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§58 if applicable. The parties further agree that the provision of such funds to the project is <br />conditioned on Orange County's determination to proceed with, modify, or cancel the project <br />based on the results of a subsequent environmental review. <br />NOW, THEREFORE, in consideration of the mutual covenants, promises, and <br />representations contained herein, it is agreed between the parties hereto as follows: <br />1. a. Chrysalis shall acquire the Property including the Project dwelling units and ensure <br />that the units meet the property standards in 24 CFR 92.251 and the lead-based paint <br />requirements in 92.355 at the time of project completion. A Section 8 Housing Quality <br />Standards (HQS) inspection must be conducted prior to purchase to ensure compliance. <br />Any repair work necessary must be completed in accordance with applicable building <br />and zoning ordinances. <br />Chrysalis agrees to lease the Project dwelling units to families whose income does not <br />exceed 50% of the area median income by family size, as determined by the U.S. <br />Department of Housing and Urban Development and as amended from time to time. <br />Monthly rents must not exceed the HOME Program Rents in effect at the time of <br />occupancy. Residential leases will not exceed one year in term. <br />b. Financial assistance in the amount of $100,000 in Orange County HOME Investment <br />Partnership Program will be provided in the form of a deferred loan with aninety-nine <br />(99) year loan term. A Deed of Trust and Promissory Note will secure the loan funds. <br />This Deed of Trust and Promissory Note shall constitute a lien on the Property <br />subordinate only to the Declaration of Restrictive Covenants described in Section 2 of <br />this Agreement. <br />The Project dwelling units must remain affordable for a period of 99 years. This 99 year <br />affordability requirement will be secured by a Deed of Trust, Promissory Note, and <br />Declaration of Restrictive Covenants that will incorporate a right of first refusal that may <br />be exercised by the County. <br />Chrysalis may request in writing the disbursement of funds under this Agreement for <br />actual project costs. Any program income arising from this project must be expended <br />prior to requesting HOME funds. After acquisition of the property, any program <br />income must be repaid to the County each year. <br />c. The Property shall be acquired and the Project dwelling units rehabilitated and <br />occupied by June 30, 2007. In the event that Chrysalis is unable to complete its <br />obligations to acquire, rehabilitate, and occupy the Project dwelling units within this <br />time or by extensions approved by the County under the terms of this Agreement, <br />Chrysalis will be required to repay the full amount of the County's outstanding loan as <br />provided in the loan documents. <br />2 <br />