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DocuSign Envelope ID: C3173F25- 6C4C- 4A24- 903D- 06978EB7C4AE <br />WHEREAS, the Affordable Housing Bond Funds Development Agreement <br />entered into by the County and Habitat, provides Habitat with $925,000 in Bond Funds for the <br />construction by Habitat of infrastructure necessary for the Project, which funds will be secured <br />by a Promissory Note with a Deferred Payment Loan of in the amount of $925,000 and a Deed <br />of Trust on the Property; and <br />WHEREAS, notwithstanding any provision of this Agreement, the County and Habitat <br />hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or <br />site approval, and that such commitment of funds or approval may occur only upon satisfactory <br />completion of an environmental review. The parties further agree that the provision of such <br />funds to the project is conditioned on Orange County's determination to proceed with, modify, or <br />cancel the project based on the results of a subsequent environmental review; and <br />WHEREAS, Orange County requires and Owner agrees to the requirement, as a <br />condition precedent to the awarding of FY 2016 Orange County Affordable Housing Bond <br />Program funds, that Owner execute, deliver and record this Declaration in the Office of the <br />Register of Deeds of Orange County in order to create certain covenants pertaining to the <br />Property and running with the land for the purpose of enforcement of the affordability <br />requirements of the FY 2016 Orange County Affordable Housing Bond Fund Program. <br />NOW, THEREFORE, in consideration of the promises and covenants hereinafter set <br />forth and of other valuable consideration, the receipt and sufficiency of which is hereby <br />acknowledged, Owner intends, declares, and covenants that the regulatory and restrictive <br />covenants set forth herein governing the use, occupancy, and transfer of the Property shall be and <br />are covenants pertaining to the Property and running with the land for the term stated herein and <br />are binding upon all subsequent owners of the Property and for such term, except as specifically <br />provided herein, and are not merely personal covenants of Owner. <br />SECTION 1 REPRESENTATIONS, COVENANTS AND WARRANTIES OF OWNER <br />Owner hereby represents, covenants and warrants as follows: <br />D. It is contemplated that the Property and the Project will be used, during the ninety -nine <br />(99) years after Project Completion (defined as the last of the following events: the <br />Property is acquired, rehabilitated, if necessary, and the last of the nine dwelling units is <br />occupied by a low- income family), for owner - occupied housing to families earning up to <br />80% of HUD area median income. In the event Owner sells, transfers or exchanges the <br />Property or any portion of the Property, the following shall pertain: <br />3. Subject to the requirements of the DEVELOPMENT AGREEMENT (Exhibit B <br />hereto) and this Declaration, Owner may sell, transfer, or exchange the Property to a <br />non - profit fund, foundation, or corporation of like purpose which is organized and <br />operated exclusively for charitable and educational purposes and which has <br />established its tax exempt status under Section 501 (c)(3) of the Internal Revenue <br />Code, or to Orange County; provided, however, Owner shall obtain the written <br />agreement, in form satisfactory to Orange County, of any buyer or successor or other <br />27 <br />