WORKFORCE HOUSING PROGRAM DISCLOSURE AND CERTIFICATION ELIGIBLE BUYER: SUBJECT PROPERTY:, Virginia Beach, VA (the Property ) The undersigned agrees that these certifications and acknowledgements are true and accurate and will survive closing and will be valid and enforceable until the Workforce Housing Unit is either sold or transferred. 1. WORKFORCE HOUSING PROGRAM. I hereby certify that I am a participant in the Workforce Housing Program maintained by the City of Virginia Beach as set forth in Chapter 16, Article VIII of the City Code of the City of Virginia Beach (the Program ). I am aware that the Workforce Housing Unit I am buying is subject to several restrictions which affect both my use of the Workforce Housing Unit and the amount of money that I will make on the resale of the workforce Housing Unit. 2. ELIGIBILITY REQUIREMENTS. I hereby certify that I fully understand that in order to be deemed an eligible buyer of a workforce housing unit I must meet the following criteria: a. At least one adult, non-dependent member of the household to be shown on the deed of trust note as a borrower or other obligor shall, at the time of application to the Workforce Housing Program, live or work full-time in the City of Virginia Beach, or must have a bona fide offer of full-time employment within the City of Virginia Beach commencing within three (3) months of the time of application; b. No member of the household shall own or have a controlling interest in any other real property; c. The household s combined annual gross income shall, at the time of application, be between eighty per cent (80%) and one hundred twenty per cent (120%) of Area Median Income, adjusted for household size; and d. The net worth of the household shall not exceed fifty per cent (50%) of the sales price of the workforce housing unit being financed. The following items shall not be included in determining the net worth of a household: 1
1) The present value of insurance policies, retirement plans, furniture, automobiles or household goods; 2) The portion of the household s liquid assets used for the down payment and to pay closing costs, up to a maximum of twenty-five per cent (25%) of the purchase price; and 3) Any income-producing assets needed as a source of income to meet the minimum qualifying requirements for eligible buyer status. e. A household shall, in addition to the foregoing requirement, qualify for a mortgage loan from a mortgage lender acceptable to the City. The City may deny eligible buyer status to any household if it determines that such mortgage loan contains deceptive, predatory or abusive terms. f. Once determined to be an eligible buyer, a household must continue to meet the requirements of section 2 through the time of settlement. A household shall be required to certify its continued qualification as an eligible buyer at settlement and at any prior time requested by the City. 3. SHARED NET APPRECIATION. I hereby certify that I fully understand that as a condition of the purchase of the Workforce Housing Unit, I have agreed to participate in the Program including the Shared Net Appreciation aspect of the program. a. Net Appreciation. The amount of the Resale Price of a Workforce Housing Unit, less the total amount of: (i) the original principal amount of the first mortgage loan on the unit, (ii) the principal amount of the workforce housing deed of trust note on the unit, (iii) closing costs actually paid by the Eligible Buyer in connection with the purchase of the unit, (iv) the Eligible Buyer s down payment, (v) the appraised value of any capital improvements approved by the Director of Housing and Neighborhood Preservation, and (vi) the reasonable and customary sales commission paid by the Eligible Buyer. b. Shared Net Appreciation. The amount of Net Appreciation owed to the City by the Eligible Buyer of a Workforce Housing Unit, which shall be equal to the proportional share represented by the City s investment in the original purchase of the unit as evidenced by the Equity Sharing Agreement. For example, if the amount evidenced by the Equity Sharing Agreement equals twenty-five percent (25%) of the Initial Sales Price of the unit, the amount of the Shared Net Appreciation owed to the City at resale will be twenty-five percent (25%) of the Net Appreciation of the unit. The Shared Net Appreciation is paid, along with the amount equal to the Workforce Housing Discount as evidenced by the Workforce Housing Promissory Note, on the sale or transfer of the unit. See Exhibit A. I acknowledge that the amounts contained in Exhibit A are for purposes of providing an example of how to calculate the Shared Net Appreciation owed to the City upon sale or transfer of the Workforce Housing Unit. Furthermore, I acknowledge that I understand how the Shared Net Appreciation will be calculated, and I understand I have the ability to consult independent legal counsel of my choosing should I require further explanation. 2
