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FACTS

The Developer entered into a contract styled “Master Agreement And Covenant Concerning Use and Resale of Residential Units” (Master Agreement) with the City of Monterey Park (City) regarding the development of condos (Villa Garfield). The recitals stated that the approvals “allow the construction of a senior affordable housing/ commercial mixed-use project at the Property, with all 87 residential condominium units (affordable homes) to be sold and/or leased at non-market rates.” In its covenants, the Developer agreed to sell a Low Income Affordable Unit only to a Low Income Qualified Household and a Moderate Income Affordable Unit only to a Moderate Income Qualified Household. It also agreed that the units had to be sold for a price that did not exceed the Affordable Housing Cost. The definitions section stated: “‘Affordable Housing Cost’ means for Qualified Households, the purchase price (with 75% loan to value financing) for which the income of a Low Income Qualified Household or a Moderate Income Qualified Household will qualify for the purchase of a Low Income Affordable Unit or a Moderate Income Affordable Unit, respectively, and shall be computed so that the total…