2008-117 Housing - Development Agreement-Community Alternatives for Supportive Abodes

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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. CASA shall ensure that the Project dwelling units meet 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 purchase to ensure compliance: Any repair work necessary must be completed in accordance with applicable building and zoning ordinances. CASA: agrees to lease the Project dwelling units to families whose income does not exceed 50% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. Monthly rents must not exceed the HOME Program Rents in effect at the time of occupancy. Residential leases will not exceed one year in term. b. Financial assistance in the amount of $435,222 in Orange County HOME Investment Partnership Program money will be provided in the form of a deferred loan with a ninety-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 and the Deed of Trust recorded to Geoffrey E. Gledhill, Trustee for Orange County, recorded at Book 4583, Page 488, Orange County Registry. The Project dwelling units must remain affoxdable for a period of 99 years. 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 maybe exercised by the County. . CASA may request in writing the disbursement of funds under this Agreement for actual project costs. Any program income arising from this project rmust be expended prior to requesting HOME funds: After acquisition of the Property, any program income must be repaid to tl~.e County each year. c. The Property shall be acquired .and the Project dwelling units rehabilitated and occupied by September 30, 2009. The .Project Completion date is the day when the last of the Project dwelling units is occupied after all of the Project dwelling units are rehabilitated. In the event that CASA is unable to complete its obligations to acquire, rehabilitate, and occupy the Project dwelling units within this time or by extensions approved by the County under the terms of this Agreement, CASA will be required to repay the full amount of the County's outstanding loan as provided in the loan documents. 2