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~" s'-.Z~a 5 <br />completion of an environmental review and receipt by Orange County of a Release of Funds <br />from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if <br />applicable. The parties further agree that the provision of such funds to the project is <br />conditioned on Orange County's determination to proceed with, modify, or cancel the project <br />based on the results of a subsequent environmental review. <br />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. a. Habitat shall construct at least three (3) dwelling units on the Properties as <br />defined in the Project, obtain all permits and licenses necessary for construction, and <br />comply with applicable building and zoning ordinances and the N.C. Housing Finance <br />Agency Energy Standards. The Project shall be undertaken without residential <br />displacement. <br />b. Habitat shall sell the three (3) newly constructed dwelling units to qualified <br />buyers whose income is up to but not more than 60% of the area median household <br />income by family size, as determined by the U.S. Department of Housing and Urban <br />Development at the time of the sale. <br />c. The funding provided by the County will be provided as a deferred second <br />mortgage to the individual families at the time of sale to them. The investment will be <br />secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of <br />40 years. This Deed of Trust and Promissory Note shall constitute a lien on the <br />Properties, subordinate only to the Declaration of Restrictive Covenants described in <br />paragraph 4 of this Agreement, with the County as the secured party beneficiary. The <br />County agrees to further subordinate its Deed of Trust lien on the Properties to a lien <br />securing private construction financing acquired by Habitat in order to complete the <br />project. <br />d. At the time of closing of the sale of each of the dwelling units to a homebuyer, <br />Habitat shall repay the County $20,000.00 in the form of a credit to the homebuyer. The <br />credit to the homebuyer shall be documented by a Promissory Note from the homebuyer <br />to the County which note shall be secured by a Deed of Trust on the Properties naming <br />the County as beneficiary. The County agrees to subordinate its Deed of Trust lien to a <br />lien securing private permanent financing acquired by the homebuyer. <br />e. The period of affordability will be 99 years and will be secured by a Declaration <br />of Restrictive Covenants that will incorporate a right of first refusal that may be exercised <br />by Habitat and/or Orange County. <br />f. Habitat is responsible for soliciting buyers for the dwelling units constructed on <br />the Properties. Habitat and/or its buyers shall be responsible for securing permanent <br />mortgage financing for the homes built on the Properties. <br />2 <br />