Declaration of Deed Restrictions between Orange Community Housing Corporation and Orange County

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and provisions hereof shall be construed to effectuate the purposes set forth herein and to sustain the validity hereof. The titles and headings of the sections of this Agreement have been inserted for convenience of reference only, and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof or be considered or given any affect in construing this Agreement or any provisions hereof or in ascertaining intent, if any question of intent shall arise. Section 2. Residential Property. The Owner hereby represents, covenants, warrants and agrees that: (a) The Development will be acquired, constructed or rehabilitated for the purpose of providing "affordable housing": (i) as prescribed in 24 CFR Part 92.252 in the event the Owner uses the Project for rental purposes, or (ii) as prescribed in 24 CFR Part 92.254 in the event the Owner occupies the Project as its residence; and (b) That, subject to the provisions of Section 4 below, the Project shall continue as affordable housing for the full Period of Affordability. Section 3. Covenants to Run with the Land. The covenants, reservations and restrictions set forth herein shall be deemed covenants running with the Land and, except as provided in Section 4 hereof, shall pass to and be binding upon the Owner's heirs, assigns and successors in title to the Land or the Development; provided, however, that upon the termination of this Agreement in accordance with the terms hereof said covenants, reservations and restrictions shall expire. Except as provided in Section 4 hereof, each and every contract, deed or other instrument hereafter executed covering and conveying the land or the Development or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. If a portion of portions of the development are conveyed, all of such covenants, reservations and restrictions shall run to each portion of the Development. Section 4. Term. This Agreement shall remain in full force and effect until the expiration of the Period of Affordability provided, however, that this Agreement shall automatically terminate in the event of foreclosure or transfer of title by deed in lieu of foreclosure. In the case of foreclosure or transfer of title by deed in lieu of foreclosure or similar event, such termination will cease to be in effect if, at any time during the remainder of the Period of Affordability, the Owner of record immediately prior to the foreclosure or deed in lieu of foreclosure obtains an ownership interest in the Development or the Land. Section 5. Correction of Noncompliance. The failure of the Owner to comply with any of the provisions of Section 2 of this Agreement shall not be deemed a default hereunder unless such failure has not been corrected within a period of 60 days following the date that any of the parties hereto learned of such failure or should have learned of such failure by the exercise of reasonable diligence.