4. OCCUPANCY REQUIREMENTS. I hereby certify that I fully understand that the Workforce Housing Unit must be occupied by the purchaser(s) as their primary residence, and that renting or putting the Workforce Housing Unit to a primarily commercial use is strictly prohibited unless the Department of Housing and Neighborhood Preservation grants explicit approval in writing. I understand that the purchaser(s) must annually sign and have notarized, and deliver to the Department of Housing and Neighborhood Preservation (), an affidavit (in a form specified by ) certifying to their occupancy of the Workforce Housing Unit. I further acknowledge that failure to submit an executed affidavit or submission of a false affidavit will subject the purchaser(s) to penalties as provided in Chapter 16, Article VIII, Section 16-56 of the City Code of the City of Virginia Beach. 5. RESTRICTIONS ON TRANSFERS. I understand that if I sell or otherwise transfer my interest in the Workforce Housing Unit I will be required to pay all sums owning to the City at that time. The only allowable transfers of ownership of the Workforce Housing Unit are as follows: a. The transfer of the Workforce Housing Unit to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant. b. A transfer of the Workforce Housing Unit where the spouse becomes an owner of the Workforce Housing Unit and the transferee is a person who occupies or will occupy the Workforce Housing Unit. c. A transfer of the Workforce Housing Unit resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse becomes an owner of the Workforce Housing Unit and the transferee is a person who occupies or will occupy the Workforce Housing Unit. d. A transfer to an inter vivos trust in which the Eligible Buyer remains the beneficiary and occupant of the Workforce Housing Unit. 6. REFINANCE RESTRICTIONS I understand that in order for an owner or lender to record a debt instrument of any kind against the Workforce Housing Unit, he/she must first submit a written request to the Director of the Department of Housing and Neighborhood Preservation as set forth below: City of Virginia Beach Director, Dept. of Housing & Neighborhood Preservation 2424 Courthouse Drive, Building 18-A Virginia Beach, Virginia 23456-9083 3
I understand that this requirement applies anytime an owner wants to refinance his/her existing mortgage loan, take out a third mortgage loan, or take out a home equity loan, and that in all cases the owner or lender shall submit his/her request no later than 30 days prior to the owner s desired closing date. I understand that I will be charged a reasonable transaction fee to cover the administrative expenses associated with processing the request. I understand that the City will only subordinate to a first deed of trust; that the City will not subordinate to any third mortgage loan or home equity loan that is junior to its second deed of trust. I understand that in no case will I be allowed to pay off the second deed of trust issued by the City until I sell or transfer the Workforce Housing Unit to the City or another entity. I understand that I cannot refinance the Workforce Housing Unit with a loan that has a total loan-to-value ratio greater than my proportional share of the Initial Sales Price; that the loan-to-value ratio is the ratio of the principal amount of the refinancing loan to the fair market value. See Exhibit B-1 and Exhibit B-2. I acknowledge that the amounts contained in Exhibit B-1 and Exhibit B-2 are for purposes of providing an example of how to calculate the shared net appreciation available to me should I desire to refinance my existing first mortgage and calculating a payoff after a refinance has occurred. Furthermore, I acknowledge that I understand how the amount for which I can refinance will be calculated, and I understand I have the ability to consult independent legal counsel of my choosing should I require further explanation. 