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under this Agreement, the Note, the Agency Deed of Trust, the Notice of Affordable Restrictions <br />and the Affordable Housing Resale Restriction, and thereafter the new Buyer, as the successor <br />Homebuyer, defaults and causes an event of acceleration to occur, the Contingent Equity <br />Participation Amount to be paid by such Buyer shall be calculated by multiplying the Variable <br />Applicable Factor, established in Section 3.l(a), by the difference between the Sales Price, <br />established in conformity with Section 3.5, and the Purchase Price. <br />C. No Appreciation or Depreciation in Value of Property. If an <br />event of acceleration occurs at a time when the Property has not appreciated or the value of the <br />Property has depreciated (the Sales Price is less than the Purchase Price), then no Contingent <br />Equity Participation Amount is due by the Homebuyer to the Agency. <br />3.3 Qualified Capital Improvements. The value of any Qualified Capital <br />Improvements completed by the Homebuyer during the Homebuyer's ownership of the Property <br />shall be added to the Purchase Price when calculating the Contingent Equity Participation <br />Amount only if, not later than thirty (30) days prior to the event of acceleration causing the <br />Contingent Equity Participation Amount to become immediately due and payable pursuant to <br />Section 1.2(f), the Homebuyer submits the following to the Agency: (i) an itemized list of the <br />Qualified Capital Improvements, (ii) reliable proof of completion of the Qualified Capital <br />Improvements (as evidenced by final building permits, a certificate of completion or original <br />paid invoices or construction contracts), and (iii) an appraisal from a certified appraiser, in form <br />and substance reasonably acceptable to the Executive Director, the conclusion of which is that <br />the Qualified Capital Improvements have added the stated amount to the fair market value of the <br />Property. <br />If, within (30) days of receipt of the information concerning the Qualified Capital <br />Improvements, the Agency questions the claimed increase in the value of the Property by reason <br />of said Qualified Capital Improvements, the Agency and the Homebuyer may, by mutual <br />agreement, establish the value of the Qualified Capital Improvements or the Agency may require <br />an appraisal of the Property, at the Homebuyer's expense, by a second independent certified <br />appraiser appointed by the Agency to determine the fair market value of the Qualified Capital <br />Improvements. <br />3.4 Credit to Homebuyer. Notwithstanding the foregoing provisions of this <br />Section 3, calculation of the Contingent Equity Participation Amount is subject to a superior <br />right of the Homebuyer to receive credit in calculation of the Purchase Price for money paid by <br />the Homebuyer post-acquisition and during the term of the Homebuyer's ownership of the <br />Property for installment payments of mortgage principal, pursuant to the First Lien actually made <br />by the Homebuyer, in addition to the fair market value of Qualified Capital Improvements <br />consistent with the requirements of Section 3.3. <br />3.5 Determination of Sales Price; Appraisal. <br />a. Upon Sale of the Property. In the event of a proposed sale of the <br />Property by the Homebuyer that does not conform to Section 4, and not less than thirty (30) days <br />after the Agency receives actual notice of the opening of escrow in connection therewith, the <br />Agency may elect to appoint a certified, independent appraiser to conduct an appraisal of the <br />ATTACHMENT NO. 11-8 <br />Form of Homebuyer Loan Agreement <br />boCSOG 1400573v14/200272-0001