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Article VI. Ownership and Resale of Improvements

1. Ownership of Housing and Improvements on the Trust's Land. In accordance with the purposes of the Trust, the Board of Directors shall take appropriate measures to promote and facilitate the ownership and/or democratic control of housing and other improvements on the Trust's land by low-income and moderate-income people who subscribe to the mission of the Trust. These measures may include, but are not limited to, provisions for the sale of housing to such people; provisions for financing the acquisition of housing by such people, including direct loans by the Trust; and provision for grants or other subsides that will lower the cost of housing for such people.

2. Purchase by the Trust of Property Located on the Trust's Land. It is a purpose of the Trust to preserve the affordability of housing and other improvements for low-income and moderate-income people in the future. Accordingly, when land-use rights are leased, the Board of Directors shall assure that, as a condition of the lease, the Trust is granted the right to purchase any lessee-owned housing or other improvements on the land for a price determined by the "resale formula," at such time as the lessees wish to sell or the lease is terminated.

3. The Resale Formula. For the purpose of preserving affordability, the Trust shall restrict the price that lessees may receive when they sell housing and other improvements located on the land leased to them by the Trust. A policy establishing such restrictions in the form of a “resale formula” shall be adopted by the Board of Directors and the General Members of the Trust, in accordance with the following principles:

3.1. To the extent possible, the formula shall allow the seller to receive a price based on the value that the seller has actually invested in the property being sold.

3.2. To the extent possible, the formula shall limit the price of the property to an amount that will be affordable for other people with low and moderate incomes at the time of the transfer of ownership.

4. Procedures for Adoption of the Resale Formula. The adoption of the resale formula shall require:

4.1. An affirmative vote by at least two thirds of the entire Board of Directors at any regular or special Board meeting, provided that written notice of such meeting has set forth the proposed formula with an explanation thereof, and

4.2. An affirmative vote by at least two thirds of the General Members present at any regular or special Membership meeting, a quorum being assembled, provided that written notice of such meeting has set forth the proposed formula with an explanation thereof.

5. Procedures for Altering the Resale Formula. The consistent long-term application of a resale formula is essential to the purposes of the Trust. Accordingly, the resale formula shall not be altered unless the Board of Directors and General Members of the Trust determine that the current formula presents an obstacle to the achievement of the purposes of the Trust. In such an event, the resale formula may be altered only by a two-thirds vote of the entire Board of Directors and a two thirds vote of the General Members present at a Membership meeting, as described above for the adoption of the formula.

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