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4. Resale Provisions. The Town shall assure compliance with affordability of assisted unit <br />through the Declaration of Restrictive Covenants. The Declaration of Restrictive <br />Covenants shall include at least the following elements in their resale provisions for the <br />Improvements: <br />4.1 If the buyer no longer-uses the Property as rental property or is unable to continue <br />ownership, then the buyer must sell, transfer, or otherwise dispose of their interest <br />in the Property only to an agency with similar interest in affordable housing and <br />serve families with incomes not exceeding 80% of the area median household <br />income by family size, as determined by the U.S. Department of Housing and <br />Urban Development at the time of the transfer. The non-profit fund, foundation, <br />or corporation of like purposes must have established its tax-exempt status under <br />Section 501 (c)(3) of the Internal Revenue Code. <br />4.2 However, if the property is not sold, transferred, or otherwise disposed to an <br />agency with similar interest in affordable housing during the term of affordability, <br />the Right of First Refusal provision of the County's Long-Term Housing <br />Affordability Policy must be followed and the net sales proceeds (sales price less: <br />(1) selling cost, (2) the unpaid principal amount of the original first mortgage and <br />(3) the unpaid principal amount of the initial County contribution and any other <br />initial government contribution secured by a deferred payment promissory note <br />and deed of trust) or "equity" will be divided 50/50 by the seller of the Property <br />and the County. <br />4.3 The resale provision shall remain in effect for the full affordability period - 99 <br />years. <br />5. Miscellaneous Provisions. <br />a. Termination of Agreement. The full benefit of the Project will be realized only <br />after the completion of the affordability periods for all properties constructed with funds that <br />provide an affordable unit to low-income families. It is the County's intention that the full public <br />benefit of this project shall be completed under the auspices of the Town for the assisted unit as <br />follows: <br />In the event that the Town is unable to proceed with any aspect of the Project in a <br />timely manner, and County and the Town determine that reasonable extension(s) for <br />completion will not remedy the situation, then the Town will retain responsibility for <br />requirements for any dwelling unit assisted and County will make no further <br />payments to the Town. <br />ii. In the event that the Town, prior to the contract completion date, is unable to continue <br />to function due to, but, not limited to, dissolution or insolvency of the organization, <br />its filing a petition for bankruptcy or similar proceedings, or is adjudged bankrupt or <br />fails to comply or perform with provisions of this agreement, then the Town shall, <br />Page 4 <br />