NEIGHBORHOOD STABILIZATION PROGRAM 2

vii. Contractor's receipt of a sewer cam report acceptable to Contractor. viii. Property meets all Programmatic Requirements and the Housing Director has provided a written approval. b. Tracking Costs. CONTRACTOR shall keep financial expenditure records specific to each property, including those that it may not reach agreement on with the Seller. CONTRACTOR shall be entitled to reimbursement from NSP funds for deposits and due diligence costs expended on properties which do not close escrow as further described in Exhibit B. 2. Initial Proposal. Once CONTRACTOR has an executed purchase contract with appropriate contingency language, CONTRACTOR shall submit an Initial Proposal to the Housing Director requesting Initial Approval of the Subject Property. The Initial Proposal must include the following: a. The address of the property and purchase contract which is to include URA/eminent domain addendums, a copy of which is attached as Exhibit I. b. A proposed sources and uses financial budget for the property, including the acquisition and rehabilitation costs and funding. This budget should clearly specify the amount of NSP funding for that specific property, which shall become the NSP Property Budget. c. The contract purchase price and an estimated as -is market value of the property, based on a Comparative Market Analysis, in a format approved by the Housing Director. d. Estimated rehabilitation costs and detailed scope of work, as approved by the Housing Director. (Please note that in some cases estimated rehabilitation costs may be determined without access to interior of property). f For resale properties, an estimate of the after rehabilitation resale value of the property (estimate based on market value based on comparables), and potential take out financing based on a 95% loan to value ratio. This calculation will provide the County with an estimate of the expected NSP funds which must be left in the project and converted to a grant to Contractor. g. For rental properties, provide an operating pro forma. h. Pictures of the Property depicting the before rehabilitation status of the property. A full list of pictures is listed in the "Final Proposal" section below, and Contractor will attempt to get as many of these pictures to the County as possible at this stage, but at minimum will provide the exterior pictures if access to the property is not available at this time. 3. Initial Approval. Provided the property identified in a complete Initial Proposal from CONTRACTOR appears to qualify for the Program, the