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Developer will obtain an after-construction/rehab appraisal . This appraised value will be <br /> the asking price for the home unless it is higher than the estimated total development <br /> cost of the home, in which case the price will be the same amount as the total <br /> development cost . Total development cost includes all acquisition , <br /> rehabilitation/construction and soft costs including the developer fee and any costs of <br /> providing down payment and closing cost assistance – regardless of the source of funds . <br /> B . Adjustments in Asking Price <br /> If no qualified offer is received within 60 days of first marketing a home, Developer may <br /> reduce the asking price by 5 % . If no qualified offer is received after final completion <br /> followed by 60 days of best efforts in marketing a home, Developer may reduce the <br /> original asking price by up to 10%, including previous adjustments, if any. Developer <br /> may make additional price reductions only with the written approval of Grantee . In any <br /> case, Developer may reduce asking prices only after making diligent and continuous <br /> efforts to market and sell a home . <br /> Co Setting and Adjusting the Contract Price <br /> In executing a home sales agreement, Developer may not agree to a contract price that <br /> is less than the amounts described above without the written approval of Grantee, <br /> except that Developer may amend the contract price in a home sales agreement to be <br /> equal to the market value of the home as determined by a first mortgage lender' s <br /> appraisal . <br /> D . Adjustment in Contract Price <br /> For purposes of NSP3 compliance, any such reduced prices shall be considered to be the <br /> current market value of the home, regardless of the value determined by any prior <br /> appraisal . Note that no NSP3 Home can be sold for more than the total development <br /> cost, per NSP3 rules . <br /> E . NSP3 Development Subsidy When Investment Exceeds Market <br /> Value <br /> When development costs exceed market value, the portion of NSP3 funds advanced to <br /> the project that are above the market value become a development subsidy to the <br /> project . Neither the Developer nor the homebuyer is required to repay NSP3 funds used <br /> for an approved development subsidy. (The homebuyer, however, will be subject to <br /> recapture provisions for the amount of any Homeowner Financial Assistance as defined <br /> herein — which subsidizes the contract price of the home and possibly closing costs as <br /> well . ) <br /> F . Determining Market Value, to Establish the Development Subsidy <br /> The development subsidy is calculated with the following formula , according to the <br /> HOME program rules that are referenced as a "safe harbor" for the NSP3 program . <br /> 14 <br />