80A - JOINT PH - TRANSIT ZONING CODE, FINAL EIR, SPECIFIC PLAN ETC. - ORIGINAL PACKET PROVIDED TO COUNCIL

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h. Calculation of Contingent Equity Participation Aniount for Subsequent I oinehuyers. If pursuant to Section 4, a Buyer has fully assumed the Homeb yer's obligations under this Agreement, the Note, the Agency feed of Trust, the Notice of Affordable Restrictions and the Affordable Housing Resale Restriction, and thereafter the new v Buyer, as the successor Homebuyer, defaults and causes an event of acceleration to occur, the Contingent Equity Participation Amount to be paid by such Buyer shall be calculated by multiplying the Variable Applicable Factor, established in Section 3.1 a , by the difference between the Sales Price, established in conformity with Section 3. 5, and the Purchase Price. C' No Appreciation or Depreciation in Value of Property. If an evert of acceleration occurs at a time when the Property has not appreciated or the value of the Property has depreciated (the Sales Price is less than the Purchase Price), then no Contingent Equity Participation Amount is due by the Ploi ebuyer to the Agency. 3 Qualified Capital Imps -ov nient . The value of ny Qualified Capital Improvements completed by the Plomebuyer during the Homebuyer "s ownership of the Property shall be added to the Purchase Price when calculating the Contingent Equity Participation Anio ant only if, not later than thirty 3 days prior to the evert of acceleration causing the Contingent Equity Participation Amount to become immediately due and payable pursuant to Section 1.2 f , the Plomebuyer submits the following to the Agency: i an itemized list of the Qualified Capital Improvements, (ii) reliable proof of completion of the Qualified Capital Improvements as evidenced by final building permits, a certificate of completion or original paid invoices or construction contracts), and (iii) an appraisal froin a certified appraiser, in forin and substance reasonably acceptable to the Executive iriector, the conclusion of which is that the Qualified Capital Improvements have added the stated amount to the fair market value of the Property. If, within 3 clays of receipt of the information concerning the Qualified Capital Improvements, the Agency questions the claimed increase in the value of the Property by reason of said Qualified Capital Improvements, the Agency and the Plomebuyer gray, by mutual agreement, establish the value of the Qualified Capital Iinprovei eats or the Agency may require an appraisal of the Property, at the Homebuyer's expense, by a second independent certified appraiser appointed by the Agency to determine the fair market vale of the Qualified Capital Improvements. 3.4 Credit to Homebuyer. Notwithstanding the foregoing provisions of this Section 3, calculation of the Contingent Equity Participation Amount is subject to a superior right of the Hoinebuyer to receive credit in calculation of the Purchase Price for money pail by the Plomebuyer post - acquisition and during the term of the oniebuyer' o -%Arne +ship of the Propefty for installment payments of mortgage principal, pursuant to the First Lien actually made by the IlomebUyer, in addition to the fair inarket value of Qualified Capital Improvements consistent with the requirements of Section 3.3. 3,5 Determination of Sales Price; Appraisal. a. Upon Sale of the Property. In the event of a proposed sale of the Property by the Plomebuyer that does not conform to Section 4, and not less than thh t days ATTACHMENT N . 11 Form of Homebuyer Loan Agreement o 14006 vl31200272 -0001