Loading...
HomeMy WebLinkAbout2026-05-18 G04 Bluestem Village LLC_Option and Development Agreement_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: May 18, 2026 AGENDA ITEM:On the proposal to enter into an Option Agreement and a Development Agreement with Bluestem Village LLC related to a project within the North Waukee Residential Urban Renewal Area, which includes the potential sale of the City’s interest in real property FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: On May 18, 2026, the City of Waukee is scheduled to consider an option to purchase and development agreement with Bluestem Village, LLC to build affordable housing on city-owned land near North Warrior Ln and Douglas Parkway. As part of those agreements, the city advertised for 30 days to ensure competitive bidding requirements were met and no other offers were received. In exchange for 52 units of affordable housing, the City agrees to sell Bluestem Village, LLC land for $1. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: The total funding gap is estimated to be $1.75 million. The City has committed to contributing $970,000 in tax increment incentives and Habitat plans to apply for approximately $780,000 in Workforce Housing Tax Credits. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Staff recommends approval ATTACHMENTS: I. Notice of Public Hearing II. Option Agreement III. Development Agreement PREPARED BY: Nick Osborne REVIEWED BY: Nick Osborne PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: 05/07/2026 G4 (One publication required) NOTICE OF PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF WAUKEE IN THE STATE OF IOWA, ON THE MATTER OF THE PROPOSAL TO CONVEY REAL PROPERTY TO BLUESTEM VILLAGE LLC PURSUANT TO A PROPOSED OPTION AGREEMENT AND PROPOSED DEVELOPMENT AGREEMENT, AND THE HEARING THEREON PUBLIC NOTICE is hereby given that the Council of the City of Waukee in the State of Iowa, will hold a public hearing before itself at its meeting that commences at 5:30 P.M. on May 18, 2026, in the City Office, 230 West Hickman Road, Waukee, Iowa 50263, at which meeting the Council proposes to take action on the proposal to enter into an Option Agreement and a Development Agreement (collectively the "Agreement") with Bluestem Village LLC ("Developer"), and the proposal to convey certain real property (the "Property") located within the North Waukee Residential Urban Renewal Area to Developer, pursuant to the terms and conditions of the Agreement. The Property is legally described as: All of Outlot “Y” in Prairie Rose Plat 2, an Official Plat, now included in and forming a part of the City of Waukee, Dallas County, Iowa. The Agreement proposes that the City would sell the Property to Developer for $1.00 and in consideration of Developer’s other obligations set forth in the Agreement, including that the Property will be used to construct at least 52 owner-occupied residential units on the Property, at least 36 of which are to be sold to low and moderate income families (“LMI Housing Units”), subject to the detailed terms and conditions set forth in the Agreement. The Agreement further proposes that the City will provide up to ten (10) Economic Development Grants funded by incremental taxes derived from the completed residential units, up to an aggregate maximum of the lesser of (a) Nine Hundred Seventy Thousand Dollars ($970,000) (which reflects a maximum City contribution of approximately $26,945 for each of the anticipated 36 LMI Housing Units); or (b) the Developer’s Funding Gap. Copies of the Option Agreement and Development Agreement are on file for public inspection during regular business hours in the office of the City Clerk, City Hall, City of Waukee, Iowa. The proposal may be subject to additional conditions as may be stated either in the Agreement, the resolution of the City Council, or documents entered into between the parties. At the above meeting, the Council shall receive oral or written objections from any resident or property owner to the proposal to enter into the Agreement with Developer. After all objections have been received and considered, the Council may at this meeting or at any adjournment thereof, take additional action to approve the Agreement or to modify the Agreement, or may abandon the proposal to authorize said Agreement. This notice is given by order of the City Council of the City of Waukee in the State of Iowa, as provided by Section 364.7 of the City Code of Iowa. Dated this 6th day of April 2026. Rebecca D. Schuett City Clerk, City of Waukee in the State of Iowa (End of Notice) 4906-4975-6571-1\21938-398 POLK XXXXX POLK CICLT Ground Lease 2025 -1- Chapter 11-A THE 2025 CICLT GROUND LEASE TABLE OF CONTENTS RECITALS DEFINITIONS ARTICLE 1: Homeowner’s Letter of Agreement and Attorney’s Letter of Acknowledgment are Attached as Exhibits. ARTICLE 2: Leasing of Rights to the Land 2.1 CICLT LEASES THE LAND TO HOMEOWNER: 2.2 MINERAL RIGHTS NOT LEASED TO HOMEOWNER ARTICLE 3: Term of Lease, Change of Land Owner 3.1 TERM OF LEASE IS 99 YEARS 3.2 HOMEOWNER CAN RENEW LEASE FOR ANOTHER 99 YEARS 3.3 WHAT HAPPENS IF CICLT DECIDES TO SELL THE LEASED LAND ARTICLE 4: Use of Leased Land 4.1 HOMEOWNER MAY USE THE HOME ONLY FOR RESIDENTIAL AND RELATED PURPOSES 4.2 HOMEOWNER MUST USE THE HOME AND LEASED LAND RESPONSIBILY AND IN COMPLIANCE WITH THE LAW 4.3 HOMEOWNER IS RESPONSIBLE FOR USE BY OTHERS 4.4 HOMEOWNER MUST OCCUPY THE HOME FOR AT LEAST __ MONTHS EACH YEAR 4.5 LEASED LAND MAY NOT BE SUBLEASED WITHOUT CICLT’S PERMISSION 4.6 CICLT HAS A RIGHT TO INSPECT THE LEASED LAND 4.7 HOMEOWNER HAS A RIGHT TO QUIET ENJOYMENT ARTICLE 5: Lease Fee 5.1 AMOUNT OF LEASE FEE 5.2 WHEN THE LEASE FEE IS TO BE PAID 5.3 HOW THE AMOUNT OF THE LAND USE FEE HAS BEEN DETERMINED 5.4 CICLT MAY REDUCE OR SUSPEND THE LEASE FEE TO IMPROVE AFFORDABILITY 5.5 FEES MAY BE INCREASED FROM TIME TO TIME 5.6 LAND USE FEE WILL BE INCREASED IF RESTRICTIONS ARE REMOVED 5.7 IF PAYMENT IS LATE, INTEREST CAN BE CHARGED 5.8 CICLT CAN COLLECT UNPAID FEES WHEN HOME IS SOLD ARTICLE 6: Taxes and Assessments 6.1 HOMEOWNER IS RESPONSIBLE FOR PAYING ALL TAXES AND ASSESSMENTS 6.2 CICLT WILL PASS ON ANY TAX BILLS IT RECEIVES TO HOMEOWNER 6.3 HOMEOWNER HAS A RIGHT TO CONTEST TAXES 6.4 IF HOMEOWNER FAILS TO PAY TAXES, CICLT MAY INCREASE LEASE FEE Exhibit D CICLT Ground Lease 2025 -2- 6.5 PARTY THAT PAYS TAXES MUST SHOW PROOF ARTICLE 7: The Home 7.1 HOMEOWNER OWNS THE HOUSE AND ALL OTHER IMPROVEMENTS ON THE LEASED LAND 7.2 HOMEOWNER PURCHASES HOME WHEN SIGNING LEASE 7.3 CONSTRUCTION CARRIED OUT BY HOMEOWNER MUST COMPLY WITH CERTAIN REQUIREMENTS 7.4 HOMEOWNER MAY NOT ALLOW STATUTORY LIENS TO REMAIN AGAINST LEASED LAND OR HOME 7.5 HOMEOWNER IS RESPONSIBLE FOR SERVICES, MAINTENANCE AND REPAIRS 7.6 A REPAIR RESERVE FUND IS ESTABISHED TO SUPPORT FUTURE REPAIRS [This section must either be completed in accordance with the CICLT’s repair reserve policy, or omitted entirely. See Commentary on this Section 7.6.] 7.7 WHEN LEASE ENDS, OWNERSHIP REVERTS TO CICLT, WHICH SHALL REIMBURSE HOMEOWNER ARTICLE 8: Financing 8.1 HOMEOWNER CANNOT MORTGAGE THE HOME WITHOUT CICLT’s PERMISSION 8.2 BY SIGNING LEASE, CICLT GIVES PERMISSION FOR ORIGINAL MORTGAGE 8.3 HOMEOWNER MUST GET SPECIFIC PERMISSION FOR REFINANCING OR OTHER SUBSEQUENT MORTGAGES. 8.4 CICLT IS REQUIRED TO PERMIT A “STANDARD PERMITTED MORTGAGE” 8.5 A PERMITTED MORTGAGEE HAS CERTAIN OBLIGATIONS UNDER THE LEASE 8.6 A PERMITTED MORTGAGEE HAS CERTAIN RIGHTS UNDER THE LEASE 8.7 IN THE EVENT OF FORECLOSURE, ANY PROCEEDS IN EXCESS OF THE PURCHASE OPTION PRICE WILL GO TO CICLT ARTICLE 9: Liability, Insurance, Damage and Destruction, Eminent Domain 9.1 HOMEOWNER ASSUMES ALL LIABILITY 9.2 HOMEOWNER MUST DEFEND CICLT AGAINST ALL CLAIMS OF LIABILITY 9.3 HOMEOWNER MUST REIMBURSE CICLT 9.4 HOMEOWNER MUST INSURE THE HOME AGAINST LOSS AND MUST MAINTAIN LIABILITY INSURANCE ON HOME AND LEASED LAND 9.5 WHAT HAPPENS IF HOME IS DAMAGED OR DESTROYED 9.6 WHAT HAPPENS IF SOME OR ALL OF THE LAND IS TAKEN FOR PUBLIC USE 9.7 IF PART OF THE LAND IS TAKEN, THE LEASE FEE MAY BE REDUCED 9.8 IF LEASE IS TERMINATED BY DAMAGE, DESTRUCTION OR TAKING, CICLT WILL TRY TO HELP HOMEOWNER BUY ANOTHER CICLT HOME CICLT Ground Lease 2025 -3- ARTICLE 10: Transfer of the Home 10.1 INTENT OF THIS ARTICLE IS TO PRESERVE AFFORDABILITY 10.2 HOMEOWNER MAY TRANSFER HOME ONLY TO CICLT OR QUALIFIED PERSONS 10.3 THE HOME MAY BE TRANSFERRED TO CERTAIN HEIRS OF HOMEOWNER 10.4 HOMEOWNER’S NOTICE OF INTENT TO SELL 10.5 AFTER RECEIVING NOTICE, CICLT SHALL COMMISSION AN APPRAISAL 10.6 CICLT HAS AN OPTION TO PURCHASE THE HOME 10.7 IF PURCHASE OPTION EXPIRES, HOMEOWNER MAY SELL ON CERTAIN TERMS 10.8 AFTER ONE YEAR CICLT SHALL HAVE POWER OF ATTORNEY TO CONDUCT SALE 10.9 PURCHASE OPTION PRICE EQUALS LESSER OF APPRAISED VALUE OR FORMULA PRICE 10.10 HOW THE FORMULA PRICE IS CALCULATED 10.11 QUALIFIED PURCHASER SHALL RECEIVE NEW LEASE 10.12 PURCHASER MAY BE CHARGED A TRANSFER FEE 10.13 HOMEOWNER REQUIRED TO MAKE NECESSARY REPAIRS AT TRANSFER 10.11 QUALIFIED PURCHASER SHALL RECEIVE NEW LEASE 10.12 PURCHASER MAY BE CHARGED A TRANSFER FEE 10.13 HOMEOWNER REQUIRED TO MAKE NECESSARY REPAIRS AT TRANSFER ARTICLE 11: Reserved ARTICLE 12: Default 12.1 WHAT HAPPENS IF HOMEOWNER FAILS TO MAKE REQUIRED PAYMENTS TO THE CICLT 12.2 WHAT HAPPENS IF HOMEOWNER VIOLATES OTHER (NONMONETARY) TERMS OF THE LEASE 12.3 WHAT HAPPENS IF HOMEOWNER DEFAULTS AS A RESULT OF JUDICIAL PROCESS 12.4 A DEFAULT (UNCURED VIOLATION) GIVES CICLT THE RIGHT TO TERMINATE THE LEASE OR EXERCISE ITS PURCHASE OPTION ARTICLE 13: Mediation and Arbitration 13.1 MEDIATION AND ARBITRATION ARE PERMITTED 13.2 HOMEOWNER AND CICLT SHALL SHARE COST OF ANY MEDIATION OR ARBITRATIION ARTICLE 14: General Provisions 14.1 HOMEOWNER’S MEMBERSHIP IN CICLT 14.2 NOTICES 14.3 NO BROKERAGE 14.4 SEVERABILITY AND DURATION OF LEASE CICLT Ground Lease 2025 -4- 14.5 RIGHT OF FIRST REFUSAL IN LIEU OF OPTION 14.6 WAIVER 14.7 CICLT’S RIGHT TO PROSECUTE OR DEFEND 14.8 CONSTRUCTION 14.9 HEADINGS AND TABLE OF CONTENTS 14.10 PARTIES BOUND 14.11 GOVERNING LAW 14.12 RECORDING Exhibits That Must Be Attached Exhibit LETTERS OF AGREEMENT AND ATTORNEY’S ACKNOWLEDGMENT Exhibit LEASED LAND Exhibit DEED Exhibit PERMITTED MORTGAGES Exhibit FIRST REFUSAL Other Exhibits to be Attached as Appropriate Exhibit ZONING Exhibit RESTRICTIONS Exhibit INITIAL APPRAISAL APPENDIX: Alternative versions of Article 10 CICLT Ground Lease 2025 -5- CICLT LEASE THIS LEASE (“this Lease” or “the Lease”) entered into this _________ day of _____________, 20____, between CENTRAL IOWA COMMUNITY LAND TRUST (“CICLT”) and __________________________(“Homeowner”). RECITALS A. The CICLT is organized exclusively for charitable purposes, including the purpose of providing homeownership opportunities for low and moderate income people who would otherwise be unable to afford homeownership. B. A goal of the CICLT is to preserve affordable homeownership opportunities through the long-term leasing of land under owner-occupied homes. l C. The Leased Land described in this Lease has been acquired and is being leased by the CICLT in furtherance of this goal. D. The Homeowner shares the purposes of the CICLT and has agreed to enter into this