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39 <br />pay the fee without passing the cost to the prospective renters or homebuyers. <br />With this reimbursement, the Board works to alleviate barriers to affordable <br />housing. <br />HOME/ American Dream Down payment Initiative (ADDI ) <br />1. Describe other forms of investment not described in § 92.205(b). <br />Orange County HOME Consortium Response: <br />The Consortium does not propose to invest HOME funds in activities that are not <br />described in § 92.205(b). <br />2. If the participating jurisdiction (PJ) will use HOME or ADDI funds for <br />homebuyers, it must state the guidelines for resale or recapture, as required <br />in § 92.254 of the HOME rule. <br />Orange County HOME Consortium Response: <br />All properties receiving financial assistance from Orange County for homeownership <br />activities must ensure that the housing remain affordable to families with incomes of <br />80% or less of the area median for at least 99 years from the date of initial <br />assistance. <br />Riaht of First Refusal <br />A right of first refusal or right to purchase is accomplished by means of a Declaration <br />of Restrictive Covenants on the property purchased by the first -time homebuyer. Any <br />assignment, sale, transfer, conveyance or other disposition of the property will not <br />be effective unless the following procedures are followed. <br />If the original homebuyer or any subsequent qualified homebuyer contemplates a <br />transfer to a non low- income household, the buyer must send Orange County and /or <br />the sponsoring nonprofit organization a notice of intent to sell at least 90 days before <br />the expected closing date. If Orange County and /or the sponsoring nonprofit <br />organization elect to exercise its right of refusal, it will notify the buyer within 30 <br />days of its receipt of the notice and will purchase the property within 90 days. <br />If neither Orange County nor the sponsoring nonprofit organization advises the buyer <br />in a timely fashion of its intent to purchase the property, then the Buyer is be free to <br />transfer the property in accordance with the equity sharing provisions described <br />below. <br />Eauity Sharina <br />Orange County provides its financial assistance as deferred second loans secured by <br />a 40 -year Deed of Trust and Promissory Note, forgivable at the end of 40 years. <br />This Deed of Trust and Promissory Note constitute a lien on the property, <br />subordinate only to private construction financing or permanent first mortgage <br />financing. <br />The 99 year period of affordability for each individual housing unit is secured by a <br />declaration of restrictive covenants that incorporate a right of first refusal that may <br />be exercised by a sponsoring nonprofit organization and /or Orange County. This <br />FY 2014 -2015 Action Plan 34 <br />