2001 S Housing - Public Housing Agency (PHA) Plan Section 8 Existing Housing Program

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for information must be satisfied in full before the written notification of funding availability. Any new submission of material will trigger the ten (10) working days response timeframe outlined above. d. EmPOWERment shall sell the newly constructed dwelling units to qualified buyers whose income is up to 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 sale. e. The HOME funding provided by the County will be provided as a deferred second mortgage transferable to the individual families at the time of sale to them. The bond investrnent will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on the Properry, second only to the Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with the County as the secured party/beneficiary. The County agrees to subordinate its Deed of Trust lien on the Property to a lien securing private construction fmancing acquired by EmPOWERment in order to complete the project. f. At the time of closing of the sale of a dwelling unit to a homebuyer, EmPOWERment shall repay the County the amount of the HOME Program investment in the form of a credit to the homebuyer. The credit to the homebuyer shall be documented by a Promissory Note from the homebuyer to the County which note shall be secured by a Deed of Trust on the Property naming the County as beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien securing private permanent financing acquired by the homebuyer. e. The period of affoxdability will be 99 years and will be secured by a Declaration of Restrictive Covenants that will incorporate a right of first refusal that may be exercised by EmPOWERment and/or Orange County. f. EmPOWERment is responsible for soliciting buyers for the dwelling units constructed on the Property. EmPOWERment and/or its buyers shall be responsible for securing permanent mortgage financing for the homes acquired under this program. g. EmPOWERment is responsible for verifying the income of the homebuyers, explaining the Program to potential homebuyers and certifying by written documentation signed by the homebuyer that the program requirements have been fully explained. EmPOWERment shall maintain purchaser files as part of its Books and Records as required and for the period of time required by Section 6.c. of this Agreement. 2. In the event property is acquired for rehabilitation and resale without identifying a prospective homebuyer, EmPOWERment agrees to identify a qualified buyer and complete the sell of the property to the homebuyer within one hundred twenty days (120) days of the da.te of acquisition of the property by EmPOWERment. Failure to abide by