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DRAFT <br />12 <br />Habitat shall be responsible for explaining the second mortgage program to potential <br />homebuyers and certify by written documentation signed by the homebuyer that the <br />program requirements have been fully explained. Habitat shall maintain purchaser files <br />for a period of 99 years following completion of the development of the Property. <br />2. Progress Payments. The County shall make progress payments, when requested by <br />Habitat, as the work progresses. Payments shall be based upon work completed and <br />approved by County. Progress payment requests shall be based on actual costs incurred <br />by Habitat identified in the Budget as described in attached Exhibit B. Payment requests <br />shall be accompanied by copies of documentation for actual expenses. Request amounts <br />shall be verified by County for satisfactory completion prior to payment. <br />The bond funding provided by the County will be provided as a deferred second <br />mortgage transferable to the individual families at the time of sale. The bond investment <br />will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the <br />end of 40 years. The period of affordability will be 99 years and will be secured by a <br />deed covenant that will incorporate a right of first refusal that may be exercised by <br />Habitat and/or Orange County. If the Property is sold during the term of affordability, all <br />equity realized from the sale will be divided 50/50 by the seller of the Property and the <br />County. <br />3. Time for Commencement and Completion. Habitat, Incorporated must submit a sound, <br />site - specific development proposal for developing the Property within eighteen (18) <br />months of initial award. Actual construction must begin within three (3) years of the <br />original application date. Habitat will responsible for providing status reports to the <br />County quarterly detailing the project activities until project completion. In addition, <br />Habitat agrees to furnish to the County a copy of its annual audit, performed by a <br />certified public accountant within 90 days of the end of each fiscal year until the Project <br />is complete. <br />Completion date shall be designated as the closing date of the purchase of the 25th <br />property. In the event that Habitat is unable to proceed with any aspect of the project in a <br />timely manner, and County and Habitat determine that reasonable extension(s) for <br />completion will not remedy the situation, then the conditions of termination shall be in <br />effect. Habitat may, at its option, submit a written request for a delay of completion for <br />County approval. Any delay in the completion date shall be approved by County. <br />Habitat shall monitor the constructed units for affordability for the period of affordability <br />— ninety-nine (99) years. Final contract completion date shall be the latest end date of all <br />assisted unit affordability periods. <br />4. Affordability Requirement. The units must remain affordable for period of ninety-nine <br />years. Habitat retains full responsibility for compliance with the affordability benefit for <br />assisted units, unless affordability restrictions are terminated due to the occurrence of any <br />of the following events: 1) foreclosure, 2) transfer in lieu of foreclosure, or 3) assignment <br />of an FHA insured mortgage to HUD. Habitat shall assure compliance with affordability <br />10 <br />