2003 S Housing - Affordable Rentals, Inc for Housing Bond Program Development Agreement

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2. Affordability Requirement. Each of the Froject dwelling unit must remain affordable for a period of ninety-nine years. Affordable Rentals, Inc. retains full responsibility for compliance with the affordability requirement for each of the Project dwelling unit, unless affordability restrictions are terminated due to the sale of the Property to a non- qualified buyer in which event the Resale Provisions of Section 3 of this Agreement pertain. Affordable Rentals, Inc. shall assure compliance with affordability of each of the Project dwelling unit by having recorded a "Declaration of Restrictive Covenants" (EXHIBIT B) on the Property. This Declaration shall constitute and remain a first lien on the Property during the period of affordability. It is further the responsibility of Affordable Rentals, Inc. to rerecord the Declaration of Restrictive Covenants periodically and no less often than one day less than every 30 years from the date hereof for the purpose of renewing the rights of first refusal in the Property or portion thereof including any leasehold interest in the Property or portion thereof. Orange County retains the right to, periodically and every 30 years after the first recording of the Declaration of Restrictive Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of preservation of the Restrictive Covenants on the Property as provided in North Carolina General Statute § 47B-4 or any comparable preservation law in effect at the time of the recording of the notice of preservation. It is the intent of this Agreement that the 99 year duration of this Declaration of Restrictive Covenants be accomplished and that any future owner of the Property, Affordable Rentals, Inc., and Orange County will do what is necessary to ensure that the same is not extinguished by N.C. Gen. Stat. § 41-29 or any comparable law purporting to extinguish, by the passage of time, preemptive rights in the Property and by the Real Property Mazketable Title Act or any comparable law purporting to extinguish, by the passage of time, non possessory interests in real property. Any future owner, Affordable Rentals, Inc. and Orange County agree to do what each must do to accomplish the 99-year duration of this Declaration of Restrictive Covenants. 3. Resale Provisions. Affordable Rentals, Inc. shall assure compliance with affordability of each of the Project dwelling units through the Declazation of Restrictive Covenants. The Declaration of Restrictive Covenants shall include at least the following elements in their resale provisions for the Improvements: 3.1 In the event Affordable Rentals, Inc. no longer uses the Property as rental property or is unable to continue ownership, then Affordable Rentals, Inc. must sell, transfer, or otherwise dispose of its interest in the Property only to an agency with similar interest in affordable housing and serving families with incomes not exceeding 50% of the azea median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the transfer. The non-profit fund, foundation, or corporation of like purposes must have established its tax-exempt status under, Section 501 (c) (3) of the Internal Revenue Code. 3.2 However, if the Property is sold, transferred, or otherwise disposed of to other than an agency with similar interest in affordable housing during the term of 3