Purchase Agreement

HARTFORD HOUSING AUTHORITY
CHARTER OAK TERRACE  PURCHASE AGREEMENT (6/2/98)
Under the 5 (h) Plan
Through the Campus of Learners Concept

NOTE: Title to the Home and Lot to be purchased hereunder will be subject to (1) a first option to purchase by HHA at a market price and (2) a requirement that will require You to share with HHA one-half of any profit from a sale of the Home and Lot during the first three years after your purchase and at a market price after that time.

AGREEMENT made this ____ day of ____________, 199_, by and between _________________________ _______________________________________ [ Social Security #] _____________________________ of _______________________________________ ("You"), and the HOUSING AUTHORITY OF THE CITY OF HARTFORD, a public body corporate and politic of the City of Hartford, organized and existing under Chapter 128 of the General Statutes of the State of Connecticut, with offices at 475 Flatbush Avenue, Hartford, Connecticut 06106 (hereinafter, "HHA").

1. DESCRIPTION. You hereby agree to purchase the residential structure and all improvements serving the residential structure, whether underground or aboveground, and not owned by the Metropolitan District, the City of Hartford or a public utility company together with all fixtures, including plumbing and electrical fixtures, and kitchen appliances (if any) (collectively, the "Home") along with the land underlying and adjoining the Home as shown on Exhibit A attached hereto (the "Lot"), known as [Lot #]____________[Street Address] ______ _______________________, Hartford, Connecticut.

2. PURCHASE PRICE. The total purchase price for the Home and Lot is $_________ (the "Purchase Price"). You shall pay the total purchase Price to HHA in the following manner:

(a) $_____ upon execution of this Agreement, receipt of which is hereby acknowledged (the "Deposit");

(b) the amount which is the sum of (1) a reasonable amount of your personal savings as a down payment (which reasonable amount of savings will be determined by HHA in its reasonable discretion and consistent with the requirements of your first mortgage commitment) and (2) the proceeds of the mortgage for which You have obtained a commitment pursuant to paragraph 3, by bank or certified check on the date of closing of title, as hereinafter set forth; and

(c) if (and only if) You qualify for a second mortgage by being a low or very low income household by executing a second mortgage note and deed in favor of HHA in the amount of the difference between the Purchase Price and the amount of the mortgage proceeds of the first mortgage. The second mortgage note will not provide for periodic installments of principal and interest, but will become due and payable if You transfer the Home and Lot to a person who is not eligible to assume the mortgage, if You default under the covenants regarding use and occupancy of the Home and Lot contained in your deed or if You default under Your first mortgage, or if You put a new mortgage on the Home and Lot that is not permitted by HHA.

3. MORTGAGE CONTINGENCY. This Agreement is contingent upon You being able to secure a first mortgage from a bank or mortgage company licensed by the State of Connecticut in an amount of not less than the greater of (a) $20,000.00 or (b) the largest mortgage You can afford, subject to the conditions that You not spend more than 35% of your adjusted gross income on monthly housing expenses, the mortgage provides for amortization of principal over thirty years and the annual percentage rate (APR) for the mortgage is not, in HHA’s reasonable opinion, significantly higher than is generally available from banks in the Hartford area. This shall be determined by using a monthly housing expense test under which mortgage interest and principal, property taxes, private mortgage insurance and homeowners’ insurance [including fire, casualty and liability coverages] and utility charges [including gas, water, and electric charges] shall be included in determining monthly housing expenses. If You have been unable to obtain a mortgage commitment by ___________ __, 199_, we will notify You that this Agreement has been terminated and we will return the Deposit to You. TIME IS OF THE ESSENCE WITH REGARD TO THIS PROVISION. You will provide HHA copies of all applications, tax returns, pay stubs and other letters and papers You give to or receive from your mortgage lender.

4. QUALIFICATIONS OF BUYER. You and HHA acknowledge and agree that pursuant to certain restrictions to which the Home and Lot are subject, the property can only be sold to "low or very low" income households, and if You do not qualify at the time the closing is to take place, HHA shall have the right and option to terminate this Agreement and HHA shall refund the Deposit to You.

5. CLOSING. The closing will take place on or before _________ __, 199_ at the offices of Your lender or at such other place acceptable to HHA.

6. USE AND RESALE RESTRICTION. The Home and Lot is limited to use and occupancy only for residential purposes and such incidental activities related to residential use as are permitted by the Hartford Zoning Ordinance as amended from time to time. THE DEED OF THE HOME TO YOU AND THE SECOND MORTGAGE BETWEEN YOU AND HHA WILL CONTAIN PROVISIONS THAT WILL APPLY IN THE EVENT OF A RESALE OF THE UNIT, WHICH PROVISIONS WILL REQUIRE THAT THE HOME CAN ONLY BE SOLD IF IT IS FIRST OFFERED FOR SALE TO HHA AND THAT, DURING THE FIRST THREE YEARS AFTER YOU BUY THE HOME YOU MUST PAY ONE-HALF OF ANY PROFIT TO HHA. IN ADDITION, YOU WILL NOT BE ABLE TO RETAIN ANY PART OF THE SALE PRICE OF THE UNIT UNLESS AND UNTIL THE SECOND MORTGAGE TO HHA DESCRIBED IN SECTION 4.b. HAS BEEN PAID IN FULL.

7. TITLE. Title to the Home and Lot will be conveyed by a Quit Claim Deed, subject only to current taxes, and subject to (i) all terms, conditions, restrictions, agreements, obligations, easements and rights set forth in the Deed; (ii) HHA’s option to purchase pursuant thereto; (iii) restrictions regarding resale of the Home and Lot, and (iv) current municipal ordinances and laws, none of which, however, will either render the title uninsurable or be violated by occupancy of the Home or use of the Lot for the purposes set forth herein and in the Deed.

8.ADJUSTMENTS. The Purchase Price will be adjusted at Closing for real estate taxes and municipal assessments, as well as other items normally adjusted between sellers and buyers of real property in accordance with the procedure normally followed by the Hartford County Bar Association.

9. ASSIGNMENT. This Agreement is not assignable by You.

10. CONDITION OF HOME AND LOT, INSPECTION. Except to the extent required by the New Home Warranty Act, Chapter 827 of the Connecticut General Statutes:
You agree to accept the Home and Lot in its condition "as is." HHA agrees to convey the Home and Lot to You in the same physical condition as of the signing of this Agreement, normal wear and tear excepted. You acknowledge that You have had the opportunity to make a full and complete inspection of the Home and Lot, as to the extent desired by You. You waive any right to object to any defect in the Home and Lot. You shall not conduct additional inspections of the Home and Lot unless accompanied by a representative of HHA. You acknowledge and agree that You have received a Disclosure of Environmental Conditions, attached hereto as Exhibit B, and accept the Home and Lot in its "as is" condition with regard to such conditions and without recourse to HHA.