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d. Each Project dwelling unit must have a value that does not exceed 100% of its <br />appraised value. An independent, qualified appraiser must conduct the appraisal. <br />e. An annual rental operations budget must be submitted to the County each year at <br />least sixty days prior to the July 1 beginning date for the fiscal year. <br />f. Chrysalis is responsible for verifying the income of prospective tenants and <br />maintaining eligibility data. Chrysalis shall maintain tenant files as part of its Books and <br />Records as required and for the period of time required by Section 4f. of this Agreement. <br />Chrysalis must provide the County an initial occupancy report verifying the income <br />eligibility of all tenants at the time of initial lease-up. Chrysalis must furnish the County <br />with an annual report on the Project dwelling units by July 31 of each year thereafter <br />certifying that all tenants earn less than 50% of the area median income by family size, <br />as determined by the U.S. Department of Housing and Urban Development and as <br />amended from time to time. <br />2. Affordability Requirement. Each of the Project dwelling units must remain affordable <br />for a period of ninety-nine years. Chrysalis retains full responsibility for compliance <br />with the affordability requirement for each of the Project dwelling units, unless <br />affordability restrictions are terminated due to the sale of the Property to anon-qualified <br />buyer in which event the Resale Provisions of Section 3 of this Agreement pertain. <br />Chrysalis shall assure compliance with affordability of each of the Project dwelling units <br />by having recorded a "Declaration of Restrictive Covenants" (EXHIBIT B) on the <br />Property. This Declaration shall constitute and remain a first lien on the Property during <br />the period of affordability. <br />It is further the responsibility of Chrysalis to rerecord the Declaration of Restrictive <br />Covenants periodically and no less often than one day less than every 30 years from the <br />date hereof for the purpose of renewing the rights of first refusal in the Property or <br />portion thereof including any leasehold interest in the Property or portion thereof. <br />Orange County retains the right to, periodically and every 30 years after the first <br />recording of the Declaration of Restrictive Covenants on the Property to register, with <br />the Register of Deeds of Orange County, a notice of preservation of the Restrictive <br />Covenants on the Property as provided in North Carolina General Statute § 47B-4 or any <br />comparable preservation law in effect at the time of the recording of the notice of <br />preservation. It is the intent of this Agreement that the 99 year duration of this <br />Declaration of Restrictive Covenants be accomplished and that any future owner of the <br />Property, Chrysalis, and Orange County will do what is necessary to ensure that the same <br />is not extinguished by N.C. Gen. Stat. § 41-29 or any comparable law purporting to <br />extinguish, by the passage of time, preemptive rights in the Property and by the Real <br />Property Marketable Title Act or any comparable law purporting to extinguish, by the <br />passage of time, non possessory interests in real property. Any future owner, Chrysalis <br />and Orange County agree to do what each must do to accomplish the 99-year duration of <br />this Declaration of Restrictive Covenants. <br />3 <br />