1996 NS CDBG Program Development Agreement Amendment Magnolia Place Subdivision

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2 NORTH CAROLINA AMENDMENT#1 ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT AMENDMENT 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 Amendment is August 5, 1996. WITNESSETH WHEREAS, Orange County was awarded $250,000 in Community Development Block Grant (CDBG) funds in February 1994, for the purpose of providing public improvements for the Magnolia Place subdivision, and WHEREAS, the County, entered into a Development Agreement with the Orange Community Housing Corporation for Magnolia Place on or about March 15, 1994; NOW, THEREFORE, the County and Orange Community Housing Corporation agree that Paragraph 7 and 9 of the Agreement is amended to read as follows: 7. OCHC shall then market and sell the lots, construct homes for the selected buyers, and complete the sale of the homes on the targeted twenty lots by June 30, 1997. 9. At the closing of the sale to a homebuyer, OCHC shall repay the County with a credit to the homebuyer. There shall be credits in the amount of eighteen (18) credits for $12,500.00 and two (2) credits of $11,025.00. The credits 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 shall provide a release deed to OCHC at the closing of each sale to a homebuyer, releasing the parcel to be sold from further obligation under the master note and deed of trust between OCHC and the County. The County agrees to subordinate its mortgage on each home to a first lien private mortgage acquired by the buyer. The promissory notes and deed of trust shall be substantially in the form of Exhibit B to this Agreement. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands and seals on the day and year first above written.