Orange County NC Website
Agreement pertain. The Owner shall assure compliance with affordability of each of the Project <br />dwelling units as provided in the Declaration on the Property. This Declaration shall constitute <br />and remain a lien on the Property during the period of affordability. <br />It is further the responsibility of the Owner to rerecord the Declaration of Restrictive <br />Covenants periodically and no less often than one day less than every 30 years from the date <br />hereof for the purpose of renewing the rights of first refusal in the Property or portion thereof <br />including any leasehold interest in the Property or portion thereof. Orange County retains the <br />right to, periodically and every 30 years after the first recording of the Declaration of Restrictive <br />Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of <br />preservation of the Restrictive Covenants on the Properly as provided in North Carolina General <br />Statute § 47B-4 or any comparable preservation law in effect at the time of the recording of the <br />notice of preservation. It is the intent of this Agreement that the 99 year duration of this <br />Declaration of Restrictive Covenants be accomplished and that any future owner of the Property, <br />Owner, and Orange County will do what is necessary to ensure that the same is not extinguished <br />by N.C. Gen. Stat. § 41-29 or any comparable law purporting to extinguish, by the passage of <br />time, preemptive rights in the Property and by the Real Property Marketable Title Act or any <br />comparable law purporting to extinguish, by the passage of time, non possessory interests in real <br />property. Any future owner, Owner and Orange County agree to do what each must do to <br />accomplish the 99-year duration of this Declaration of Restrictive Covenants. <br />Resale Provisions <br />The Owner shall assure compliance with affordability of each of the Project dwelling units <br />through the Declaration of Restrictive Covenants of which this document is incorporated into. <br />The Declaration of Restrictive Covenants shall include at least the following elements in their <br />resale provisions for the Improvements: <br />If Owner no longer uses the Property as rental property or is unable to continue ownership, then <br />the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an <br />agency with similar interest in affordable housing and serve families with incomes not exceeding <br />80% of the area median household income by family size, as determined by the U.S. Department <br />of Housing and 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 Section 501 (c) <br />(3) of the Internal Revenue Code. <br />However, if the Property is sold, transferred, or otherwise disposed of to other than an agency <br />with similar interest in affordable housing during the term of affordability, the Right of First <br />Refusal provision of the County's Long-Term Housing Affordability Policy must be followed <br />and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of <br />the original first mortgage and (3) the unpaid principal amount of the initial County contribution <br />and any other 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 and the County. <br />The resale provision shall remain in effect for the full affordability period - 99 years. <br />