Lease not only to obtain the benefits of homeownership, but also to further the charitable purposes of the CICLT. E. Homeowner and CICLT recognize the special nature of the terms of this Lease, and each of them accepts these terms, including those terms that affect the marketing and resale price of the property now being purchased by the Homeowner. F. Homeowner and CICLT agree that the terms of this Lease further their shared goals over an extended period of time and through a succession of owners. NOW THEREFORE, Homeowner and CICLT agree on all of the terms and conditions of this Lease as set forth below. DEFINITIONS: Homeowner and CICLT agree on the following definitions of key terms used in this Lease. Leased Land: the parcel of land, described in Exhibit: LEASED LAND, that is leased to the Homeowner. Home: the residential structure and other permanent improvements located on the Leased Land and owned by the Homeowner, including both the original Home described in Exhibit: DEED, and all permanent improvements added thereafter by Homeowner at Homeowner’s expense. Base Price: the total price that is paid for the Home by the Homeowner (including the amount provided by a first mortgage loan but not including subsidy in the form of deferred loans to the Homeowner). Purchase Option Price: the maximum price the Homeowner is allowed to receive for the sale of the Home and the Homeowner’s right to possess, occupy and use the Leased Land, as defined in Article 10 of this Lease. Lease Fee: The monthly fee that the Homeowner pays to the CICLT for the continuing use of the Leased Land and any additional amounts that the CICLT charges to the Homeowner for reasons permitted by this Lease. CICLT Ground Lease 2025 -6- Permitted Mortgage: A mortgage or deed of trust on the Home and the Homeowner’s right to possess, occupy and use the Leased Land granted to a lender by the Homeowner with the CICLT’s Permission. The Homeowner may not mortgage the CICLT’s interest in the Leased Land, and may not grant any mortgage or deed of trust without CICLT’s Permission. Event of Default: Any violation of the terms of the Lease unless it has been corrected (“cured”) by Homeowner or the holder of a Permitted Mortgage in the specified period of time after a written Notice of Default has been given by CICLT. ARTICLE 1: Homeowner’s Letter of Agreement and Attorney’s Letter of Acknowledgment are Attached as Exhibits. Attached as Exhibit HOMEOWNER’S LETTER OF AGREEMENT AND ATTORNEY’S LETTER OF ACKNOWLEDGMENT and made part of this Lease by reference are a Letter of Agreement from the Homeowner, describing the Homeowner’s understanding and acceptance of this Lease (including the parts of the Lease that affect the resale of the Home), and a Letter of Acknowledgment from the Homeowner’s attorney, describing the attorney’s review of the Lease with the Homeowner. ARTICLE 2: Leasing of Rights to the Land 2.1 CICLT LEASES THE LAND TO HOMEOWNER: The CICLT hereby leases to the Homeowner, and Homeowner hereby accepts, the right to possess, occupy and use the Leased Land (described in the attached Exhibit LEASED LAND) in accordance with the terms of this Lease. CICLT has furnished to Homeowner a copy of the most current title report, if any, obtained by CICLT for the Leased Land, and Homeowner accepts title to the Leased Land in its condition “as is” as of the signing of this Lease. 2.2 MINERAL RIGHTS NOT LEASED TO HOMEOWNER: CICLT does not lease to Homeowner the right to remove from the Leased Land any minerals lying beneath the Leased Land’s surface. Ownership of such minerals remains with the CICLT, but the CICLT shall not remove any such minerals from the Leased Land without the Homeowner’s written permission. ARTICLE 3: Term of Lease, Change of Land Owner 3.1 TERM OF LEASE IS 99 YEARS: This Lease shall remain in effect for 99 years, beginning on the ___ day of _________________, 20__, and ending on the ________ day of ______________, 20____, unless ended sooner or renewed as provided below. 3.2 HOMEOWNER CAN RENEW LEASE FOR ANOTHER 99 YEARS: Homeowner may renew this Lease for one additional period of 99 years. The CICLT may change the terms of the Lease for the renewal period prior to the beginning of the renewal period but only if these changes do not materially and adversely interfere with the rights possessed by Homeowner under the Lease. Not more than 365 nor less than 180 days before the last day of the first 99- year period, CICLT shall give Homeowner a written notice that states the date of the expiration of the first 99-year period and the conditions for renewal as set forth in the following paragraph (“the Expiration Notice”). The Expiration Notice shall also describe any changes that CICLT intends to make in the Lease for the renewal period as permitted above. CICLT Ground Lease 2025 -7- The Homeowner shall then have the right to renew the Lease only if the following conditions are met: (a) within 60 days of receipt of the Expiration Notice, the Homeowner shall give CICLT written notice stating the Homeowner’s desire to renew (“the Renewal Notice”); (b) this Lease shall be in effect on the last day of the original 99-year term, and (c) the Homeowner shall not be in default under this Lease or under any Permitted Mortgage on the last day of the original 99-year term. When Homeowner has exercised the option to renew, Homeowner and CICLT shall sign a memorandum stating that the option has been exercised. The memorandum shall comply with the requirements for a notice of lease as stated in Section 14.12 below. The CICLT shall record this memorandum in accordance with the requirements of law promptly after the beginning of the renewal period. 3.3 WHAT HAPPENS IF CICLT DECIDES TO SELL THE LEASED LAND: If ownership of the Leased Land is ever transferred by CICLT (whether voluntarily or involuntarily) to any other person or institution, this Lease shall not cease, but shall remain binding on the new land-owner as well as the Homeowner. If CICLT agrees to transfer the Leased Land to any person or institution other than a non-profit corporation, charitable trust, government agency or other similar institution sharing the goals described in the Recitals above, the Homeowner shall have a right of first refusal to purchase the Leased Land. The details of this right shall be as stated in the attached Exhibit FIRST REFUSAL. Any sale or other transfer contrary to this Section 3.3 shall be null and void. ARTICLE 4: Use of Leased Land 4.1 HOMEOWNER MAY USE THE HOME ONLY FOR RESIDENTIAL AND RELATED PURPOSES: Homeowner shall use, and allow others to use, the Home and Leased Land only for residential purposes and any activities related to residential use that were permitted by local zoning law when the Lease was signed, as indicated in the attached Exhibit ZONING. 4.2 HOMEOWNER MUST USE THE HOME AND LEASED LAND RESPONSIBILY AND IN COMPLIANCE WITH THE LAW: Homeowner shall use the Home and Leased Land in a way that will not cause harm to others or create any public nuisance. Homeowner shall dispose of all waste in a safe and sanitary manner. Homeowner shall maintain all parts of the Home and Leased Land in safe, sound and habitable condition, in full compliance with all laws and regulations, and in the condition that is required to maintain the insurance coverage required by Section 9.4 of this Lease. 4.3 HOMEOWNER IS RESPONSIBLE FOR USE BY OTHERS: Homeowner shall be responsible for the use of the Home and Leased Land by all residents and visitors and anyone else using the Leased Land with Homeowner’s permission and shall make all such people aware of the restrictions on use set forth in this Lease. 4.4 HOMEOWNER MUST OCCUPY THE HOME FOR AT LEAST 6 MONTHS EACH YEAR: Homeowner shall occupy the Home for at least 6 months of each year of this Lease, unless otherwise agreed by CICLT. Occupancy by Homeowner’s child, spouse [or domestic partner, in states with such legislation] or other persons approved by CICLT shall be considered occupancy by Homeowner. Neither compliance with the occupancy requirement CICLT Ground Lease 2025 -8- nor CICLT’s permission for an extended period of non-occupancy constitutes permission to sublease the Leased Land and Home, which is addressed in Section 4.5 below. 4.5 LEASED LAND MAY NOT BE SUBLEASED WITHOUT CICLT’S PERMISSION. Except as otherwise provided in Article 8 and Article 10, Homeowner shall not sublease, sell or otherwise convey any of Homeowner’s rights under this Lease, for any period of time, without the written permission of CICLT. Homeowner agrees that CICLT shall have the right to withhold such consent in order to further the purposes of this Lease. If permission for subleasing is granted, the sublease shall be subject to the following conditions. a) Any sublease shall be subject to all of the terms of this Lease. b) The rental or occupancy fee charged the sub-lessee shall not be more than the amount of the Lease Fee charged the Homeowner by the CICLT, plus an amount approved by CICLT to cover Homeowner’s costs in owning the Home, including but not limited to the cost of taxes, insurance and mortgage interest. 4.6 CICLT HAS A RIGHT TO INSPECT THE LEASED LAND: The CICLT may inspect any part of the Leased Land except the interiors of fully enclosed buildings, at any reasonable time, after notifying the Homeowner at least 24 hours before the planned inspection. No more than one regular inspections may be carried out in a single year, except in the case of an emergency. In an emergency, the CICLT may inspect any part of the Leased Land except the interiors of fully enclosed buildings, after making reasonable efforts to inform the Homeowner before the inspection. If the CICLT has received an Intent-To-Sell Notice (as described in Section 10.4 below), then the CICLT has the right to inspect the interiors of all fully enclosed buildings to determine their condition prior to the sale. The CICLT must notify the Homeowner at least 24 hours before carrying out such inspection. 4.7 HOMEOWNER HAS A RIGHT TO QUIET ENJOYMENT: Homeowner has the right to quiet enjoyment of the Leased Land. The CICLT has no desire or intention to interfere with the personal lives, associations, expressions, or actions of the Homeowner in any way not permitted by this Lease. ARTICLE 5: Lease Fee 5.1 AMOUNT OF LEASE FEE: The Homeowner shall pay a monthly Lease Fee in an amount equal to the sum of (a) a Land Use Fee of $50 to be paid in return for the continuing right to possess, occupy and use the Leased Land, plus (b) a Repair Reserve Fee of $_0_ to be held by the CICLT and used for the purpose of preserving the physical quality of the Home for the long term in accordance with Section 7.6 below. 5.2 WHEN THE LEASE FEE IS TO BE PAID: The Lease Fee shall be payable to CICLT on the first day of each month for as long as this Lease remains in effect, unless the Lease Fee is to be escrowed and paid by a Permitted Mortgagee, in which case payment shall be made as directed by that Mortgagee. 