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201106�01 <br />The fair market value of a Qualified Unit is its appraised value based on an appraisal <br />made by a licensed appraiser, selected by the Authority, who is a member of the Master <br />Appraiser Institute and who has experience in the geographic area in which the Project is located <br />The following scenarios outlining the allocation of Crown Equity and is provided for <br />purposes of illustration only and not limitation: <br />Scenario I <br />Year 15 Year 18 <br />Event Initial Sale Subsequent Sale <br />Qualified Tenant's Number of Years of Occupancy 6 9 <br />Initial Sale Fair Market Value $80,000 $80,000 <br />Initial Sale Price $50,000 $50,000 <br />Subsequent Sale Price N/A $90,000 <br />Crown Equity $80,000-$50,000= $30,000 <br />$30,000 <br />Appreciation Equity $0 $90,000-$80,000=$ <br />10,000 <br />Amount of Crown Equity Allocable to Qualified ($80,000-$50,000) <br />Tenant -$30,000 X 9/10 <br />=$27,000 <br />Amount of Crown Equity Allocable to Authority $30,000-$27,000= <br />$3,000 <br />Total of Crown Equity and Appreciation Equity $27,000+$10,000= <br />Allocable to Qualified Tenant $37,000 <br />'Assume for each scenario that the Qualified Tenant at the Initial Sale purchases the Qualified Unit with 100% debt <br />and that at the Subsequent Sale no portion of the principal of this debt has been amortized. <br />4832-2986-0106.1 13 <br />