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11 <br />further documentation is necessary, the County will notify OCHC in writing of the <br />date funds will be available. If additional information is requested by the County, <br />the request for information must be satisfied in full before the written notification <br />of funding availability. Any new submission of material will trigger the ten (10) <br />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 OCHC to the County and a deed of trust constituting a <br />first lien on the Property which deed of trust shalt designate the. County as the <br />secured party/beneficiary. The note and deed of trust shall be in the form of the <br />documents that are attached to and a part of this Agreement. The County <br />agrees to subordinate its lien on the Property to a first mortgage securing private <br />financing obtained by OCHC in order to complete the project. <br />5. OCHC agrees to sell homes to qualified first-time homebuyers whose income <br />does not exceed 70% of the area median income by family size, as determined <br />by the U. S. Department of Housing and Urban Development and as amended <br />from time to time. In the event that the property is originally acquired by OCHC, <br />at the closing of the sale to a homebuyer, OCHC shall repay the County the total <br />HOME investment in the form of a credit to the homebuyer. The credit to the <br />homebuyer shall be documented by a promissory note from the homebuyer to <br />the County which note shall be secured by a deed of trust on the Property <br />naming the County as beneficiary. The County agrees to subordinate its lien on <br />each lot to a first lien securing private permanent financing acquired by the <br />homebuyer. The period of affordability for HOME funds in accordance with the <br />Act, its regulations and State Program Requirements shall be 20 years from the <br />date of execution of this Agreement. The default interest rate shall be 7% per <br />annum. OCHC shall provide to the County, prior to closing the sale of the <br />Property to the homebuyer, documentation satisfactory to the County verifying <br />the income of the homebuyer. <br />6. In the event property is acquired for rehabilitation and resale without identifying a <br />prospective homebuyer, OCHC agrees to identify a qualified buyer and complete <br />the sell of the property to the homebuyer within one hundred twenty days (120) <br />days of the date of the original closing. Failure to abide by this provision will <br />constitute an Event of Default as defined in Paragraph 8b. of this agreement. <br />7. The County and OCHC agree to comply with the Act, its regulations and Federal <br />Program Requirements in the purchase and sale of the Property. The County <br />and OCHC further agree to comply with the provisions of the funding agreement, <br />dated July 8, 1997, attached hereto and made a part of this Agreement (Exhibit <br />B). <br />