
Clara
County

WITNESS
my
hand
and
official
seal
Signatu

CERTIFICATE
OF

ACCEPTANCE
(Pursuant
to
Government
Code
§27281)
This
is
to
certify
that
the
interest
in
real
property
conveyed
by
the
Resale
Restriction
and
Option
to
Purchase
Agreement
dated
October
15,
2014
from
Danny
Dias
to
Milpitas
Housing
Authority
is
hereby
accepted
by
the
undersigned
office
or
agent
on
behalf
of
the
Milpitas
Housing
Authority
pursuant
to
authority
conferred
by
the
Resolution
No.
7714
dated
November
6,
2007
consents
to
recordation
thereof
by
its
duly
authorized
officer
Dated:

Its:

By:

EXHIBIT
A
Legal
Description
of
Site
THE
LAND

REFERRED
TO
HEREIN
BELOW
IS

SITUATED
IN
THE
CITY
OF
MILPITAS.

COUNTY
OF
SANTA
CLARA.

STATE
OF
CALIFORNIA.

AND
IS

DESCRIBED
AS
FOLLOWS:

ASSESSOR'S
PARCEL
NO.
086-01-046

EXHIBIT
B
FORM:

NOTICE
OF
INTENT
TO

TRANSFER
VIA

CERTIFIED
MAIL
-
RETURN

RECEIPT

REQUESTED
To:

CITY
OF

MILPITAS

HOUSING

AUTHORITY
455
East
Calaveras
Boulevard
Milpitas,
CA
95035
Attn:

Authority
Executive
Director
Date:

Re:

Notice
of
Intent
to
Transfer
Pursuant
to
the
terms
of
the
Resale
Restriction
and
Option
to
Purchase
Agreement,
dated
_
,
the
undersigned
Owner(s),
_
,
hereby
give(s)
notice
of
his/her/their
intent
to
transfer
the
property
located
at
_
,
Milpitas,
California
(the
"Property").

Owner
may
be
contacted
at
the
Property
or
at
the
following
address:

Owner's
daytime
telephone
number
is
(
_
)
[If
applicable:

The
proposed
transfer
of
the
Property
is
to
the
following
person(s):

Name:
_
Address:

Telephone:
(
_
)
The
proposed
transfer
is
(check
one):
ÿ
Sale
ÿ
Other
Specify:
ÿ
Owner(s)
signature(s):

V
V

EXHIBIT
C
FORM:

NOTICE
OF

EXERCISE
Date:

To:
_
Owner
or
Transferee
Address
Re:

Notice
of
Exercise
The
City
of
Milpitas
Housing
Authority
("Authority")
hereby
gives
notice
that
it
is
exercising
its
-option
to
purchase
the
real
property
located
at
_
,
Milpitas,
California.

The
option
has
been
granted
to
the
Authority
pursuant
to
the
Resale
Restriction
and
Option
to
Purchase
Agreement
between
Owner
and
the
Authority
dated
_
and
recorded
on
_
as
Instrument
No.
_
.
[The
Authority
has
assigned
its
option
to
purchase
the
real
property
to
_
.]
An
escrow
for
the
purchase
will
be
opened
with
the
Chicago
Title
Company.

City
of
Milpitas
Housing
Authority
By:
_
Its:

.
\

EXHIBIT
D
BASE
RESALE
PRICE

WORKSHEET
Date:

Owner:

Address:

Purchase
Price:

Date
of
Purchase:

Years
Owned:
years
METHOD
#1:

CALCULATION
BASED
ON

INCREASE
IN
MEDIAN
INCOME***
Present
Median-Income:
$
_
Family
of
four,
County
of
Santa
Clara
(at
time
of
sale
of
unit)
Original
Median
Income:
$
_
Family
of
four,
County
of
Santa
Clara
(at
time
of
purchase
of
unit)
Amount
of
Increase:

Family
of
four,
County
of
Santa
Clara
(Present
median
income
minus
original
median
income)
Effective
Date:

Effective
Date:

Increase
in
Price:

Method
#1
Resale
Price:

METHOD
#2:

CALCULATION
BASED
ON

INCREASE
IN
MEDIAN
INCOME
Present
CPI:

Original
CPI:

Effective
Date:

Effective
Date:

Rate
of
Increase:

Increase
in
Price:
_per
annum
Method
#2
Resale
Price:
+
Based
on
the
above,
the
base
resale
price
as
of
this
date,
,
is:

By:

\
J

EXHIBIT
E

REQUEST
FOR
NOTICE
OF

DEFAULT
Order
No.

