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SAN LEANDRO ADMINISTRATIVE CODE TITLE 5 COMMUNITY DEVELOPMENT §5.3.115: DIRECT PURCHASE REBATE FOR QUALIFIED PURCHASERS. The City may, at the request of a qualified purchaser, apply the conversion fee on behalf of such qualified purchaser toward the purchase of a converted unit. A qualified purchaser is one who: (a) Has a gross income not in excess of one hundred twenty percent (120%) of the median in- come; and (b) Resides or is employed within the City of San Leandro as of the date application is made for such use of the fee; and (c) Contributes at least two and one-half percent (2'/z%) of the purchase price towards the pur- chase of the residential unit. In such case, the fee may only be used for the purpose of reducing the principal purchase price of the unit. The total amount of the fee must be used for this purpose. The converter shall post in a conspicuous place in its sales offices, a notice informing prospective purchasers of the Direct Purchase Rebate benefit. Such notice shall also be printed on all brochures and other advertising material distributed by the converter. §5.3.120: DETERMINATION OF QUALIFIED PURCHASER. A mortgage lender selected by the purchaser shall be responsible for determining qualification of the purchaser for use of the fee as set forth in §5.3.115 herein. If the lender determines the buyer to be eligible for such use of the fee, the lender shall so certify in writing to the Finance Director prior to the close of escrow. Upon certification, a qualified purchaser shall be entitled to the Direct Pur- chase Rebate benefit described in §5.3.115, upon requesting such benefit on a form supplied by the Finance Director. X5.3.125: REPAYMENT OF FEE. (a) The fee used in the manner specified in §5.3.115 herein shall be in the form of a deferred loan with payments starting in year six (6)from the City to the buyer. (b) The conditions of repayment of the loan shall be: (1) A promissory note secured by a deed of trust in the principal amount of the loan shall be recorded against the property; (2) The interest on the loan shall be a simple interest, as determined by the City, accrued from the date the escrow closes; (3) Repayment of the principal plus interest is due upon sale or other transfer of owner- ship of the property, or at such time as the borrower ceases to maintain the unit as his or her principal place of residence; and Department Responsible for Revision: Community Development Chapter 5.3 11/21/2005 Page 2