2014-205 Housing - Habitat for Humanity for Home Investment Partnership Program $285,000

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site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review and receipt by Orange County of a Release of Funds from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if applicable. The parties further agree that the provision of such funds to the project is conditioned on Orange County's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: I. USE OF HOME FUNDS/SUBSIDY TYPE 1. Habitat shall perform the projects or tasks related to its allocation of HOME funds as provided in Exhibit B and within the proposed budget outlined in Exhibit C. Exhibits B and C are hereby made a part of this Agreement and are incorporated by reference, as it now reads or as it may be modified by the parties. 2. Habitat may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to eligible costs as determined by Orange County staff. 3. Said funds shall be disbursed by check payable to Habitat. 4. HOME funds will be a fixed subsidy provided in the form of a deferred loan. II. AMOUNT OF OME FUNDSIL,OAN TERMS The CounP5,OOO) e available to Habitat up to Two Hundred Eighty-Five Thousand Dollars ($ t an interest rate of zero percent (0%) pursuant to this Agreement. The funding provided by the County will be provided as a fixed subsidy in the form of a deferred second mortgage to the individual families at the time of sale to them. The investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on the Properties, subordinate only to the Declaration of Restrictive Covenants described in paragraph 6 of this Agreement, and provided in Exhibit D, and which is hereby incorporated by reference. At the time of closing of the sale of each of the dwelling units to a homebuyer, the homebuyer shall receive no more than $30,000.00 in HOME funds as second mortgage assistance which 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 Properties naming the County as beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien securing private permanent financing acquired by the homebuyer. 2