Escrow
No.

Loan
No.

WHEN

RECORDED
MAIL
TO:

City
of
Milpitas
Housing
Authority
455
East
Calaveras
Boulevard
Milpitas,
CA
95035
Attn:

Authority
Executive
Director
(Space
Above
This
Line
For
Recorder's
Use
Only)

REQUEST
FOR
NOTICE
UNDER

SECTION
2924b
CIVIL
CODE
Iii
accordance
with
Section
2924b,
Civil
Code,
request
is
hereby
made
that
a
copy
of
any
Notice
of
Default
and
a
copy
of
any
Notice
of
Sale
under
the
Deed
of
Trust
recorded
as
Instrument
No.
_
..
on
_
,
_
,
in
the
Official
Records
of
Santa
Clara
County,
California,
and
describing
land
therein
as:

V
executed
by
_
,
as
Trustor,
in
which
_
is
named
as
Beneficiary,
and
_
,
as
Trustee,
be
mailed
to
the
City
of
Milpitas
Housing
Authority,
455
Calaveras
Boulevard,
Milpitas,
California
_
,
Attn:

By:
_
NOTICE:

A
COPY
OF
ANY
NOTICE
OF

DEFAULT
AND
OF
ANY
NOTICE
OF
SALE
WILL
BE
SENT
ONLY
TO
THE

ADDRESS

CONTAINED
IN
THIS

RECORDED
REQUEST.

IF
YOUR

ADDRESS

CHANGES,
A
NEW

REQUEST
MUST
BE
RECORDED.

STATE
OF

CALIFORNIA
)
)
COUNTY
OF
_
)
On
_
before
me,
_
,
a
Notary
Public
in
and
for
said
county
and
state,
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.

Signature
(This
area
for
official
notarial
seal)

EXHIBIT
F

DISCLOSURE

STATEMENT
THERE
ARE

RESTRICTIONS
ON
THE
SALE
OF
THE

PROPERTY
YOU
ARE
BUYING.

EXCEPT
FOR
A

TRANSFER
TO
THE
CITY

FOLLOWING
CITY'S

EXERCISE
OF
ITS
OPTION
TO

PURCHASE,
THIS

PROPERTY
MAY
ONLY
BE
SOLD
TO
AN
"ELIGIBLE
HOUSEHOLD"
AT
A
PRICE
NOT
TO
EXCEED
THE

ADJUSTED
RESALE
PRICE
WHICH
IS
CAPPED
AT
AN
"AFFORDABLE

HOUSING
COST."
THIS
MEANS
THAT
YOU
MAY
NOT
SELL
THE

PROPERTY
FOR
MARKET
VALUE
TO

WHOMEVER
YOU
LIKE.

THESE

RESTRICTIONS
WILL
BE
IN
EFFECT
UNTIL
October
1 5,
2059
SALE
OF
THE

PROPERTY
IN

VIOLATION
OF
THE

RESTRICTIONS
SHALL
BE

VOIDABLE
AT
THE

ELECTION
OF
THE
CITY.

TO

DETERMINE
WHO
AN

ELIGIBLE

HOUSEHOLD
IS,
AND
WHAT
THE

ADJUSTED
RESALE
PRICE
AND

AFFORDABLE

HOUSING
COST
ARE,
YOU
SHOULD

CONTACT
THE

MILPITAS

HOUSING

AUTHORITY
(FORMER
CITY
OF

MILPITAS

REDEVELOPMENT
AGENCY).

YOU
SHOULD
ALSO
READ
THE
RESALE

RESTRICTION
AND
OPTION
TO

PURCHASE

AGREEMENT

RECORDED

AGAINST
THE
PROPERTY.

YOU
MAY
OBTAIN
A
COPY
FROM
THE

MILPITAS

HOUSING

AUTHORITY
OR
FROM
THE
ESCROW
COMPANY.

I
HAVE
READ
THE

FOREGOING
AND
I

UNDERSTAND
WHAT
IT
MEANS.

BUYER-DannyTDias
BUYER-
!

