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403.3 Income of Buyers. Prior to the sale of any Affordable Unit to a <br />purchaser, the Developer shall submit to the Agency a completed income computation and <br />certification form from each purchaser of an Affordable Unit in the form which is provided by <br />the Agency. Each purchaser shall certify, to the best of the purchaser's knowledge, that it is a <br />Low Income Household and meets the eligibility requirements established for the Affordable <br />Unit. The Developer shall obtain an income certification (copy of Income Certification form <br />attached hereto as Exhibit N) from the prospective purchaser of an affordable unit and shall <br />certify that, to Developer's Actual Knowledge, the income of the prospective purchaser is <br />truthfully set forth in the income certification form. For purposes of such certification, the <br />Developer shall verify the income certification of the prospective purchaser in one or more of the <br />following methods reasonably acceptable to the Agency: <br />(a) obtain two (2) paycheck stubs from the prospective purchaser's <br />two (2) most recent pay period. <br />(b) obtain a true copy of an income tax return from the prospective <br />purchaser for the most recent tax year in which a return was filed. <br />(c) obtain an income verification certification from the employer of <br />the prospective purchaser. <br />(d) obtain an income verification certification from the Social Security <br />Administration and/or the California Department of Social Services if the prospective purchaser <br />receives assistance from such agencies. <br />(e) obtain an alternate form of income verification reasonably <br />acceptable to the Agency, if none of the above forms of verification is available to the <br />Developer. <br />403.4 Documentation. At the closing of escrow for the purchase of each <br />Affordable Unit, the Agency will require each Low Income Household purchaser of such unit to <br />execute, Affordability Restrictions on Transfer of Property, Notice of Affordability on Transfer <br />of Property, the Promissory Note (attached hereto as Exhibit O) ,Deed of Trust (attached hereto <br />as Exhibit P) and such further documents reasonably required by the Agency in a form provided <br />by the Agency. The Promissory Note, Affordability Restrictions, and Notice of Affordability on <br />Transfer of Property shall be for a term of forty-five (45) years. The principal amount of the <br />Promissory Note shall be in an amount equal to the difference between the sales price of the <br />Affordable Unit and the fair market value of such unit as if no restriction were placed thereon, as <br />determined by the sales price of equivalent unrestricted units on the Sites at the time of such sale. <br />If there are no equivalent unrestricted units on the Sites at the time of sale, the fair market value <br />of the unit shall be determined by appraisal which is reasonably acceptable to the Agency. The <br />Affordability Restrictions on Transfer of Property and Promissory Note shall permit sales of the <br />Affordable Units prior to expiration of the forty-five year period only to a qualified Low Income <br />household at an Affordable Housing Cost. The Affordability Restrictions and covenants must be <br />fully explained to the Purchaser and the entire explanation and execution of said document must <br />be videotaped by the Developer. A copy of said videotape shall be placed on a CD which shall <br />be kept by the Developer and the Agency. <br />600457905v2 ?'3 7 <br />