Common use of Equity Share Clause in Contracts

Equity Share. In the event there does not exist an Event of Default, and Owner, who is not the Developer, wishes to Transfer the Affordable Unit to a Person or Family who is not an Eligible Person or Family, then Owner can Transfer the Affordable Unit only if, in addition to repayment of the City Loan, a share of the equity from the Affordable Unit is paid to the City in the same percentage as the percentage of the City's Loan to the Fair Market Value of the Affordable Unit at the time of the City Loan (the "Equity Share"). Equity subject to sharing shall be calculated by subtracting the Fair Market Value of the Affordable Unit at the time of the Owner’s acquisition of the Affordable Unit from the sales price for a sale to a Person or Family who is not an Eligible Person or Family (less Borrower's Closing Costs and “capital improvements” as such terms are defined herein). When the total amount due to the City under this Agreement, including the Equity Share, is paid, the City shall remove or cause to be removed this Agreement as a lien on the Affordable Unit, and this Agreement will cease to be a covenant running with the land.

Equity Share. In the event there does not exist an Event of Default, and Owner, who is not the Developer, wishes to Transfer the Affordable Unit to a Person or Family who is not an Eligible Person or Family, then Owner can Transfer the Affordable Unit only if, in addition to repayment of the City Loan, a share of the equity from the Affordable Unit is paid to the City in the same percentage as the percentage of the City's Loan to the Fair Market Value of the Affordable Unit at the time of the City Loan (the "Equity Share"). Equity subject to sharing shall be calculated by subtracting the Fair Market Value of the Affordable Unit at the time of the Owner’s acquisition of the Affordable Unit from the sales price for a sale to a Person or Family who is not an Eligible Person or Family (less Borrower's Closing Costs and “capital improvements” as such terms are defined herein). When the total amount due to the City under this Agreement, including the Equity Share, is paid, the Agency and City shall remove or cause to be removed this Agreement as a lien on the Affordable Unit, and this Agreement will cease to be a covenant running with the land.