25K - NEIGHBORHOOD STABILIZATION PROGRAM

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(d) obtain an income verification certification from the Social Security Administration and/or the California Department of Social Services if the prospective Homebuyer receives assistance from such agencies. (e) obtain an alternate form of income verification reasonably acceptable to the City, if none of the above forms of verification is available to the Developer. 508. Affordability Documents at Time of Sale. At the closing of escrow for the Homebuyer's purchase of each NSP Assisted Unit, the City will require each income qualified Homebuyer of such Unit to execute the following documents: the Homebuyer Deed of Trust (attached hereto as Exhibit F), Homebuyer Promissory Note (attached hereto as Exhibit G), and such further documents reasonably required by the City in a form provided by the City. Any Units assisted with tax increment money will also have a Notice of Affordability recorded against such Property (attached hereto as Exhibit H). The Promissory Note, and Deed of Trust shall contain aforty-five (45) year term. The principal loan amount of the Promissory Note shall be the amount of NSP Funds to create this homeownership opportunity, which will be determined based on the affordable sales price, the fair market value or the maximum sales price permitted under the NSP Program at the time of sale. In those instances where properties have an appraised Fair Market Value that is greater than the sales price, a silent second will be placed on the Property for that difference. All principal and interest shall be deferred until subsequent sale or transfer of the Property. The Deed of Trust will carry a 3% forgivable interest rate, and will be due and payable in forty-five (45) years. Interest will be forgiven at a rate of 1/45`h per year, at each anniversary date of the original sale, with all interest forgiven at the end of the forty-five (45) year affordability period. The covenants and restrictions must be fully explained to each Homebuyer and the entire explanation and execution of said document must be recorded by the Developer. A copy of said audio and visual recording shall be placed on a CD which shall be kept by the Developer and the City. 708. Program Income. Developer acknowledges that the funds being provided by City for said program are received by City pursuant to the NSP Program criteria and guidelines as amended and that expenditures of these funds shall be in accordance with the NSP criteria and guidelines and all pertinent regulations issued by agencies of the federal government, including, but not limited to, all regulations found at Title 24 of the Code of Federal Regulations. When the City receives repayment such funds are Program Income. Program Income received by the City will be used for NSP Activities. Program Income and reallocated funds identified for the single family, condominium and historic components will be added to agreement with Developer. Developer agrees to comply fully with all federal, state and local laws and court orders applicable to its operation whether or not referred to in this Agreement. Final Amend NSP 1 ANR 25K-12