5.3 HOW THE AMOUNT OF THE LAND USE FEE HAS BEEN DETERMINED: The amount of the Land Use Fee stated in Section 5.1 above has been determined as follows. First, the approximate monthly fair rental value of the Leased Land has been established, as of CICLT Ground Lease 2025 -9- the beginning of the Lease term, recognizing that the fair rental value is reduced by certain restrictions imposed by the Lease on the use of the Land. Then the affordability of this monthly amount, plus the amount of the Repair Reserve Fee, for the Homeowner has been analyzed and, the Land Use has been set in accordance with this policy. 5.4 CICLT MAY REDUCE OR SUSPEND THE LEASE FEE TO IMPROVE AFFORDABILITY: CICLT may reduce or suspend the total amount of the Lease Fee for a period of time for the purpose of improving the affordability of the Homeowner’s monthly housing costs. Any such reduction or suspension must be in writing and signed by CICLT. 5.5 FEES MAY BE INCREASED FROM TIME TO TIME: The CICLT may increase the amount of the Land Use Fee and/or the Repair Reserve Fee from time to time, but not more often than once every 3 years. Each time such amounts are increased, the total percentage of increase since the date this Lease was signed shall not be greater than the percentage of increase, over the same period of time, in the Consumer Price Index for urban wage earners and clerical workers for the urban area in which the Leased Land. 5.6 LAND USE FEE WILL BE INCREASED IF RESTRICTIONS ARE REMOVED: If, for any reason, the provisions of Article 10 regarding transfers of the Home or Sections 4.4 and 4.5 regarding occupancy and subleasing are suspended or invalidated for any period of time, then during that time the Land Use Fee shall be increased to an amount calculated by CICLT to equal the fair rental value of the Leased Land for use not restricted by the suspended provisions, but initially an amount not exceeding $100 dollars. Such increase shall become effective upon CICLT’s written notice to Homeowner. Thereafter, for so long as these restrictions are not reinstated in the Lease, the CICLT may, from time to time, further increase the amount of such Land Use Fee, provided that the amount of the Land Use Fee does not exceed the fair rental value of the property, and provided that such increases do not occur more often than once in every year. 5.7 IF PAYMENT IS LATE, INTEREST CAN BE CHARGED: If the CICLT has not received any monthly installment of the Lease Fee on or before the date on which the such installment first becomes payable under this Lease (the “Due Date”), the CICLT may require Homeowner to pay interest on the unpaid amount from the Due Date through and including the date such payment or installment is received by CICLT, at a rate not to exceed 5%. Such interest shall be deemed additional Lease Fee and shall be paid by Homeowner to CICLT upon demand; provided, however, that CICLT shall waive any such interest that would otherwise be payable to CICLT if such payment of the Lease Fee is received by CICLT on or before the thirtieth (30th) day after the Due Date. 5.8 CICLT CAN COLLECT UNPAID FEES WHEN HOME IS SOLD: In the event that any amount of payable Lease Fee remains unpaid when the Home is sold, the outstanding amount of payable Lease Fee, including any interest as provided above, shall be paid to CICLT out of any proceeds from the sale that would otherwise be due to Homeowner. The CICLT shall have, and the Homeowner hereby consents to, a lien upon the Home for any unpaid Lease Fee. Such lien shall be prior to all other liens and encumbrances on the Home except (a) liens and encumbrances recorded before the recording of this Lease, (b) Permitted Mortgages as defined in section 8.1 below; and (c) liens for real property taxes and other governmental assessments or charges against the Home. CICLT Ground Lease 2025 -10- ARTICLE 6: Taxes and Assessments 6.1 HOMEOWNER IS RESPONSIBLE FOR PAYING ALL TAXES AND ASSESSMENTS: Homeowner shall pay directly, when due, all taxes and governmental assessments that relate to the Home and the Leased Land (including any taxes relating to the CICLT’s interest in the Leased Land). 6.2 CICLT WILL PASS ON ANY TAX BILLS IT RECEIVES TO HOMEOWNER: In the event that the local taxing authority bills CICLT for any portion of the taxes on the Home or Leased Land, CICLT shall pass the bill to Homeowner and Homeowner shall promptly pay this bill. 6.3 HOMEOWNER HAS A RIGHT TO CONTEST TAXES: Homeowner shall have the right to contest the amount or validity of any taxes relating to the Home and Leased Land. Upon receiving a reasonable request from Homeowner for assistance in this matter, CICLT shall join in contesting such taxes. All costs of such proceedings shall be paid by Homeowner. 6.4 IF HOMEOWNER FAILS TO PAY TAXES, CICLT MAY INCREASE LEASE FEE: In the event that Homeowner fails to pay the taxes or other charges described in Section 6.1 above, CICLT may increase Homeowner’s Lease Fee to offset the amount of taxes and other charges owed by Homeowner. Upon collecting any such amount, CICLT shall pay the amount collected to the taxing authority in a timely manner. 6.5 PARTY THAT PAYS TAXES MUST SHOW PROOF: When either party pays taxes relating to the Home or Leased Land, that party shall furnish satisfactory evidence of the payment to the other party. A photocopy of a receipt shall be the usual method of furnishing such evidence. ARTICLE 7: The Home 7.1 HOMEOWNER OWNS THE HOUSE AND ALL OTHER IMPROVEMENTS ON THE LEASED LAND: All structures, including the house, fixtures, and other improvements purchased, constructed, or installed by the Homeowner on any part of the Leased Land at any time during the term of this Lease (collectively, the “Home”) shall be property of the Homeowner. Title to the Home shall be and remain vested in the Homeowner. However, Homeowner’s rights of ownership are limited by certain provisions of this Lease, including provisions regarding the sale or leasing of the Home by the Homeowner and the CICLT’s option to purchase the Home. In addition, Homeowner shall not remove any part of the Home from the Leased Land without CICLT’s prior written consent. 7.2 HOMEOWNER PURCHASES HOME WHEN SIGNING LEASE: Upon the signing of this Lease, Homeowner is simultaneously purchasing the Home located at that time on the Leased Land, as described in the Deed, a copy of which is attached to this Lease as Exhibit: DEED. 7.3 CONSTRUCTION CARRIED OUT BY HOMEOWNER MUST COMPLY WITH CERTAIN REQUIREMENTS: Any construction in connection with the Home is permitted only if the following requirements are met: (a) all costs shall be paid for by the Homeowner; CICLT Ground Lease 2025 -11- (b) all construction shall be performed in a professional manner and shall comply with all applicable laws and regulations; (c) all changes in the Home shall be consistent with the permitted uses described in Article 4; (d) the footprint, square-footage, or height of the house shall not be increased and new structures shall not be built or installed on the Leased Land without the prior written consent of CICLT. For any construction requiring CICLT’s prior written consent, Homeowner shall submit a written request to the CICLT. Such request shall include: a) a written statement of the reasons for undertaking the construction; b) a set of drawings (floor plan and elevations) showing the dimensions of the proposed construction; If the CICLT finds it needs additional information it shall request such information from Homeowner within two weeks of receipt of Homeowner’s request. Which could include: c) a list of the necessary materials, with quantities needed; d) a statement of who will do the work; The CICLT then, within two weeks of receiving all necessary information (including any additional information it may have requested) shall give Homeowner either its written consent or a written statement of its reasons for not consenting. Before construction can begin, Homeowner shall provide CICLT with copies of all necessary building permits, if not previously provided. 7.4 HOMEOWNER MAY NOT ALLOW STATUTORY LIENS TO REMAIN AGAINST LEASED LAND OR HOME: No lien of any type shall attach to the CICLT’s title to the Leased Land. Homeowner shall not permit any statutory or similar lien to be filed against the Leased Land or the Home which remains more than 60 days after it has been filed. Homeowner shall take action to discharge such lien, whether by means of payment, deposit, bond, court order, or other means permitted by law. If Homeowner fails to discharge such lien within the 60-day period, then Homeowner shall immediately notify CICLT of such failure. CICLT shall have the right to discharge the lien by paying the amount in question. Homeowner may, at Homeowner’s expense, contest the validity of any such asserted lien, provided Homeowner has furnished a bond or other acceptable surety in an amount sufficient to release the Leased Land from such lien. Any amounts paid by CICLT to discharge such liens shall be treated as an additional Lease Fee payable by Homeowner upon demand. 7.5 HOMEOWNER IS RESPONSIBLE FOR SERVICES, MAINTENANCE AND REPAIRS: Homeowner hereby assumes responsibility for furnishing all services or facilities on the Leased Land, including but not limited to heat, electricity, air conditioning and water. CICLT shall not be required to furnish any services or facilities or to make any repairs to the Home. Homeowner shall maintain the Home and Leased Land as required by Section 4.2 above and shall see that all necessary repairs and replacements are accomplished when needed. 7.6 A REPAIR RESERVE FUND IS ESTABISHED TO SUPPORT FUTURE REPAIRS: 7.7 WHEN LEASE ENDS, OWNERSHIP REVERTS TO CICLT, WHICH SHALL REIMBURSE HOMEOWNER: Upon the expiration or termination of this Lease, ownership of the Home shall revert to CICLT. Upon thus assuming title to the Home, CICLT shall promptly pay Homeowner and Permitted Mortgagee(s), as follows: CICLT Ground Lease 2025 -12- FIRST, CICLT shall pay any Permitted Mortgagee(s) the full amount owed to such mortgagee(s) by Homeowner; SECOND, CICLT shall pay the Homeowner the balance of the Purchase Option Price calculated in accordance with Article 10 below, as of the time of reversion of ownership, less the total amount of any unpaid Lease Fee and any other amounts owed to the CICLT under the terms of this Lease. The Homeowner shall be responsible for any costs necessary to clear any additional liens or other charges related to the Home which may be assessed against the Home. If the Homeowner fails to clear such liens or charges, the balance due the Homeowner shall also be reduced by the amount necessary to release such liens or charges, including reasonable attorneys fees incurred by the CICLT. ARTICLE 8: Financing 8.1 HOMEOWNER CANNOT MORTGAGE THE HOME WITHOUT CICLT’s PERMISSION: The Homeowner may mortgage the Home only with the written permission of CICLT. Any mortgage or deed of trust permitted in writing by the CICLT is defined as a Permitted Mortgage, and the holder of such a mortgage or deed of trust is defined as a Permitted Mortgagee. 