Orange County NC Website
Browse       Search
DRAFT <br /> 4 <br /> benefit for assisted units, unless affordability restrictions are terminated due to the <br /> occurrence of any of the following events: 1) foreclosure, 2) transfer in lieu of <br /> foreclosure, or 3) assignment of an FHA insured mortgage to HUD. EmPOWERment <br /> shall assure compliance with affordability of assisted units by recording Exhibit C <br /> "Declaration of Restrictive Covenants" on every assisted property. <br /> 5. Resale Provisions. EmPOWERment shall assure compliance with affordability of <br /> assisted units through the Declaration of Restrictive Covenants. The Declaration of <br /> Restrictive Covenants shall include at least the following elements in their resale <br /> provisions for the Improvements: <br /> 5.1 If the original buyer no longer uses the Improvement as a principal residence or <br /> is unable to continue ownership, then the buyer must sell, transfer, or otherwise <br /> dispose of its interest in the Improvement only to a low-income household,one <br /> whose combined income does not exceed 80%of the median household income <br /> as determined annually by HUD,to use as their principal residence. <br /> 5.2 The original buyer shall receive a fair return on investment(including the <br /> buyer's investment and any capital investment). <br /> 5.3 The resale provision shall remain in effect for the full affordability period—99 <br /> years. <br /> 6. Miscellaneous Provisions. <br /> a. Termination of Agreement.The full benefit of the Project will be realized only <br /> after the completion of the affordability periods for all properties constructed with funds <br /> provide affordable units to low-income families. It is the County's intention that the full public <br /> benefit of this project shall be completed under the auspices of EmPOWERment for the assisted <br /> units as follows: <br /> i. In the event that EmPOWERment is unable to proceed with any aspect of the Project <br /> in a timely manner, and County and EmPOWERment determine that reasonable <br /> extension(s) for completion will not remedy the situation, then EmPOWERment will <br /> retain responsibility for requirements for any units assisted and County will make <br /> no further payments to EmPOWERment. <br /> ii. In the event that EmPOWERment,prior to the close of the final affordability period, <br /> is unable to continue to function due to,but, not limited to,closure or insolvency of <br /> the organization, filing a petition of bankruptcy or similar proceedings, or is adjudged <br /> bankrupt or fails to comply or perform with provisions of this agreement as required <br /> by federal regulations,then EmPOWERment shall,upon the County's request, <br /> convey to the County the properties assisted with funds. Conveyance shall be at the <br /> sole discretion of County and on a property by property basis. <br /> Conveyance of properties shall be on the terms set forth herein: <br /> 4 <br />