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plus the Homebuyer's portion of closing costs; and (iii) the original principal arnount of loans(s) <br />or other ub idy ies secured by Homebuyer, e cludi g any other than lc an s or subsidy(ics) <br />provided by the Agency as set foilli in the definition of Agency Contribution)) and applied by <br />the Homebuyer guards the purchase of the Property. <br />viii) The "Purchase Price" is the original purchase price paid by <br />the Homebuyer ebuyer r the Homebuyer ebuyer as the qualified successor owner of the Property) to the seller <br />of the Property the "Seller"' (generally this aniount shall be equal to the original fair market <br />value of the Property at the time of the initial/original sale of the Property by the Developer to <br />the Homebuyer) for the Seller's interest in the Property, exclusive of escrow fees, title insurance <br />costs, broker's er's commissi n , loan fees or any other closing or transaction costs. Subject to the <br />provisions set fortis l ereinbel w, the value of Qualified Capital Improvements shall be added to <br />the Purchase Price when calculating the Contingent Equity Participation Amount. <br />Div) The "Sales Price" is the price to be paid by the prospective <br />buyer (who is not a qualified Moderate Income Household) of the Property (the "Buyer" to the <br />Homebuyer or the Homebuyer as the qualified successor owner of the Property for the <br />H mebuyer #'s interest in the Property,, exclusive of reasonable escrow fees, title insurance costs, <br />broker's commissions,, loan fees or any other closing or transaction costs. The Sales Price shall <br />be established in conformity with Section 3, hereof. In the evert of the Homeb yer's <br />refinancing, failure to occupy, or default, the `Sales Price" shall be established by appraisal paid <br />for by the Homebuyer in conformity with Section 3.5(b). <br />(v) The "Affordable Housing Cost Subsidy" is the anio u t <br />deerrred to be a subsidy from the Agency provided to the Homebuyer by making the Property <br />available for purchase at a price that constitutes are Affordable Housing Cost for the Horrrebuyer <br />as a Moderate Income Household. The Affordable Housing Cost Subsidy equals the difference <br />between the appraised fair market value of the Properly and the Affordable Housing Cost of the <br />Property. <br />3,2 Using the Variable: Applicable Factor, to I eter•mme the Contingent <br />Equity Pai;tlelpallon Amount, The Contingent Equity Participation Amount is calculated by <br />multiplying the Variable Applicable Factor by the difference between the Sales Price and the <br />Purchase Price. For example, if the Variable Applicable Factor equals 10.7%, the Contingent <br />Equity Participation Amount would then equal 103% (Variable Applicable Factor) x (Sales <br />Price minus the Purchase Price). <br />a. In the above example, ple, if the Sales Price (to occur upon resale not <br />conforming to Section equals $380,000 and the Purchase price equals $280,000, the <br />Contingent gent quity Participation Amount would equal $10,700 (10.7% x ($380,000 r rinus <br />$280,000)). <br />10.7% CVaflable Applicable F toi $100,000 (Sales Price — Purchase Price) = $10,700 <br />(Contingent Equity Participation Aniount . <br />ATTACHMENT NO. 11-7 <br />Fori f Homebuyer Loan Agreement <br />D OCSO C11 400673iil 312002 72 -0001 <br />