Orange County NC Website
DocuSign Envelope ID: 65EC9D62 -7FB9- 4747- A005- FC28FEF750E3 <br />WHEREAS, CASA intends to rehabilitate twenty -eight (28) rental units (hereinafter <br />referred to as "the Project dwelling units" or "the Project ") that are located on properties more <br />specifically described in Exhibit A, which is attached hereto and made a part of this Agreement <br />(hereinafter referred to as "the Property "), with energy - efficient upgrades as described herein, <br />specifically twenty -four (24) efficiency units located at 103 W. Main Street, Carrboro, North <br />Carolina, (hereinafter "Club Nova Apartments ") which serves persons with disabilities earning <br />up to 60% of the HUD area median income; and four (4) units at located at 112 -114 Johnson <br />Street, Chapel Hill, North Carolina, (hereinafter, "Johnson Street Apartments "), which serves <br />households earning up to 50% of the HUD area median income, as described in the Application <br />for Funding and Certification as a Community Housing Development Organization (CHDO) <br />dated August 4, 2018 "the "Application "), which Application is incorporated by reference into <br />this Agreement. The Application is on file in the office of the Orange County Department of <br />Housing and Community Development. <br />WHEREAS, notwithstanding any provision of this Agreement, the County and CASA <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 and receipt by Orange County of a Release of Funds <br />from the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if <br />applicable. The parties further agree that the provision of such funds to the project is <br />conditioned on Orange County's determination to proceed with, modify, or cancel the project <br />based on the results of a subsequent environmental review. <br />WHEREAS, CASA has signed this Declaration agreeing to the terms of this Declaration, <br />its obligations pursuant to this Declaration and agreeing to the terms of the DEVELOPMENT <br />AGREEMENT which is attached as Exhibit B hereto and made part of this Agreement between <br />the County and CASA; <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 <br />and are binding upon all subsequent owners of the Property and for such term, except as <br />specifically 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 />a. It is contemplated that the Property and the Project will be used, during the fifteen years <br />after Project Completion (defined as the last of the following events: the Property is <br />rehabilitated and the Project dwelling unit occupied by a low- income family), for rental <br />housing to families earning up to 60% of HUD area median income. In the event Owner <br />sells, transfers or exchanges the Property or any portion of the Property, the following <br />