Orange County NC Website
DRAFT <br />4 <br />benefit for assisted units, unless affordability restrictions are terminated due to the <br />occurrence of any of the following events: 1) foreclosure, 2) transfer in lieu of <br />foreclosure, or 3) assignment of an FHA insured mortgage to HUD. EmPOWERment <br />shall assure compliance with affordability of assisted units by recording Exhibit C <br />"Declaration of Restrictive Covenants" on every assisted property. <br />5. Resale Provisions. EmPOWERment shall assure compliance with affordability of <br />assisted units through the Declaration of Restrictive Covenants. The Declaration of <br />Restrictive Covenants shall include at least the following elements in their resale <br />provisions for the Improvements: <br />5.1 If the original buyer no longer uses the Improvement as a principal residence or <br />is unable to continue ownership, then the buyer must sell, transfer, or otherwise <br />dispose of its interest in the Improvement only to a low - income household, one <br />whose combined income does not exceed 80% of the median household income <br />as determined annually by HUD, to use as their principal residence. <br />5.2 The original buyer shall receive a fair return on investment (including the <br />buyer's investment and any capital investment). <br />5.3 The resale provision shall remain in effect for the full affordability period — 99 <br />years. <br />6. Miscellaneous Provisions. <br />a. Termination of Agreement. The full benefit of the Project will be realized only <br />after the completion of the affordability periods for all properties constructed with funds <br />provide affordable units to low - income families. It is the County's intention that the full public <br />benefit of this project shall be completed under the auspices of EmPOWERment for the assisted <br />units as follows: <br />i. In the event that EmPOWERment is unable to proceed with any aspect of the Project <br />in a timely manner, and County and EmPOWERment determine that reasonable <br />extension(s) for completion will not remedy the situation, then EmPOWERment will <br />retain responsibility for requirements for any units assisted and County will make <br />no further payments to EmPOWERment. <br />ii. In the event that EmPOWERment, prior to the close of the final affordability period, <br />is unable to continue to function due to, but, not limited to, closure or insolvency of <br />the organization, filing a petition of bankruptcy or similar proceedings, or is adjudged <br />bankrupt or fails to comply or perform with provisions of this agreement as required <br />by federal regulations, then EmPOWERment shall, upon the County's request, <br />convey to the County the properties assisted with funds. Conveyance shall be at the <br />sole discretion of County and on a property by property basis. <br />Conveyance of properties shall be on the terms set forth herein: <br />4 <br />