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Area Median Income by family size is determined by the U.S. Department of Housing <br /> and Urban Development and amended from time to time. Residential leases will not <br /> exceed one year in term. <br /> B. Each of the Project dwelling units must remain affordable throughout the Period of <br /> Affordability. Owner retains full responsibility for compliance with the affordability <br /> requirement for each of the Project dwelling units, unless affordability restrictions are <br /> terminated due to the sale of the Property to a non-qualified buyer. In the event of a sale <br /> of the Property to a non-qualified buyer, the Resale Provisions as provided herein shall <br /> apply. <br /> C. The Owner shall assure compliance with Affordability Requirements of the Agreement <br /> for the Project dwelling units by recording a Declaration of Restrictive Covenants, the <br /> form of which is attached as Exhibit D, and shall be incorporated into this document. <br /> This Declaration shall constitute and remain a lien on the Property during the Period of <br /> Affordability. The Declaration of Restrictive Covenants shall include at least the <br /> following elements in their Resale Provisions for the Improvements: <br /> 1. If Owner no longer uses the Property as rental property or is unable to continue with <br /> Ownership, then the Owner must sell, transfer, or otherwise dispose of its interest in <br /> the Property only to an agency with similar interest in affordable housing and serve <br /> families with incomes not exceeding 80% of the area median household income by <br /> family size, as determined by the U.S. Department of Housing and Urban <br /> Development at the time of the transfer. The non-profit fund, foundation, or <br /> corporation of like purposes must have established its tax-exempt status under <br /> Section 501 (c) (3) of the Internal Revenue Code. <br /> 2. However, if the Property is sold,transferred, or otherwise disposed of to other than an <br /> agency with similar interest in affordable housing during the term of affordability, the <br /> Right of First Refusal provision of the County's Long-Term Housing Affordability <br /> Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, <br /> (2) the unpaid principal amount of the original first mortgage and (3) the unpaid <br /> principal amount of the initial County contribution and any other initial government <br /> contribution secured by a deferred payment promissory note and deed of trust) or <br /> "equity" will be divided 50/50 by the seller of the Property and the County. <br /> 3. The resale provision shall remain in effect for the full Period of Affordability period. <br /> D. Owner agrees to retain full responsibility for compliance with the Affordability <br /> Requirements in this Agreement and the Resale Provisions provided in Section 4 of <br /> Declaration of Restrictive Covenants,the form of which is attached as Exhibit D. <br /> E. It is further the responsibility of Owner to rerecord the Declaration of Restrictive <br /> Covenants periodically and no less often than one day less than every 30 years from the <br /> date hereof for the purpose of renewing the rights of first refusal in the Property or <br /> portion thereof including any leasehold interest in the Property or portion thereof. Orange <br />