7. RESTRICTIONS ON RESALE (RIGHT OF FIRST REFUSAL) I understand that I must offer first right of refusal to the City should I choose to sell the Workforce Housing Unit, and that I must notify the Director of the Department of Housing and Neighborhood Preservation, in writing, of my intent to sell and the selling price of the Workforce Housing Unit. I understand that I am required to offer the Workforce Housing Unit for sale to the City at Fair Market Value, as defined below. I understand that the City must notify me in writing of its intention to purchase the Workforce Housing Unit within thirty (30) days from the date on which my notice of intent to sell was received by the City, and that in the event the City exercises its right to purchase the Workforce Housing Unit, it shall have the right to assign the contract to an eligible buyer. In the event the City decides not to purchase or assign its right to purchase the Workforce Housing Unit, I shall have the right to sell the unit to any other person or entity, and the provisions of this section shall not thereafter apply to any subsequent resale of the unit. If I sell the Workforce Housing Unit to the City, the Fair Market Value of the Workforce Housing Unit will be determined as follows: 4
To determine the Fair Market Value of the Workforce Housing Unit, the City and I shall endeavor to agree upon an appraiser, who shall determine the Fair Market Value of the Workforce Housing Unit as of the actual or anticipated Sale. If the parties are unable to agree upon an appraiser within ten (10) days, the City and I shall each have an appraisal made by an appraiser of its choice to establish the Fair Market Value. If the two competing appraisals are within ten percent (10%) of each other, the midpoint between the two shall be considered the Fair Market Value. If the two appraisers are not within ten percent (10%) of each other, the City and I shall agree on a third appraiser and that appraiser s valuation shall be controlling as to Fair Market Value. If the City and I cannot agree on a third appraiser, the City shall have the right to appoint a qualified appraiser and that appraiser s appraisal shall be controlling as to Fair Market Value. The City and I shall share equally the cost of any shared appraisal and shall be responsible for the cost of any appraisal commissioned solely by myself or the City. All appraisals shall be completed within 30 days of selection of an appraiser. The resale restrictions contained in the Workforce Housing Participation Agreement by and between the City and the Eligible Buyer shall not survive foreclosure, deed-in-lieu of foreclosure, or assignment of a superior deed of trust in favor of the Department of Housing and Urban Development on the Workforce Housing Deed of Trust encumbering the Workforce Housing Unit. 8. VIOLATIONS OF THE WORKFORCE HOUSING PROGRAM. I hereby certify that I fully understand that as a condition of my participation in the Workforce Housing Program I am bound by the provisions of said Program. See Exhibit C. Furthermore, I acknowledge that my signature on this Certificate and Disclosure indicates that I have reviewed the program violations attached hereto and incorporated herein as Exhibit C, and agree to penalties set forth on that exhibit. I hereby certify that I fully understand that should I violate any of the provisions of said Program as listed in Exhibit C, the Director of the Department of Housing and Neighborhood Preservation will notify me by certified mail specifying the nature of the alleged violation(s), and that I will have ten (10) days from the date of mailing of the notice in which to request a hearing before the City Manager or his designee, who shall not be the Director. Should I request a hearing, the City Manager or his designee shall hold the hearing on the earliest practicable date but in no event later than fifteen (15) days from the date the request for a hearing is received. Both the Director and I shall be entitled to present witnesses and other evidence on our behalf. After the hearing, the City Manager or his designee shall issue a written decision within five (5) working days of the hearing, and shall mail such decision to me by certified mail no later then the following working day. Such decision shall contain a finding that I have committed the alleged violations, or any of them, or that no violations have been committed. In the event he finds that one of more of the alleged violations have been committed, I understand that the penalty or penalties prescribed in the chart shall apply. 5
