Agenda 08-14-2001 - 8l - Laserfiche WebLink

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4 a preliminary response to the request. If the response is favorable and no further documentation is necessary, the County will notify Habitat in writing of the date funds will be available. If the County requests additional information, the request for information must be satisfied in full before the written notification of funding availability. Any new submission of material will trigger the ten (10) working days response timeframe outlined above. d. Habitat shall sell the newly constructed dwelling units to qualified buyers whose income is up to 80% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the sale. e. The HOME funding provided by the County will be provided as a deferred second mortgage transferable to the individual families at the time of sale to them. The bond investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. 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 the County as the secured party/beneficiary. The County agrees to subordinate its Deed of Trust lien on the Property to a lien securing private construction financing acquired by Habitat in order to complete the project. f. At the time of closing of the sale of a dwelling unit to a homebuyer, Habitat shall repay the County the amount of the HOME Program investment in the form of a credit to the homebuyer. The credit to the homebuyer shall be documented by a Promissory Note from the homebuyer to the County which note shall be secured by a Deed of Trust on the Property naming the County as beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien securing private permanent financing acquired by the homebuyer. The closing attorney will be responsible for providing to the County Attorney an opinion on title indicating the recording information concerning the documents to be recorded and the fact that the Deed of Trust, upon its recording has a priority second only to current Orange County property taxes and the recorded Declaration of Restrictive Covenants. Also, evidence of title insurance must be provided to the County Attorney. Upon receipt of this documentation, the County will release its original Deed of Trust executed by Habitat by Humanity of Orange County, NC, Incorporated by Release Deed which will be delivered to the closing attorney for recordation. Subsequently, the associated Promissory Note will be cancelled at that time. g. 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 Habitat and/or Orange County.