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Exhibit B <br />SECTION 1 REPRESENTATIONS, COVENANTS AND WARRANTIES OF OWNER <br />Owner hereby represents, covenants and warrants as follows: <br />a. It is contemplated that the Property and the Project will be used, during the ninety-nine <br />years after Project Completion, for owner-occupied housing to families earning up to <br />80% of HUD area median income. In the event Owner sells, transfers or exchanges the <br />Property or any portion of the Property, the following shall pertain: <br />1. Subject to the requirements of the DEVELOPMENT AGREEMENT (Exhibit B <br />hereto), the Federal HOME Investment Partnership Program and this Declaration, <br />Owner may sell, transfer, or exchange the Property to a non-profit fund, foundation, <br />or corporation of like purpose which is organized and operated exclusively for <br />charitable and educational purposes and which has established its tax exempt status <br />under Section 501 (c)(3) of the Internal Revenue Code, or to Orange County; <br />provided, however, Owner shall obtain the written agreement, in form satisfactory to <br />Orange County, of any buyer or successor or other person acquiring the Property or <br />any interest therein, that such acquisition is subject to the requirements of ttus <br />Declaration and to the requirements of the DEVELOPMENT AGREEMENT and the <br />Federal HOME Investment Partnership Program. Owner agrees that County may <br />void any sale, transfer, or exchange of the Property or any portion of this Property if <br />the buyer or successor or other person fails to assume in writing the requirements of <br />this Declaration and the requirements of the DEVELOPMENT AGREEMENT and <br />the Federal HOME Investment Partnership Program. <br />2. Any assignment, sale, transfer, conveyance or other disposition of the Property or <br />any part of the Property other than as described in subparagraph 1 above, whether <br />voluntary or involuntary or by operation of law shall be subject to the provisions of <br />SECTION 4 of this Declaration. <br />b. Owner will, at the time of execution, delivery and recording of this Declaration, have <br />good and marketable title to the Property, free and clear of any lien or encumbrance (except <br />encumbrances created pursuant to this Declaration or other permitted encuxnbrances). <br />c. Owner warrants that it has not and will not execute any other declaration with provisions <br />contradictory to, or in opposition to, the provisions hereof, and that in any event, the <br />requirements of this Declaration are paramount and controlling as to the rights and obligations <br />herein set forth and supersede any other requirements in conflict herewith. <br />SECTION 2 TERM OF DECLARATION <br />a. This Declaration, and the Terms of Affordability specified herein, apply to the Property <br />immediately upon recordation, and Owner shall comply with all restrictive covenants herein. <br />This declaration shall terminate ninety-nine years after Project Completion, unless Orange <br />County Federal HOME Investment Partnership Program affordability restrictions are terminated <br />due to the sale of the Property to a non-qualified buyer as provided herein. <br />Declararion of Restrictive Covenants <br />Page 2 <br />