8.2 BY SIGNING LEASE, CICLT GIVES PERMISSION FOR ORIGINAL MORTGAGE. By signing this Lease, CICLT gives written permission for any mortgage or deed of trust signed by the Homeowner effective on the day this Lease is signed for the purpose of financing Homeowner’s purchase of the Home. 8.3 HOMEOWNER MUST GET SPECIFIC PERMISSION FOR REFINANCING OR OTHER SUBSEQUENT MORTGAGES. If, at any time subsequent to the purchase of the Home and signing of the Lease, the Homeowner seeks a loan that is to be secured by a mortgage on the Home (to refinance an existing Permitted Mortgage or to finance home repairs or for any other purpose), Homeowner must inform CICLT, in writing, of the proposed terms and conditions of such mortgage loan at least 15 business days prior to the expected closing of the loan. The information to be provided to the CICLT must include: a. the name of the proposed lender; b. Homeowner’s reason for requesting the loan; c. the principal amount of the proposed loan and the total mortgage debt that will result from the combination of the loan and existing mortgage debt, if any; d. expected closing costs; e. the rate of interest; f. the repayment schedule; g. a copy of the appraisal commissioned in connection with the loan request. CICLT may also require Homeowner to submit additional information. CICLT will not permit such a mortgage loan if the loan increases Homeowner’s total mortgage debt to an amount greater than 90% of the then current Purchase Option Price, calculated in accordance with Article 10 below, or if the terms of the transaction otherwise threaten the interests of either the Homeowner or the CICLT. 8.4 CICLT IS REQUIRED TO PERMIT A “STANDARD PERMITTED MORTGAGE.” The CICLT shall be required to permit any mortgage for which the mortgagee has signed a CICLT Ground Lease 2025 -13- “Standard Permitted Mortgage Agreement” as set forth in “Exhibit: Permitted Mortgages, Part C,” and for which the loan secured thereby does not increase Homeowner’s total mortgage debt to an amount greater than 90% of the then current Purchase Option Price, calculated in accordance with Article 10 below. 8.5 A PERMITTED MORTGAGEE HAS CERTAIN OBLIGATIONS UNDER THE LEASE. Any Permitted Mortgagee shall be bound by each of the requirements stated in “Exhibit: Permitted Mortgages, Part A, Obligations of Permitted Mortgagee,” which is made a part of this Lease by reference, unless the particular requirement is removed, contradicted or modified by a Rider to this Lease signed by the Homeowner and the CICLT to modify the terms of the Lease during the term of the Permitted Mortgage. 8.6 A PERMITTED MORTGAGEE HAS CERTAIN RIGHTS UNDER THE LEASE. Any Permitted Mortgagee shall have all of the rights and protections stated in “Exhibit: Permitted Mortgages, Part B, Rights of Permitted Mortgagee,” which is made a part of this Lease by reference. 8.7 IN THE EVENT OF FORECLOSURE, ANY PROCEEDS IN EXCESS OF THE PURCHASE OPTION PRICE WILL GO TO CICLT. Homeowner and CICLT recognize that it would be contrary to the purposes of this agreement if Homeowner could receive more than the Purchase Option Price as the result of the foreclosure of a mortgage. Therefore, Homeowner hereby irrevocably assigns to CICLT all net proceeds of sale of the Home that would otherwise have been payable to Homeowner and that exceed the amount of net proceeds that Homeowner would have received if the property had been sold for the Purchase Option Price, calculated as described in Section 10.10 below. Homeowner authorizes and instructs the Permitted Mortgagee, or any party conducting any sale, to pay such excess amount directly to CICLT. If, for any reason, such excess amount is paid to Homeowner, Homeowner hereby agrees to promptly pay such amount to CICLT. ARTICLE 9: Liability, Insurance, Damage and Destruction, Eminent Domain 9.1 HOMEOWNER ASSUMES ALL LIABILITY. Homeowner assumes all responsibility and liability related to Homeowner’s possession, occupancy and use of the Leased Land. 9.2 HOMEOWNER MUST DEFEND CICLT AGAINST ALL CLAIMS OF LIABILITY. Homeowner shall defend, indemnify and hold CICLT harmless against all liability and claims of liability for injury or damage to person or property from any cause on or about the Leased Land. Homeowner waives all claims against CICLT for injury or damage on or about the Leased Land. However, CICLT shall remain liable for injury or damage due to the grossly negligent or intentional acts or omissions of CICLT or CICLT’s agents or employees. 9.3 HOMEOWNER MUST REIMBURSE CICLT. In the event the CICLT shall be required to pay any sum that is the Homeowner’s responsibility or liability, the Homeowner shall reimburse the CICLT for such payment and for reasonable expenses caused thereby. 9.4 HOMEOWNER MUST INSURE THE HOME AGAINST LOSS AND MUST MAINTAIN LIABILITY INSURANCE ON HOME AND LEASED LAND. Homeowner shall, at Homeowner’s expense, keep the Home continuously insured against “all risks” of physical loss, using Insurance Services Office (ISO) Form HO 00 03, or its equivalent, for the CICLT Ground Lease 2025 -14- full replacement value of the Home, and in any event in an amount that will not incur a coinsurance penalty. The amount of such insured replacement value must be approved by the CICLT prior to the commencement of the Lease. Thereafter, if the CICLT determines that the replacement value to be insured should be increased, the CICLT shall inform the Homeowner of such required increase at least 30 days prior to the next date on which the insurance policy is to be renewed, and the Homeowner shall assure that the renewal includes such change. If Homeowner wishes to decrease the amount of replacement value to be insured, Homeowner shall inform the CICLT of the proposed change at least 30 days prior to the time such change would take effect. The change shall not take effect without CICLT’s approval. Should the Home lie in a flood hazard zone as defined by the National Flood Insurance Plan, the Homeowner shall keep in full force and effect flood insurance in the maximum amount available. The Homeowner shall also, at its sole expense, maintain in full force and effect personal liability insurance using ISO Form HO 00 03 or its equivalent in the amount of $500,000 per occurrence and in the aggregate. The CICLT shall be named as an additional insured using ISO Form HO 04 41 or its equivalent, and certificates of insurance shall be delivered to the CICLT prior to the commencement of the Lease and at each anniversary date thereof. The dollar amounts of such coverage may be increased from time to time at the CICLT’s request but not more often than once in any one-year period. CICLT shall inform the Homeowner of such required increase in coverage at least 30 days prior to the next date on which the insurance policy is to be renewed, and the Homeowner shall assure that the renewal includes such change. The amount of such increase in coverage shall be based on current trends in homeowner’s liability insurance coverage in the area in which the Home is located. 9.5 WHAT HAPPENS IF HOME IS DAMAGED OR DESTROYED. Except as provided below, in the event of fire or other damage to the Home, Homeowner shall take all steps necessary to assure the repair of such damage and the restoration of the Home to its condition immediately prior to the damage. All such repairs and restoration shall be completed as promptly as possible. Homeowner shall also promptly take all steps necessary to assure that the Leased Land is safe and that the damaged Home does not constitute a danger to persons or property. If Homeowner, based on professional estimates, determines either (a) that full repair and restoration is physically impossible, or (b) that the available insurance proceeds will pay for less than the full cost of necessary repairs and that Homeowner cannot otherwise afford to cover the balance of the cost of repairs, then Homeowner shall notify CICLT of this problem, and CICLT may then help to resolve the problem. Methods used to resolve the problem may include efforts to increase the available insurance proceeds, efforts to reduce the cost of necessary repairs, efforts to arrange affordable financing covering the costs of repair not covered by insurance proceeds, and any other methods agreed upon by both Homeowner and CICLT. If Homeowner and CICLT cannot agree on a way of restoring the Home in the absence of adequate insurance proceeds, then Homeowner may give CICLT written notice of intent to terminate the Lease. The date of actual termination shall be no less than 60 days after the date of Homeowner’s notice of intent to terminate. Upon termination, any insurance proceeds payable to Homeowner for damage to the Home shall be paid as follows. CICLT Ground Lease 2025 -15- FIRST, to the expenses of their collection; SECOND, to any Permitted Mortgagee(s), to the extent required by the Permitted Mortgage(s); THIRD, to the expenses of enclosing or razing the remains of the Home and clearing debris; FOURTH, to the CICLT for any amounts owed under this Lease; FIFTH, to the Homeowner, up to an amount equal to the Purchase Option Price, as of the day prior to the loss, less any amounts paid with respect to the second, third, and fourth clauses above; SIXTH, the balance, if any, to the CICLT. 9.6 WHAT HAPPENS IF SOME OR ALL OF THE LAND IS TAKEN FOR PUBLIC USE. If all of the Leased Land is taken by eminent domain or otherwise for public purposes, or if so much of the Leased Land is taken that the Home is lost or damaged beyond repair, the Lease shall terminate as of the date when Homeowner is required to give up possession of the Leased Land. Upon such termination, the entire amount of any award(s) paid shall be allocated in the way described in Section 9.5 above for insurance proceeds. In the event of a taking of a portion of the Leased Land that does not result in damage to the Home or significant reduction in the usefulness or desirability of the Leased Land for residential purposes, then any monetary compensation for such taking shall be allocated entirely to CICLT. In the event of a taking of a portion of the Leased Land that results in damage to the Home only to such an extent that the Home can reasonably be restored to a residential use consistent with this Lease, then the damage shall be treated as damage is treated in Section 9.5 above, and monetary compensation shall be allocated as insurance proceeds are to be allocated under Section 9.5. 9.7 IF PART OF THE LAND IS TAKEN, THE LEASE FEE MAY BE REDUCED. In the event of any taking that reduces the size of the Leased Land but does not result in the termination of the Lease, CICLT shall reassess the fair rental value of the remaining Land and shall adjust the Lease Fee if necessary to assure that the monthly fee does not exceed the monthly fair rental value of the Land for use as restricted by the Lease. 9.8 IF LEASE IS TERMINATED BY DAMAGE, DESTRUCTION OR TAKING, CICLT WILL TRY TO HELP HOMEOWNER BUY ANOTHER CICLT HOME. If this Lease is terminated as a result of damage, destruction or taking, CICLT shall take reasonable steps to allow Homeowner to purchase another home on another parcel of leased land owned by CICLT if such home can reasonably be made available. If Homeowner purchases such a home, Homeowner agrees to apply any proceeds or award received by Homeowner to the purchase of the home. Homeowner understands that there are numerous reasons why it may not be possible to make such a home available, and shall have no claim against CICLT if such a home is not made available. ARTICLE 10: Transfer of the Home 10.1 INTENT OF THIS ARTICLE IS TO PRESERVE AFFORDABILITY: Homeowner and CICLT agree that the provisions of this Article 10 are intended to preserve the CICLT Ground Lease 2025 -16- affordability of the Home for lower income households and expand access to homeownership opportunities for such households. 