1997 S Housing - HOME Program - Acquisition Program Agreement $40,000

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C. The property to be acquired must have a value that does not exceed 95% of the area median purchase price for that type of housing. Value must be established by one of the following methods: i. An appraisal by a qualified appraiser. ii. Tax assessments may be used to establish value, but only if they are current and can be computed at 100% of market value. d. Transfer of property that includes rehabilitation requires an appraisal by a qualified appraiser. If rehabilitation is required, the appraised value of the property after rehabilitation cannot exceed 95% of the median area house value. (Note, the property value - not purchase price - must be equal to or less than 95% of median purchase price.) The after rehabilitation value estimate must be completed prior to the investment of HOME funds. 2. The Property shall be secured by a note from OCHC to the County and a deed of trust constituting a first lien on the each lot of subject Property which deed of trust shall designate the County as the secured party/beneficiary. The note and deed of trust shall be in the form of the documents that are attached to and a part of this Agreement. 3. OCHC agrees to rent the property to a family whose income does not exceed 50% 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. 4. Any rental income in excess of the approved rental operations budget must be returned to Orange County at the end of the July 1 fiscal year annually. 5. The County and OCHC agree to comply with the Act, its regulations and Federal Program Requirements in the purchase and lease of the Property. The County and OCHC further agree to comply with the provisions of the Funding Agreement, dated July 1, 1996 and 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 OCHC to provide rental housing for low income families shall terminate on December 16, 2017. 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 parry 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, 2