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6.1C Page 29 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 Proposed 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. EQuity Loss. Notwithstanding the Transfer" Amount for a Subject Affordable Unit as set forth in Section 11 above, to assist O"XP~r: in selling the Subject Affordable Unit for an amount at least equal to the original pUrchase price of the Subject Affordable Unit (the "Original Price7'), where an increasejl1Hmprjgage interest rates is the sole cause of an increase in Transfer Amount7 thereby:neces;si~ting a reduction in the sales price of an Subject Affordable Unit to a price.:~E3low the Ongjl]~1 Price (an "Equity Loss"), this Section 13 shall apply. If Owner beli~ves that the pro};>.qsed sale of the Subject Affordable Unit qualifies as an EquitY'liqss, the Qualified Buy~tl~.hall notify the City in writing and the City shall have forty-fftie'(45) days fr:pm the receipti"Cltinformation satisfactory to the City to determine if Owner'S,situati.9of!qualifies as an Equity Loss. The City's determination of an Equity Loss shan.'b~flhal and conclusive. Information provided by Owner in support of JUl. Equity Loss,i~f1all include, but is not limited to, evidence of prevailing market ra~~'()n~.,~ligible Fi~~;Loans and evidence of the Proposed Purchaser's ability to secur~mafk~~rflte financiggwith no premium over such rates due to the Proposed Purchaser's~dVerSe~(n~\t~istbrfrr~ting. ,_'_'__ '~::;:::. ,,:,:'~~:'-:'f;:::'<~~:'fL.;)>... ;:~ If the City deterrnil1.~s;th~t.owneris'~~~j~tt to~t";;Et(ruity Loss, the City may, in its sole discretion, electtd purchas~ the Suqject Affordable Unit from Owner at a price equal to the Origin~l Price. Fot<purposes'"qf clarification, the Original Price shall not include Owner's c1osi99 and o~~~texpensesa~sociated with its purchase of the Subject Affordable Unit. In tneevent theCrfY~l~ptsto purchase the Subject Affordable Unit, Owner anq'PitMs~all, wlthintwenty (20) 'days, enter into a purchase agreement for the sale ofthe;Sdbject~ffordab!~pnit to the City or its assignee at the Original Price. The purcnp:~e agreement$~fll iderititythe terms under which the Subject Affordable Unit will be .solq,to the City, or'Jts assjgq~et including without limitation, the Original Price, periods fPf, property phys,i~al and:t1tle inspection and approval which shall be no less that fifteen;Mp) days, equ;~lsharing of escrow expenses, and an escrow period which shall not exce:ed, sixty (6q~,!clays unless otherwise agreed by the parties. The sale shall be contingent up()n the.City's approval of the physical and environmental condition of the Subject Affordal;),leUnit and condition of title. If the City declines to purchase the Subject Affordable Unit within the twenty (20)-day period, Owner may sen the Subject Affordable Unit to a non-approved third party at whatever purchase price is agreed to among the Qualified Buyer 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 close of escrow for the sale. In connection with such sale, the REDW\0001 \DOC\023-2. DOC 11/24/08730 HvT 10