10.2 HOMEOWNER MAY TRANSFER HOME ONLY TO CICLT OR QUALIFIED PERSONS: Homeowner may transfer the Home only to the CICLT or an Income-Qualified Person as defined below or otherwise only as explicitly permitted by the provisions of this Article 10. All such transfers are to be completed only in strict compliance with this Article 10. Any purported transfer that does not follow the procedures set forth below, except in the case of a transfer to a Permitted Mortgagee in lieu of foreclosure, shall be null and void. “Income-Qualified Person” shall mean a person or group of persons whose household income does not exceed 80% of the median household income for the applicable Standard Metropolitan Statistical Area or County as calculated and adjusted for household size from time to time by the U.S. Department of Housing and Urban Development (HUD) or any successor. At CICLT’s discretion, this threshold may be increased to allow households earning up to 100% of the area median income, depending on the policies in place at the time of transfer. 10.3 THE HOME MAY BE TRANSFERRED TO CERTAIN HEIRS OF HOMEOWNER: If Homeowner dies (or if the last surviving co-owner of the Home dies), the executor or personal representative of Homeowner’s estate shall notify CICLT within ninety (90) days of the date of the death. Upon receiving such notice CICLT shall consent to a transfer of the Home and Homeowner’s rights to the Leased Land to one or more of the possible heirs of Homeowner listed below as “a,” “b,” or “c,” provided that a Letter of Agreement and a Letter of Attorney’s Acknowledgment (as described in Article 1 above) are submitted to CICLT to be attached to the Lease when it is transferred to the heirs. a) the spouse of the Homeowner; or b) the child or children of the Homeowner; or c) member(s) of the Homeowner’s household who have resided in the Home for at least one year immediately prior to Homeowner’s death. Any other heirs, legatees or devisees of Homeowner, in addition to submitting Letters of Agreement and Attorney’s Acknowledgment as provided above, must demonstrate to CICLT’s satisfaction that they are Income-Qualified Persons as defined above. If they cannot demonstrate that they are Income-Qualified Persons, they shall not be entitled to possession of the Home but must transfer the Home in accordance with the provisions of this Article 10. 10.4 HOMEOWNER’S NOTICE OF INTENT TO SELL: In the event that Homeowner wishes to sell Homeowner’s Property, Homeowner shall notify CICLT in writing of such wish (the Intent-to-Sell Notice). This Notice shall include a statement as to whether Homeowner wishes to recommend a prospective buyer as of the date of the Notice. 10.5 AFTER RECEIVING NOTICE, CICLT SHALL COMMISSION AN APPRAISAL: No later than ten (10) days after CICLT’s receipt of Homeowner’s Intent-to-Sell Notice, CICLT shall commission a market valuation of the Leased Land and the Home (The Appraisal) to be performed by a duly licensed appraiser who is acceptable to CICLT and CICLT Ground Lease 2025 -17- Homeowner. CICLT shall pay the cost of such Appraisal. The Appraisal shall be conducted by analysis and comparison of comparable properties as though title to Leased Land and Home were held in fee simple absolute by a single party, disregarding all of the restrictions of this Lease on the use, occupancy and transfer of the property. The Appraisal shall state the values contributed by the Leased Land and by the Home (consisting of improvements only) as separate amounts. Copies of the Appraisal are to be provided to both CICLT and Homeowner. 10.6 CICLT HAS AN OPTION TO PURCHASE THE HOME. Upon receipt of an Intent-to- Sell Notice from Homeowner, CICLT shall have the option to purchase the Home at the Purchase Option Price calculated as set forth below. The Purchase Option is designed to further the purpose of preserving the affordability of the Home for succeeding Income- Qualified Persons while taking fair account of the investment by the Homeowner. If CICLT elects to purchase the Home, CICLT shall exercise the Purchase Option by notifying Homeowner, in writing, of such election (the Notice of Exercise of Option) within forty-five (45) days of the receipt of the Appraisal, or the Option shall expire. Having given such notice, CICLT may either proceed to purchase the Home directly or may assign the Purchase Option to an Income-Qualified Person. The purchase (by CICLT or CICLT’s assignee) must be completed within sixty (60) days of CICLT’s Notice of Exercise of Option, or Homeowner may sell the Home and Homeowner’s rights to the Leased Land as provided in Section 10.7 below. The time permitted for the completion of the purchase may be extended by mutual agreement of CICLT and Homeowner. Homeowner may recommend to CICLT a prospective buyer who is an Income-Qualified Person and is prepared to submit Letters of Agreement and Attorney’s Acknowledgement indicating informed acceptance of the terms of this Lease. CICLT shall make reasonable efforts to arrange for the assignment of the Purchase Option to such person, unless CICLT determines that its charitable mission is better served by retaining the Home for another purpose or transferring the Home to another party. 10.7 IF PURCHASE OPTION EXPIRES, HOMEOWNER MAY SELL ON CERTAIN TERMS: If the Purchase Option has expired or if CICLT has failed to complete the purchase within the sixty-day period allowed by Section 10.6 above, Homeowner may sell the Home to any Income-Qualified Person for not more than the then applicable Purchase Option Price. If Homeowner has made diligent efforts to sell the Home for at least six months after the expiration of the Purchase Option (or six months after the expiration of such sixty-day period) and the Home still has not been sold, Homeowner may then sell the Home, for a price no greater than the then applicable Purchase Option Price, to any party regardless of whether that party is an Income-Qualified Person. 10.8 AFTER ONE YEAR CICLT SHALL HAVE POWER OF ATTORNEY TO CONDUCT SALE: If CICLT does not exercise its option and complete the purchase of Homeowner’s Property as described above, and if Homeowner (a) is not then residing in the Home and (b) continues to hold Homeowner’s Property out for sale but is unable to locate a CICLT Ground Lease 2025 -18- buyer and execute a binding purchase and sale agreement within one year of the date of the Intent to Sell Notice, Homeowner does hereby appoint CICLT its attorney in fact to seek a buyer, negotiate a reasonable price that furthers the purposes of this Lease, sell the property, and pay to the Homeowner the proceeds of sale, minus CICLT’s costs of sale and any other sums owed CICLT by Homeowner. 10.9 PURCHASE OPTION PRICE EQUALS LESSER OF APPRAISED VALUE OR FORMULA PRICE: In no event may the Home be sold for a price that exceeds the Purchase Option Price. The Purchase Option Price shall be the lesser of (a) the value of the Home (consisting of improvements only) as determined by the Appraisal commissioned and conducted as provided in 10.5 above or (b) the price calculated in accordance with the formula described below (the Formula Price). 10.10 HOW THE FORMULA PRICE IS CALCULATED: The Formula Price shall be equal to Homeowner’s Base Price, as stated below, plus 25% of the increase in market value of the Home, if any, calculated in the way described below. Homeowner’s Base Price: The parties agree that the Homeowner’s Base Price for Homeowner’s Property as of the signing of this Lease is $____________. Initial Appraised Value: The parties agree that the appraised value of the Home at the time of Homeowner’s purchase (the Initial Appraised Value) is $ ________, as documented by the appraiser’s report attached to this Lease as Exhibit INITIAL APPRAISAL. Increase in Market Value: The increase in market value of the Home equals the appraised value of the Home at time of sale, calculated according to Section 10.5 above, minus the Initial Appraised Value. Homeowner’s share of Increase in Market Value: Homeowner’s share of the increase in the market value of the Home equals twenty-five percent (25%) of the increase in market value as calculated above. Summary of Formula Price: The Formula Price equals Homeowner’s Base Price plus Homeowner’s Share of Increase in Market Value. 10.11 QUALIFIED PURCHASER SHALL RECEIVE NEW LEASE: The CICLT shall issue a new lease to any person who purchases the Home in accordance with the terms of this Article 10. The terms of such lease shall be the same as those of new leases issued to homebuyers at that time for land not previously leased by the CICLT. 10.12 PURCHASER SHALL BE CHARGED A TRANSFER FEE. In the event that Homeowner sells the home to a party other than the CICLT (as a result of CICLT’s assignment of its Purchase Option to such party), the price to be paid by such purchaser shall include in addition to the Purchase Option Price, at the discretion of the CICLT, a transfer fee to compensate the CICLT for carrying out its responsibilities with regard to the transaction. The amount of the transfer fee shall be no more than _3_% of the Purchase Option Price of the seller’s return, whichever is lower. CICLT Ground Lease 2025 -19- 10.13 HOMEOWNER REQUIRED TO MAKE NECESSARY REPAIRS AT TRANSFER: The Homeowner is required to make necessary repairs when she voluntarily transfers the Home as follows: a) The person purchasing the Home (“Buyer”) shall, prior to purchasing the Home, hire at her sole expense a building inspector with a current Home Inspector license from the ______________ [licensing agency] to assess the condition of the Home and prepare a written report of the condition (“Inspection Report”). The Homeowner shall cooperate fully with the inspection. b) The Buyer shall provide a copy of the Inspection Report to Buyer’s lender (if any), the Homeowner, and the CICLT within 10 days after receiving the Inspection Report. c) Homeowner shall repair specific reported defects or conditions necessary to bring the Home into full compliance with Sections 4.2 and 7.5 above prior to transferring the Home. d) Homeowner shall bear the full cost of the necessary repairs and replacements. However, upon Homeowner’s written request, the CICLT may allow the Homeowner to pay all or a portion of the repair costs after transfer, from Homeowner’s proceeds of sale, if Homeowner cannot afford to pay such costs prior to the transfer. In such event, either (i) 150% of the unpaid estimated cost of repairs or (ii) 100% of the unpaid cost of completed repairs shall be withheld from Homeowner’s proceeds of sale in r CICLT-approved escrow account. Also, upon Homeowner’s written request, CICLT may, at its discretion, agree to release funds from the Repair Reserve Fund to cover some or all of the cost of such repairs, provided that such use of the Reserve is in full