2009-081 Housing - Habitat for Humanity of Orange County - Development Agreement effective 9-18-2009

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practicable, equal in amount for each of the 50 dwelling units constructed by Habitat on the Property; and WHEREAS, this credit for Bond funds, including the Bond funds loaned to Habitat as part of this Agreement, totals $9,000 for each of the dwelling units in the Project ($450,000 total Bond funds divided by 50 dwelling units); and WHEREAS, this Agreement together with all other HOME and Bond Development agreements between Habitat and the County, notwithstanding anything to the contrary contained in the other agreements, provides funds for the purchase of land for, the development of the land for, the construction of 50 single family dwelling units for the sale of 50 single family dwelling units as follows: 10 dwelling units to be sold to first time homebuyers whose earnings are between 60% and 80% of the HUD area median income and 40 dwelling units to be sold to first time homebuyers whose earnings are up to but not including 60% of the HUD area median income, 20 of the 40 with earnings between 30% and up to but not including 60%; and NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: 1. Each of the recitals contained in this Agreement is a covenant, promise representation and contractual obligation according to its terms. 2. a. Habitat shall construct the necessary infrastructure and build at least fifty (50) dwelling units as defined in the Project, obtain all permits and licenses necessary for construction, and comply with applicable building and zoning ordinances and the N.C. Housing Finance Agency Energy Standards. The Project shall be undertaken without residential displacement. b. Habitat shall sell the newly constructed dwelling units to qualified buyers in the following manner: Ten (10) dwelling units to be sold to first time homebuyers whose earnings are between 60% and 80% of the HUD area median income and 40 dwelling units to be sold to first time homebuyers whose earnings are up to but not including 60% of the HUD area median income, 20 of the 40 with earnings between 30% and up to but not including 60%;each of whose income is up to 60% 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. a The funding provided by the County will be provided as a deferred second mortgage transferable to the individual families at the time of sale to them. The investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on the Property, second only to the Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with the County as the secured party/beneficiary. The County agrees to subordinate its Deed of Trust lien on the Property to a lien securing private construction financing acquired by Habitat in order to complete the project.