Common use of Indexed Price Clause in Contracts

Indexed Price. The Indexed Price of the Home means the sales price of the Home at the time of purchase by the Owner, as set forth on page 1 of this Agreement (the "Owner's Base Price"), increased by the percentage of increase in the Median Income from the date of the original purchase of the Home by the Owner to the date of receipt by the City of the Owner's Notice of Intent to Transfer, and, where applicable, adjusted pursuant to subsection 11A(1) to reflect the value of Eligible Capital Improvements and subsection 11A(3) to reflect Owner's Original Closing Costs or subsection 11A(2) below to reflect the cost of deferred maintenance. "Median Income" shall refer to the median yearly income, adjusted for a household size of four, in Alameda County, as published by the California Department of Housing and Community Development ("HCD"), or, in the event such income determination is no longer published by HCD, or has not been updated for a period of at least eighteen (18) months, the City may use or develop such other reasonable method as it may choose in order to determine the median yearly income in Alameda County. The Median Income as of the date of this Agreement is shown on the first page of this Agreement. (1) Where applicable, the Indexed Price shall include an upward adjustment reflecting the value of any substantial structural or permanent fixed improvements which the Owner has made to the Home after purchase of the Home. No such adjustment shall be made except for improvements: (a) made or installed by the Owner which conform with applicable building codes; (b) approved in advance of installation by the City; (c) whose initial costs were Two Thousand Dollars ($2,000) or more; and (d) that conform to Federal Housing Quality Standards and (e) for which the Owner has submitted two bids from contractors acceptable to the City stating the estimated cost to perform the Improvements. Capital improvements meeting the above requirements are referred to herein as "Eligible Capital Improvements." Eligible Capital Improvements shall be any addition or improvement made to the Home which consists of more than mere repairs or replacement of existing facilities or improvements and which has a useful life of five (5) years or more. A form for use in requesting City approval of an Eligible Capital Improvement is attached hereto as Exhibit E. The adjustment to the Indexed Price for Eligible Capital Improvements shall be limited to the cost minus depreciation value of the Eligible Capital Improvements. (2) The Indexed Price shall include a downward adjustment, where applicable, in an amount necessary to repair any violations of applicable building, plumbing, electric, fire or housing codes or any other provisions of the City of Hayward Building Code, as well as any other repairs needed to put the Home into a "sellable condition." Items necessary to put the Home into sellable condition shall be determined by the City, and may include cleaning, painting and making needed structural, mechanical, electrical, plumbing and fixed appliance repairs and other deferred maintenance repairs. (3) The Indexed Price shall include an upward adjustment reflecting the City's administrative fees set forth in Section 10A or Section 12E, as applicable. (4) In the event the difference between the Indexed Price and the Owner's Base Price is less than the amount of closing costs that the Owner paid at the initial closing of the sale of the Home to Owner and that are set forth on page 1 of this Agreement (the "Owner's Original Closing Costs"), the Indexed Price shall be adjusted upward in an amount equal to the difference between (i) the Indexed Price as calculated pursuant to Section 11A above and (ii) the sum of the Owner's Base Price and Owner's Original Closing Costs. Notwithstanding the preceding sentence, the Index Price shall not be adjusted upward pursuant to this subsection 11A(3) if any downward adjustment is required pursuant to Section 11A(2), if the Owner has otherwise failed to maintain the Home in good repair, or if the Owner is otherwise in default under or in violation of the terms of this Agreement.

Indexed Price. The Indexed Price of the Home Unit means the sales price of the Home Unit at the time of purchase by the Owner, as set forth on page 1 of this Agreement Dollars ($---,---) (the "Owner's Base Price"), increased by the percentage of increase in the Median Income from the date of the original purchase of the Home Unit by the Owner to the date of receipt by the City of the Owner's Notice of Intent to Transfer, and, where applicable, adjusted pursuant to subsection 11A(1(ii) below to reflect the value of Eligible Capital Improvements and subsection 11A(3) to reflect Owner's Original Closing Costs capital improvements or subsection 11A(2) below to reflect the cost of deferred maintenance. A decrease in Median Income shall have no affect the Index Price. "Median Income" shall refer to the median yearly income, adjusted for a household size of fourfour (4), in Alameda Contra Costa County, as published by the California Department of Housing and Community Development ("HCD"), or, in the event such income determination is no longer published by HCD, or has not been updated for a period of at least eighteen (18) months, the City may use or develop such other reasonable method as it may choose in order to determine the median yearly income in Alameda Contra Costa County. The Median Income for a household of four (4) persons as of the date of this Agreement is shown on the first page of this Agreement. (1i) Where applicable, the Indexed Price shall include an upward adjustment reflecting the value of any substantial structural or permanent fixed improvements which the Owner has made to the Home Unit after purchase of the HomeUnit. No such adjustment shall be made except for improvements: (a1) made or installed by the Owner which conform with applicable building codes; (b2) approved in advance of installation by the City; (c3) whose initial costs were Two Thousand Dollars ($2,000) or more; and (d4) that conform to Federal Housing Quality Standards and (e) for which the Owner has submitted two bids from contractors acceptable to the City stating the estimated cost to perform the ImprovementsStandards. Capital improvements meeting the above requirements are referred to herein as "Eligible Capital Improvements." Eligible Capital Improvements shall be any addition or improvement made to the Home which consists of more than mere repairs or replacement of existing facilities or improvements and which has a useful life of five (5) years or more. A form for use in requesting City approval of an Eligible Capital Improvement is attached hereto as Exhibit E. The adjustment to the Indexed Price for Eligible Capital Improvements shall be limited to appraised increases in value to the cost minus Unit as a result of the improvements (pursuant to an appraisal performed as described in Section 4.5(b) below), including any depreciation in value of the Eligible Capital Improvementscapital improvements since the time of installation, and not the cost of construction of the improvements to the Unit. (2ii) The Indexed Price shall include a downward adjustment, where applicable, in an amount necessary to repair any violations of applicable building, plumbing, electric, fire or housing codes or any other provisions of the City of Hayward Building Code, as well as any other repairs needed to put the Home into a "sellable condition." Items necessary to put the Home into sellable condition shall be determined by the City, and may include cleaning, painting and making needed structural, mechanical, electrical, plumbing and fixed appliance repairs and other deferred maintenance repairs. (3) The Indexed Price shall include an upward adjustment reflecting the City's administrative fees set forth Repair Costs as defined in Section 10A or Section 12E, as applicable4.2. (4) In the event the difference between the Indexed Price and the Owner's Base Price is less than the amount of closing costs that the Owner paid at the initial closing of the sale of the Home to Owner and that are set forth on page 1 of this Agreement (the "Owner's Original Closing Costs"), the Indexed Price shall be adjusted upward in an amount equal to the difference between (i) the Indexed Price as calculated pursuant to Section 11A above and (ii) the sum of the Owner's Base Price and Owner's Original Closing Costs. Notwithstanding the preceding sentence, the Index Price shall not be adjusted upward pursuant to this subsection 11A(3) if any downward adjustment is required pursuant to Section 11A(2), if the Owner has otherwise failed to maintain the Home in good repair, or if the Owner is otherwise in default under or in violation of the terms of this Agreement.