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9 <br />EmPOWERment Proposal <br />Shared appreciation upon the sale of the home, based upon the proportion of the public subsidy <br />to the total appraised value of the home. The original dwelling unit remains in the affordable <br />housing stock. <br />EXAMPLE: <br />This family purchased this home in 1995 for a purchase price of $120,000. The family financed <br />this purchase in the following manner. <br />Cash downpayment $ 1,000 <br />First Mortgage $ 89,000 <br />Deferred Loan/County X0.000 <br />Total $120,000 <br />In 2000, the family decides to sell the home at a price of $130,000. <br />Property Sales Price: $130,000 <br />First Mortgage Payoff $ (87,000) <br />Deferred Loan to be assumed <br />by the next buyer. X30.0001 <br />Net Proceeds $ 13,000 <br />When the property is sold to a qualified buyer, the seller shares the proceeds of the sale (equity) <br />in proportion to the total cost of home at the initial purchase. Continuing with this example, the <br />original sales price was $120,000 and the $30,000 deferred loan represents 25% of the total <br />appreciation. Applying the "proportionate share" formula, 25% of the proceeds or $3,250 would <br />be repaid to the County and the remainder, $9,750 would be retained by the seller. <br />