Orange County NC Website
Browse       Search
3 <br />obtaining credit information, providing homeownership education, preparing a sales <br />contract and other necessary documents. <br />4. OCHC agrees to sell the homes to qualified buyers whose incomes do not exceed <br />80% of the area median income by family size, as determined by the U.S. <br />Department of Housing and Urban Development and amended from time to time. At <br />the closing of the sale to a homebuyer of each lot, OCHC shall repay the County, <br />$3,571.43 in the form of a credit to the homebuyer. The credit to the homebuyer <br />shall be documented by a promissory note from the homebuyer to the County which <br />note shall be secured by a deed of trust on the property naming the County as <br />beneficiary. The County agrees to subordinate its mortgage interest on each lot to a <br />first lien private mortgage acquired by the buyer. The period of affordability for <br />HOME funds in accordance with the Acts, its regulations and State Program <br />Requirements shall be 20 years from the date of execution of this Agreement. The <br />default interest rate shall be 7% per annum. OCHC shall provide to Orange County <br />prior to closing the sale of each home documentation, satisfactory to the County, <br />verifying the income of each buyer. <br />10. Miscellaneous Provisions. <br />a. Termination of Agreement. The obligations of the parties hereunder and <br />the specific obligation of OCHC to construct homes thereon shall terminate upon the <br />completion of the sale of the targeted fourteen townhomes to qualified buyers. Continuing <br />obligations of the buyers shall be contained in the note and deed of trust to be recorded at <br />the time of closing of the sale of each home. Notwithstanding the foregoing, the parties <br />hereto may terminate this Agreement at any time by a mutual agreement to that effect in <br />writing. <br />b. Default, Remedies. This Agreement may be terminated by a non - <br />defaulting party upon an event of default hereunder, after written notice thereof and <br />thirty (30) days grace period in which the defaulting party may act to cure. As used <br />herein, the term "an event of default" shall mean and refer to a failure or act of omission <br />by either party with respect to any undertaking, obligation, covenant or condition as set <br />forth in this Agreement. With respect to any event of default, the non - defaulting party <br />may exercise any right available to it at law or in equity with respect to such default. <br />C. Books and Records. Each party shall keep and maintain books, records <br />and other documents relating directly to the receipt and disbursement of grant funds <br />and the fulfillment of this Agreement. Each party agrees that any authorized <br />representative of the County, the State, the U.S. Department of Housing and Urban <br />Development and Comptroller General of the United States shall, at all reasonable <br />times, have access to and the right to inspect, copy, audit and examine all of the books, <br />records and other documents relating to the grant and the fulfillment of this Agreement <br />for a period of three (3) years following the completion of the Project. <br />