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8. In the event the townhomes constructed at Carr Court are not sold at a date 24 <br /> months from the date of closing of the purchase of the property, OCHC may elect to <br /> (a) sell the remaining properties to a private investor with no restrictions and repay <br /> the HOME funds outstanding; (b) sell the remaining properties to a private investor <br /> for use as affordable rental units subject to the restrictions found in the HOME <br /> Program, subject to approval of the sale and transfer of the loan obligations to the <br /> private investor by Orange County; or (c) retain ownership of the units and maintain <br /> them as rental units subject to the restrictions found in the HOME program. OCHC <br /> must notify Orange County on a date 20 months from the date of the closing of the <br /> purchase of the property of its intentions in the event the townhomes are not sold by <br /> that date. <br /> 9. OCHC agrees to sell the homes to qualified buyers whose incomes do not exceed <br /> 80% of the area median income by family size, as determined by the U.S. <br /> Department of Housing and Urban Development and amended from time to time. At <br /> the closing of the sale to a homebuyer of each lot, OCHC shall repay the County, <br /> $26,833.33 in the form of a credit to the homebuyer. The credit to the homebuyer <br /> shall be documented by a promissory note from the homebuyer to the County which <br /> note shall be secured by a deed of trust on the property naming the County as <br /> beneficiary. The County agrees to subordinate its mortgage interest on each lot to a <br /> first lien private mortgage acquired by the buyer. The period of affordability for <br /> HOME funds in accordance with the Acts, its regulations and State Program <br /> Requirements shall be 15 years from the date of execution of this Agreement. The <br /> default interest rate shall be 7% per annum. OCHC shall provide to Orange County <br /> prior to closing the sale of each home documentation, satisfactory to the County, <br /> verifying the income of each buyer. <br /> 10. Miscellaneous Provisions. <br /> a. Termination of Agreement. The obligations of the parties hereunder and <br /> the specific obligation of OCHC to purchase the Property and construct homes thereon <br /> shall terminate upon the completion of the sale of the targeted six townhomes to qualified <br /> buyers. Continuing obligations of the buyers shall be contained in the note and deed of <br /> trust to be recorded at the time of closing of the sale of each home. Notwithstanding the <br /> foregoing, the parties hereto may terminate this Agreement at any time by a mutual <br /> agreement to that effect in writing. <br /> b. Default, Remedies. This Agreement may be terminated by a non- <br /> defaulting party upon an event of default hereunder, after written notice thereof and <br /> thirty (30) days grace period in which the defaulting party may act to cure. As used <br /> herein, the term "an event of default" shall mean and refer to a failure or act of omission <br /> by either party with respect to any undertaking, obligation, covenant or condition as set <br /> forth in this Agreement. With respect to any event of default, the non-defaulting party <br /> may exercise any right available to it at law or in equity with respect to such default. <br /> 3 <br />