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NOW, TH>;R>;F'ORR, in consideration of the mutual covenants, promises, and <br />representations contained herein, it is agreed between the parties hereto as follows: <br />1. OCHLT agrees to acquire the project dwelling units and lease them in the following <br />manner. <br />a. OCHLT shall acquire and renovate the dwelling units defined in the Project, <br />obtain all permits and licenses necessary, and comply with applicable building and <br />zoning ordinances and the N.C. Housing Finance Agency Energy Standards. The Project <br />shall be undertaken without residential displacement. <br />b. OCHLT shall lease a housiug unit, as herein defined, in the renovated dwelling <br />units to qualified buyers whose income is up Co but no more than 80% of the area median <br />household income by family size, as determined by the U.S. Department of Housing and <br />Urban Development at the time of the sale. <br />a The period of affordability will be at least 99 years and will be secured by an <br />OCHLT Ground Lease of the housing units with restrictions to ensure compliance. <br />Further security shall be in the form of a Declaration of Restrictive Covenants (Exhibit <br />A) that will make the County a third party beneficiary of and successor to the long term <br />affordability remedies in the Ground Lease in the event of a failure of or inability of <br />OCHLT to enforce the long term affordability remedies in the Ground Lease. <br />d. OCHLT is responsible for soliciting an OCHLT Ground Lease tenants for the <br />housiug units. OCHLT and/or the Ground Lease tenants shall be responsible for securing <br />permanent mortgage financing for the housing units. <br />e. OCHLT is responsible for verifying the income of the Ground Lease tenants, <br />explaining the ]and h~ust program and the OCHLT Ground Lease to potential tenants and <br />certifying by written documentation signed by the tenants that the program requirements <br />have been fully explained. OCHLT shall maintain purchaser files as part of its Books <br />and Records as required and for the period of time required by Section 7.c, of this <br />Agreement. <br />2. At the time of resale of each of the project dwelling units, OCHLT will convey a housing <br />unit to a qualified homebuyer. Each housing unit will consist of a 99 year Ground Lease <br />(renewable for an additional 99 years) to the project dwelling unit. The Ground Lease, <br />the form of which is Exhibit B hereto, provides for the long term affordability (at least <br />99 years) of the housing unit and provides remedies to insure the long term affordability <br />of the housing unit. OCHLT hereby declares and covenants, on behalf of itself and all <br />future owners of the Property, that, during the term of this Declaration, the County is a <br />third party beneficiary of and successor to each and every remedy intended to insure the <br />long term affordability of the housing unit that is provided for in the Ground Lease and <br />may, in the event of the failure or default of the Lessor in the Gromrd Lease to insure the <br />long term affordability of the housing unit as provided for in the Ground Lease, exercise <br />all rights and remedies available to the Lessor in the Ground Lease for that purpose. <br />2 <br />