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3. Resale Provisions. Chrysalis shall assure compliance with affordability of each of the <br />Project dwelling units through the Declaration of Restrictive Covenants. The Declaration <br />of Restrictive Covenants shall include at least the following elements in their resale <br />provisions for the Improvements: <br />3.1 If Chrysalis no longer uses the Property as rental property or is unable to continue <br />ownership, then the Chrysalis must sell, transfer, or otherwise dispose of its <br />interest in the Property only to an agency with similar interest in affordable <br />housing and serve families with incomes not exceeding 50% of the area median <br />household income by family size, as determined by the U.S. Department of <br />Housing and Urban Development at the time of the transfer. The non-profit fund, <br />foundation, or corporation of like purposes must have established its tax-exempt <br />status under Section 501 (c)(3) of the Internal Revenue Code. <br />3.2 However, if the Property is sold, transferred, or otherwise disposed of to other <br />than an agency with similar interest in affordable housing during the term of <br />affordability, the Right of First Refusal provision of the County's Long-Term <br />Housing Affordability Policy must be followed and the net sales proceeds (sales <br />price less: (1) selling cost, (2) the unpaid principal amount of the original first <br />mortgage and (3) the unpaid principal amount of the initial County contribution <br />and any other initial government contribution secured by a deferred payment <br />promissory note and deed of trust) or "equity" will be divided 50/50 by the seller <br />of the Property and the County. <br />3.3 The resale provision shall remain in effect for the full affordability period - 99 <br />years. <br />4. Miscellaneous Provisions. <br />a. Uniform Administrative Requirements. Chrysalis must comply with the <br />applicable uniform administrative requirements of 24 CFR §92.505. <br />b. Other Program Requirements. Chrysalis must carry out each activity in <br />compliance with all Federal laws and regulations described in 24 CFR, Part 92, subpart H except <br />that the subrecipient does not assume the responsibilities for environmental review or <br />intergovernmental review. <br />c. Affirmative Marketing. If HOME funds will be used for housing containing five <br />(5) or more assisted units, Chrysalis must prepare and submit an Affirmative Marketing Plan to the <br />County. <br />d. Termination of Agreement. The full benefit of the Project will be realized only <br />after the completion of the affordability periods for all Project dwelling units. It is the County's <br />intention that the full public benefit of the Project shall be completed under the auspices of <br />4 <br />