1997 S Housing - HOME Program Efland Estates $60,000 in FY 1997

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2 Property to a first lien securing private construction financing acquired by HHOC in order to complete the project. 3. HHOC 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, HHOC shall repay the County $11,370.00 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 deed of trust on the Property naming the County as beneficiary. The County agrees to subordinate its lien on each lot to a first lien securing private permanent financing acquired by the homebuyer. The period of affordability for HOME funds in accordance with the Act, its regulations and State Program Requirements shall be 20 years from the date of execution of this Agreement. The default interest rate shall be 7% per annum. HHOC shall provide to the County, prior to closing the sale of the Property to the homebuyer, documentation satisfactory to the County verifying the income of the homebuyer. 4. HHOC may use $3,150 of the $60,000 allocation for operating expenses of the organization. HHOC intends to uses these funds for on-site construction supervision. 5. The County and HHOC agree to comply with the Act, its regulations and Federal Program Requirements in the purchase and sale of the Property. The County and HHOC further agree to comply with the provisions of the Funding Agreement, dated July 1, 1997, attached hereto and made a part of this Agreement (Exhibit B) 6. Miscellaneous Provisions. a. Termination of Agreement. The obligations of the parties hereunder and the specific obligation of HHOC to accept conveyance of the Property and construct a house thereon shall terminate upon the completion of the sale of the Property to a homebuyer. Continuing obligations of the homebuyer shall be contained in the note and deed of trust to be recorded at the time of closing of the sale of the Property. Notwithstanding the foregoing, the parties hereto may terminate this Agreement at any time by a mutual agreement to that effect in writing. b. Default, Remedies. This Agreement may be terminated by a non- defaulting party upon an event of default hereunder, after written notice thereof is given giving the defaulting party thirty (30) days in which to cure the default. As used herein, the term "an event of default" shall mean and refer to a breach of any of the terms of this Agreement including a failure to meet the time limitations contained in this Agreement and a failure to act as required by this Agreement by either party with