Furthermore, I understand that an adverse decision may be appealed to the Circuit Court within fifteen (15) days of the date of the decision, and that no such appeal shall stay the imposition of any penalty except by order of the Circuit Court in an appropriate case. 9. PAYMENT OF FEES TO CITY. Eligible Buyer hereby acknowledges and agrees to pay the fees charged by the City for the administration of the Workforce Housing Program. The fees are as follows: a. A non-refundable application fee in the amount of $50.00 at the time the Eligible Buyer makes his or her residential loan application to purchase a Workforce Housing Unit. b. A program fee in the amount of $510.00 from Eligible Buyer at the time of loan closing. This fee cannot be financed in either the first deed of trust or the City s second deed of trust. c. In the event an Eligible Buyer does not close on a loan, Agent shall only be entitled to the $50.00 application fee set forth in subsection (a), above, and not the fees set forth in subsection (b), above. d. Failure or refusal to pay any of the above fees shall be grounds for termination of this Agreement. 10. CONFLICT IN DOCUMENTS I understand that as a part of my acquisition of the Workforce Housing Unit, I will execute a Workforce Housing Participation Agreement; and a Workforce Housing Promissory Note; and a Workforce Housing Deed of Trust; and a Workforce Housing Equity Sharing Agreement (collectively the Shared Appreciation Documents ). I certify that I have received and reviewed the Shared Appreciation Documents and have been given the opportunity to consult independent legal counsel of my own choosing. In the event of a conflict between this Disclosure and Certificate and any of the Shared Appreciation Documents, the Shared Appreciation Documents shall control. 11. RIGHT TO REPRESENTATION I understand that at any time I shall have the right to be represented by independent legal counsel of my own choosing in addition to a realtor or any other professional of my choice and at my expense. 6
WITNESS the following signature and seal: ELIGIBLE BUYER(S): (SEAL) Print Name: Date: (SEAL) Print Name: Date: _ STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: Sworn to and subscribed before me, a Notary Public in and for the City and State aforesaid, by, who is personally known to me or produced as identification, this day of, 20. My Notary Registration Number: My Commission Expires: NOTARY PUBLIC STATE OF VIRGINIA CITY OF VIRGINIA BEACH, to-wit: Sworn to and subscribed before me, a Notary Public in and for the City and State aforesaid, by, who is personally known to me or produced as identification, this day of, 20. My Notary Registration Number: My Commission Expires: X:/GlobalFiles/WFH/LegalDocuments/20130313-HNP-HD-DisclosureAndCertification-CON-V01-R00.doc NOTARY PUBLIC 7
EXHIBIT A THIS EXHIBIT IS FOR EXAMPLE ONLY Calculation of Shared Net Appreciation Due to the City Upon Resale Initial Sale to Eligible Buyer $240,000.00 Initial Sales Price $60,000.00 Workforce Housing Discount (Deed of Trust) $180,000.00 Discounted Sales Price $177,000.00 First Deed of Trust (Mortgage) $3,000.00 Down Payment $7,000.00 Closing Costs Owner Selling Unit - Appraisal/Resale Price is $291,000.00 $291,000.00 Resale Price -177,000.00 First Deed of Trust (Mortgage) - 60,000.00 Workforce Housing Deed of Trust - 3,000.00 Down Payment - 7,000.00 Closing Costs paid at time of Initial Sale - 0.00 Capital Improvements - 17,460.00 Real Estate Commission paid at time of Resale $ 26,540.00 Net Appreciation $26,540.00 Net Appreciation x.25 Percentage of City s Share of Net Appreciation ($60,000/$240,000 = 25%) $ 6,635.00 City s Share of Net Appreciation (25%) Amount due to the Eligible Buyer at time of Resale $26,540.00 Net Appreciation - 6,635.00 City s Share of Net Appreciation $19,905.00 Eligible Buyer s Share of Net Appreciation (75%)* Amounts due to the City at time of Resale $60,000.00 Workforce Housing Discount + 6,635.00 City s Share of Net Appreciation $66,635.00 Total due to the City *The total amount of money due the Eligible Buyer (Owner/Seller) at settlement will be more than this amount as they will be credited with their initial closings costs and out-ofpocket down payment ($10,000.00 in this example), along with the difference between the amount of their First Mortgage and the actual payoff amount of the First Mortgage. However, as the Seller of the property, you may incur usual and customary closing costs, such as, but not limited to, a Grantor s Tax and a Deed preparation fee, which will be deducted from your proceeds. 8
