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6.1G Page 27 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 Prooosed 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. Ecuitv 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 "Original 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 price below the Original Price (an "Equity Loss"), this Section 13 shall apply. If Owner believes that the proposed sale of the Subject Affordable Unit qualifies as an Equity Loss, the Qualified Buyer shall notify the City in writing and the City shall have forty-five (45) days from the receipt of information satisfactory to the City to determine if Owner's situation qualifies as an Equity Loss. The City's determination of an Equity Loss shall be final and conclusive. Infonnation provided by Owner in support of an Equity Loss, shall include, but is not limited to, evidence of prevailing market rates on Eligible First Loans and evidence of the Proposed Purchaser's ability to secure market rate financing with no premium over such rates due to the Proposed Purchaser's adverse credit history/rating. If the City determines that Owner is subject to an Equity Loss, the City may, in its sole discretion, elect to purchase the Subject Affordable Unit from Owner at a price equal to the Originial Price: For purposes of clarification, the Original Price shall not include Owner's closing and other expenses associated with its purchase of the Subject Affordable Unit. In the event the City elects to purchase the Subject Affordable Unit, Owner and City shall, within twenty (20) days, enter into a purchase agreement for the sale of the Subject Affordable Unit to the City or its assignee at the Original Price. The purchase agreement shall identify the terms under which the Subject Affordable Unit will be sold to the City, or its assignee, including without limitation, the Original Price, periods for property physical and title inspection and approval which shall be no less that fifteen (15) days, equal sharing of escrow expenses, and an escrow period which shall not exceed sixty (60) days unless otherwise agreed. by the parties. The sale shall be contingent upon the City's approval of the physical and environmental condition of the Subject Affordable Unit and condition of title. If the City declines to purchase the Subject Affordable Unit 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 close of escrow for the sale. In connection with such sale, the City REDW\OOO1\DOC\023-2.DOC 11/24108 730 HvT 10