2008-123 Housing - Affordable Housing Bond Development Agreement TBLF ENO HAVEN LLC $1,000,000

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II. AMOUNT OF BOND FUNDS/LOAN TERMS The County shall make available to the Owner up to One Million Dollars ($1,000,000) pursuant to this Agreement. Said funds shall be disbursed by the County to the Owner for performance of the services described in Exhibit B. The Orange County Affordable Housing Bond Loan funding will be provided in the form of a direct zero interest loan deferred for a period of 30 years with a balloon payment of the original principal of $1 million dollars at the end of the loan period. Loan funds will be secured by a Deed of Trust and Promissory Note. III. LIEN POSITION At the time of the Orange County Affordable Housing Bond Loan closing the County will be subordinate to the existing BB&T construction loan and the NC Housing Finance Agency Exchange Loan. At the time of the permanent loan closings, the BB&T Construction Loan will be paid off and the Orange County loan will be subordinated to the NC Housing Finance Agency Exchange Loan and the Community Investment Corporation of the Carolinas. Orange County hereby acknowledges that the terms and conditions of its (i) Affordable Housing Bond Development Agreement, (ii) Promissory Note, (iii) Deed of Trust and Security Agreement and (iv) Declaration of Restrictive Covenants (collectively referred to as "Orange County Loan Documents"), for Eno Haven Apartments shall be and are expressly subordinated to the following exceptions to title that encumber the property, as described in the Orange County Loan Documents: (i) Deed of Trust in favor of BB&T Bank recorded in Book 4825, Page 488, Orange County Registry, (ii) Deed of Trust in favor of North Carolina Housing Finance Agency(Exchange Loan) recorded in Book 4840, Page 498, Orange County Registry; (iii) Declaration of Land Use Restrictive Covenants for Section 1602 Exchange Program recorded in Book 4840, Page 514, and (iv) Declaration of Land Use Restrictive Covenants for Low Income Housing Tax Credits, recorded in Book 4840, Page 548. Orange County further acknowledges and agrees that TBLF Eno Haven, LLC will obtain permanent financing from the Community Investment Corporation of the Carolinas, in the original principal amount of $1,700,000 ("CICCAR Loan"), that shall be documented by, but not limited to, a (i) Deed of Trust, (ii) Assignment of Lessor's Interest in Leases, Rents and Profits and (iii) Regulatory Agreement, that shall be recorded on the public records in Orange County ("CICCAR Loan Documents"). Orange County agrees to enter into a subordination agreement, subordinating the lien, operation and effect of the Orange County Loan Documents to the lien, operation and effect of the CICCAR Loan Documents upon closing of the CICCAR Loan. IV. TIMELINESS The Owner shall complete the Project within twelve (12) months from the date of this Agreement. However, in the event of any alterations or additions or of circumstances beyond the control of the Owner, which in the opinion of the Director of the County's Department of Housing, Human Rights and Community Development will require additional time for 2