Agenda - 02-03-1997 - 9b - Laserfiche WebLink

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J 3 NORTH CAROLINA ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and Orange Community Housing Corporation, a North Carolina nonprofit corporation (hereinafter referred to as "OCHC"). The date of this Agreement is WITNESSETH WHEREAS, the Orange County HOME Consortium has expended $33,333 in FY 1992 HOME funds for the purpose of acquiring the property more particularly described in Exhibit A attached hereto and made a part of this Agreement (hereinafter referred to as the"Property"); and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated August 27, 1992, and amended January 26, 1993, and July 28, 1993, and as such is the lead entity in a representative capacity for all members of the Orange HOME Consortium for the purposes of carrying out the HOME Program in accordance with the Title II of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d.) gt. M.) (hereinafter referred to as the "Act'), and as further defined in the Federal Program Requirements provided by the U.S. Department of Housing and Urban Development; and WHEREAS, OCHC intends to develop the Property for the purpose of constructing homeownership opportunities for first-time homebuyers. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto do agree as follows: 1. OCHC agrees to market the Property, construct two single family homes on the Property for the selected buyer and complete the sale of the Property to the selected buyer on or before July 31, 1997. The sales price of the Property to the selected buyer shall not exceed the North Carolina Housing Finance Agency maximum new home sales price in effect at the time of the sale to the selected buyer. The County will not reimburse the expenses incurred by OCHC as a result of marketing, constructing the two homes. 2. The Property is secured by a note from OCHC to the County and a Deed of Trust constituting a first lien on the Property which deed of trust shall designate the County as the secured party/beneficiary. The existing Note and Deed of Trust is hereby considered a part of this Agreement. The County agrees to subordinate its lien on the Property to a first lien securing private construction financing acquired by OCHC in order to complete the project. 3. OCHC agrees to sell the home to a qualified buyer whose income does not exceed 80% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. At the closing of the sale to a homebuyer, OCHC shall repay the County $16,666.50 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