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

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6 4.2 However, if the property is not sold, transferred, or otherwise disposed to an agency with similar interest in affordable housing during the term of affordability, the Right of First Refusal provision of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the initial County contribution and any other initial government contribution secured by a deferred payment promissory note and deed of trust) or "equity" will be divided 50/50 by the seller of the Property and the County. 4.3 The resale provision shall remain in effect for the full affordability period - 99 years. 5. Miscellaneous Provisions. a. Termination of Agreement. The full benefit of the Project will be realized only after the completion of the affordability periods for all properties constructed with funds provide affordable unit to low-income families. It is the County's intention that the full public benefit of this project shall be completed under the auspices of the Town for the assisted unit as follows: i. 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 Town will retain responsibility for requirements for any dwelling unit assisted and County will make no further payments to the Town. ii. In the event that the Town, prior to the contract completion date, is unable to continue to function due to, but, not limited to, dissolution or insolvency of the organization, its filing a petition for bankruptcy or similar proceedings, or is adjudged bankrupt or fails to comply or perform with provisions of this agreement, then the Town shall, upon the County's request, convey to the County the properties assisted with funds. Conveyance shall be at the sole discretion of County and on a dwelling unit by dwelling unit basis. Conveyance of properties shall be on the terms set forth herein: Conveyance of properties shall occur within thirty (30) days of County and the Town's agreement of the Town's inability to continue as a viable organization. The Town shall convey the subject properties to the County by general warranty deed, free and clear of all liens and encumbrances of record except those which create a beneficial interest in County (Declaration of Restrictive Covenants and Deed of Trust). b. Default, Remedies. This Agreement maybe terminated by anon-defaulting party upon an event of default hereunder, after written notice thereof and thirty (30) days grace period