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3 <br /> NORTH CAROLINA <br /> ORANGE COUNTY <br /> DEVELOPMENT AGREEMENT <br /> This is an AGREEMENT between ORANGE COUNTY, a general local governmental <br /> unit of the State of North Carolina, (hereinafter referred to as the "County") and The Town of <br /> Chapel Hill, a general local governmental unit of the State of\ North Carolina hereinafter <br /> referred to as "The Town"). The effective date of this agreement is <br /> 2001. <br /> WITNESSTH <br /> WHEREAS, the Orange County HOME Consortium has designated $100,000 in FY <br /> 2000 HOME funds for the purpose of conveying these funds to assist with acquisition of one <br /> dwelling unit in Chapel Hill to develop a proposed transitional housing plan; and <br /> WHEREAS, the County is the lead entity of the Orange County HOME Consortium, so <br /> designated in an agreement dated July 1, 1997 and as such is the lead entity in a representative <br /> capacity for all members of the Orange HOME Consortium for the purposes of carrying out the <br /> HOME Program in accordance wit the Title 11 of the Cranston-Gonzalez National Affordable <br /> Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d) et. seq.) (hereinafter referred to as the <br /> "Act"), and as further defined in the Federal Program Requirements provided by the U.S. <br /> Department of Housing and Urban Development; and <br /> WHEREAS, The Town intends to lease these units to current public housing families <br /> with a rent paying ability of at least $450 per month included future leasing to 30% and below of <br /> median income as described in their HOME Application dated February 23, 2001 which is <br /> Exhibit B to this Agreement, and hereinafter referred to as"the Project". <br /> NOW, THEREFORE, in consideration of the mutual covenants, promises, and <br /> representations contained herein, it is agreed between the parties hereto as follows: <br /> Project Activities <br /> 1.1 The Town shall acquire the dwelling units defined in Project, obtain all permits and <br /> licenses necessary to rehabilitate the units in the Project if necessary, and ensure <br /> compliance with all applicable building and zoning ordinances as well as Section 8 <br /> Housing Quality Standards (HQS). <br /> 1.2 Financial assistance in the amount of $50,000 for each dwelling unit for a total of <br /> $100,000 in Federal HOME Program funding will be provided in the form of a deferred <br /> loan with a forty (40) year loan term, forgivable at the end of 40 years. The HOME <br /> Program investment will be secured by a Deed of Trust and Promissory Note. This Deed <br />