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4 <br /> of Trust and Promissory Note shall constitute a lien on the Property, second only to the <br /> Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with <br /> the County as the secured party/beneficiary. The County agrees to subordinate its Deed <br /> of Trust lien to a lien securing private, first-time permanent financing obtained by the <br /> Town, Inc. at the time of purchase. <br /> 1.3 The period of affordability will be 99 years and will be secured by a Declaration of <br /> Restrictive Covenants that will incorporate a right of first refusal that may be exercised <br /> by the Town and/or Orange County. <br /> 1.4 The Town shall make certain that the seller is aware of their rights under the federal <br /> Uniform Relocation Act prior to completing the sale of the property. The seller must also <br /> complete a Lead Based Paint Disclosure Form if the property was built prior to 1978. <br /> 1.5 The property to be acquired must have a value that does not exceed 95% of the area <br /> median purchase price for that type of housing. <br /> Value must be established by one of the following methods: <br /> i. An appraisal by a qualified appraiser. <br /> ii. Tax assessments may be used to establish value, but only if they are <br /> current and can be computed at 100% of market value. <br /> 1.6 An annual rental operations budget must be submitted to the County each year at least <br /> sixty days prior to the July 1 beginning date for the fiscal year. Further, not more than 90 <br /> days after the end of each fiscal year, The Town must furnish to the County an annual <br /> accounting of income and expenses for each dwelling unit. The operating assumptions <br /> allowed at the time of initiation of this project including reasonable rent increases will be <br /> acceptable for future budgets and reports. Any excess cash flow must be returned to the <br /> County within 90 days of the end of the fiscal year for deposit into the local HOME <br /> Program Trust Fund for use in future affordable housing projects. <br /> 1.7 The Town agrees to lease the property to families whose income does not exceed 50% of <br /> the area median income by family size, as determined by the U.S. Department of Housing <br /> and Urban Development and as amended- from time to time. Monthly rents must <br /> establish in accordance with HOME Program guidelines. Residential leases will not <br /> exceed one year in term. The Project must not cause displacement of existing tenants. <br /> 1.8 The Town is responsible for verifying the income of prospective tenants and maintaining <br /> eligibility data. The Town shall maintain tenant files as part of its Books and Records as <br /> required and for the period of time required by Section 5c. of this Agreement. The Town <br /> must provide the County an initial occupancy report verifying the income eligibility of all <br /> tenants at the time of initial lease-up. Each year thereafter The Town must furnish the <br /> County with an annual report on the project by July 31 of each year certifying that all <br /> tenants earn less than 80% of the area median income by family size, as determined by <br />