2001 S Housing - Chapel Hill HOME Program Second Mortgage Assistance

Browse Search

RETURN THIS COPY TO THE CLERK'S OFFICE FOR THE PERMANENT AGENDA FILE NORTH CAROLINA ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and the TOWN OF CHAPEL HILL, a general local governmental unit of the State of North Carolina hereinafter referred to as the "Town"). The effective date of this agreement is November 19, 2001. WITNESSTH WHEREAS, the Orange County HOME Consortium has designated $100,000 in FY 2000 HOME funds for the purpose of conveying these funds to assist with acquisition of one dwelling unit in Chapel Hill to develop a proposed transitional housing plan; and WHEREAS, the County is the lead entity of the Orange County HOME Consortium, so designated in an agreement dated July 1, 1997 and as such is the lead entity in a representative capacity for all members of the Orange HOME Consortium for the purposes of carrying out the HOME Program in accordance wit the Title 11 of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d) et. seq.) (hereinafter referred to as the "Act"), and as further defined in the Federal Program Requirements provided by the U.S. Department of Housing and Urban Development; and WHEREAS, the Town intends to lease the unit to current public housing family with a rent paying ability of at least $450 per month and with incomes not exceeding 50% and below of median income as described in their HOME Application dated February 23, 2001 which is Exhibit A to this Agreement, and hereinafter referred to as "the Project". NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: 1. Project Activities 1.1 The Town shall acquire the dwelling unit defined in Project, obtain all permits and licenses necessary to rehabilitate, the unit in the Project if necessary, and ensure compliance with all applicable building and zoning ordinances as well as Section 8 Housing Quality Standards (HQS). 1.2 Financial assistance in the amount of $100,000 for the dwelling unit for a total of $100,000 in Federal HOME Program funding will be provided in the form of a deferred loan with a forty (40) year loan term, forgivable at the end of 40 years. The HOME Program investment will be secured by a Deed of Trust and Promissory Note. This Deed of Trust and Promissory Note shall constitute a lien on the Property, second only to the Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with