Mar. 20, 2007 4:25PM No. $733 P. Encore, A Residential Condominium has an affordaity component composed of units with five (5) year affordability restictions end seven (7) year efordablyresticons. Folowing isa brief description ofthe requirements that must be met in oder tobe efile 1 purchase an affordable home at Encore, as well as some of he estictons thatthe unit and purchaser wil be subjest to. Etlaibilty Reguirements: + Purchases houschold must meet the Income Linitafons, The Income Limitation shall bo dofned a 2 fhousetold eating eighty percent (80%) of medien income or fess for households in the Nesivile, Tennessee area, 2s defined by the Deparment of Housing and Urban Development HUD), a adjusted annually by HUD. Tha current income Limitations are: © One person household -$34,500.00 ‘© Two person household - $29,450.00 Purchaser shall submit evidence of Purchasers Income by submiting the mast cuent pay recip ora persons in Purchaser's househovd along withthe prior yea’ tax etu fora such persons. ‘+ Nowore than two (2) persons may be @ party fo the Purchase Agreement 2s Purchaser. In the event there are two (2) persons, their combined householincame must meet the Income Limitaions. ‘+The Purchase Agreement must te in the name of the individual Purchaser only. No corporate ently, business, tutor anyother entity may bea party tothe Purchase Agreement as Purchaser. Tho Purchase Agreement is not assignable by Purchaser. Purchaser may receive git money ttm a ttc party; However seid gi money may nol exceed 10 percent of the Total Purchase Price ofthe Unit ‘+ Purchaser must submit a loan commitment tor to Encore Phase | Development Company, LLC, from an Accredited Financial Instluton which is defined as a bank or lender who undenwries ts loans based on ‘generally recognized guidelines 2s st forth by Fannie Mae, Freddie Mac or Federal Housing Administation porto enernginto a Purchase Agresment © PLEASE NOTE THAT YOU WILL HAVE THE OPPORTUNITY TO MEET WITH A PREFERRED LENDER FOR ENCORE WHILE YOU ARE AT THE SALES CENTER. ‘+ Purchagor shal retain such evidanco of the housohald income at the tine of the Binding Purchase ‘great Date for seven (7) years flowing the date of closing, Program Restrictions: ‘+ The Unit shal be encumbered for a period of seven (7) years by a deed resticion or oer instrument as defined by MOKA. ‘+ The Lilt ust be owner occupied and may not be used for investment purposes; honever,Admiistelor recognizes that, due fo circumstances beyond the contol of Purchaser, there may be aneed torent he Unit during the soven (7) year period. In te event there is @ need io rent the Uni, Purchaser rust submit vite request to be Adniisator requesting petmisson torent. in addon the Unit must be rented fo an gible Qualifier and proof fei bity must be suomited to MOMA prior to entering info lease nation, the maximum amount of ret fat canbe charged is determined solely by MDHA, The carent maximum rent is defined as follows: ‘© You can ony charge 30% of Be annual income of the renter. For example, fhe annual income is $34,000.00, you can charge $10,200.00 annualy, oF $850.00 per month, You must provide a ubity allowance of +/- $93 fora maximum potential rent of $757 per month, Al rentals ae subject tothe tems end conions set fort in the Master Deed for Encore, A Residential Condominium, which instrument was received by Purchaser at the time of executon of ths Purchase Agreement, ‘© The Unit stall not be resold within the afforabityresticion period (Five (6) or Seven (7) yeas) from the date of conveyance ftom the Selle fo Purchaser, unless the Uns sold to an Elgible Quaifer, Purchase Agreement Requirements: ‘+ Eomest money requirements for afdable units wil be $2,600.00. Checks should be made payable to Gieratara-Novare Realy.Mar. 20, 2007 4:25PM No. $733 P. ‘There are addtional upgrades that are avaible for purchase. 50% of the total upgrade ammount is de atthe time the selectons are made, andthe remaining 504 is due 120 days prior to the cosing date. Alter the all of the conditions set forh in the Eligilty Requirements have been met, the Purchase ‘Agreement and associated documentation wil b sent to MDHA for approval. MDHA retains the sole ight fo ‘approve or not approve a Purchase Agreement. You wil be notified within 30 days of the status of your Purchase Agreement. the Purchase Agreement is approved by MOHA, your Eamest Money check wil be deposited and a fully executed copy of the Purchase Agreement wil be sent to you elecronicaliy.