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10 <br />i• <br />Situation II <br />The property is sold during the term of affordability to anon-qualified homebuyer to be <br />used as their principal residence. <br />County Proposal <br />The equity, after repayment of the initial County contribution, will be divided 50/50 by the seller <br />of the Property and the County. The original dwelling unit does not remain in the affordable <br />housing stock. <br />EXAMPLE: <br />This family purchased this home five years ago for a purchase price of $120,000 five years ago. <br />The family financed this purchase in the following manner. <br />Cash downpayment $ 1,000 <br />First Mortgage $ 89,000 <br />Deferred Loan/County $ 30,OOQ <br />Total $120,000 <br />In 2000, the family decides to sell the home at the market value of $130,000. <br />Property Sales Price: $130,000 <br />First Mortgage Payoff $ (87,000) <br />Deferred Loan Repayment $ X0.0001 <br />Proceeds to the Seller $ 13,000 <br />In this example, the seller does not sell to a low income family, the County recovers the initial <br />$30,000 investment, and, the buyer and the County share the net proceeds of the sale 50/50. In <br />this example, the County would receive the initial investment of $30,000 and $6,500 inequity <br />payment. The seller would receive $6,500. <br /> <br />