Order
Number:

OSA-4669032

EXHIBIT
"A"
LEGAL

DESCRIPTION
Real
property
in
the
City
of
Milpitas
,
County
of
Santa
Clara,
State
of
California,
described
as
follows:

PARCEL
NO.
1 Unit
226
(the
"Unit")
as
shown
and
described
in
the
Condominium
Plan
for
Coyote
Creek,
The
Rows
(together
with
any
and
all
amendments
and/or
restatements
thereto,
collectively,
the
"Plan"),
recorded
May
30,
2013
as
Instrument
No.
22239552,
First
Amendment
to
Condominium
Plan,
the
Rows,
recorded
August
29,
2013
as
Instrument
No.
22369269
and
Second
Amendment
to
Condominium
Plan
recorded
January
17,
2014
as
Instrument
No.
22499456,
in
the
Official
Records
of
Santa
Clara
County,
California
("Official
Records"),
consisting
of
a
portion
of
Lot
21 of
Tract
No.
10087,
as
shown
on
a
Subdivision
Map
("Map")
filed
in
Book
852,
Pages
38 to
44,
of
Maps,
in
the
Office
of
the
Santa
Clara
County
Recorder.

EXCEPTING

THEREFROM,
for
the
benefit
of
Grantor,
and
its
successors
in
interest
and
assignees,
to
the
extent
not
already
excepted
or
reserved
by
instrument
of
record:

A.

Any
and
all
remaining
oil
rights,
mineral
rights,
natural
gas
rights
and
rights
to
all
other
hydrocarbons
by
whatsoever
name
known,
to
all
geothermal
heat
and
to
all
products
derived
from
any
of
the
foregoing
(collectively,
"Subsurface
Resources");
B.

The
perpetual
right
to
drill,
mine,
explore
and
operate
for
and
to
produce,
store
and
remove
any
of
the
Subsurface
Resources
on
or
from
the
Unit,
including
the
right
to
whipstock
or
directionally
drill
and
mine
from
lands
other
than
the
Unit,
wells,
tunnels
and
shafts
into,
through
or
across
the
subsurface
of
the
Unit,
and
to
bottom
such
whipstocked
or
directionally
drilled
wells,
tunnels
and
shafts
within
or
beyond
the
exterior
limits
of
the
Unit,
and
to
redrill,
retunnel,
equip,
maintain,
repair,
deepen
and
operate
any
such
wells
or
mines,
but
without
the
right
to
drill,
mine,
explore,
operate,
produce,
store
or
remove
any
of
the
Subsurface
Resources
through
or
in
the
surface
or
the
upper
five
hundred
feet
(5000
of
the
subsurface
of
the
Unit;
and
C.

Any
and
all
water,
water
rights,
if
any,
including
within
and
underlying
the
Unit.

RESERVING

THEREFROM,
for
the
benefit
of
Grantor,
its
successors
in
interest
and
assignees,
nonexclusive
easements
for
access,
ingress,
egress,
encroachment,
maintenance,
drainage,
support,
and
for
other
purposes,
all
as
described
in
the
Declaration
of
Covenants,
Conditions,
Restrictions
and
Reservation
of
Easements
for
Coyote
Creek,
recorded
on
August
16,
2012
as
Instrument
No.
21796816,
First
Amendment
to
Declaration
of
Covenants,
Conditions,
Restrictions
and
Reservation
of
Easements
for
Coyote
Creek,
recorded
March
4,
2013
as
Instrument
No.
22116626
and
Supplemental
Declaration
of
Covenants,
Conditions,
Restrictions
and
Notice
of
Addition
for
Coyote
Creek,
recorded
May
30,
2013
as
Instrument
No.
22239553
(together
with
any
amendments
and
supplements
thereto,
collectively,
the
"Declaration'7),
in
Official
Records.

FURTHER

RESERVING

THEREFROM,
for
the
benefit
of
Grantor,
its
successors
in
interest
and
assignees,
the
right
to
enter
the
Unit
(i)
to
comply
with
requirements
for
the
recordation
of
subdivision
maps
or
lot
line
adjustments
in
the
Community
or
Annexable
Area,
(ii)
for
repair
of
Improvements
in
accordance
with
the
provisions
of
the
"Right
to
Repair
Law"
at
California
Civil
Code
Sections
895
through
945.5,
(iii)
to
accommodate
grading
or
construction
activities,
(iv)
to
comply
with
requirements
of
applicable
governmental
agencies,
and
(v)
as
may
be
reasonably
necessary
to
complete
Improvements
as
determined
by
Grantor
in
its
sole
discretion.

Grantor
shall
provide
reasonable
notice
to
Grantee
before
such
entry.

The
term
of
this
reservation
of
right
of
entry
shall
automatically
expire
on
the
date
that
is
twelve
(12)
years
from
the
last
Close
of
Escrow
for
the
sale
of
a
Unit
in
the
Community.

