2004 S Housing - Consolidated Housing Plan Annual Update/HOME Program Signed Agreement with Chapel Hill

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HOME Program in accordance wit the Title II of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d) et. seq.) (hereinafter referred to as the "Act"), and as further defined in the Federal Program Requirements provided by the U.S. Department of Housing and Urban Development; and WHEREAS, the Town of Chapel Hill intends to purchase one dwelling unit located at 110-A Weatherstone in Chapel Hill (herein after referred to as the "Property"), and described in EXHIBIT A attached hereto and incorporated herein; and WHEREAS, the Town intends to lease the unit to current public housing family with a rent paying ability of at least $450 per month and with incomes not exceeding 50% and below of median income as described in their FY 2004 - 2005 HOME Application which is hereby incorporated into this Agreement as Exhibit B, and hereinafter referred to as "the Project"; NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth and of other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner intends, declares, and covenants that the regulatory and restrictive covenants set forth herein governing the use, occupancy, and transfer of the Property shall be and are covenants pertaining to the Property and running with the land for the term stated herein and are binding upon all subsequent owners of the Property and for such term, except as specifically provided herein, and are not merely personal covenants of Owner. SECTION 1 REPRESENTATIONS, COVENANTS AND WARRANTIES OF OWNER Owner hereby represents, covenants and warrants as follows: a. It is contemplated that the Property and the Project will be used, during the ninety-nine years after Project Completion (defined as the last of the following events: the Property is acquired, rehabilitated, if necessary, and occupied by aloes-income family), for rental housing to families earning up to 50% of HUD area median income. In the event Owner sells, transfers or exchanges the Property or any portion of the Property, the following shall pertain: 1. Subject to the requirements of the DEVELOPMENT AGREEMENT (Exhibit C hereto), the Federal HOME Investment Partnership Program and this Declaration, Owner may sell, transfer, or exchange the Property to anon-profit fund, foundation, or corporation of like purpose which is organized and operated exclusively for charitable and educational purposes and which has established its tax exempt status under Section 501 (c)(3) of the Internal Revenue Code, or to Orange County; provided, however, Owner shall obtain the written agreement, in form satisfactory to Orange County, of any buyer or successor or other person acquiring the Property or any interest therein, that such acquisition is subject to the requirements of this Declaration and to the requirements of the DEVELOPMENT AGREEMENT and the Federal HOME Investment Partnership Program. Owner agrees that County may void any sale, transfer, or exchange of the Property or any portion of this Property if the Page 11