Lease of Property for Use in Accordance With the Plan

Subject to such requirements and procedures as the Federal Government may impose with respect to federally-aided subdivision plans, which shall in any event prevail:

(a)The Authority may lease, for not longer than ninety-nine

(99)years, land or any interest therein acquired by it, may sell improvements, and may enter into contracts with respect thereto, in a subdivision for residential, recreational or for other public use, in accordance with the subdivision plan, subject to such covenants, conditions and restrictions, including covenants running with the land, as it may deem to be in the public interest or necessary to assist in preventing the development or spread of future slums or COL4122017 CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY blighted areas or to otherwise carry out the purposes of this Article; provided that such lease of land, sale of improvements and any agreements relating thereto may be made only after the approval of the subdivision plan.

(b)The lessees shall be obligated to devote such land only to the uses specified in the subdivision plan, and may be obligated to comply with such other requirements as the Authority may determine to be in the public interest or the Federal Government may determine to be necessary as a condition of federal aid, including the obligations to begin and to complete within a reasonable time any improvements on such real property required by the subdivision plan and the new uses specified therein; provided that any obligation to begin construction of improvements shall not apply to mortgagees and others who acquire an interest in such property as the result of the enforcement of any lien or claim thereon.

(c)The Authority is authorized to lease lots in the subdivisions authorized by this Article at their market value.

(d)Special Provisions for Coastal Land. Notwithstanding any other provisions of this Article, the Authority is authorized to exchange lots in the subdivision for lots lying within the seashore reserve as defined by 21 GCA § 63103(c). Said exchange shall be made only in the case where a person or family is residing on a lot within the seashore reserve and exchanges said lot for a lot within the subdivision upon which it will reside. Each of the lots will be valued at its fair market value. In determining the fair value of lots in the subdivision for uses in accordance with the subdivision plan, the Authority shall take into account and give consideration to the uses provided in such plan; the restrictions upon and the covenants, conditions and obligations assumed by the owners of such lots in a subdivision area; and the objectives of such plan for the prevention of the recurrence of slum or blighted areas. The Authority may retain or employ qualified appraisers and land valuation experts to appraise the value of such real property in accordance with the standards here prescribed, which appraisals shall be advisory in nature only for the purpose of aiding and assisting the Authority in finding, determining and establishing the fair value of such real property for uses in accordance with the subdivision plan. COL4122017 CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY No person or family shall be entitled to more than one

(1)subdivision lot. The Board of Commissioners of the Authority shall provide rules and regulations for the implementation of this Section.

(e)The Authority shall provide in any lease or other agreement that the lessee shall be without the power to sublease or otherwise transfer the land without the prior written consent of the Authority. The Authority shall provide in any such lease or other agreement that the lessee shall be without power to sell, lease or otherwise transfer any improvements upon the lot without the prior written consent of the Authority. The Authority shall provide, in any such lease or agreement, that such real property shall revert to or revest in the Authority at its discretion, upon a breach or violation of any condition, covenant, restriction, undertaking or other requirements relating to the use of the property or otherwise without relieving any lessee of any obligation assumed by such lessee, and without liability on the part of the Authority for any claim arising from such retesting or reversion. The Authority, upon a certification by it to a court of competent jurisdiction that any lessee has breached or violated any condition, covenant, restriction, undertaking or requirement, shall be entitled to immediate relief (without bond or liability for damages) restraining and enjoining any such breach or violation, pending the determination of the issues in the controversy.

(f)The lease or other agreement for each lot shall contain a restraint on the alienation of improvements on the lot for a period of ten

(10)years after the lease is executed. The lease or other agreement shall grant the Authority an option, after the initial ten

(10)year period, to purchase the improvements on said lot at the fair market value of the improvements. The Authority shall sell the improvements to a person or family qualifying to lease the lot under § 5304 of this Article. The Authority shall provide by rule or regulation for the purchase of improvements on such lots under uniform conditions. The restraint provided for by this Section shall not prohibit the transfer of such improvements by devise or descent if the beneficiary qualifies under § 5304 of this Article to lease the lot. Nothing in this Article shall prevent a mortgagee from foreclosing the interest of any mortgagor in default on a mortgage or deed of trust entered as security for financing the improvement of a lot in one of the subdivisions identified in § 5302 of this Article. In the event of foreclosure or any proceeding in lieu thereof, the COL4122017 CH. 5 GUAM HOUSING AND URBAN RENEWAL AUTHORITY mortgagee may convey the improvement to any buyer. Such conveyance shall not be subject to any of the restrictions of § 5303 of this Article.

(g)The inclusion in any such lease or other agreement of any of the covenants, restrictions or conditions provided in Subsections (a), (b),

(c)and

(d)of this Section including the incorporation by reference therein of the provisions of a subdivision plan or any part thereof, shall not prevent the filing of such contract or conveyance in the Department of Land Management in such a manner as to afford actual or constructive notice thereof.

(h)Real property acquired by the Authority which, in accordance with the provisions of the subdivision plan, is to be leased, shall be leased as rapidly as feasible in the public interest consistent with the carrying out of the provisions of the subdivision plan.