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In the above example, if the Sales Price equals $380,000 and the Purchase Price <br />equals $280,000, the Contingent Equity Participation Amount would equal $10,700 (10.7% x <br />($380,000 minus $280,000)). <br />10.7% (Variable Applicable Factor) x $100,000 (Sales Price - Purchase Price) = $10,700 (Contingent <br />Equity Participation Amount). <br />(d) Calculation of Contingent Equity Participation Amount for <br />Subsequent Homebuyers. If pursuant to Section 4 of the Loan Agreement, a Buyer has fully <br />assumed Homebuyer's obligations under the Agreement, the Promissory Note, the Agency Deed <br />of Trust, the Notice of Affordability Restrictions, and this Restriction, and thereafter the new <br />Buyer, as the successor Homebuyer, causes an event of acceleration to occur, the Contingent <br />Equity Participation Amount to be paid by such Buyer shall be calculated by multiplying the <br />Variable Applicable Factor, established in Section 13(b), by the difference between the Sales <br />Price, established in conformity with Section 13(h), and the Purchase Price. <br />(e) No Appreciation or Depreciation in Value of Property. If an event of <br />acceleration occurs at a time when the Property has not appreciated or the value of the Property <br />has depreciated (i.e., the Sales Price is less than the Purchase Price), then no Contingent Equity <br />Participation Amount is due by Homebuyer to Agency. <br />(f) Qualified Capital Improvements. The value of any Qualified Capital <br />Improvements completed by Homebuyer during Homebuyer's ownership of the Property shall be <br />added to the Purchase Price when calculating the Contingent Equity Participation Amount only <br />if, not later than thirty (30) days prior to the event of acceleration causing the Contingent Equity <br />Participation Amount to become immediately due and payable pursuant 'to Section 11(b), <br />Homebuyer submits the following to Agency. (i) an itemized list of the Qualified Capital <br />Improvements, (ii) reliable proof of completion of the Qualified Capital Improvements (as <br />evidenced e.g., by final building permits, a certificate of completion or original paid invoices or <br />construction contracts), and (iii) an appraisal from a certified appraiser, in form and substance <br />reasonably acceptable to the Executive Director, the conclusion of which is that the Qualified <br />Capital Improvements have added the stated amount to the fair market value of the Property. <br />If, within (30) days of receipt of the information concerning the Qualified Capital <br />Improvements, Agency questions the claimed increase in the value of the Property by reason of <br />said Qualified Capital Improvements, Agency and Homebuyer may, by mutual agreement, <br />establish the value of the Qualified Capital Improvements or Agency may require an appraisal of <br />the Property, at Homebuyer's expense, by a second independent certified appraiser appointed by <br />the Agency to determine the fair market value of the Qualified Capital Improvements. <br />(g) Credit to Homebuyer. Notwithstanding the foregoing provisions of this <br />Section 13, calculation of the Contingent Equity Participation Amount is subject to a superior <br />right of Homebuyer to receive credit in calculation of the Purchase Price for money paid by <br />Homebuyer post acquisition and during the term of Homebuyer's ownership of the Property for <br />installment payments of mortgage principal, pursuant to the First Lien actually made by <br />EXHIBIT D-12 TO ATTACHMENT NO. I 1 <br />Affordable Housing Resale Restriction <br />UOCSOC/ 1400673v ] 4/200272-0001