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4 <br />further documentation is necessary, the County will notify EmPOWERment in <br />writing of the date funds will be available. If additional information is requested <br />by the County, the request for information must be satisfied in full before the <br />written notification of funding availability. Any new submission of material will <br />trigger the ten (10) working days response timeframe outlined above. <br />4. HOME funds used for acquisition and rehabilitation of available property shall be <br />secured by a note from EmPOWERment to the County and a deed of trust <br />constituting a first lien on the Property which deed of trust shall designate the <br />County as the secured party/beneficiary. The note and deed of trust shall be in <br />the form of the documents that are attached to and a part of this Agreement. The <br />County agrees to subordinate its lien on the Property to a first mortgage securing <br />private financing obtained by EmPOWERment in order to complete the project: <br />In the event that EmPOWERment is acting as a sponsor of a first-time <br />homebuyer in need of second mortgage funding, HOME funds used for this <br />purpose shall be secured by a note from the homebuyer to the County and a <br />deed of trust constituting a first lien on the Property which deed of trust shall <br />designate the County as the secured party/beneficiary. The note and deed of <br />trust shall be in the form of the documents that are attached to and a part of this <br />Agreement. The County agrees to subordinate its lien to a first lien securing <br />private permanent financing acquired by the homebuyer. <br />5. EmPOWERment agrees to sell homes to qualified first-time homebuyers whose <br />income does not exceed 70% of the area median income by family size, as <br />determined by the U.S. Department of Housing and Urban Development and as <br />amended from time to time. At the closing of the sale to a homebuyer, <br />EmPOWERment shall repay the County the total HOME investment in the form <br />of a credit to the homebuyer. The credit to the homebuyer shall be documented <br />by a promissory note from the homebuyer to the County which note shall be <br />secured by a deed of trust on the Property naming the County as beneficiary. <br />The County agrees to subordinate its lien on each lot to a first lien securing <br />private permanent financing acquired by the homebuyer. The period of <br />affordability for HOME funds in accordance with the Act, its regulations and State <br />Program Requirements shall be 20 years from the date of execution of this <br />Agreement. The default interest rate shall be 7% per annum. EmPOWERment <br />shall provide to the County, prior to closing the sale of the Property to the <br />homebuyer, documentation satisfactory to the County verifying the income of the <br />homebuyer. <br />6. In the event property is acquired for rehabilitation and resale without identifying a <br />prospective homebuyer, EmPOWERment agrees to identify a qualified buyer and <br />complete the sell of the property to the homebuyer within one hundred twenty <br />days (120) days of the date of acquisition of the property by EmPOWERment. <br />Failure to abide by this provision will constitute an Event of Default as defined in <br />Paragraph 8b. of this agreement. <br />4 <br />