2013-161 Housing - EmPOWERment Inc for FY 2012 HOME Program $90,000

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NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: I. USE OF HOME FUNDS/SUBSIDY TYPE 1. The Owner shall perform the projects or tasks related to its allocation of HOME funds as provided in Exhibit B and within the proposed budget outlined in Exhibit C. Exhibits B and C are hereby made a part of this Agreement and are incorporated by reference, as it now reads or as it may be modified by the parties. 2. The Owner may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to eligible costs as determined by Orange County staff. 3. Said funds shall be disbursed by check payable to the Owner. 4. HOME funds will be a fixed subsidy provided in the form of a deferred loan. II. AMOUNT OF HOME FUNDS/GRANT TERMS The County shall make available to the Owner up to Ninety Thousand Dollars ($90,000) at an interest rate of zero percent (0%) pursuant to this Agreement. The funding provided by the County will be provided as a fixed subsidy in the form of a deferred loan. The 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, Said funds shall be disbursed by the County to the Owner for performance of the services described in Exhibit B. III. LIEN POSITION Orange County hereby acknowledges that the terms and conditions of its (i) HOME Program Development Agreement, (ii) Promissory Note, (iii) Deed of Trust and Security Agreement and (iv) Declaration of Restrictive Covenants (collectively referred to as "Orange County Loan Documents"), for EmPOWERment, Inc. shall not be subordinate to any other documents. The Declaration of Restrictive Covenants (EXHIBIT D) described in Paragraph VI. of this Agreement should be recorded prior to the Deed of Trust. IV. TIMELINESS Owner shall complete the Project within six (6) months from the date of this Agreement. However, in the event of any alterations or additions or circumstances beyond the control of the Owner, which in the opinion of the Director of the County's Department of Housing, Human Relations and Community Development will require additional time for completion of the Project, then in that case, the time of completion shall be extended by the County Manager in