2004 NS Housing - Development Agreement by the Co Mgr with Chapel Hill

Browse Search

4 '' and Promissory Note shall constitute a lien on the Property, second only to the Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with the County as the secured party/beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien securing private, first-time permanent financing obtained by the Town, at the time of purchase. 1.3 The period of affordability will be 99 years and will be secured by a Declaration of Restrictive Covenants that will incorporate a right of first refusal that maybe exercised by the Town and/or Orange County. 1.4 An annual rental operations budget must be submitted to the County each year at least sixty days prior to the July 1 beginning date for the fiscal year. Further, not more than 90 days after the end of each fiscal year, the Town must furnish to the County an annual accounting of income and expenses for each dwelling unit. The operating assumptions allowed at the time of initiation of this project including reasonable rent increases will be acceptable for future budgets and reports. 1.5 The Town agrees to lease the property to families whose income does not exceed 50% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. Monthly rents must establish in accordance with HOME Program guidelines. Residential leases will not exceed one year in term and may be renewed. The Project must not cause displacement of existing tenants. 1.6 The Town is responsible for verifying the income of prospective tenants and maintaining eligibility data. The Town shall maintain tenant files as part of its Books and Records as required and for the period of time required by Section Sc. of this Agreement.. The Town must provide the County an initial occupancy report verifying the income eligibility of all tenants at the time of initial lease-up. Each year thereafter the Town must furnish the County with an annual report on the project by July 31 of each year certifying that all tenants earn less than 80% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. 2. Time for Commencement and Completion. In addition, the Town agrees to furnish to the County a copy of its annual audit, performed by a certified public accountant within 90 days of the end of the fiscal year of expenditure of the HOME Program Funding. The Project Completion Date must not exceed December 1, 2004 and is date the property is acquired, rehabilitated if necessary, and occupied by aloes-income family. In the event that the Town is unable to proceed with any aspect of the Project in a timely manner, and County and the Town determine that reasonable extension(s) for completion will not remedy the situation, then the Termination of Agreement provisions of this Agreement (Section 6.a.) shall pertain. The Town may, at its option, submit a written request for a delay of completion for County approval. The County may, at its option,