compliance with Section 7.6 above.] e) Homeowner shall allow CICLT, Buyer, and Buyer’s building inspector and lender’s representative to inspect the repairs prior to closing to determine that the repairs have been satisfactorily completed. f) Upon sale or other transfer, Homeowner shall either (i) transfer the Home with all originally purchased appliances or replacements in the Home in good working order or (ii) reduce the Purchase Option Price by the market value of any such appliances that are not left with the Home in good working order. ARTICLE 11: RESERVED ARTICLE 12: DEFAULT 12.1 WHAT HAPPENS IF HOMEOWNER FAILS TO MAKE PAYMENTS TO THE CICLT THAT ARE REQUIRED BY THE LEASE: It shall be an event of default if Homeowner fails to pay the Lease Fee or other charges required by the terms of this Lease and such failure is not cured by Homeowner or a Permitted Mortgagee within thirty (30) days after notice of such failure is given by CICLT to Homeowner and Permitted Mortgagee. However, if Homeowner makes a good faith partial payment of at least two-thirds (2/3) of the amount owed during the 30-day cure period, then the cure period shall be extended by an additional 30 days. 12.2 WHAT HAPPENS IF HOMEOWNER VIOLATES OTHER (NONMONETARY) TERMS OF THE LEASE: It shall be an event of default if Homeowner fails to abide by any CICLT Ground Lease 2025 -20- other requirement or restriction stated in this Lease, and such failure is not cured by Homeowner or a Permitted Mortgagee within sixty (60) days after notice of such failure is given by CICLT to Homeowner and Permitted Mortgagee. However, if Homeowner or Permitted Mortgagee has begun to cure such default within the 60-day cure period and is continuing such cure with due diligence but cannot complete the cure within the 60-day cure period, the cure period shall be extended for as much additional time as may be reasonably required to complete the cure. 12.3 WHAT HAPPENS IF HOMEOWNER DEFAULTS AS A RESULT OF JUDICIAL PROCESS: It shall be an event of default if the estate hereby created is taken on execution or by other process of law, or if Homeowner is judicially declared bankrupt or insolvent according to law, or if any assignment is made of the property of Homeowner for the benefit of creditors, or if a receiver, trustee in involuntary bankruptcy or other similar officer is appointed to take charge of any substantial part of the Home or Homeowner’s interest in the Leased Land by a court of competent jurisdiction, or if a petition is filed for the reorganization of Homeowner under any provisions of the Bankruptcy Act now or hereafter enacted, or if Homeowner files a petition for such reorganization, or for arrangements under any provision of the Bankruptcy Act now or hereafter enacted and providing a plan for a debtor to settle, satisfy or extend the time for payment of debts. 12.4 A DEFAULT (UNCURED VIOLATION) GIVES CICLT THE RIGHT TO TERMINATE THE LEASE OR EXERCISE ITS PURCHASE OPTION: a) TERMINATION: In the case of any of the events of default described above, CICLT may terminate this lease and initiate summary proceedings under applicable law against Homeowner, and CICLT shall have all the rights and remedies consistent with such laws and resulting court orders to enter the Leased Land and Home and repossess the entire Leased Land and Home, and expel Homeowner and those claiming rights through Homeowner. In addition, CICLT shall have such additional rights and remedies to recover from Homeowner arrears of rent and damages from any preceding breach of any covenant of this Lease. If this Lease is terminated by CICLT pursuant to an Event of Default, then, as provided in Section 7.7 above, upon thus assuming title to the Home, CICLT shall pay to Homeowner and any Permitted Mortgagee an amount equal to the Purchase Option Price calculated in accordance with Section 10.9 above, as of the time of reversion of ownership, less the total amount of any unpaid Lease Fee and any other amounts owed to the CICLT under the terms of this Lease and all reasonable costs (including reasonable attorneys’ fees) incurred by CICLT in pursuit of its remedies under this Lease. If CICLT elects to terminate the Lease, then the Permitted Mortgagee shall have the right (subject to Article 8 above and the attached Exhibit: Permitted Mortgages) to postpone and extend the specified date for the termination of the Lease for a period sufficient to enable the Permitted Mortgagee or its designee to acquire Homeowner’s interest in the Home and the Leased Land by foreclosure of its mortgage or otherwise. b) EXERCISE OF OPTION: In the case of any of the events of default described above, Homeowner hereby grants to the CICLT (or its assignee) the option to purchase the Home for the Purchase Option Price as such price is defined in Article 10 above. Within thirty (30) days after the expiration of any applicable cure period as established in Sections 12.1 or 12.2 above or within 30 days after any of the events constituting an Event of Default under Section CICLT Ground Lease 2025 -21- 12.3 above, CICLT shall notify the Homeowner and the Permitted Mortgagee(s) of its decision to exercise its option to purchase under this Section 12.4(b). Not later than ninety (90) days after the CICLT gives notice to the Homeowner of the CICLT’s intent to exercise its option under this Section 12.4(a), the CICLT or its assignee shall purchase the Home for the Purchase Option Price. 12.5 WHAT HAPPENS IF CICLT DEFAULTS: CICLT shall in no event be in default in the performance of any of its obligations under the Lease unless and until CICLT has failed to perform such obligations within sixty (60) days, or such additional time as is reasonably required to correct any default, after notice by Homeowner to CICLT properly specifying CICLT’s failure to perform any such obligation. ARTICLE 13: Mediation and Arbitration 13.1 Nothing in this Lease shall be construed as preventing the parties from utilizing any process of mediation or arbitration in which the parties agree to engage for the purpose of resolving a dispute. 13.2 Homeowner and CICLT shall each pay one half (50%) of any costs incurred in carrying out mediation or arbitration in which the parties have agreed to engage. ARTICLE 14: GENERAL PROVISIONS 14.1 HOMEOWNER’S MEMBERSHIP IN CICLT: The Homeowner under this Lease shall automatically be a regular voting member of the CICLT. 14.2 NOTICES: Whenever this Lease requires either party to give notice to the other, the notice shall be given in writing and delivered in person or mailed, by certified or registered mail, return receipt requested, to the party at the address set forth below, or such other address designated by like written notice: If to CICLT: ______________________ (name of CICLT) with a copy to: ___________________ (CICLT’s attorney) If to Homeowner:_______________________ (name of Homeowner) All notices, demands and requests shall be effective upon being deposited in the United States Mail or, in the case of personal delivery, upon actual receipt. 14.3 NO BROKERAGE: Homeowner warrants that it has not dealt with any real estate broker other than __________________ in connection with the purchase of the Home. If any claim is made against CICLT regarding dealings with brokers other than _________________, Homeowner shall defend CICLT against such claim with counsel of CICLT’s selection and shall reimburse CICLT for any loss, cost or damage which may result from such claim. 14.4 SEVERABILITY AND DURATION OF LEASE: If any part of this Lease is unenforceable or invalid, such material shall be read out of this Lease and shall not affect the validity of any other part of this Lease or give rise to any cause of action of Homeowner or CICLT against the other, and the remainder of this Lease shall be valid and enforced to the fullest extent permitted by law. It is the intention of the parties that CICLT’s option to purchase and all other rights of both parties under this Lease shall continue in effect for the CICLT Ground Lease 2025 -22- full term of this Lease and any renewal thereof, and shall be considered to be coupled with an interest. In the event any such option or right shall be construed to be subject to any rule of law limiting the duration of such option or right, the time period for the exercising of such option or right shall be construed to expire twenty (20) years after the death of the last survivor of the following persons: 14.5 RIGHT OF FIRST REFUSAL IN LIEU OF OPTION: If the provisions of the purchase option set forth in Article 10 of this Lease shall, for any reason, become unenforceable, CICLT shall nevertheless have a right of first refusal to purchase the Home at the highest documented bona fide purchase price offer made to Homeowner. Such right shall be as specified in Exhibit FIRST REFUSAL. Any sale or transfer contrary to this Section, when applicable, shall be null and void. 14.6 WAIVER: The waiver by CICLT at any time of any requirement or restriction in this Lease, or the failure of CICLT to take action with respect to any breach of any such requirement or restriction, shall not be deemed to be a waiver of such requirement or restriction with regard to any subsequent breach of such requirement or restriction, or of any other requirement or restriction in the Lease. CICLT may grant waivers in the terms of this Lease, but such waivers must be in writing and signed by CICLT before being effective. The subsequent acceptance of Lease Fee payments by CICLT shall not be deemed to be a waiver of any preceding breach by Homeowner of any requirement or restriction in this Lease, other than the failure of the Homeowner to pay the particular Lease Fee so accepted, regardless of CICLT’s knowledge of such preceding breach at the time of acceptance of such Lease Fee payment. 14.7 CICLT’S RIGHT TO PROSECUTE OR DEFEND: CICLT shall have the right, but shall have no obligation, to prosecute or defend, in its own or the Homeowner’s name, any actions or proceedings appropriate to the protection of its own or Homeowner’s interest in the Leased Land. Whenever requested by CICLT, Homeowner shall give CICLT all reasonable aid in any such action or proceeding. 14.8 CONSTRUCTION: Whenever in this Lease a pronoun is used it shall be construed to represent either the singular or the plural, masculine or feminine, as the case shall demand. 14.9 HEADINGS AND TABLE OF CONTENTS: The headings, subheadings and table of contents appearing in this Lease are for convenience only, and are not a part of this Lease and do not in any way limit or amplify the terms or conditions of this Lease. 14.10 PARTIES BOUND: This Lease sets forth the entire agreement between CICLT and Homeowner with respect to the leasing of the Land; it is binding upon and inures to the benefit of these parties and, in accordance with the provisions of this Lease, their respective successors in interest. This Lease may be altered or amended only by written notice executed by CICLT and Homeowner or their legal representatives or, in accordance with the provisions of this Lease, their successors in interest. 