Orange County NC Website
Browse       Search
3 <br /> c. The period of affordability for HCHE funds in accordance with the Act, <br /> its regulations and State Program Requirements shall be 20 years from <br /> the date of execution of this Agreement. The default interest rate <br /> shall be 7% per annum. <br /> 2. The County agrees to subordinate its mortgage interest on each lot to <br /> private construction financing acquired by OCHC or its designated <br /> hamebuilder in order to construct a home on the lot. <br /> 3. At the closing of the sale to a honebtuyer of each lot, OCHC shall repay <br /> the County $15,588.50 in the form of a $15,588.50 credit to the harebuyer. <br /> The $16,000.00 credit to� the hanebuyer shall be documented by a promissory <br /> note from the hambuyer to the County in the amount of $15,588.50 which <br /> note shall be secured by a deed of trust on the property naming the County <br /> as beneficiary. The County agrees to subordinate its mortgage interest on <br /> each lot to a first lien private mortgage acquired by the buyer. The <br /> promissory notes and deeds of trust shall be substantially in the form of <br /> Exhibit B to this agreement and in accordance with the Act, its <br /> regulations, and State Program Requirements for funding provided directly <br /> by the State. The period of affordability for HOME funds in accordance <br /> with the Act, its regulations and State Program Requirements shall be 20 <br /> years from the date of execution of this Agreement. The default interest <br /> rate shall be 7% per annum. <br /> 4. OCHC agrees to market and sell the homes at a price not to exceed the N.C. <br /> Housing Finance Agency maxiu m+ new home sales price, currently $97,000, as <br /> amended from time to time. OCHC and the County acknowledge that this <br /> price is below the nwi,n,m allowable HCHE sales price, equal to the 203(b) <br /> mortgage limit for the area for the type of housing being purchased. OCHC <br /> further agrees to sell the hares to buyers whose incomes do not exceed 80% <br /> of the area median income by family size, as defined by the U.S. <br /> Department of Housing and Urban Development, as amended from time to time. <br /> OCHC shall provide to the County prior to closing the sale of each home <br /> documentation, satisfactory to the County, verifying the income of each <br /> buyer. <br /> 5. The County and OCHC agree to ccuply with the Act, its regulations, and <br /> State Program Requirements in the purchase and sale of the Property. The <br /> County and OCHC further agree to comply with the provisions of the Funding <br /> Agreement, dated , attached hereto and made a part of this <br /> Agreement (Exhibit C) . <br /> 6. Mi s e 1 ananuss provisicns. <br /> a. of Agreement. The obligations of the parties hereunder <br /> and the specific obligation of OCHC to purchase the Property and construct <br /> hares thereon shall terminate upon the completion of the sale of two hares to <br /> qualified buyers. Continuing obligations of the buyers shall be contained in <br /> the note and deed of trust to be recorded at the time of closing of the sale <br /> of each hone. Notwithstanding the foregoing, the parties hereto may terminate <br /> this Agreement at any time by a mutual 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 <br />