San Leandro Municipal Code Art. 3 Mortgage Loans

No Mortgage Loan shall exceed 95% of the purchase price or 95% of the appraised value of the Property, whichever is less.

For a period of not to exceed six months after the commencement of the sale of Property pursuant to the Program, there shall be reserved for purchase by Resident Homebuyers 35 Properties to the following extent: One bedroom Properties and one bedroom with den Properties may be purchased by a Resident Homebuyer with a Mortgage Loan equal to 95% of the purchase price of the Property or 95% of the appraised value of the Property, whichever is less, and two bedroom Properties and two bedroom with den Properties may be purchased by a Resident Homebuyer with a Mortgage Loan of not less than 90% of the purchase price of the Property or 90% of the appraised value of the property, whichever is less.

Any Mortgage Loan may be assumed upon the Participating Party's sale, transfer or other disposition of the Property, if the purchaser of such Property demonstrates his or her creditworthiness to assume such Mortgage Loan.

No person (or any "related person" as defined in Section 103(b)(6)(C) of the Internal Revenue Code of 1954, as amended) from whom the Agency may acquire or through whom the Agency may make Mortgage Loans shall, pursuant to an arrangement, formal or informal, purchase Bonds in an amount related to the amount of Mortgage Loans to be purchased from or made through such Person.