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3 <br /> c. Proceeds from the sale of the first three lots shall be used to purchase the <br /> fourth lot, Lot 15, Abbotts Colony subdivision. OCHC shall then market and sell <br /> the fourth lot, construct a home for the selected buyer, and complete the sale <br /> of the home on the fourth lot, no later than June 30, 1997. <br /> 2. The County agrees to subordinate its mortgage interest on each lot to private <br /> construction financing acquired by OCHC or its designated homebuilder in order <br /> to construct a home on the lot. <br /> 3. At the closing of the sale of each home, OCHC shall repay the County the amount <br /> of $4,167 and shall provide to the buyer a mortgage in the amount of $12,500, <br /> representing HOME funds allocated from the $50,000. The County shall cancel the <br /> original deed of trust for the lots and shall provide a note and deed of trust in the <br /> amount of $12,500 to be recorded at the closing of each lot to secure the second <br /> mortgage, in accordance with the Act, its regulations, and State Program <br /> Requirements for funding provided directly by the State (Exhibit B). The County <br /> agrees to subordinate its mortgage interest on each lot to private mortgage <br /> financing acquired by the buyer. <br /> 4. OCHC agrees to market and sell the homes at a price not to exceed the N.C. <br /> Housing Finance Agency maximum new home sales price, currently $94,000, as <br /> amended from time to time. OCHC and the County acknowledge that this price is <br /> below the maximum allowable HOME sales price, equal to the 203(b) mortgage <br /> limit for the area for the type of housing being purchased. OCHC further agrees <br /> to sell the homes to buyers whose incomes do not exceed 80% of the area <br /> median income by family size, as defined by the U.S. Department of Housing and <br /> Urban Development, as amended from time to time. OCHC shall provide to the <br /> County prior to closing the sale of each home documentation verifying the income <br /> of each buyer to the satisfaction of the County. <br /> 5. The County and OCHC agree to comply with the Act, its regulations, and State <br /> Program Requirements in the purchase and sale of the Property. The County and <br /> OCHC further agree to comply with the provisions of the Funding Agreement, <br /> dated , attached hereto and made a part of this Agreement (Exhibit C). <br /> 6. Miscellaneous Provisions. <br /> a. Termination of Agreement. The obligations of the parties hereunder and the <br /> specific obligation of OCHC to purchase the Property and construct homes thereon <br /> shall terminate upon the completion of the sale of four homes to qualified buyers. <br /> Continuing obligations of the buyers shall be contained in the note and deed of trust <br /> 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 mututal <br /> agreement to that effect in writing. <br /> 2 <br />