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Resale Provisions <br />The Owner shall assure compliance with affordability of each of the Project dwelling units <br />through the Declaration of Restrictive Covenants. The Declaration of Restrictive Covenants <br />shall include at least the following elements in their resale provisions for the Improvements: <br />If Owner no longer uses the Property as rental property or is unable to continue ownership, then <br />the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an <br />agency with similar interest in affordable housing and serve families with incomes not exceeding <br />50% of the area median household income by family size, as determined by the U.S. Department <br />of Housing and Urban Development at the time of the transfer. The non-profit fund, foundation, <br />or corporation of like purposes must have established its tax-exempt status under Section 501 (c) <br />(3) of the Internal Revenue Code. <br />However, if the Property is sold, transferred, or otherwise disposed of to other than an agency <br />with similar interest in affordable housing during the term of affordability, the Right of First <br />Refusal provision of the County's Long-Term Housing Affordability Policy must be followed <br />and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of <br />the original first mortgage and (3) the unpaid principal amount of the initial County contribution <br />and any other initial government contribution secured by a deferred payment promissory note <br />and deed of trust) or "equity" will be divided 50/50 by the seller of the Property and the County. <br />The resale provision shall remain in effect for the full affordability period - 99 years. <br />VIII. OWNER PERFORMANCE UNDER THIS AGREEMENT <br />Owner agrees and authorizes the County and HUD to conduct on-site reviews, examine client <br />and contractor records, client applications and to conduct any other procedures or practices to <br />assure compliance with these provisions. <br />Owner agrees to not violate any State or Federal laws, rules or regulations regarding a direct or <br />indirect illegal interest on the part of any employee or elected official of the Owner in the Project <br />or payments made pursuant to this Agreement. <br />Owner agrees that to the best of its knowledge, neither the Project nor the funds provided <br />therefore, and the personnel employed in the administration of the program shall be in any way <br />or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of <br />Title 5, United States Code, referred to as the Hatch Act. <br />Owner shall adopt the audit requirements of the Office of Management and Budget (hereinafter <br />"OMB") Circular A-110, "Grants and Agreements with Institutions of Higher Education, <br />Hospitals, and Other Nonprofit Organizations," and Circular A-122, "Cost Principles for <br />Nonprofit Organizations," and OMB Circular A-133, "Audits of Institutions of Higher Education <br />and. Other Non-Profit Institutions." Owner shall submit to the County copy of said audit report. <br />Owner shall permit the authorized representatives of the County, HUD and the Comptroller <br />a <br />