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plus the IHomebu y r* s portion of closing costs; and (iii) the original principal amount of loans(s) or other sub Sid i s secured by Ho rnebuy r, (excluding any other than loan or subsidy(ies) provided by the Agency (as set forth in the definition of Agency Contribution)) and applied by the Hornebuyer towards the purchase of the Property. (iii) The "Purchase Price" is the original purchase price paid by the Horn b uy r (or the Homebuyer as the qualified successor owner of the Property) to the seller of the Property (the "Seller") ell r" ) (g this amount shall be equal to the on ainal fair market value of the Property at the time of the initiallori inal sale of the Property by the Developer to the Hom bu y r for the Seller's interest i n the Property} exclusive of escrow fees: title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Subject to the provisions set forth h reinbel ow, the value of Qualified Capital Improvements shall be added to the Purchase Frio a when calculating the Contingent Equity Participation Amount. (iv) The "Sales Price" is the price to be paid by the prospective buyer (who is not a qualified Moderate Income Household) of the Property (the ""Buyer") to the Ho m b u er r the Homebuyer as the qualified successor owner of the Property) for the H meb u firer * s interest in the Property, exclusive of reasonable es crow fees, ti tl insurance co s is , broker "s conimissions, loan fees or any other closing or transaction costs. The Sales Price shall be established in conforrnity with Section 3.5(a) hereof. In the event of the Horn b u er' r fi n ancir r, fail u r to occupy, or default, trio "'Sales Frio " shall b established by appraisal paid for b y the Homebu yer in c on forrmi ty wi th S cc ti on 3.5 (b). (v) The "Affordable Housing Cost Subsidy" is the amount deemed t be a subsidy from the Agency provided to the Homebuyer by making the Property available for purchase at a price that constitutes an Affordable Hou sins Cost for the Hom buy r as a Moderate Income Household. The Affordable Housing Cost Subsidy equals the difference between the appraised fair market value of the, Property and the Affordable Housing Cost of the Property. 12 Using the Variable Applicable Factor to Determine the Contingent Equity Participation Amount. The Contingent Equity Participation Amount is al u l at d by multiplying the Variable Applicable Factor by the difference between the Sales Price and the Purchase Price. For example, if the Variable Applicable Factor equals 10.7%, the Contingent Equity Participation Amount would then equal 10.7 % (Variable Applicable Fa tor) ales Price minus the Purchase Price). a. In the above, example, if the Sales Price to occur upon resale no t conforming to Section 4 equals $380,000 and the Purchase Price equals $280,000, the Contingent Equity Participation Amount would equal $10,70 (10.7% 80,000 minus 80,000)). 10.7 % (Variable Applicable Factor) x $100,000 (Sales Price — Purchase Price) = $10,700 (Contingent Equity Par6clpation Amount). b. Calculation of Contingent Equity Participation Amoant for Subsequent Homebu y rs. If pursuant to Section 4, a Buyer has fully assumed the Hom buy r' s obligations ATTACHMENT ISO. 11 -7 Form of Hor ebuy r Doan Agreement DOO14673v i4 /200272 -0001