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m . Accounting for expenditures : Developer will account for total NSP3 <br /> expenditures per home by means of assigning an accounting code for NSP34unded <br /> or reimbursed expenses for each property and another accounting code, if <br /> applicable, for non- NSP3 funded expenditures ( if any) . At the time of the sale of an <br /> NSP3-assisted home, Developer will provide Grantee with a complete accounting of <br /> NSP3 expenditures for that home and non - NSP3 expenditures, if any . The separate <br /> accounting of NSP3 and other funds used is required for establishing the maximum <br /> allowed sale price and will provide necessary financial data on NSP34unded <br /> expenditures in the event of a HUD audit of program activities . <br /> n . Sale price : The sale price of an NSP3 home shall either be the after- <br /> rehabilitation market value of the home or the total amount of NSP3 and non - NSP3 <br /> expenditures spent on the home, whichever is less . The market value of a home will <br /> be determined in accordance with the provisions in the Program Manual . <br /> o . Principal mortgage financing for NSP3 homebuyers : The required <br /> amount of principal mortgage financing provided by Developer (or an approved <br /> lender) to a Buyer is described in the Program Manual . If Developer is unable to <br /> finance the homebuyer' s 1St mortgage due to insufficient funds available to <br /> Developer, and if no financial institutions are available to provide 1St mortgage <br /> financing following Developer' s and Grantee' s guidelines, Grantee may allow NSP3 <br /> funds already invested in a property to be used by Developer to loan to the <br /> homebuyer. As described in the Program Manual, such mortgage shall be assigned <br /> by Developer to Grantee at no cost to Grantee and Developer shall enter into a <br /> separate loan sale and servicing agreement with Grantee at no cost to Grantee . In <br /> so doing, Developer shall be responsible for servicing all aspects of the mortgage <br /> loan . Neither the assignment of mortgage nor the loan sale and servicing agreement <br /> shall alter Developer' s underwriting guidelines used for the homebuyer' s first <br /> mortgage . <br /> p . Establishment of a lien in favor of Grantee : Upon sale of an NSP3 - <br /> funded home, Developer will cause the homebuyer(s) to execute a promissory note <br /> and mortgage in favor of Grantee for the combined amount of the Homeowner <br /> Financial Assistance as defined herein and in the Program Manual . The note and <br /> mortgage must be prepared by Developer using forms provided by Grantee . <br /> Grantee must review and approve the language inserted in these form documents <br /> prior to the documents being executed by the homebuyer( s ) . <br /> q . Repayment of net proceeds of sale to Grantee : Upon sale of an NSP3- <br /> funded home, Developer or applicable closing agent will transmit the net proceeds <br /> of sale to Grantee ( if any) . Net proceeds of sale are defined as follows : <br /> L The sale price of the home; <br /> ii . ( Minus) the amount of any Homeowner Financial Assistance provided to <br /> buyer, as defined herein and in the Program Manual, and described on the <br /> settlement statement; <br /> 5 Page Amended and Re-stated NSP3 Developer Agreement : August 20 , 2013 <br />