1998 NS Housing - Orange Community Housing Corp -Development Agreement for HOME on Scarlette Drive

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