Agmt15 Habitat for Humannity Greater San Francisco

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Repurchase Price - Eligible Sales Price. The "Eligible Sales Price" for the repurchase of the Property by Habitat or the City shall be the original purchase price of the Property when acquired by the Grantee from Habitat (the "Purchase Price"), adjusted by the percentage change in the area median income for San Mateo County, since the date that the Grantee acquired the Property based upon the date of recordation of this deed to and including the date that Habitat or the City gives its notice of exercise of its Right of Repurchase, or in the event that this statistical index is no longer published any other appropriate index as determined by the City. In no event shall the increase in the original Purchase Price exceed three percent (3%) compounded annually, except as provided below for Qualifying Improvements as have been made to the Property by Grantee, which amount shall be added to the original Purchase Price as set forth in Paragraph (k), below. However, Habitat or the City shall have the right to consider any damage to the Property or delinquencies and may offset the Eligible Sales Price by the reasonable cost of repair of such damage or curing of outstanding impounds, liens, fines, and delinquent payments. k. Qualifvina Improvements. A "Qualifying Improvement' shall be any capital improvement, as opposed to repairs and maintenance, installed by Grantee, which satisfies all the criteria set forth below. The value of the Qualifying Improvements shall be limited to a total of ten percent (10%) of the original Purchase Price. The value of the Qualifying Improvements shall be the sum equal to the original cost of materials and labor prorated over the remaining useful life of the improvements. It shall be the obligation of Grantee to establish by sufficient evidence that any improvements are a Qualifying Improvement and the value thereof. Habitat shall have the right to determine the value of any Qualifying Improvement in its sole and absolute discretion. Further, in establishing any value to a Qualifying Improvement, Habitat shall have the right to consider any damage to capital improvements in the Property and may offset the Eligible Sales Price by the reasonable cost of repair on such damage. In order to be deemed a Qualifying Improvement, each improvement must satisfy the following qualifying criteria: (i) The cost of the improvement must exceed one percent (1%) of the original Purchase Price, (ii) The improvements must have a remaining expected useful life of at least five (5) years beyond the completion of the proposed transfer, (iii) Grantee shall present substantiating documentation showing the original cost of materials and the original cost of labor for the improvement, and the date of its installation as well as proof of payment; and (iv) A qualifying improvement must add value to the home in the context of affordable housing, such as the addition of living space. Upgrades to cabinetry, flooring, countertops, fixtures and landscaping are not considered capital improvements in this context. Assignment of Excess Sales Proceeds. If the Property is sold or otherwise Transferred by Grantee, or any other party, in violation of this Addendum for more than the amount permitted under this Addendum, any proceeds of such sale or Transfer in excess of the Eligible Sales Price shall be deemed assigned to Habitat. Habitat shall be entitled to bring legal action against any party who has derived any proceeds of sale in excess of the Eligible Sales Price, to recover any such proceeds of sale in excess of the Eligible Sales Price. There shall be established a lien on the title to the Property so that if such excess ATTY/AGR/2019/AMENDMENTS/AMEND NO. 3 HABITAT FOR HUMANITY GREATER SAN FRANCISCO REV: 07-18-19 PR Page 10 of 13