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secured by the Homebuyer, (excluding and other than loan(s) or subsidy(ies) provided by the <br />Agency (as set forth in the definition of the Agency Contribution)) and applied by the <br />Homebuyer towards the purchase of the Property. <br />(iii) The "Purchase Price" is the original purchase price paid by the <br />Homebuyer (or the Homebuyer as the qualified successor owner of the Property) to the seller of <br />the Property (the "Seller") (generally this amount shall be equal to the original fair market value <br />of the Property at the time of the initial/original sale of the Property by the Developer to the <br />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 buyer <br />(who is not a qualified Moderate Income Homebuyer) 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 7(1)(i). In the event of the Homebuyer's refinancing, <br />failure to occupy, or an Ownership Default, the "Sales Price" shall be established in conformity <br />with Section 7(1)(ii). <br />(v) The "Affordable Housing Cost Subsidy" is the amount deemed to <br />be a subsidy from the Agency provided to the Homebuyer by making the Property available for <br />purchase at a price that constitutes an Affordable Housing Cost for Homebuyer as a Moderate <br />Income Household. The Affordable Housing Cost Subsidy equals the difference between the <br />appraised fair market value of the Property as of the date of the Agreement and the Affordable <br />Housing Cost. <br />(c) Exception Calculation. Notwithstanding the above, the Variable <br />Applicable Factor shall equal the greater of fifty percent (50%) or the Variable Applicable Factor <br />calculated pursuant to Section 7(b); provided however, in the event Maker receives a First Lien <br />loan from the California Finance Agency or a First Lien loan the source of proceeds of which are <br />from tax exempt bonds, then the Variable Applicable Factor shall equal the Variable Applicable <br />Factor percentage calculated pursuant to Section 7(b). <br />(d) 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 />In the above example, if the Sales Price (to occur upon resale not conforming to <br />Section 4 of the Agreement) 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 />EXHIBIT B4 TO ATTACHMENT NO. 11 <br />Promissory Note <br />Doc soG1400b7M 4/200272-0001