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

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Section 4 of this Agreement pertain. Habitat shall assure compliance with affordability of each of the fifty (50) dwelling units as is provided in the "Declarations of Restrictive Covenants" on the Property recorded at Book 3936, Page 434, Orange County Registry, at Book 3936, Page 465, Orange County Registry and at Book 3710, Page 314, Orange County Registry. These Declarations constitute and shall remain a first lien on the Property during the period of affordability. It is further the responsibility of Habitat to rerecord the Declarations of Restrictive Covenants no later than one day before the expiration of 30 years of the date of the recording the first of the Declarations, which recording date is April 1, 2005. The County retains the right to periodically and every 30 years after the first recording of the Declaration of Restrictive Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of preservation of the Restrictive Covenants on the Property as provided in North Carolina General Statute § 47B-4 or any comparable preservation law in effect at the time of the recording of the notice of preservation. It is the intent of this Section of this Agreement that the 99 year affordability requirement contained herein be accomplished and that Habitat and the County will do what is necessary to ensure that the same is not extinguished by the Real Property Marketable Title Act or any comparable law purporting to extinguish, by the passage of time, non possessory interests in real property. Both Habitat and the County agree to do what each must do to accomplish the 99-year affordability requirement. 5. Resale Provisions. Habitat shall assure compliance with affordability of assisted units through the Declaration of Restrictive Covenants. The Declaration of Restrictive Covenants shall include at least the following elements in their resale provisions for the Improvements: 5.1 If the buyer no longer uses the Property as a principal residence or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to a qualified homebuyer, i.e., aloes-income household, one whose combined income does not exceed 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 transfer, to use as their principal residence. 5.2 However, if the property is sold during the term of affordability to anon-qualified homebuyer, the Right of First Refusal provision of the New and Existing First- Time Homebuyer Program portion of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the initial County contribution and any other initial government contribution secured by a deferred payment promissory note and deed of trust) or "equity" will be divided 50/50 by the seller of the Property and the County. 5