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III IIA1111l��lil�������������������������� <br />RB6505 500 5116 <br />1. The funding provided by the County will be provided as a fixed subsidy in the <br />form of a deferred loan. The loan shall be provided as second mortgage <br />assistance which shall be documented by a Promissory Note from the <br />homebuyer to the County, secured by a Deed of Trust on the Properties <br />naming the County as beneficiary by the individual families at the time of sale <br />of the Property to them. The investment will be secured by a forty (40) year <br />Deed of Trast and Promissory Note, forgivable at the end of 40 years. <br />2. This Deed of Trust and Promissory Note shall constitute a lien on the <br />Properties, subordinate only to the Declaration of Restrictive Covenants <br />described in Section VI, Affordability Requirements of this Agreement, the <br />form of which is provided in Exhibit C and any lien as provided in subsection <br />3 below. <br />3. The County agrees to subordinate its Deed of Trust lien to a lien securing <br />private permanent financing acquired by the homebuyer. <br />B. Contingent Funds. <br />1. Use of fiords is contingent upon approval by County staff of Owner's final <br />detailed plans and cost estimate. <br />2. Once contingent fund use is approved, Owner may not request disbursement <br />of funds under this Agreement until after Owner utilizes its leveraged funds <br />on hand. Disbursement of funds shall be made in incremental draws when <br />they are needed for payment of eligible costs. The amount of each request <br />most be limited to eligible costs as determined by Orange County staff. <br />3. Owner shall perform the projects or tasks related to its allocations of <br />Affordable Housing/Land Bank Set Aside funds as provided in Exhibit B, <br />Scope of Services. Exhibits B is attached and made part of this Agreement. <br />4. Disbursement of funds shall be made in incremental draws when they are <br />needed for payment of eligible costs. The amount of each request must be <br />limited to eligible costs as determined by Orange County staff. <br />5. Said funds shall be disbursed by check payable to Owner. <br />11. CONVEYANCE <br />A. Conveyance of Property. The County shall convey the Subject Property identified <br />in Exhibit A to Owner. <br />