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3 <br /> Property to a first lien securing private construction financing acquired by HHOC <br /> in order to complete the project. <br /> 3. HHOC agrees to sell the home to a qualified buyer whose income does not <br /> exceed 80% of the area median income by family size, as determined by the <br /> U.S. Department of Housing and Urban Development and as amended from time <br /> to time. At the closing of the sale to a homebuyer, HHOC shall repay the County <br /> $11,370.00 in the form of a credit to the homebuyer. The credit to the <br /> homebuyer shall be documented by a promissory note from the homebuyer to <br /> the County which note shall be secured by a deed of trust on the Property <br /> naming the County as beneficiary. The County agrees to subordinate its lien on <br /> each lot to a first lien securing private permanent financing acquired by the <br /> homebuyer. The period of affordability for HOME funds in accordance with the <br /> Act, its regulations and State Program Requirements shall be 20 years from the <br /> date of execution of this Agreement. The default interest rate shall be 7% per <br /> annum. HHOC shall provide to the County, prior to closing the sale of the <br /> Property to the homebuyer, documentation satisfactory to the County verifying <br /> the income of the homebuyer. <br /> 4. HHOC may use $3,150 of the $60,000 allocation for operating expenses of the <br /> organization. HHOC intends to uses these funds for on-site consturction <br /> supervision. <br /> 5. The County and HHOC agree to comply with the Act, its regulations and Federal <br /> Program Requirements in the purchase and sale of the Property. The County <br /> and HHOC further agree to comply with the provisions of the Funding <br /> Agreement, dated July 1, 1997, attached hereto and made a part of this <br /> Agreement (Exhibit B) <br /> 6. Miscellaneous Provisions. <br /> a. Termination of Agreement The obligations of the parties hereunder <br /> and the specific obligation of HHOC to accept conveyance of the Property and <br /> construct a house thereon shall terminate upon the completion of the sale of the <br /> Property to a homebuyer. Continuing obligations of the homebuyer shall be contained <br /> in the note and deed of trust to be recorded at the time of closing of the sale of the <br /> Property. Notwithstanding the foregoing, the parties hereto may terminate this <br /> Agreement at any time by a mutual agreement to that effect in writing. <br /> b. Default, Remedies. This Agreement may be terminated by a non- <br /> defaulting party upon an event of default hereunder, after written notice thereof is given <br /> giving the defaulting party thirty (30) days in which to cure the default. As used herein, <br /> the term "an event of default" shall mean and refer to a breach of any of the terms of <br /> this Agreement including a failure to meet the time limitations contained in this <br /> Agreement and a failure to act as required by this Agreement by either party with <br />