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NOW, THEREFORE, in consideration of the mutual covenants, promises, and <br />representations contained herein, it is agreed between the parties hereto as follows: <br />1. CHT agrees to construct the project dwelling units and lease them in the following <br />manner. <br />a. CHT shall acquire the land and construct the dwelling units defined in the <br />Project, obtain all permits and licenses necessary, and comply with applicable building <br />and zoning ordinances and the N.C. Housing Finance Agency Energy Standards. The <br />Project shall be undertaken without residential displacement. <br />b. CHT shall lease the housing units, as herein defined, to qualified buyers whose <br />income is up to but no more than 80% of the area median household income by family <br />size, as determined by the U.S. Department of Housing and Urban Development at the <br />time of the sale. <br />c. The period of affordability will be at least 99 years and will be secured by an <br />CHT Ground Lease of the housing units with restrictions to ensure compliance. Further <br />security shall be in the form of a Declaration of Restrictive Covenants (Exhibit B) that <br />will make the County a third party beneficiary of and successor to the long term <br />affordability remedies in the Ground Lease in the event of a failure of or inability of <br />CHT to enforce the long term affordability remedies in the Ground Lease. <br />d. CHT is responsible for soliciting CHT Ground Lease tenants for the housing <br />units. CHT and/or the Ground Lease tenants shall be responsible for securing permanent <br />mortgage financing for the housing units. <br />e. CHT is responsible for verifying the income of the Ground Lease tenants, <br />explaining the land trust program and the CHT Ground Lease to potential tenants and <br />certifying by written documentation signed by the tenants that the program requirements <br />have been fully explained. CHT shall maintain purchaser files as part of its Books and <br />Records as required and for the period of time required by Section 8.c. of this <br />Agreement. <br />2. At the time of resale of each of the project dwelling units, CHT will convey a housing <br />unit to a qualified homebuyer. Each housing unit will consist of a 99 year Ground Lease <br />(renewable for an additional 99 years) to the project dwelling unit. The Ground Lease, <br />the form of which is Exhibit C hereto, provides for the long term affordability (at least <br />99 years) of the housing unit and provides remedies to insure the long term affordability <br />of the housing unit. CHT hereby declares and covenants, on behalf of itself and all future <br />owners of the Property, that, during the term of the Declaration of Restrictive Covenants, <br />the County is a third party beneficiary of and successor to each and every remedy <br />intended to insure the long term affordability of the housing unit that is provided for in <br />the Ground Lease and may, in the event of the failure or default of the Lessor in the <br />Ground Lease to insure the long term affordability of the housing unit as provided for. in <br />the Ground Lease, exercise all rights and remedies available to the Lessor in the Ground <br />Lease for that purpose. <br />2 <br />