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SB 435 -- 4 -- <br /> <br /> 1 families of moderate income, as defined in Section 50093 of the <br /> 2 Health and Safety Code, and that the units are offered at an <br /> 3 affordable housing cost, as that cost is defined in Section 50052.5 <br /> <br />7 govc~ar~cnt .......... ~ ...... .,,, ..............., <br />! ! ,-',- .......... 1- .............. <br /> <br />24 of the Health and Safety Code. The local government shall <br />25 enforce an equity-sharing agreement, unless it is in conflict with <br />26 the requirements of another public funding source or law. The <br />27 following apply to the equity-sharing agreement: <br />28 (A) Upon resale, the seller of the unit shall retain the value of <br />29 any improvements, the downpayment, and the seller's <br />30 proportionate share of appreciation. The local government shall <br />31 recapture any initial subsidy and its proportionate share of <br />32 appreciation, which shall then be used within three years for any <br />33 of the purposes described in subdivision (e) of Section 33334.2 of <br />34 the Health and Safety Code that promote homeownership. <br /> 35 (B) For purposes of this subdivision, the local government's <br /> 36 initial subsidy shall be equal to the fair market value of the home <br /> 37 at the time of initial sale minus the initial sale price to the <br /> 38 moderate income household, plus the amount of any <br /> 39 downpayment assistance or mortgage assistance. If upon resale <br /> 40 the market value is lower than the initial market value, then the <br /> <br /> 97 <br /> <br /> <br />