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to eight(8) low income individuals earning less than 50% of the Area Median Income and which <br /> will remain affordable for low income families throughout the term of the 99 year period of <br /> affordability. The ARC Orange Apartments will be located on West Barbee Chapel Road in <br /> Chapel Hill, NC. The Project dwelling units are located on the property more particularly <br /> described in EXHIBIT A attached hereto and made a part of this Agreement(hereinafter referred <br /> to as"the Property"); and <br /> WHEREAS, The ARC agrees to utilize HOME funds provided for the purpose of <br /> constructing the Property as described in its HOME Program application dated February 26, <br /> 2010 as amended April 26, 2012 which is hereby incorporated into this Agreement and <br /> hereinafter referred to as "the Project"; and <br /> WHEREAS, notwithstanding any provision of this Agreement, the County and the ARC <br /> hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or <br /> site approval, and that such commitment of funds or approval may occur only upon satisfactory <br /> completion of an environmental review and receipt by Orange County of a Release of Funds <br /> from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if <br /> applicable. The parties further agree that the provision of such funds to the project is <br /> conditioned on Orange County's determination to proceed with, modify, or cancel the project <br /> based on the results of a subsequent environmental review. <br /> WHEREAS, the ARC has signed this Declaration agreeing to the terms of this <br /> Declaration, its obligations pursuant to this Declaration and agreeing to the terms of the HOME <br /> PROGRAM DEVELOPMENT AGREEMENT between the County and The ARC of even date; <br /> NOW, THEREFORE, in consideration of the promises and covenants hereinafter set <br /> forth and of other valuable consideration, the receipt and sufficiency of which is hereby <br /> acknowledged, The ARC intends, declares, and covenants that the regulatory and restrictive <br /> covenants set forth herein governing the use, occupancy, and transfer of the Property shall be and <br /> are covenants pertaining to the Property and running with the land for the term stated herein <br /> and are binding upon all subsequent owners of the Property and for such term, except as <br /> specifically provided herein, and are not merely personal covenants of The ARC. <br /> SECTION 1 REPRESENTATIONS, COVENANTS AND WARRANTIES OF OWNER <br /> The ARC hereby represents covenants and warrants as follows: <br /> a. It is contemplated that the Property and the Project will be used, during the ninety-nine <br /> years after Project Completion (defined as the last of the following events: the Property is <br /> acquired, rehabilitated, if necessary, and the last of the six (6) Project dwelling units <br /> occupied by a low-income family), for rental housing to families earning up to 50% of <br /> HUD area median income. In the event Owner sells, transfers or exchanges the Property <br /> or any portion of the Property,the following shall pertain: <br /> 1. Subject to the requirements of the DEVELOPMENT AGREEMENT (Exhibit B <br /> hereto), the Orange County HOME Investment Partnership Program and this <br />