FURTHER

RESERVING

THEREFROM,
for
the
benefit
of
Grantor,
its
successors
and
assigns,
together
with
First
American
Title

J
Order
Number:

OSA-4669032
the
right
to
grain
and
transfer
all
or
a
portion
of
the
same,
the
right
to
place
on,
under
or
across
the
Unit,
Telecommunications
Facilities
for
the
provision
of
Telecommunications
Services
to
the
Community,
and
thereafter
to
own
and
convey
such
Telecommunications
Facilities,
and
the
right
to
enter
upon
the
Community
to
service,
maintain,
operate,
repair,
reconstruct
and
replace
the
Telecommunications
Facilities;
provided,
however,
that
the
exercise
of
such
rights
shall
not
unreasonably
interfere
with
Grantee's
reasonable
use
and
enjoyment
of
the
Unit.

PARCEL
NO.
2 An
undivided
one-twelfth
(l/12th)
fee
simple
interest
as
a
tenant
in
common
in
and
to
the
Common
Area
described
in
the
Plan.

PARCEL
NO.
3 Exclusive
use
easements
for
the
benefit
of
the
Unit
appurtenant
to
Parcel
Nos.
1 and
2 described
above,
for
decks,
entry
porches
(all
as
applicable
and
shown
in
the
Plan),
for
placement
and
maintenance
of
air
conditioning
compressor
pad
and
for
internal
and
external
telephone
wiring
purposes,
as
applicable,
over
those
portions
of
the
Association
Property
shown
in
the
Plan
or
as
described
in
the
Declaration.

PARCEL
NO.
4 Nonexclusive
easements
for
access,
drainage,
encroachment,
maintenance,
repair,
and
for
other
purposes,
all
as
may
be
shown
on
the
Plan
and
the
Map,
and
as
described
in
the
Declaration.

APN:
086-73-079
\
\
First
American
Title
r\

I
'

RECORDING

REQUESTED
BY
AND
WHEN

RECORDED
MAIL
TO:

CITY
OF

MILPITAS

HOUSING

AUTHORITY
455
East
Calaveras
Boulevard

Milpitas,
CA
95035
To
be
recorded
without
fee.

XGovrCodeT§§-6103-and
27383.)
-
--
(Space
Above
This
Line
For
Recorder's
Use
Only)
RESALE

RESTRICTION

AGREEMENT
AND
OPTION
TO

PURCHASE
Owner:

Danny
Dias
Property:
1377
Coyote
Creek
Way
Milpitas,
California
95035
Name
of
Development:

Coyote
Creek
,
This
RESALE

RESTRICTION
AND
OPTION
TO

PURCHASE

AGREEMENT
("Agreement")
is
entered
into
by
and
between
the
Housing
Authority
of
the
City
of
Milpitas
("the
Authority"-
former
Milpitas
Redevelopment
Agency)
Danny
Dias
("Owner")
regarding
certain
improved
real
propertyÿ
which
is
more
particularly
described
in
Exhibit
A
attached
hereto
and
incorporated
herein
and
commonly
known
as
William
Lyons
Homes,
Milpitas,
CA
95035
(the
"Property")
effective
as
of
October
15,
2014
(Effective
Date").

Authority
and
Owner
are
hereinafter
collectively
referred
'to
as
the
"Parties."

RECITALS
A.

The
Authority
pursuant
to
the
previous
Community
Redevelopment
Law
(Health
&
Safety
Code
section
33000
et
seq.)
and
the
previous
Authority's
Redevelopment
Plan
maintains
an
affordable
housing
fund,
which
it
uses
for
the
purpose
encouraging
the
construction
of
housing
within
the
Redevelopment
Plan
Area
that
is
affordable
to
persons
of
low,
and
moderate
income
("the
Program").

B.

Pursuant
to
the
Program,
the
Authority
and
Fairview
Murphy
Road
LLC
(Developer)
entered
into
a
Affordable
Housing
Regulatory
Agreement,
dated
August
29,
2008
(collectively
"the
Agreement")
under
which
Developer
has
agreed
to
construct
and
sell
44 homes
at
prices
that
are
affordable
to
persons
of
low
and
moderate
incomes.

C.

Owner
is
the
owner
of
certain
real
property
located
within
the
City
of
Milpitas,
legally
described
in
Exhibit
A
and
commonly
known
as
Coyote
Creek
Milpitas,
CA
95035
("the
Property").

The
Property
is
one
of
the
affordable
homes
constructed
by
Developer
pursuant
to
the
Agreement.

D.

