2018-368-E Housing - Rebuilding Together development agreement

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Rev August 8, 2018 1. The HOME funds provided to Rebuilding Together by the County will be provided to the homeowner as a fixed subsidy in the form of an interest free, deferred second mortgage to pay eligible costs associated with the rehabilitation of the homeowner’s primary residence. After payment of costs of rehabilitation or improvement, any excess proceeds shall revert to County for funding other deferred loans under the grant program and the loan amount shall be credited accordingly. The investment will be secured by a Deed of Trust and Promissory Note, forgivable at the end of the applicable HOME affordability period, described in Table 1-1 below, to be identified in the Loan Documents for each assisted unit: Table 1-1: Determining the HOME Period of Affordability HOME Assistance per Unit or Buyer Length of the Affordability Period Less than $15,000 5 years $15,000 - $40,000 10 years More than $40,000 15 years New construction of rental housing 20 years Refinancing of rental housing 15 years 2. This Deed of Trust and Promissory Note shall constitute a lien on the properties on which the assisted units are located. In order to secure the Promissory Note, the Deed of Trust, naming the County as a beneficiary, must be executed and recorded in the Orange County Registry against the property being improved. Rebuilding Together shall facilitate the loan closing, using the Orange County Loan Documents, and record the Deeds of Trust in the Orange County Registry. 3. The County agrees to subordinate its Deed of Trust lien to a lien securing private permanent financing acquired by the homebuyer. B. Said funds shall be disbursed by the County to Rebuilding Together for performance of the services described in Exhibit A. III. LIEN POSITION Orange County hereby acknowledges that the terms and conditions of its (i) HOME Program Development Agreement, (ii) Loan Agreement (iii) Promissory Note, and (iv) Deed of Trust (collectively referred to as “Orange County Loan Documents”), are not expressly subordinated to any other documents except those documents described in § II.A.3. IV. TIMELINESS Owner shall complete the Project within twelve (12) months from the date of this Agreement. However, in the event of any alterations or additions or circumstances beyond the control of the Owner, which in the opinion of the Director of the County’s Department of Housing and Community Development will require additional time for completion of the Project, then in that DocuSign Envelope ID: 62EC95C2-2AA8-49D7-B576-F94193C9DB65