2006 S Housing - Consolidated Housing Plan Annual Update/HOME Program – Habitat for Humanity

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l' site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review and receipt by Orange County of a Release of Funds from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if applicable. The parties further agree that the provision of such funds to the project is conditioned on Orange County's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: 1. a. Habitat shall construct the two (2) dwelling units as defined in the Project, obtain all permits and licenses necessary for construction, and comply with applicable building and zoning ordinances and the N.C. Housing Finance Agency Energy Standards. The Project shall be undertaken without residential displacement. b. Habitat shall sell the two (2) newly constructed dwelling units to qualified buyers whose income up to 60% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the sale. c. The funding provided by the County will be provided as a deferred second mortgage transferable to the individual families at the time of sale to them. The investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on the Property, second only to the Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with the County as the secured party/beneficiary. The County .agrees to subordinate its Deed of Trust lien on the Property to a lien securing private construction financing acquired by Habitat in order to complete the project. d. At the time of closing of the sale of each of the dwelling units to a homebuyer, Habitat shall repay the County $20,00.00 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 Deed of Trust lien to a lien securing private permanent financing acquired by the homebuyer. e. The period of affordability will be 99 years and will be secured by a Declaration of Restrictive Covenants that will incorporate a right of first refusal that maybe exercised by Habitat and/or Orange County. f. Habitat is responsible for soliciting buyers for the dwelling units constructed on the Property. Habitat and/or its buyers shall be responsible for securing permanent mortgage financing for the homes built on the Property.