2011-258 Housing - Inter-Church Council Housing Corp. - Developmental Agreement - OC HOME Consortium

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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, Owner, 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 Marketable Title Act or any comparable law purporting to extinguish, by the passage of time, non possessory interests in real property. Any future Owner, Owner and Orange County agree to do what each must do to accomplish the 99-year duration of this Declaration of Restrictive Covenants. Resale Provisions Owner shall assure compliance with affordability of each of the Project dwelling units through the Declaration of Restrictive Covenants of which this document is incorporated into. The Declaration of Restrictive Covenants shall include at least the following elements in their resale provisions for the Improvements: If Owner no longer uses the Property as rental property or is unable to continue Ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an agency with similar interest in affordable housing and serve families with incomes not exceeding 80% of the area 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. 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 affordability, the Right of First Refusal provision of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the initial County contribution and any other initial government contribution secured by a deferred payment promissory note and deed of trust) or"equity"will be divided 50/50 by the seller of the Property and the County. The resale provision shall remain in effect for the full affordability period—99 years. VII. OWNER PERFORMANCE UNDER THIS AGREEMENT Owner agrees and authorizes the County to conduct on-site reviews, examine client and contractor records, client applications and to conduct any other procedures or practices to assure compliance with these provisions. Owner agrees to not violate any State or Federal laws, rules or regulations regarding a direct or indirect illegal interest on the part of any employee or elected official of the Owner in the Project or payments made pursuant to this Agreement.