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WHEREAS, notwithstanding any provision of this Agreement, the County and Habitat <br />hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or <br />site approval, and that such commitment of funds or approval may occur only upon satisfactory <br />completion of an environmental. review and receipt by Orange County of a Release of Funds <br />from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if <br />applicable. The parties further agree that the provision of such funds to the project is conditioned <br />on Orange County's determination to proceed with, modify, or cancel the project based on the <br />results of a subsequent environmental review. <br />NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations <br />contained herein, it is agreed between the parties hereto as follows: <br />1. a. Habitat shall construct the necessary infrastructure and build at least twenty (20) <br />dwelling units as defined in the Project, obtain all permits and licenses necessary for <br />construction, and comply with applicable building and zoning ordinances and the N.C. <br />Housing Finance Agency Energy Standards. The Project shall be undertaken without <br />residential displacement. <br />b. Habitat shall sell the newly constructed dwelling units to qualified buyers whose <br />income up to 60% of the area median household income by family size, as determined by <br />the U.S. Department of Housing and Urban Development at the time of the sale. <br />c. The funding provided by the County will be provided as a deferred second <br />mortgage transferable to the individual families at the time of sale to them. The <br />investment will be secured by a forty (40) year Deed of Trust and Promissory Note, <br />forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall <br />constitute a lien on the Property, second only to the Declaration of Restrictive Covenants <br />described in paragraph 4 of this Agreement, with the County as the secured <br />party/beneficiary. The County agrees to subordinate its Deed of Trust lien on the <br />Property to a lien securing private construction financing acquired by Habitat in order to <br />complete the project. <br />d. At the time of closing of the sale of each of the dwelling units to a homebuyer, <br />Habitat shall repay the County $17,500.00 in the form of a credit to the homebuyer. The <br />credit to the homebuyer shall be documented by a Promissory Note from the homebuyer <br />to the County which note shall be secured by a Deed of Trust on the Property naming the <br />County as beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien <br />securing private permanent financing acquired by the homebuyer. <br />e. Tl~e period of affordability will be 99 years and will be secured by a Declaration <br />of Restrictive Covenants that will incorporate a right of first refusal that maybe exercised <br />by Habitat and/or Orange County. <br />2 <br />