NEIGHBORHOOD STABILIZATION PROGRAM 2

6. Final Approval. Final Approval is required before contingencies are released and a deposit becomes nonrefundable, and before a property may be purchased by CONTRACTOR and included in the Program. To receive Final Approval, the following conditions must be satisfied: a. The property is a Qualifying Property. b. If NSI' funds are used to fund Acquisition Costs of the property, the price paid for the property does not exceed the Qualifying Purchase Price unless a higher amount is otherwise approved in writing by the Housing Director. c. If NSP funds are used to fund Rehabilitation Costs of the property, the NSP funds used for such purpose do not exceed (i) $150,000 or (ii) one hundred fifty percent (150 of the purchase price of the property, whichever is less, unless a higher amount is otherwise approved in writing by the Housing Director. d. The sum of the estimated Acquisition Costs and Rehabilitation Costs, including soft costs and the Developer Fee, is less than $450,000 unless a higher amount is otherwise approved by the Housing Director. e. An inspector approved by the Housing Director has reviewed and approved the proposed renovations and the rehabilitation budget. The Housing Director will grant Final Approval or decline to include the property in the Program, in writing within five (5) calendar days of receipt of a complete Final Proposal. In the event of no response from the Housing Director, CONTRACTOR shall decline to include the property in the Program and all expenses incurred to date shall be reimbursed by NSP funds. The County acknowledges that time is of the essence during this Initial Proposal and Final Proposal phase and shall perform their duties in a timely manner to facilitate CONTRACTOR's performance under this Agreement. 7. Limitations on Availability of NSP Funds. The total unpaid principal balance of all NSP funds outstanding to CONTRACTOR is limited to $1,914,234 at any given time, unless the Housing Director determines otherwise. It is expected that CONTRACTOR shall leverage these NSP funds with private funding. In addition, if acquisition of the Subject Property has not occurred within ninety (90) days of the date Final Approval is granted, the County may rescind the approval and (i) any funds in escrow will be returned to the County, pursuant to the Loan Agreement, (ii) all NSP funds that have been reserved for the Subject Property will be released by the Housing Director and made available to another Qualifying Property.