NEIGHBORHOOD STABILIZATION PROGRAM 2

"NSP Property Budget" means a Sources and Uses Budget in a form approved by the Housing Director, for each Subject Property, including the acquisition and rehabilitation costs and funding. This budget should clearly specify the amount of NSP funding for that specific property and, upon project completion, will include the actual costs at the end of the transaction. "NSP Rental Property Budget" means a Sources and Uses Budget for each Subject Property serving Low Income Households, including the acquisition and rehabilitation costs and funding and an operating pro forma. This budget should clearly specify the amount of NSP funding for that specific property and, upon project completion, will include the actual costs at the end of the transaction. "Qualifying Neighborhood" means the census tracts within the Alameda County Urban County Jurisdiction which have a HUD approved Foreclosure and Abandonment Risk Score of seven or higher. In Unincorporated Alameda County the following census tracts qualify: 433700, 433800, 436200, 433900, 434000, 435500, 435600, 436300, 436401, 435700, and 435800. In the City of Newark census tract 444400 is the only qualifying census tract. Unless approved by the Housing Director, there are no other qualifying census tracts in the Urban County. See Exhibit B for additional information. "Qualifying Property" means a unit of residential housing that meets the NSP program regulations and (i) is vacant, (ii) is Foreclosed, (iii) has been determined by the Housing Director to be in need of renovation, (iv) is located in a Qualifying Neighborhood, (v) can be acquired and fully rehabilitated at an estimated cost of $450,000 or less (including the Developer Fee and any ancillary costs), and (vi) can reasonably be expected to be rehabilitated within six months, and sold in no event later than February 28, 2013. Any exceptions to the above must be approved in writing in advance by the Housing Director. "Qualifying Purchase Price" means the price that can be paid to acquire title in fee simple to a Subject Property when NSP funds are used to finance such acquisition. The Qualifying Purchase Price is the price that (i) is equal to or less than $275,000, and (ii) when aggregated with the prices paid to acquire all Subject Properties in the Program, is equal to, or less than, ninety -nine percent (99 of the aggregated Appraised Value of all such Subject Properties. Any exceptions to the above must be approved in writing in advance by the Housing Director. "Rehabilitation Costs" means costs incurred to rehabilitate a Subject Property after its acquisition, including material and labor, permits and fees, the Developer Fee, holding costs and other soft costs. "Subject Property" means a property that (i) is a Qualifying Property that satisfies the criteria set forth in this Agreement, and (ii) is purchased by CONTRACTOR. "Total Development Costs" means all costs necessary for Contractor to implement the NSP, which includes but is not limited to due diligence, title and recording, acquisition, hard costs, soft costs, and broker fees at resale.