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plus the Homebuyer's portion of closing costs; and (iii) the original principal amount of loans(s) <br />or other subsidy(ies) secured by Homebuyer, (excluding any other than loan(s) or subsidy(ies) <br />provided by the Agency (as set forth in the definition of Agency Contribution)) and applied by <br />the Homebuyer towards the purchase of the Property. <br />(iii) The "Purchase Price" is the original purchase price paid by <br />the Homebuyer (or the Homebuyer as the qualified successor owner of the Property) to the seller <br />of the Property (the "Seller") (generally this amount 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 commissions, loan fees or any other closing or transaction costs. Subject to the <br />provisions set forth hereinbelow, the value of Qualified Capital Improvements shall be added to <br />the Purchase Price when calculating the Contingent Equity Participation Amount. <br />(iv) 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 />Homebuyer'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 3.5(a) hereof. In the event of the Homebuyer'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 amount <br />deemed to be a subsidy from the Agency provided to the Homebuyer by making the Property <br />available for purchase at a price that constitutes an Affordable Housing Cost for the Homebuyer <br />as a Moderate Income Household. The Affordable Housing Cost Subsidy equals the difference <br />between the appraised fair market value of the Property and the Affordable Housing Cost of the <br />Property. <br />3.2 Using the Variable Applicable Factor to Determine the Contingent <br />Equity Participation 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 10.7% (Variable Applicable Factor) x (Sales <br />Price minus the Purchase Price). <br />a. In the above example, if the Sales Price (to occur upon resale not <br />conforming to Section 4) equals $380,000 and the Purchase Price equals $280,000, the <br />Contingent Equity Participation Amount would equal $10,700 (10.7% x ($380,000 minus <br />$280,000)). <br />10.7% (Variable Applicable Factor) x $100,000 (Sales Price - Purchase Price) = $10,700 <br />(Contingent Equity Participation Amount). <br />b. Calculation of Contingent Equity Participation Amount for Subsequent <br />Homebuyers. 11 pursuant to Section 4, a Buyer has fully assumed the Homebuyer's obligations <br />ATTACHMENT NO. 11-7 <br />Form of Homebuyer Loan Agreement <br />DOCS OCI1400673v14/200272-0001