2001 S Housing - Chapel Hill HOME Program Second Mortgage Assistance

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EXHIBIT B Prepared by: Geoffrey E. Gledhill,Attorney at Law, P.O. Drawer 1529; Hillsborough,NC 27278 After recording return to: Coleman, Gledhill &Hargrave,P.O. Drawer 1529; Hillsborough,NC 27278 DECLARATION OF RESTRICTIVE COVENANTS THIS DECLARATION OF RESTRICTIVE COVENANTS (Declaration), dated , by Orange County, North Carolina for itself and its successors and assigns (Owner), is given as a condition precedent to the award of Federal HOME Investment Partnership Program funds by Orange County, a body politic and corporate, a political subdivision of the State of North Carolina, together with any successor to its rights, duties, and obligations. RECITALS: 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 II 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 included future leasing to 30% 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". WHEREAS, Orange County will take title to the Property at the closing of the purchase of the Property solely for the purpose of establishing the restrictions on the use of the Property contained in this Declaration and will immediately thereafter convey title to the Property, subject to this Declaration, to the Town of Chapel Hill. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth and of other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner intends, declares, and covenants that the regulatory and restrictive covenants set forth herein governing the use, occupancy, and transfer of the Property shall be and are covenants pertaining to the Property and running with the land for the term stated herein