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,S'- ~-o ~ <br />NORTH CAROLINA <br />ORANGE COUNTY <br />DEVELOPMENT AGREEMENT <br />This is an AGREEMENT between ORANGE COUNTY, a general local governmental <br />unit of the State of North Carolina, (hereinafter referred to as the "County") and the TOWN OF <br />CHAPEL HILL, a general local governmental unit of the State of orth Carolina hereinafter <br />referred to as the "Town"). The effective date of this agreement is <br />WITNESSTH <br />WHEREAS, the Orange County HOME Consortium has designated $125, 000 in Orange <br />FY 2004-2005 HOME funds for the purpose of conveying these funds to assist with the <br />acquisition of one dwelling unit in Chapel Hill to develop a proposed transitional housing plan; <br />and <br />WHEREAS, the County is the lead entity of the Orange County HOME Consortium, so <br />designated in an agreement dated July 1, 2005 and as such is the lead entity in a representative <br />capacity for all members of the Orange HOME Consortium for the purposes of carrying out the <br />HOME Program in accordance wit the Title II of the Cranston-Gonzalez National Affordable <br />Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d) et. seq.) (hereinafter referred to as the <br />"Act"), and as further defined in the Federal Program Requirements provided by the U.S. <br />Department of Housing and Urban Development; and <br />WHEREAS, the Town intends to lease the unit to a current public housing family with a <br />rent paying ability of at least $450 per month and with incomes not exceeding 50% and below of <br />median income as described in the Town's FY 2004 - 2005 HOME Application which is hereby <br />incorporated into this Agreement, and hereinafter referred to as "the Project". <br />NOW, THEREFORE, in consideration of the mutual covenants, promises, and <br />representations contained herein, it is agreed between the parties hereto as follows: <br />1. Project Activities <br />1.1 The Town shall acquire the dwelling unit defined in the Project, obtain all permits and <br />licenses necessary to rehabilitate the unit in the Project if necessary, and ensure <br />compliance with all applicable building and zoning ordinances as well as Section 8 <br />Housing Quality Standards (HQS). <br />1.2 Financial assistance in the amount of $125,000 for the dwelling unit in Federal HOME <br />Program funding will be provided in the form of a deferred loan with a forty (40) year <br />loan term, forgivable at the end of 40 years. A Deed of Trust and Promissory Note will <br />secure the HOME Program investment. This Deed of Trust and Promissory Note shall <br />