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78 Page 26 benefit, thing of value, or other consideration in addition to what is set forth in the sales contract and documents submitted to City, including personal property. c. Transfer to ProDosed Purchaser Who Is Not a Qualified Buver. Owner shall not Transfer the Subject Affordable Unit in a transaction to a Proposed Purchaser who is not a Qualified Buyer. 13. Eauitv Loss. Notwithstanding the Transfer Amount for a Subject Affordable Unit as set forth in Section 11 above, to assist Owner in selling the Subject Affordable Unit for an amount at least equal to the original purchase price of the Subject Affordable Unit (the 1I0riginal Price"), where an increase in mortgage interest rates is the sole cause of an increase in Transfer Amount, thereby necessitating a reduction in the sales price of an Subject Affordable Unit to a pric -.@Iow the Original Price (an "Equity Loss"), this Section 13 shall apply. If Owner .' "as that the proposed sale of the Subject Affordable Unit qualifies as an Equi'" , the Qualified Buyer shall notify the City in writing and the City shall have forty- 5) days f{em the receipt of information satisfactory to the City to determine if Own _~...,J;ituati. :;~ii;;:.:"tJalifies as an Equity Loss. The City's determination of an Equity Loss sh'1lliB~t.~ . and conclusive. Information provided by Owner in support of an Equity LosS~~!_1 include, but is not limited to, "'1"''1'''~r.1 evidence of prevailing market rates on Eligible .,~. Loans and evidence of the Proposed Purchaser's ability to secure market rate finaftlijflg with no premium over such rates due to the Proposed Purchaser's adverse credit histOi.f~~Jting. .'l-: If the City dete~.mf!fjs~tl1i:.t9wner is subject to an Equity Loss, the City may, in its sole discretion, ele.9!~ip;:'purctl'~'~.. the Subject Affordable Unit from Owner at a price equal to the Ori~!F-~rice. FoW\ji'''.:'urposes of clarification, the Original Price shall not include Owner's Cfe.'.'.~~ and o. .xpenses associated with its purchase of the Subject Affordable Unit. In f' ::~.ye. . . '. ts to purchase the Subject Affordable Unit, Owner af)..' :~:" ~;;ihall, .!;.,..,~ enty ( . . "i~' enter into a purchase agreement for the sale ot:...;: ......, e~Mord<<:'.:.-::. Unit to the City or its assignee at the Original Price. The pur~~re{agreemeiili.1I id'" ~.:....._.. the terms under which the Subject Affordable Unit win be Jqlg.i\~O the City, 'O~%~ls asl'~;~e, including without limitation, the Original Price, period~Jf;~fQr.. property phy~~1 andi'\~litle inspection and approval which shall be no less that flfteE:j~~:it~;,?) days, eq ':"..";'\ sharing of escrow expenses, and an escrow period which shall not ex~:. sixty (6, ays unless otherwise agreed by the parties. The sale shall be contingenC_n th~M;;.,:;;;. :" 's approval of the physical and environmental condition of the Subject Affortl~I:?:I)mfJtlit and condition of title. If the City declines to purchase the Subject Affordable "Qpif within the twenty (20)-day period, Owner may sell the Subject Affordable Unit to a non-approved third party at whatever purchase price is agreed to between the Owner and third party purchaser; provided, however; the purchase price may not exceed the Original Price. In such event, in recognition of the City's loss of the Subject Affordable Unit as an affordable housing unit, any sales proceeds received by Owner in excess of the sales price for the Subject Affordable Unit pursuant to the Transfer Amount (including reasonable closing costs), shall be remitted to the City concurrently with the crose of escrow for the sale. In connection with such sale, the City REDW\OOO1 \DOC\023-2.00C 11/24/08730 HvT 10