[Exhibit A Continued] Shared Net Appreciation Capital Improvements For purposes of calculating Shared Net Appreciation, a capital improvement is defined as a permanent addition to the home (residential structure) that increases the value of the home (residential structure). Improvements to accessory structures such as detached garages are not counted as capital improvements. Repairs to property and the maintenance of it are not considered capital improvements. Listed below are examples of eligible and ineligible capital improvements: Eligible Improvements Room additions to the residential structure New windows New roof - quality of shingles must be upgraded (i.e. from 20 year to 30 year, architectural tab shingles) New HVAC system - must upgrade to a more energy efficient system Adding vinyl siding Adding hardwood floors (not laminate/floating floors) Upgrading countertops from Formica to granite or other high-end material (i.e. quartz, marble, etc.) Upgrading cabinetry Ineligible Improvements Painting Window repair Roof repair HVAC repairs Repairing/replacing vinyl siding Replacing carpet Repairing cabinetry Plumbing repairs Electrical repairs Fencing Decks/patios Swimming pools/hot tubs In order for the capital improvements to be counted in the formula for calculating Shared Net Appreciation, you need to contact the Department of Housing and Neighborhood Preservation () when you make the eligible improvements. An inspector from the will need to verify that the work was done (this will require before and after photographs). You may be required to provide a copy of a paid invoice for the work. Failure to allow the to verify/inspect the work and or to provide the necessary paperwork may result in the capital improvement not being counted. Please be advised that the entire cost of the eligible capital improvement will not be counted due to the fact that the dollar amount spent on an eligible capital improvement does not equate to a dollar-for-dollar increase in assessed/appraised value. The value of any capital improvement claimed will be based on the increase in the assessed value of the home attributed to those capital improvements as determined by the City of Virginia Beach Real Estate Assessor s Office, or based on the increase in the appraised value of the home attributed solely to the capital improvements as determined by a licensed appraiser at the time of resale. 9
EXHIBIT B-1 THIS EXHIBIT IS FOR EXAMPLE ONLY Refinance and a Payoff Determining Amount of Equity that can be Refinanced Assuming: $240,000.00 Initial Sales Price $60,000.00 Workforce Housing Discount (25%) $180,000.00 Discount Price $177,000.00 Original First Mortgage $3,000.00 Down Payment $7,000.00 Closing Costs Paid at Time of Initial Sale $0 Capital Improvements Refinance Requested Appraisal is $291,000.00 $291,000.00 Appraisal -177,000.00 Original First Mortgage - 60,000.00 Workforce Housing Discount (2 nd Deed of Trust) - 3,000.00 Down Payment - 7,000.00 Closing Costs - 0.00 Capital Improvements - 17,460.00 Real Estate Commission (assumption that commission will be paid when selling) $ 26,540.00 Net Appreciation = 25% to CVB and 75% to Owner $6,635.00 $19,905.00 x.5 = $9,952.50 (Cannot take out equity New Mortgage cannot exceed: in excess of this amount) $186,952.50 ($177,000.00 + $9,952.50) Calculation of a Payoff When Original First Mortgage Has Been Refinanced Owner Selling Unit Appraisal is now $300,000.00 INCORRECT WAY to calculate payoff (should not calculate using the refinanced mortgage amount) $300,000.00 Resale Price/Appraisal -186,952.50 Refinanced Mortgage - 60,000.00 Workforce Housing Discount (2 nd Deed of Trust) - 3,000.00 Down Payment - 7,000.00 Closing Costs - 0.00 Capital Improvements - 18,000.00 Sales Commission (6%) $ 25,047.50 Net Appreciation = 25% to CVB and 75% to Owner $6,261.88 $18,785.62 Total Due to City: $60,000.00 + $6,261.88 = $66,261.88 [Exhibit B-1 Continued On Next Page] 10
Exhibit B-1 Continued CORRECT WAY to calculate the payoff (always calculate using the original first mortgage) $300,000.00 Resale Price/Appraisal -177,000.00 Original First Mortgage - 60,000.00 Workforce Housing Discount (2 nd Deed of Trust) - 3,000.00 Down Payment - 7,000.00 Closing Costs - 0.00 Capital Improvements - 18,000.00 Real Estate Sales Commission (6%) $35,000.00 Net Appreciation = 25% to CVB and 75% to Owner $8,750.00 $26,250.00-9,952.50* Total Due to City: $60,000.00 + $8,750.00 = $68,750.00 $16,297.50 ** Disclosure/Disclaimer *Owner received this $9,952.50 at the time he/she refinanced the original first mortgage. Some portion of this amount will go to payoff the existing refinanced mortgage amount. **Owner may incur usual and customary closing costs such as fees and taxes that will reduce this amount. 11
