NEIGHBORHOOD STABILIZATION PROGRAM 2

8. Conditions Precedent to Acquisition Closing. CONTRACTOR shall cause the following to occur prior to the close of escrow: a. The satisfaction, or waiver (with the concurrence of the Housing Director as evidenced by written Final Approval), of all contingencies to the purchase set forth in the purchase agreement between CONTRACTOR and the seller. b. The execution of Loan Documents in a form approved by the Housing Director. c. The issuance of a CLTA title insurance policy. d. Evidence of property insurance. 9. Loan Documents. The County will make NSP funds available to CONTRACTOR in the form of a loan recorded against each property; provided (i) no Loan exceeds the amount set forth in Section IV (A)(7) of this Agreement, and (ii) the aggregate loans of NSP funds made as part of the Program do not exceed the maximum amount of available NSP funds set forth in Section IV (A)(7) of this Agreement. It is contemplated at the time of this Agreement that additional financing documents will be required by a superior Lender. Should a superior Lender's financing documents conflict with this Agreement; the superior Lender's documents shall have priority, subject to approval by the Housing Director. 10. Rehabilitation. After the close on the Acquisition of the Property, CONTRACTOR shall cause all rehabilitation work outlined in the approved scope of work to be done in compliance with local building codes and shall acquire permits as required by local jurisdictions. Environmentally sensitive "green building is encouraged. CONTRACTOR shall cause wages paid to equal or exceed the prevailing wages of the State of California. 11. Sale of Rehabilitated Properties. Following the rehabilitation of a Subject Property, CONTRACTOR shall use reasonable efforts to cause the Subject Property to be sold to an Eligible Purchaser. The County shall reconvey CONTRACTOR's Loan documents through an escrow which provides title insurance to the buyer. Conditions precedent to closing on the resale shall include providing the Housing Director with evidence satisfactory to the Housing Director that the following conditions have been met: a. The proposed purchaser is an Eligible Purchaser. b. The sale price is equal to or less than the total cost of development of the Subject Property, including acquisition, rehabilitation, Developer Fee, and soft costs.