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the Homebuyer shall pay to the Agency the whole of the Homebuyer Assistance Loan Amount <br />and the "Contingent Equity Participation Amount," as hereinafter described. If the Homebuyer <br />is selling the Property to an Eligible Person and Family at an Affordable Housing Cost with the <br />Agency's prior written approval, in accordance with the requirements of Section 4 hereof, then <br />no Contingent Equity Participation Amount shall be required hereunder in connection with such <br />sale. <br />3.1 Calculation of Contingent Equity Participation Amount. The <br />"Contingent Equity Participation Amount" means an amount equal to a percentage share of the <br />appreciation of the Property determined by multiplying a variable percentage factor (the <br />"Variable Applicable Factor") by the difference between the Sales Price and the Purchase Price <br />(as those terms are hereinafter defined). <br />a. Variable Applicable Factor Calculation. The Variable <br />Applicable Factor shall be calculated by dividing the Agency's total initial equity contribution <br />(the "Agency Contribution") by the sum of the Agency Contribution plus the Homebuyer's <br />Contribution. In other words, the Agency Contribution shall be the numerator, and the sum of <br />the Agency Contribution plus the Homebuyer Contribution shall be the denominator of a fraction <br />that equals a percentage that is the Variable Applicable Factor (subject to Section 3.1(a)(i)). <br />Variable Applicable Factor = Agency Contribution <br />Agency Contribution + Homebuyer Contribution <br />For example, if the Agency Contribution equals $30,000 and the Homebuyer <br />Contribution equals $250,000, the Variable Applicable Factor would equal 10.7% ($30,000 <br />divided by the sum of $30,000 plus $250,000). <br />10.7% ('Variable Applicable Factor) = $30,000 (Agency Contribution) <br />$30,000 (Agency Contribution) + $250,000 (Homebuyer <br />Contribution) = ($280,000) <br />(i) The "Agency Contribution" is the sum of the following <br />amounts contributed by the Agency to the purchase price of the Property: (i) the principal <br />amount of the Homebuyer Assistance Loan, i.e., the Affordable Housing Cost Subsidy (as <br />hereinafter defined); and (ii) the principal amount(s) of any other loan(s) or subsidy(ies) <br />provided by the Agency. <br />(ii) The "Homebuyer Contribution" is the sum of the following <br />amounts contributed by the Homebuyer to the purchase price of the Property: (i) the principal <br />amount of the First Lien purchase money mortgage; (ii) the Homebuyer's cash down payment <br />ATTACHMENT NO. 11-6 <br />Form of Homebuyer Loan Agreement <br />DOCSOC/ 1400673v 141200272-000 k