EXHIBIT B-2 THIS EXHIBIT IS FOR EXAMPLE ONLY Multiple Refinancing Determining Amount of Equity that can be Refinanced Assuming: $240,000.00 Initial Sales Price $60,000.00 Workforce Housing Discount (25%) $180,000.00 Discount Price $177,000.00 Original First Mortgage $3,000.00 Down Payment $7,000.00 Closing Costs Paid at Time of Initial Sale $0 Capital Improvements Refinance Requested Appraisal is $291,000.00 $291,000.00 Appraisal -177,000.00 Original First Mortgage - 60,000.00 Workforce Housing Discount (2 nd Deed of Trust) - 3,000.00 Down Payment - 7,000.00 Closing Costs - 0.00 Capital Improvements - 17,460.00 Real Estate Commission (assumption that commission will be paid when selling) $ 26,540.00 Net Appreciation = 25% to CVB and 75% to Owner $6,635.00 $19,905.00 x.5 = $9,952.50 (Cannot take out equity New Mortgage cannot exceed: in excess of this amount) $186,952.50 ($177,000.00 + $9,952.50) Refinance Requested Again Appraisal is now $347,000.00 INCORRECT WAY (should not calculate using the refinanced mortgage amount) $347,000.00 Appraisal -186,952.50 Refinanced Mortgage - 60,000.00 Workforce Housing Discount (2 nd Deed of Trust) - 3,000.00 Down Payment - 7,000.00 Closing Costs - 0.00 Capital Improvements - 20,820.00 Real Estate Commission (assumption that commission will be paid when selling) $ 69,227.50 Net Appreciation = 25% to CVB and 75% to Owner $17,306.88 $51,920.62 x.5 = $25,960.31 (Cannot take out equity New mortgage cannot exceed: in excess of this amount) $212,912.81 ($186,952.50 + $25,960.31) [Exhibit B-2 Continued On Next Page] 12
[Exhibit B-2 Continued] CORRECT WAY (always calculate using the original first mortgage) $347,000.00 Appraisal -177,000.00 Original First Mortgage - 60,000.00 Workforce Housing Discount (2 nd Deed of Trust) - 3,000.00 Down Payment - 7,000.00 Closing Costs - 0.00 Capital Improvements - 20,820.00 Real Estate Commission (assumption that commission will be paid when selling) $ 79,180.00 Net Appreciation = 25% to CVB and 75% to Owner $19,795.00 $59,385.00 x.5 = $29,692.50-9,952.50* $19,740.00 ** New mortgage cannot exceed (Cannot take out equity $206,692.50 ($186,952.50 + $19,740.00) in excess of this amount) Disclosure/Disclaimer *Owner received this $9,952.50 at the time he/she refinanced the original first mortgage the first time. Some portion of this amount will go to payoff the existing refinanced mortgage amount. **Owner may incur usual and customary closing costs such as fees and taxes that will reduce this amount. 13
EXHIBIT C WORKFORCE HOUSING PROGRAM VIOLATIONS The following table lists certain violations of the Workforce Housing ("WFH") Program requirements and the penalties for their violation. Where more than one penalty is prescribed, they shall be deemed cumulative, such that any or all applicable penalties may be imposed: Program Violation Falsification of eligibility requirements Failure to occupy WFH unit as primary residence THE OWNER(S) OF THE WFH UNIT MUST ANNUALLY SIGN AND HAVE NOTARIZED, AND DELIVER TO THE DEPT OF HOUSING & NEIGHBORHOOD PRESERVATION (), AN AFFIDAVIT (IN A FORM SPECIFIED BY ) CERTIFYING TO THEIR OCCUPANCY OF THE WFH UNIT Failure to comply with all City regulations for property maintenance Failure to comply with refinancing and home equity loan requirements of WFH Program Failure to offer the City first right to purchase when desiring to sell WFH unit End-user enters into a lease-to-purchase agreement for the WFH unit Penalties Permanent ineligibility for the WFH Program. Must sell WFH unit to the City. Immediate payment of the City's share of net appreciation on the WFH unit at resale. Immediate repayment of the Workforce Housing Deed of Trust. Immediately reoccupy WFH Unit. If unable to reoccupy unit, the following penalties apply: 1. Permanent ineligibility for the WFH Program. 2. Owner must sell WFH Unit to the City. 3. Immediate payment of the City's share of net appreciation on the WFH unit at resale. 4. Immediate repayment of the Workforce Housing Deed of Trust. Immediate correction of code violation. If unable to correct code violations in prescribed time period, the following penalties apply: 1. Permanent loss of eligibility for the WFH Program. 2. Must sell WFH unit to the City. 3. Immediate payment of the City's share of net appreciation on the WFH unit at resale. 4. Immediate repayment of Workforce Housing Deed of Trust. Permanent ineligibility for the WFH Program. Owner must sell WFH unit to the City. Immediate payment of the City's share of net appreciation on the WFH unit at resale. Immediate repayment of Workforce Housing Deed of Trust. Immediate payment of the City's share of net appreciation on the WFH unit at resale. Immediate repayment of Workforce Housing Deed of Trust. Further legal action as deemed appropriate by the City. Owner must sell WFH unit to the City. Immediate payment of the City's share of net appreciation on the WFH unit at resale. Immediate repayment of Workforce Housing Deed of Trust. 14