2005 S Housing - Authorizing Orange Co 2005-2006 Home Program-Orange Comm Housing and Land Trust Inc

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NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: 1. OCHLT agrees to acquire and resale the project dwelling units in the following manner. a. Each project dwelling unit must obtain a Certificate of Occupancy prior to resale. b. Before resale, each project dwelling unit must meet the Section 8 Housing Quality Standards and local Minimum Housing Code at a minimum. c. Upon resale, OCHLT must provide to the Orange County Housing and Community Development Office certification that the property was sold to a family whose income does not exceed 80% of area median income and provide information regarding family characteristics asrequested. d. 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, third only to the first mortgage Habitat for Humanity of Orange County, NC Inc. and a second mortgage to the N.C. Housing Finance Agency with the County as the secured partyfbeneficiary. 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. 2. OCHLT shall convey each of the Project dwelling units to a first-time homebuyer with income 80% or less 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. A housing unit will consist of a 99-year ground lease (renewable for an additiona199 years) to the housing unit and a warranty deed to the improvements on the leased premises. 3. The period of affordability will be 99 years and will be secured by an OCHLT Ground Lease with restrictions to ensure compliance. Further security shall be in the form of a Declaration of Restrictive Covenants that will make the County a third party beneficiary of and successor to the long term affordability remedies in the Ground Lease in the event of a failure of or inability of OCHLT to enforce the long-term affordability remedies in the Ground Lease. 4. OCHLT is responsible for soliciting buyers for the Project dwelling units constructed on the Property. OCHLT and/or its buyers shall be responsible for securing permanent mortgage financing for the homes built on the Property. 5. OCHLT is responsible for verifying the income of the homebuyers and explaining the OCHLT Ground Lease to potential homebuyers and certifying by written documentation signed by the homebuyer that the HOME program requirements have been fully 2