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

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5 approve any delay in the completion date or declare the Town in default. The Town shall monitor the constructed unit for affordability for the period of affordability -ninety-nine (99) years. Final contract completion date shall be the latest end date of all assisted unit affordability periods. 3. Affordability Requirement. The unit must remain affordable for a period of ninety-nine years. The Town retains full responsibility for compliance with the affordability requirement for assisted unit, unless affordability restrictions are terminated due to the sale of the Property to anon-qualified buyer in which event the Resale Provisions of Section 4 of this Agreement pertain. The Town shall assure compliance with affordability of the assisted unit by having recorded a "Declaration of Restrictive Covenants" (EXHIBIT B) on the Property. This Declaration shall constitute and remain a first lien on the Property during the period of affordability. It is further the responsibility of the Town to rerecord the Declaration of Restrictive Covenants no later than one day before the expiration of 30 years of the date of the purchasing the property in the event that the Town is still the owner of the dwelling unit at the time of the rerecording. County retains the right to periodically and every 30 years after the first recording of the Declaration of Restrictive Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of preservation of the Restrictive Covenants on the Property as provided in North Carolina General Statute § 47B-4 or any comparable preservation law in effect at the time of the recording of the notice of preservation. It is the intent of this Section of this Agreement that the 99 year affordability requirement contained herein be accomplished and that the Town and the County will do what is necessary to ensure that the same is not extinguished by the Real Property Marketable. Title Act or any comparable law purporting to extinguish, by the passage of time, non possessory interests in real property. Both the Town and County agree to do what each must do to accomplish the 99 year affordability requirement. 4. Resale Provisions. The Town shall assure compliance with affordability of assisted unit through the Declaration of Restrictive Covenants. The Declaration of Restrictive Covenants shall include at least the following elements in their resale provisions for the Improvements: 4.1 If the buyer no longer uses the Property as rental property or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to an agency with similar interest in affordable housing and serve families with incomes not exceeding 80% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the transfer. The non-profit fund, foundation, or corporation of like purposes must have established its tax-exempt status under Section 501 (c)(3) of the Internal Revenue Code.