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ÎÁ2] By combining all of its expertise, skills, and resources, FHI has established a substantial foundation to successfully execute first time homebuyer programs, PROGRAM FEES AND BUDGET Schedule A provides a break down of proposed fees for the program. A description of the fees established within the table are as follows: PROGRAM SET UP AND DESIGN FEES FHI will assist Redwood City in the design and set up of the program, inclusive of conducting all feasibility analysis, structuring program models, and the structuring of all program related materials inclusive of the note, deed of trust, share appreciation agreements, and all addendums. related and pertinent to the program documents. All legal documents must be reviewed and signed-off by the city attorney. FHI can also assist the City in designing and distributing all program related promotional and informational materials to prospective households. The anticipated fee for this service would be approximately $2,500. GENERAL ADMINISTRATIVE AND PROGRAM PROMOTION FEES Administrative fees are primarily related to promotional activities including the solicitation of real estate professionals and to overall solicitation fees directed towards targeted purchasers. The projected administrative fees are at $3,300 per a year. This fee is inclusive off approximately $1,200 for 60 hours of work provided by our support staff (@ $20.00 per hour) for the preparation and distribution all promotional materials and execution of other marketing related tasks. We anticipate that we will have up to 3,500 mailings to further promote the program. The mailings will be directed to employees or to targeted households in Redwood City. This mailing will cost approximately $0.60 per a package, for a total projected cost of $2,100. HOMEBUYER EDUCATION FEES FHI anticipate 3 seminars during the course of the contract. Each seminar will require approximately $750 to be paid to the seminar provider/educator (Consumer Credit Counseling Services) for a total seminar cost of $2,250. PROGRAM COUNSELING FEES FHI projects providing 300 hours of counseling to at least 50 prospects. Projections are based on the program absorption schedule depicted in Table B. The cost of counseling is $30.00 per an hour for a total budget of $15,000. Counseling incorporates all of the procedures and steps necessary to start the underwriting and submission of the prospects loan application to a first lender. UNDERWRITING AND PROCESSING FEES FHI will be involved in two areas of underwriting and processing. FHI will process the loan for the first loan and process and set up all of the applications and documents for the RCFTHB second loan. The fees related to this process will be incorporated into the close of escrow. This will assure that FHI takes all the steps necessary to coordinate and move the first lender and all other transaction related parties forward in an expeditious and efficient manner. FHI will collect a 2.00% underwriting and processing fee from Redwood City at the close of each transaction, Page 6 " ",-"-" """-'-r-_.