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56 Section 3.7 Income and Rent Limits. The Developer covenants and agrees to rent 20% of the total rental units to households with incomes at or below 50% of the area median family income. Area median income is determined by HUD and published on an annual basis. ARTICLE IV ACQUISITION OF DEVELOPMENT PROPERTY Section 4.1 Acquisition of Development Property by the Developer. Under the Southern Parcel Purchase Agreement and the Northern Parcels Purchase Agreement (the "Purchase Agreements', Developer will acquire the Development Property not later than March 1, 2013. Section 4.2 Relationship of Purchase Agreements and Purchase Price. As detailed in the Purchase Agreements, the total purchase price that the Developer will pay for the Development Property will be calculated based on the actual number of senior rental housing units constructed by the Developer. Developer has agreed to pay $8,000 for each senior rental housing unit actually constructed in accordance with this Agreement (the "Purchase Price'. For example, it is currently estimated that the Developer will construct 152 housing units, in which case the Purchase Price would be $1,216,000, which is $8,000 multiplied by 152 units. The Purchase Price will be allocated between the Purchase Agreements according to the relative square footage of the Southern Parcel and the Northern Parcels. The agreed upon allocation of the Purchase Price is that 52.88% will be paid to the Authority under the Northern Parcels Purchase Agreement, and the remaining 47.12% of the Purchase Price paid to Apache Redevelopment, LLC. Accordingly, if the Developer constructs 152 units for a Purchase Price of $1,216,000, the Authority would receive $643,021 and Apache Redevelopment, LLC would receive $572,979. Section 4.3 Purchase Price Adjustment Based on Construction Costs. (a) Developer represents that as of the date hereof, the Anticipated Construction Costs are $13,951,371 as detailed in the Anticipated Construction Costs Statement, included on the Development Pro Forma, attached as Exhibit E. The Authority acknowledges that that Anticipated Construction Costs are preliminary in nature and are based upon the Developer's initial pricing. Developer agrees to adjust the Purchase Price in accordance with this Section 4.3 if Actual Construction Costs are less than the Anticipated Construction Costs. (b) Upon receipt of a certificate of occupancy for the Minimum Improvements, Developer shall, at its sole expense but as a Qualified Redevelopment Cost, cause Novogradae & Company LLP to prepare and deliver to the Authority and the City's financial advisor the Audited Construction Cost Statement. The Developer shall also furnish such additional documentation as the Authority and the City's financial advisor may reasonably request. The Authority shall notify the Developer in writing when the Audited Construction Cost Statement is determined by it to be acceptable. (c) If the Audited Construction Cost Statement demonstrates that Actual Construction Costs are less than the Anticipated Construction Costs, then, within 30 days of receiving written notification from the Authority, the Developer agrees to pay to the Authority an amount equal to 12