Owner
is
an
eligible
low
and
moderate-income
purchaser
under
the
Program,
intends
to
live
in
the
Property
as
an
owner
occupant,
and
agrees
to
maintain
the
Property
as
Owner's
principal
residence.

E.

In
order
to
maintain
and
preserve
the
Property
as
housing
affordable
to
eligible
[very
low-,
low-,
or
moderate-]income
purchasers,
it
is
necessary
to
restrict
the
use
and
resale
of
the
Property
through
imposition
of
the
occupancy
and
resale
restrictions
set
forth
in
this
Agreement.

These
restrictions
are
intended
to
prevent
initial
and
subsequent
purchasers
from
using
the
Property
for
purposes
incompatible
with
the
Program
and
realizing
unwarranted
gains
from
sales
of
the
Property
at
unrestricted
prices.

The
terms
and
conditions
of
this
Agreement
are
intended
to
provide
the
necessary
occupancy
and
resale
restrictions
to
ensure
that
the
Property
is
used,
maintained,
and
preserved
as
housing
affordable
to
eligible
[very
low-,
low-,
or
moderate-
]income
purchasers.

To
further
serve
the
purposes
of
the
Program,
it
is
necessary
that
the
Authority
be
granted
an
option
to
purchase
the
property
so
that
the
property
may
be
resold
by
the
Authority
to
an
eligible
household.

F.

Accordingly,
the
Parties
desire
to
enter
into
this
Resale
Restriction
and
Option
to
Purchase
Agreement,
which
provides,
generally,
that
Owner
may
only
sell
the
property
to
Eligible
Households
(i.e.
households
meeting
the
household
income
limitations
set
forth
herein)
at
a
price
not
to
exceed
the
price
equal
to
the
initial
purchase
price
adjusted
to
reflect
increases
in
median
household
income
since
the
Property
was
initially
purchased
by
Owner.

Alternatively,
the
Agreement
provides
that
the
City
may
exercise
its
option
to
purchase
the
Property
at
the
same
price.

G.

The
Property
constitutes
a
valuable
community
resource
by
providing
decent,
safe,
and
sanitary
housing
to
persons
and
families
of
[very
low,
low,
or
moderate]
income
who
otherwise
would
be
unable
to
afford
such
housing.

To
protect
and
preserve
this
resource
it
is
necessary,
proper,
and
in
the
public
interest
for
the
Authority
to
administer
occupancy
and
resale
controls
consistent
with
the
Program
by
means
of
this
Agreement.

AGREEMENT
NOW,

THEREFORE,
in
consideration
of
the
substantial
economic
benefits
inuring
to
Owner
and
the
public
purposes
to
be
achieved
under
the
Program,
Owner
and
Authority
hereby
agree
as
follows:

1. Definitions.
a.
"Affordable
Unit
Cost"
shall
mean
a
sales
price
that
results
in
annual
housing
costs,
including
principal
payments,
interest,
property
taxes,
homeowners'
insurance,
homeowners'
association
dues,
and
mortgage
insurance
that
do
not
exceed
30%
of
income
level
for
the
Eligible
Household.

/
t
b.
"Area
Moderate
Income
for
Santa
Clara
County"
means
those
income
and
eligibility
levels
determined,
updated,
and
published
each
year
by
the
California
Department
of
Housing
and
Community
Development,
based
on
Santa
Clara
County
median
income
levels,
adjusted
for
household
size.
c.
"Persons
and
families
of
[very
low,
low,
or
moderate]
income"
means
persons
and
families
whose
income
do
not
exceed
[fifty
percent
(50%);
eighty
percent
(80%);
or
one
hundred
twenty
percent
(120%)]
of
the
Area
Median
Income
for
Santa
Clara
County,
as
adjusted
.forliQuschoId
size.
.
d.

Persons
and
families
meeting
the
definition
set
forth
in
Paragraph
1 (b)
above
shall
be
referred
to
as
"Eligible
Households."

2. Program
Requirements.
a.

Affordability
Restrictions.

Owner
hereby
covenants
and
agrees
that
during
the
term
of
this
Agreement
all
of
the
requirements
and
restrictions
of
this
Agreement
shall
apply,
and
the
Property
shall
be
sold
or
otherwise
transferred
only
pursuant
to
the
terms
and
conditions
of
this
Agreement
and
only
to
(i)
Eligible
Households
at
a
price
not
to
exceed
the
Adjusted
Resale
Price,
as
defined
in
Paragraph
5,
(ii)
the
Authority
pursuant
to
Paragraph
3,
or
(iii)
a
permitted
transferee
pursuant
to
Paragraph