2017-333-E Housing - Downtown Housing Improvement Corporation (DHIC) - Development Agreement for HOME Investment Partnership Award

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DocuSign Envelope ID:CD9F8982-55C9-4553-9BE5-F346295164C5 particularly described in Exhibit A, Property Legal Description attached hereto and made a part of this Agreement(hereinafter referred to as "the Property"); and WHEREAS, Greenfield agrees to utilize the Project Funds provided by the County for the purpose of constructing the Project as described in Sponsor's HOME Program application dated February 19, 2015 which is hereby incorporated into this Agreement and hereinafter referred to as "the Project Application"; and NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: I. USE OF HOME FUNDS/SUBSIDY TYPE A. The County, Sponsor and Owner hereby agree and acknowledge that the Project Funds were awarded to Sponsor and that Sponsor is hereby assigning the right to such Project Funds to the Owner. The County, on behalf of the Sponsor, is loaning such funds to Owner in accordance with the terms of this Agreement. B. The Sponsor and Owner shall be responsible for and ensure that Owner performs the projects or tasks related to its allocation of Project funds as provided in Exhibit B, Scope of Work, and within the Proposed Project Budget outlined in Exhibit C. Exhibits B and C are hereby made a part of this Agreement and are incorporated by reference, as it now reads or as it may be modified by the parties. Sponsor and Owner agree that all Loan funds made available to the Owner shall be expended solely on the Project. C. The Owner may not request disbursement of funds under this Agreement until after the property has been conveyed to Owner, a title insurance policy with the County as a named insured purchased and the funds are needed for payment of eligible costs. The amount of each request must be limited to eligible costs as determined by the Orange County staff. D. Said funds shall be disbursed by check made payable to the Owner. E. HOME funds will be a fixed subsidy provided in the form of a deferred loan, payable in a lump sum at the end of the loan term. II. AMOUNT OF HOME FUNDS/GRANT TERMS The County shall make available to the Owner a Loan of up to One Hundred Fifty-Four Thousand Five Hundred Dollars ($154,500) at an interest rate of zero percent (0%) pursuant to this Agreement. The funding provided by the County will be provided as a fixed subsidy in the form of a deferred loan, payable in one (1) lump sum payment on the last day of the term of the loan. The investment will be secured by a Forty (40) year Deed of Trust and Promissory Note. This Deed of Trust and Promissory Note shall constitute a lien on the Property. Said funds shall only be disbursed by the County to the Owner for performance of the services described in Exhibit B.