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b. OCHC shall then market and sell the lots, construct homes <br /> for the selected buyers, and complete the sale of the homes <br /> on the Property by June 30, 1995 . <br /> c. The period of affordability for HOME funds in accordance <br /> with the Act, its regulations and State Program <br /> Requirements shall be 20 years from the date of execution <br /> of this Agreement. The default interest rate shall be 7% <br /> per annum. <br /> 2 . The County agrees to subordinate its mortgage interest on <br /> each lot to private construction financing acquired by OCHC <br /> or its designated homebuilder in order to construct a home on <br /> the lot. <br /> 3 . At the closing of the sale to a homebuyer of each lot, OCHC <br /> shall repay the County $15,588 .50 in the form of a $15,588 . 50 <br /> credit to the homebuyer. The $16 ,000 . 00 credit to the <br /> homebuyer shall be documented by a promissory note from the <br /> homebuyer to the County in the amount of $15,588 .50 which <br /> note shall be secured by a deed of trust on the property <br /> naming the County as beneficiary. The County agrees to <br /> subordinate its mortgage interest on each lot to a first lien <br /> private mortgage acquired by the buyer. The promissory notes <br /> and deeds of trust shall be substantially in the form of <br /> Exhibit B to this agreement and in accordance with the Act, <br /> its regulations, and State Program Requirements for funding <br /> provided directly by the State. The period of affordability <br /> for HOME funds in accordance with the Act, its regulations <br /> and State Program Requirements shall be 20 years from the <br /> 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 <br /> exceed the N.C. Housing Finance Agency maximum new home sales <br /> price, currently $97 , 000, as amended from time to time. OCHC <br /> and the County acknowledge that this price is below the <br /> maximum allowable HOME sales price, equal to the 203 (b) <br /> mortgage limit for the area for the type of housing being <br /> purchased. OCHC further agrees to sell the homes to buyers <br /> whose incomes do not exceed 80% of the area median income by <br /> family size, as defined by the U.S. Department of Housing and <br /> Urban Development, as amended from time to time. OCHC shall <br /> provide to the County prior to closing the sale of each home <br /> documentation, satisfactory to the County, verifying the <br /> income of each buyer. <br /> 5 . The County and OCHC agree to comply with the Act, its <br /> regulations, and State Program Requirements in the purchase <br /> and sale of the Property. The County and OCHC further agree <br /> to comply with the provisions of the Funding Agreement, dated <br /> , attached hereto and made a part of this Agreement <br /> (Exhibit C) . <br /> 2 <br />