2013-162 Housing - The ARC Orange County Housing Corp #4 FY 2010 HOME PROGRAM $150,000

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conditioned on Orange County's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. 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 after the property has been conveyed to Owner, a title insurance policy with the County as a named Insured purchased and 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. 11. AMOUNT OF HOME FUNDS/GRANT TERMS The County shall make available to the Owner up to One Hundred Fifty Thousand Dollars ($150,000) 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. 111. 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 The ARC Orange Apartments in Chapel Hill shall be and are expressly subordinated only to the HUD Deed of Trust and Assignment of Rents, Profits and Income in the form in Exhibit D and the Declaration of Restrictive Covenants described in paragraph 5 of this Agreement,the form of which is attached as Exhibit E and incorporated by reference.