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16 <br /> NORTH CAROLINA <br /> ORANGE COUNTY <br /> DEVELOPMENT AGREEMENT <br /> This is an AGREEMENT between ORANGE COUNTY, a general local governmental <br /> unit of the State of North Carolina, (hereinafter referred to as the "County") and <br /> RESIDENTIAL SERVICES, INC., a North Carolina non-profit housing organization <br /> (hereinafter referred to as"RSI"). The effective date of this agreement is <br /> WITNESSTH <br /> WHEREAS, the County, in the implementation of the Orange County Affordable <br /> Housing. Bond Program solicited applications for funding from interested non-profit <br /> organizations; <br /> WHEREAS, RSI submitted an application for Housing Bond funding dated May 29, <br /> 2001 for $385,419 for the development of a Continuing Care Center for persons with <br /> Developmental Disabilities that was approved by the Board of County Commissioners on June <br /> 19, 2001 awarding $275,000; and <br /> WHEREAS, RSI proposes to develop fifteen (15) units on Mount Hermon Church Road <br /> as described in EXHIBIT A, for low-income senior citizens with developmental disabilities <br /> earning less than 30%of the HUD area median income; and <br /> WHEREAS,RSI agrees to utilize bond funds provided by the County for the purpose of <br /> constructing 15 units for low-income elderly individuals as described in their bond application <br /> dated May 29, 2001 which is EXHIBIT B to this Agreement, and hereinafter referred to "the <br /> Project". <br /> NOW, THEREFORE, in consideration of the mutual covenants, promises, and <br /> representations contained herein, it is agreed between the parties hereto as follows: <br /> 1. a. RSI shall construct the dwelling units defined in the Project, obtain all permits <br /> and licenses necessary to construct the homes on the Property, and comply with <br /> applicable building and zoning ordinances and the N.C. Housing Finance Agency Energy <br /> Standards. The Project shall be undertaken without residential displacement. <br /> b. RSI agrees to lease the property to families whose income does not exceed 30% of <br /> the area median income by family size, as determined by the U.S. Department of Housing <br /> and-Urban Development and as amended from time to time. And RSI agrees that all <br /> occupants will be Medicaid eligible. <br /> C. The bond funding provided by the County will be provided as a deferred second <br /> mortgage. The bond investment will be secured by a forty (40) year Deed of Trust and <br /> 16 <br />