2018-120-E Housing - Empowerment acquisition of rental properties

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DocuSign Envelope ID: 764A29F1 -E414- 4251- 9AE2- 7ABF3F9D9344 commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review. The parties further agree that the provision of such funds to the project is conditioned on Orange County's determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. 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 BOND FUNDS A. The Owner shall perform the projects or tasks related to its allocation of Bond funds as provided in Exhibit B, Scope of Services and within the proposed budget outlined in Exhibit C, Budget and as contained herein. B. The Owner may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to eligible costs as determined by Orange County staff. C. Said funds shall be disbursed by the County to the Owner for performance of the services described in Exhibit B by check made payable to the Owner. D. Bond funds will be a fixed subsidy provided in the form of a deferred loan. II. AMOUNT OF BOND FUNDS/ LOAN TERMS A. Amount. The County shall make available to the Owner Project Funds in the amount of up to Four Hundred and Seventy -five Thousand Seven Hundred dollars ($475,700) in an at an interest rate of zero percent (0 %) pursuant to this Agreement. Said funds shall be disbursed by the County to the Owner for performance of the services described in Exhibit B. 1. The Orange County Affordable Housing Bond Loan funding will be provided to Empowerment shall be as a fixed subsidy in the form of a zero interest deferred loan. The investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. 2. The Deed of Trusts, recorded in the Orange County Registry, and Promissory Notes shall constitute a lien on the Properties, subordinate only to the Declaration of Restrictive Covenants, the form of which is attached as EXHIBIT D and described more particularly in Section VI below, Affordability Requirements (hereafter "Declaration "), with County as the secured party/beneficiary. B. Said funds shall be disbursed by the County to the Owner for performance of services described in Exhibit B.