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WHEREAS, on March 28, 2013, the Town of Chapel Hill and the State of North <br /> Carolina entered into a Land Lease (hereinafter referred to as "the Lease") for the Property, <br /> which Lease has been recorded in Deed Book 5579 beginning at Page 143 in the Office of the <br /> Register of Deeds for Orange County,North Carolina; and <br /> WHEREAS, on April 4, 2013, the Town of Chapel Hill and Inter-Faith Council for <br /> Social Service, Inc. entered into an Agreement for Sublease of Property (hereinafter referred to <br /> as "the Sublease") for the Property, which Agreement has been recorded in Deed Book 5584 <br /> beginning at Page 271 in the Office of the Register of Deeds for Orange County,North Carolina; <br /> and <br /> WHEREAS, IFC agrees to utilize HOME funds provided for the purpose of <br /> constructing the Property as described in its HOME Program applications February 28, 2005, <br /> February 25, 2009, February 25, 2010 and February 25, 2011 which is hereby incorporated into <br /> this Agreement and hereinafter referred to as"the Project"; and <br /> WHEREAS, notwithstanding any provision of this Agreement, the County and IFC <br /> hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or <br /> site approval, and that such commitment of funds or approval may occur only upon satisfactory <br /> completion of an environmental review and receipt by Orange County of a Release of Funds <br /> from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if <br /> applicable. The parties further agree that the provision of such funds to the project is <br /> conditioned on Orange County's determination to proceed with, modify, or cancel the project <br /> based on the results of a subsequent environmental review. <br /> WHEREAS, IFC has signed this Declaration agreeing to the terms of this Declaration, <br /> its obligations pursuant to this Declaration and agreeing to the terms of the HOME PROGRAM <br /> DEVELOPMENT AGREEMENT between the County and IFC of even date; <br /> NOW, THEREFORE, in consideration of the promises and covenants hereinafter set <br /> forth and of other valuable consideration, the receipt and sufficiency of which is hereby <br /> acknowledged, IFC intends, declares, and covenants that the regulatory and restrictive covenants <br /> set forth herein governing the use, occupancy, and transfer of the Property shall be and are <br /> covenants pertaining to the Property and running with the land for the term stated herein and are <br /> binding upon all subsequent Sublessees of the Property and for such term, except as specifically <br /> provided herein, and are not merely personal covenants of IFC. <br /> SECTION 1 REPRESENTATIONS, COVENANTS AND WARRANTIES OF <br /> SUBLESSEE <br /> IFC hereby represents covenants and warrants as follows: <br /> a. It is contemplated that the Property and the Project will be used, during the period of <br /> affordability as described in the HOME Program Development Agreement after Project <br /> Completion (defined as the last of the following events: the Property is acquired, <br /> rehabilitated, if necessary, and the last of the fifty(50) Project dwelling units occupied by <br /> a low-income family), for rental housing to families earning up to 50% of HUD area <br /> 16 <br />