14.11 GOVERNING LAW: This Lease shall be interpreted in accordance with and governed by the laws of ____________________ [name of state]. The language in all parts CICLT Ground Lease 2025 -23- of this Lease shall be, in all cases, construed according to its fair meaning and not strictly for or against CICLT or Homeowner. 14.12 RECORDING: The parties agree, as an alternative to the recording of this Lease, to execute a so-called Notice of Lease or Short Form Lease in form recordable and complying with applicable law and reasonably satisfactory to CICLT’s attorneys. In no event shall such document state the rent or other charges payable by Homeowner under this Lease; and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease. IN WITNESS WHEREOF, the parties have executed this lease at __________ on the day and year first above written. _______________________________ (CICLT) _______________________________ By: _________________________________ Witness Its duly authorized agent ______________________ (Homeowner): _____________________________ Witness [notarize signatures] CICLT Ground Lease 2025 -24- Exhibit LETTERS OF AGREEMENT AND ATTORNEY’S ACKNOWLEDGMENT Sample Letter of Agreement To ___________________ Community Land Trust (“the CICLT”) Date: ____________ This letter is given to the CICLT to become an exhibit to a Lease between the CICLT and me. I will be leasing a parcel of land from the CICLT and will be buying the home that sits on that parcel of land. I will therefore become what is described in the Lease as a “the Homeowner.” My legal counsel, _________________________, has explained to me the terms and conditions of the Lease and other legal documents that are part of this transaction. I understand the way these terms and conditions will affect my rights as a CICLT homeowner, now and in the future. In particular I understand and agree with the following points. One of the goals of the CICLT is to keep CICLT homes affordable for lower income households from one CICLT homeowner to the next. I support this goal as a CICLT homeowner and as a member of the CICLT. The terms and conditions of my Lease will keep my home affordable for future “income- qualified persons” (as defined in the Lease). If and when I want to sell my home, the lease requires that I sell it either to the CICLT or to another income-qualified person. The terms and conditions of the lease also limit the price for which I can sell the home, in order to keep it affordable for such income-qualified persons. It is also a goal of the CICLT to promote resident ownership of CICLT homes. For this reason, my Lease requires that, if I and my family move out of our home permanently, we must sell it. We cannot continue to own it as absentee owners. I understand that I can leave my home to my child or children or other members of my household and that, after my death, they can own the home for as long as they want to live in it and abide by the terms of the Lease, or they can sell it on the terms permitted by the Lease. As a CICLT homeowner and a member of the CICLT, it is my desire to see the terms of the Lease and related documents honored. I consider these terms fair to me and others. Sincerely CICLT Ground Lease 2025 -25- Sample Letter of Attorney’s Acknowledgment I, ___________________________, have been independently employed by _____________________________ (hereinafter “the Client”) who intends to purchase a house and other improvements (the “Home”) on land to be leased from Community Land Trust. The house and land are located at ______________________________________. In connection with the contemplated purchase of the Home and the leasing of the land, I reviewed with the Client the following documents: a) this Letter of Attorney’s Acknowledgment and a Letter of Agreement from the Client; b) a proposed Deed conveying the Home to the Client; c) a proposed Ground Lease conveying the “Leased Land” to the Client; d) other written materials provided by the CICLT. The Client has received full and complete information and advice regarding this conveyance and the foregoing documents. In my review of these documents my purpose has been to reasonably inform the Client of the present and foreseeable risks and legal consequences of the contemplated transaction. The Client is entering the aforesaid transaction in reliance on her own judgment and upon her investigation of the facts. The advice and information provided by me was an integral element of such investigation. Name Date Title Firm/Address CICLT Ground Lease 2025 -26- Exhibit DEED Sample Deed Between LOCAL LAND TRUST (Grantor), a not-for-profit corporation having its principal offices at ____________, ____________, ___________, and JOHN AND MARY DOE (Grantees), residing at ______________,______________, _____. Witnesseth That Grantor, in consideration of one dollar and other good and valuable consideration paid by Grantees, does hereby grant and release unto Grantees, their heirs, or successors and assigns forever, THE BUILDINGS AND OTHER IMPROVEMENTS ONLY, as presently erected on the Land described in Schedule “A” attached hereto and made a part hereof. It is the intention of the parties that the real property underlying the buildings and other improvements conveyed herein remain vested in Grantor and that this warranty deed convey only such buildings and other improvements as are presently erected upon the subject Land. In witness whereof, as authorized agent of Grantor, I hereunto set my hand this _____day of _______________, A.D. 20__. ____________________________________ signature [notarize signature] CICLT Ground Lease 2025 -27- Exhibit: PERMITTED MORTGAGES The rights and provisions set forth in this Exhibit shall be understood to be provisions of Section 8.2 of the of the Lease. All terminology used in this Exhibit shall have the meaning assigned to it in the Lease. A. OBLIGATIONS OF PERMITTED MORTGAGEE. Any Permitted Mortgagee shall be bound by each of the following requirements unless the particular requirement is removed, contradicted or modified by a rider to this Lease signed by the Homeowner and the CICLT to modify the terms of the Lease during the term of the Permitted Mortgage. 1. If Permitted Mortgagee sends a notice of default to the Homeowner because the Homeowner has failed to comply with the terms of the Permitted Mortgage, the Permitted Mortgagee shall, at the same time, send a copy of that notice to the CICLT. Upon receiving a copy of the notice of default and within that period of time in which the Homeowner has a right to cure such default (the “cure period”), the CICLT shall have the right to cure the default on the Homeowner’s behalf, provided that all current payments due the Permitted Mortgagee since the notice of default was given are made to the Permitted Mortgagee. 2. If, after the cure period has expired, the Permitted Mortgagee intends to accelerate the note secured by the Permitted Mortgage or begin foreclosure proceedings under the Permitted Mortgage, the Permitted Mortgagee shall first notify CICLT of its intention to do so, and CICLT shall then have the right, upon notifying the Permitted Mortgagee within thirty (30) days of receipt of such notice, to acquire the Permitted Mortgage by paying off the debt secured by the Permitted Mortgage. 3. If the Permitted Mortgagee acquires title to the Home through foreclosure or acceptance of a deed in lieu of foreclosure, the Permitted Mortgagee shall give CICLT written notice of such acquisition and CICLT shall then have an option to purchase the Home from the Permitted Mortgagee for the full amount owing to the Permitted Mortgagee under the Permitted Mortgage. To exercise this option to purchase, CICLT must give written notice to the Permitted Mortgagee of CICLT’s intent to purchase the Home within thirty (30) days following CICLT’s receipt of the Permitted Mortgagee’s notice. CICLT must then complete the purchase of the Home within sixty (60) days of having given written notice of its intent to purchase. If CICLT does not complete the purchase within this 60-day period, the Permitted Mortgagee shall be free to sell the Home to another person. 4. Nothing in the Permitted Mortgage or related documents shall be construed as giving Permitted Mortgagee a claim on CICLT’s interest in the Leased Land, or as assigning any form of liability to the CICLT with regard to the Leased Land, the Home, or the Permitted Mortgage. 5. Nothing in the Permitted Mortgage or related documents shall be construed as rendering CICLT or any subsequent Mortgagee of CICLT’s interest in this Lease, or their respective heirs, executors, successors or assigns, personally liable for the payment of the debt secured by the Permitted Mortgage or any part thereof. 6. The Permitted Mortgagee shall not look to CICLT or CICLT’s interest in the Leased Land, but will look solely to Homeowner, Homeowner’s interest in the Leased Land, and the Home for the payment of the debt secured thereby or any part thereof. (It is the intention of the CICLT Ground Lease 2025 -28- parties hereto that CICLT’s consent to such the Permitted Mortgage shall be without any liability on the part of CICLT for any deficiency judgment.) 7. In the event any part of the Security is taken in condemnation or by right of eminent domain, the proceeds of the award shall be paid over to the Permitted Mortgagee in accordance with the provisions of ARTICLE 9 hereof. 8. CICLT shall not be obligated to execute an assignment of the Lease Fee or other rent payable by Homeowner under the terms of this Lease. B. RIGHTS OF PERMITTED MORTGAGEE. The rights of a Permitted Mortgagee as referenced under Section 8.6 of the Lease to which this Exhibit is attached shall be as set forth below. 1. Any Permitted Mortgagee shall, without further consent by CICLT, have the right to (a) cure any default under this Lease, and perform any obligation required under this Lease, such cure or performance being effective as if it had been performed by Homeowner; (b) acquire and convey, assign, transfer and exercise any right, remedy or privilege granted to Homeowner by this Lease or otherwise by law, subject to the provisions, if any, in the Permitted Mortgage, which may limit any exercise of any such right, remedy or privilege; and (c) rely upon and enforce any provisions of the Lease to the extent that such provisions are for the benefit of a Permitted Mortgagee. 2. A Permitted Mortgagee shall not be required, as a condition to the exercise of its rights under the Lease, to assume personal liability for the payment and performance of the obligations of the Homeowner under the Lease. Any such payment or performance or other act by Permitted Mortgagee under the Lease shall not be construed as an agreement by Permitted Mortgagee to assume such personal liability except to the extent Permitted Mortgagee actually takes possession of the Home and Leased Land. In the event Permitted Mortgagee does take possession of the Home and Leased Land and thereupon transfers such property, any such transferee shall be required to enter into a written agreement assuming such personal liability and upon any such assumption the Permitted Mortgagee shall automatically be released from personal liability under the Lease. 