2001 S Housing - Chapel Hill HOME Program Second Mortgage Assistance

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the County as the secured party/beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien securing private, first-time permanent financing obtained by the Town, at the time of purchase. 1.3 The period of affordability 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 the Town and/or Orange County. 1.4 The Town shall make certain that the seller is aware of their rights under the federal Uniform Relocation Act prior to completing the sale of the property. The seller must also complete a Lead Based Paint Disclosure Form if the property was built prior to 1978. 1.5 The property to be acquired must have a value that does not exceed 95% of the area median purchase price for that type of housing. Value must be established by one of the following methods: i. An appraisal by a qualified appraiser. ii. Tax assessments may be used to establish value, but only if they are current and can be computed at 100% of market value. 1.6 An annual rental operations budget must be submitted to the County each year at least sixty days prior to the July 1 beginning date for the fiscal year. Further, not more than 90 days after the end of each fiscal year, the Town must furnish to the County an annual accounting of income and expenses for each dwelling unit. The operating assumptions allowed at the time of initiation of this project including reasonable rent increases will be acceptable for future budgets and reports. Any excess cash flow must be returned to the County within 90 days of the end of the fiscal year for deposit into the local HOME Program Trust Fund for use in future affordable housing projects. 1.7 The Town agrees to lease the property to families whose income does not exceed 50% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. Monthly rents must establish in accordance with HOME Program guidelines. Residential leases will not exceed one year in term and may be renewed. The Project must not cause displacement of existing tenants. 1.8 The Town is responsible for verifying the income of prospective tenants and maintaining eligibility data. The Town shall maintain tenant files as part of its Books and Records as required and for the period of time required by Section 5c. of this Agreement. The Town must provide the County an initial occupancy report verifying the income eligibility of all tenants at the time of initial lease-up. Each year thereafter the Town must furnish the County with an annual report on the project by July 31 of each year certifying that all tenants earn less than 80% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. 2