Agenda - 12-19-1995 - VIII-E - Laserfiche WebLink

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3 2. The purchase of the lots by OCHC with HOME funds shall be secured by a note from OCHC to the County and a deed of trust constituting a first lien on the property purchased which deed of trust shall designate Orange 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 document. Orange County agrees to subordinate its mortgage interest on each lot to private construction financing acquired by OCHC in order to complete the project. 3. OCHC agrees to contract with Ame Gray, an interested private developer, to complete improvements on the property. The improvements will consist of converting the eight (8) existing units into six (6) townhome units that can be sold as individual townhomes, and further agrees to coordinate and supervise the distribution of construction loan funds. OCHC and Orange County acknowledge that Mr. Gray was selected through a non-competitive bidding process by the Orange County HOME Consortium as the participating private partner. 4. OCHC agrees to secure financing for the construction of the project, subject to the availability of favorable financing. 5. OCHC agrees to prepare a marketing plan prior to the closing date for the purchase of the property, which will be incorporated into this document upon approval of the Orange County HOME Program Consortium. The Consortium recognizes the difficulty in determining marketing strategy, thus the plan will include activities to be undertaken by other parties. 6. Once potential purchasers are identified through marketing efforts specked in the marketing plan, OCHC will perform all activities necessary to complete the sale, including but not limited to: prequalifying the potential purchasers for a mortgage, obtaining credit information, providing homeownership education, preparing a sales contract and other necessary documents. Orange County agrees to provide legal services for preparation of townhome documents and homeowners association documents necessary to be able to sell the homes prior to the completion of construction. OCHC will fund the cost of all other legal services in the attached Project Budget from other sources, including the HOME funds. 7. In the event the townhomes constructed at Carr Court are not sold at a date 18 months from the date of closing of the purchase of the property, OCHC may elect to (a) continue to market the properties for sale to eligible buyers, or (b) attempt to secure tenants who may qualify for lease-to-purchase programs and be qualified to purchase the property within 2 years form the date of tenancy, converting the construction loans outstanding to permanent mortgages. OCHC must notify Orange County on a date 12 months from the date of the closing of the purchase of the property of its intentions in the event the townhomes are not sold by that date.