Program Implementation. The following is an overview of how this program will be implemented. DEVELOPER PARTNER ▇▇▇▇ ▇▇▇▇▇▇▇ CDH immediately upon opening escrow, with the name and phone number of the escrow company, the escrow officer and the escrow number. 1. The sales contract between DEVELOPER PARTNER and the owner of the REO property shall be contingent upon DEVELOPER PARTNER’s ability to obtain satisfactory financing. 2. DEVELOPER PARTNER will provide documentation, such as comparable sales of other properties, which support the appraised value of the property provided in the attached EXHIBIT B, Development Cost Pro Forma. DEVELOPER PARTNER will provide documentation evidencing the appraised value of the property is accurate and the purchase price has been discounted by at least 1%. 3. DEVELOPER PARTNER will submit funding proposals to CDH for properties located in “Eligible Targeted Communities.” These proposals will include the following: a. purchase price b. detailed estimated cost of repair. c. after rehabilitation estimated sales price (with backup documentation). 4. CDH will inspect the property and ensure all items needing repair are included, the estimated cost is reasonable and customary, and the after rehabilitation sales price is reasonably obtainable. The goal is to sell the property at a price that helps stabilize housing values in our neighborhoods. 5. CDH will finance only those proposals for REO properties which are being purchased at a verified 1% discount of the current appraised value and for which CDH has obtained environmental clearance. 6. CDH is to perform an Environmental Clearance on properties within seven (7) days EXCEPT on properties that are over 50 years of age. Properties that are over 50 years of age will take an additional 45 days. 7. CDH and DEVELOPER PARTNER will agree upon the cost of repairs. The program requires that each property need a minimum of $25,000 in repairs with no maximum amount limitation. 8. CDH will fund proposals that have the highest likelihood of full repayment of the CDH loan. 9. CDH will provide a loan to DEVELOPER PARTNER for the entire purchase price of the REO property plus all DEVELOPER PARTNER’s closing costs. CDH will record a lien against the property. There are no interest charges or payments associated with this loan. 10. DEVELOPER PARTNER will own, rehabilitate and sell the property. Through this program, any additional rehabilitation cost above the amount agreed upon is at the sole expense of DEVELOPER PARTNER. 11. Once property has been rehabilitated, DEVELOPER PARTNER will notify CDH. CDH will inspect the property to ensure all agreed upon repairs are completed and done in a ▇▇▇▇▇▇▇-like manner. This inspection is in addition to any inspections required by a building department. DEVELOPER PARTNER is responsible for obtaining any and all required permits. 12. DEVELOPER PARTNER will sell all properties to "eligible buyers." An eligible buyer is an owner-occupant household whose income does not exceed 120% of the area median income. Property will be listed in the 13. DEVELOPER PARTNER shall maintain records of all prospective homebuyer applicants, including their race, ethnicity and gender, reasons for denial of application, placement on a waiting list, etc. 14. The priority of payment from the sales proceeds between DEVELOPER PARTNER and an eligible buyer is as follows: (also see chart on next page) TOTAL $225,000 $225,000 TOTAL $215,000 $215,000 $205,000. Debit Credit TOTAL $207,117 $207,117 TOTAL $235,000 $235,000
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