S Housing-Development Agreement - Consolidated Housing $70,000 Empowerment Inc-

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County of a Release of Funds from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if applicable. The parties further agree that the provision of such funds to the project is conditioned on Orange County's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: 1. a. EmPOWERment shall acquire the Property and ensure. that the unit constructed on the Property meets the property standards in 24 CFR 92.251 and the lead-based paint requirements in 92.355 at the time of project completion. A Section 8 Housing Quality Standards (HQS) inspection must be conducted prior to sale of the dwelling to ensure compliance. All construction and any repair work necessary must be completed in accordance with applicable building and zoning ordinances. b. EmPOWERment shall sell the newly constructed dwelling unit to qualified buyers whose income up to 80% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the sale. c. Financial assistance in the amount of $70,000 in Orange County HOME Investment Partnership Program funds will be provided in the form of a deferred loan with aninety- nine (99) year loan term. A Deed of Trust and Promissory Note will secure the loan funds. This Deed of Trust and Promissory Note shall constitute a lien on the Property subordinate only to the Declaration of Restrictive Covenants described in Section 2 of this Agreement. d. The Project dwelling unit must remain affordable for a period of 99 years. Project Completion is the closing date on the first sale of the dwelling unit by EmPOWERment to a qualified buyer. This 99 year affordability requirement will be secured by a Deed of Trust, Promissory Note, and Declaration of Restrictive Covenants that will incorporate a right of first refusal that may be exercised by the County. d. EmPOWERment is responsible for soliciting buyers for the dwelling unit to be constructed on the Property. EmPOWERment and/or its buyers shall be responsible for securing permanent mortgage financing for the homes on the Property. e. EmPOWERment is responsible for verifying the income of the homebuyers, explaining the second mortgage program to potential homebuyers and certifying by written documentation signed by the homebuyer that the program requirements have been fully explained. EmPOWERment shall maintain purchaser files as part of its Books and Records as required and for the period of time required by Section 4.f. of this Agreement. f. EmPOWERment may request in writing the disbursement of funds under this Agreement for actual project costs. 2