Orange County NC Website
Browse       Search
DocuSign Envelope ID:CD9F8982-55C9-4553-9BE5-F346295164C5 <br /> County Manager in writing for a period of time not to exceed six (6) months. Any further <br /> extensions will require the approval of the Orange County Board of County Commissioners. <br /> V. DURATION OF THE AGREEMENT <br /> This Agreement will remain in effect for the Period of Affordability, which is forty (40) <br /> years. <br /> VI. AFFORDABILITY REQUIREMENTS <br /> A. Owner agrees to lease the Project dwelling units to eighty (80) low income families <br /> earning less than 60% of the area median income during the Period of Affordability. <br /> 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 during 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 which event of the <br /> sale of the Property to a non-qualified buyer, the Resale Provisions of this Agreement <br /> shall 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 an agency <br /> other than one with a similar interest in affordable housing during the term of <br /> affordability, the Right of First Refusal provision of the County's Long-Term <br /> Housing Affordability Policy must be followed and the net sales proceeds (sales price <br /> less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage <br /> and (3) the unpaid principal amount of the initial County contribution and any other <br /> initial government contribution secured by a deferred payment promissory note and <br />