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Total development cost <br /> ( Minus ) current market value <br /> ( Equals ) the development subsidy <br /> If an NSP3 home is sold for a price equal to the after-construction/rehab appraised <br /> value, then the appraised value is deemed to be market value . Moreover, if the price of <br /> a home has been reduced due to a lack of qualified offers after adequate marketing and <br /> sales efforts over a reasonable period of time ( as described above ), the reduced selling <br /> price will be considered market value for purposes of calculating the development <br /> subsidy. <br /> G . Accounting for Expenditures <br /> Developer will account for total NSP3 expenditures per home by means of assigning an <br /> accounting code for NSP34unded or reimbursed expenses for each property and <br /> another accounting code, if applicable, for non - NSP3 funded expenditures ( if any) . At <br /> the time of the sale of an NSP3-assisted home, Developer will provide Grantee with a <br /> complete accounting of NSP3 expenditures for that home and non - NSP3 expenditures, if <br /> any . The separate accounting of NSP3 and other funds used is required for establishing <br /> the maximum allowed sale price and will provide necessary financial data on NSP3 - <br /> funded expenditures in the event of a HUD audit of program activities . <br /> H . Possible Adjustments in Price at Time of Sale <br /> Prior to closing any sale of a property, after actual total development cost is calculated <br /> as described above, and the first mortgage lender' s appraisal has been received by <br /> Developer, the sale price must be reduced to the lesser of the following two amounts if <br /> less than the contract price : 1 ) the actual development costs, or 2 ) the amount of the <br /> first mortgage lender' s appraisal . <br /> X . Marketing and Sales of NSP3 Homes <br /> Grantee acknowledges that Developer maintains a sweat equity program where clients <br /> are chosen based on Developer' s criteria for homes . Consequently, County agrees that NSP <br /> homes will be sold to Developer' s sweat equity clients . Notwithstanding the above, Developer <br /> shall have the responsibility of advertising NSP3 homes for sale and may require buyers to <br /> comply with Developer' s sweat equity criteria . <br /> XI . Homebuyer Application and Prequalification <br /> Developer is responsible for the following tasks, except that tasks A through K may be <br /> completed for some or all clients by a pre- purchase counseling agency under contract to <br /> Grantee to assist prospective NSP3 homebuyers . To the extent that prequalification tasks are <br /> 15 <br />