3. In the event that title to the estates of both CICLT and Homeowner are acquired at any time by the same person or persons, no merger of these estates shall occur without the prior written declaration of merger by Permitted Mortgagee, so long as Permitted Mortgagee owns any interest in the Security or in a Permitted Mortgage. 4. If the Lease is terminated for any reason, or in the event of the rejection or disaffirmance of the Lease pursuant to bankruptcy law or other law affecting creditors’ rights, CICLT shall enter into a new lease for the Leased Land with the Permitted Mortgagee (or with any party designated by the Permitted Mortgagee, subject to CICLT’s approval, which approval shall not be unreasonably withheld), not more than thirty (30) days after the request of the Permitted Mortgagee. Such lease shall be for the remainder of the term of the Lease, effective as of the date of such termination, rejection or disaffirmance, and upon all the terms and provisions contained in the Lease. However, the Permitted Mortgagee shall make a written request to CICLT for such new lease within sixty (60) days after the effective date of such CICLT Ground Lease 2025 -29- termination, rejection or disaffirmance, as the case may be. Such written request shall be accompanied by a copy of such new lease, duly executed and acknowledged by the Permitted Mortgagee or the party designated by the Permitted Mortgagee to be the Homeowner thereunder. Any new lease made pursuant to this Section shall have the same priority with respect to other interests in the Land as the Lease. The provisions of this Section shall survive the termination, rejection or disaffirmance of the Lease and shall continue in full effect thereafter to the same extent as if this Section were independent and an independent contract made by CICLT, Homeowner and the Permitted Mortgagee. 5. The CICLT shall have no right to terminate the Lease during such time as the Permitted Mortgagee has commenced foreclosure in accordance with the provisions of the Lease and is diligently pursuing the same. 6. In the event that CICLT sends a notice of default under the Lease to Homeowner, CICLT shall also send a notice of Homeowner’s default to Permitted Mortgagee. Such notice shall be given in the manner set forth in Section 14.2 of the Lease to the Permitted Mortgagee at the address which has been given by the Permitted Mortgagee to CICLT by a written notice to CICLT sent in the manner set forth in said Section 14.2 of the Lease. 7. In the event of foreclosure sale by a Permitted Mortgagee or the delivery of a deed to a Permitted Mortgagee in lieu of foreclosure in accordance with the provisions of the Lease, at the election of the Permitted Mortgagee the provisions of Article 10, Sections 10.1 through 10.11 shall be deleted and thereupon shall be of no further force or effect as to only so much of the Security so foreclosed upon or transferred. 8. Before becoming effective, any amendments to this Lease must be approved in writing by Permitted Mortgagee, which approval shall not be unreasonably withheld. If Permitted Mortgagee has neither approved nor rejected a proposed amendment within 60 days of its submission to Permitted Mortgagee, then the proposed amendment shall be deemed to be approved. C. STANDARD PERMITTED MORTGAGE AGREEMENT. A Standard Permitted Mortgage Agreement, as identified in Section 8.4 of this Lease, shall be written as follows, and shall be signed by Mortgagee and Homeowner. This Agreement is made by and among: ___________________________________ (Mortgagee) and ___________________________________ (“Homeowner”), Whereas: a) _______________CICLT (the “CICLT”) and Homeowner have entered, or are entering, into a ground lease (“the Lease”), conveying to Homeowner a leasehold interest in the Land located at _____________________ (“the Leased Land”); and Homeowner has purchased, or is purchasing, the Home located on the Leased Land (“the Home”). b) The Mortgagee has been asked to provide certain financing to the Homeowner, and is being granted concurrently herewith a mortgage and security interest (the “Mortgage”) in the Leased Land and Home, all as more particularly set forth in the Mortgage, attached CICLT Ground Lease 2025 -30- hereto as Schedule A. c) The Ground Lease states that the Homeowner may mortgage the Leased Land only with the written consent of CICLT. The Ground Lease further provides that CICLT is required to give such consent only if the Mortgagee signs this Standard Permitted Mortgage Agreement and thereby agrees to certain conditions that are stipulated herein (“the Stipulated Conditions”). Now, therefore, the Homeowner/Mortgagor and the Mortgagee hereby agree that the terms and conditions of the Mortgage shall include the Stipulated Conditions stated below. Stipulated Conditions: 1) If Mortgagee sends a notice of default to the Homeowner because the Homeowner has failed to comply with the terms of the Mortgage, the Mortgagee shall, at the same time, send a copy of that notice to the CICLT. Upon receiving a copy of the notice of default and within that period of time in which the Homeowner has a right to cure such default (the “cure period”), the CICLT shall have the right to cure the default on the Homeowner’s behalf, provided that all current payments due the Permitted Mortgagee since the notice of default was given are made to the Mortgagee. 2) If, after such cure period, the Mortgagee intends to accelerate the note secured by the Mortgage or initiate foreclosure proceedings under the Mortgage, in accordance with the provisions of the Lease, the Mortgagee shall first notify CICLT of its intention to do so and CICLT shall have the right, but not the obligation, upon notifying the Mortgagee within thirty (30) days of receipt of said notice, to purchase the Mortgagee loans and to take assignment of the Mortgage. 3) If the Mortgagee acquires title to the Home and Homeowner’s interest in the Leased Land through foreclosure or acceptance of a deed in lieu of foreclosure, the Mortgagee shall give the CICLT written notice of such acquisition and the CICLT shall have an option to purchase the Home and Homeowner’s interest in the Leased Land from the Mortgagee for the full amount owing to the Mortgagee; provided, however, that the CICLT notifies the Mortgagee in writing of the CICLT’s intent to make such purchase within thirty (30) days following the CICLT’s receipt of the Mortgagee’s notice of such acquisition of the Home and Homeowner’s interest in the Leased Land; further provided that CICLT shall complete such purchase within sixty (60) days of having given written notice of its intent to purchase; and provided that, if the CICLT does not complete the purchase within such period, the Mortgagee shall be free to sell the Home and Homeowner’s interest in the Leased Land to another person; 4) Nothing in the Mortgage or related documents shall be construed as giving the Mortgagee a claim on CICLT’s interest in the Leased Land, or as assigning any form of liability to the CICLT with regard to the Leased Land, the Home, or the Mortgage. 5) Nothing in the Mortgage shall be construed as rendering CICLT or any subsequent holder of the CICLT’s interest in and to the Lease, or their respective heirs, executors, successors or assigns, personally liable for the payment of the debt evidenced by such note and such Mortgage or any part thereof. CICLT Ground Lease 2025 -31- 6) The Mortgagee shall not look to CICLT or CICLT’s interest in the Leased Land, but will look solely to Homeowner and Homeowner’s interest in the Leased Land and the Home for the payment of the debt secured by the Mortgage. (It is the intention of the parties hereto that CICLT’s consent to the Mortgage shall be without any liability on the part of CICLT for any deficiency judgment.) 7) In the event that any part of the Leased Land is taken in condemnation or by right of eminent domain, the proceeds of the award shall be paid over to the Mortgagee in accordance with the provisions of Article 9 of the Lease. 8) Nothing in the Mortgage shall obligate CICLT to execute an assignment of the Lease Fee or other rent payable by Homeowner under the terms of this Lease. By: _____________________________ for Mortgagee Date: ____________ _____________________________ for Homeowner/Mortgagor Date: ____________ Exhibit FIRST REFUSAL Whenever any party under the Lease shall have a right of first refusal as to certain property, the following procedures shall apply. If the owner of the property offering it for sale (“Offering Party”) shall within the term of the Lease receive a bona fide third party offer to purchase the property which such Offering Party is willing to accept, the holder of the right of first refusal (the “Holder”) shall have the following rights: a) Offering Party shall give written notice of such offer (“the Notice of Offer”) to Holder setting forth (a) the name and address of the prospective purchaser of the property, (b) the purchase price offered by the prospective purchaser and (c) all other terms and conditions of the sale. Holder shall have a period of forty-five (45) days after the receipt of the Notice of Offer (“the Election Period”) within which to exercise the right of first refusal by giving notice of intent to purchase the property (“the Notice of Intent to Purchase”) for the same price and on the same terms and conditions set forth in the Notice of Offer. Such Notice of Intent to Purchase shall be given in writing to the Offering Party within the Election Period. b) If Holder exercises the right to purchase the property, such purchase shall be completed within sixty (60) days after the Notice of Intent to Purchase is given by Holder (or if the Notice of Offer shall specify a later date for closing, such date) by performance of the terms and conditions of the Notice of Offer, including payment of the purchase price provided therein. c) Should Holder fail to exercise the right of first refusal within the Election Period, then the Offering Party shall have the right (subject to any other applicable restrictions in the Lease) to go forward with the sale which the Offering Party desires to accept, and to sell the property within one (1) year following the expiration of the Election Period on terms and conditions which are not materially more favorable to the purchaser than those set forth in the Notice. If the sale is not consummated within such one-year period, the Offering Party's right so to sell shall end, and all of the foregoing provisions of this section shall be applied again to any CICLT Ground Lease 2025 -32- future offer, all as aforesaid. If a sale is consummated within such one-year period, the purchaser shall purchase subject to the Holder having a renewed right of first refusal in said property. Other Exhibits to be Attached as Appropriate Exhibit LAND [Correct legal description of area of Leased Land and appurtenant title rights and obligations.] Exhibit ZONING [Setting forth applicable zoning restrictions as of the commencement of the Lease] Exhibit RESTRICTIONS [To be attached when necessary to stipulate use restrictions not included under Zoning] Exhibit INITIAL APPRAISAL [To be attached if Lease contains an “appraisal-based” resale formula]