1998 NS Housing - Orange Person Chatham Mental Health Agency Development Agreement with for HOME funding - 06-22-1998-8h

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n D b 2 U NORTH CAROLINA ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT between Orange County, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and Orange- Person-Chatham Mental Health Authority, a North Carolina nonprofit corporation (hereinafter referred to as "OPC"). The date of this Agreement is June 22, 1998. WITNESSETH WHEREAS, the Orange County HOME Consortium has designated $40,000 in 1997 HOME funds for the purpose of enabling the Orange-Person-Chatham Mental Health Authority to acquire and rehabilitate rental property located in Orange County for lease to severely and persistently mentally ill County residents; and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated June 25, 1996, and amended September 20, 1996, and as such is the lead entity in a representative capacity for all members of the Orange HOME Consortium for the purposes of carrying out the HOME Program in accordance with the Title II of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101- 625), (42 U.S.C. 3535(d.) et. sew.) (hereinafter referred to as the "Act"), and as further defined in the Federal Program Requirements provided by the U.S. Department of Housing and Urban Development; and NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto do agree as follows: OPC agrees to acquire, repair and manage the tenancy at purchased property in the following manner. a. All prospective property must be inspected for health and safety defects prior to purchase: At a minimum, the property must meet the Section 8 Housing Quality Standards (HQS). b. If the dwelling fails to meet Section 8 Housing Quality Standards (HQS) and repairs are necessary, the sponsor is responsible for ensuring that the work is done properly. The dwelling must not be occupied by a selected tenant prior to the property meeting Section 8 Housing Quality Standards. c. The property to be acquired must have a value that does not exceed 95% of the area median purchase price for that type of housing. Value must be established by one of the following methods: i. An appraisal by a qualified appraiser. ii. Tax assessments may be used to establish value, but only if they are current and can be computed at 100% of market value.