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DocuSign Envelope ID: 5C622784- 3DD9- 4F2B- 8D53- D3D3E1D35BD4 �I•I' I I Iail I II�IIIiIIII��IIl�lllilllll <br />RB6513 94 4/58 <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 />NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations <br />contained herein, it is agreed between the parties hereto as follows: <br />1. CHT agrees to lease dwelling units to first -time homebuyers in the following manner. <br />a. CHT shall lease the housing units, as herein defined, to qualified buyers whose <br />income is up to but no more than 80% of the area median household income by family <br />size, as determined by the U.S. Department of Housing and Urban Development at the <br />time of the sale. <br />b. The period of affordability will be at least 99 years and will be secured by a CHT <br />Ground Lease of the housing units with restrictions to ensure compliance. Further <br />security shall be in the form of a Declaration of Restrictive Covenants (Exhibit C) that <br />will make the County a third party beneficiary of and successor to the long term <br />affordability remedies in the Ground Lease in the event of a failure of or inability of <br />CHT to enforce the long term affordability remedies in the Ground Lease. <br />C. CHT is responsible for soliciting CHT Ground Lease tenants for the housing <br />units. CHT and /or the Ground Lease tenants shall be responsible for securing permanent <br />mortgage financing for the housing units. <br />d. CHT is responsible for verifying the income of the Ground Lease tenants, <br />explaining the land trust program and the CHT Ground Lease to potential tenants and <br />certifying by written documentation signed by the tenants that the program requirements <br />have been fully explained. CHT shall maintain purchaser files as part of its Books and <br />Records as required and for the period of time required by Section 11.G. of this <br />Agreement. <br />2. At the time of resale of each of the project dwelling units, CHT will convey a housing <br />unit to a qualified homebuyer. Each housing unit will consist of a 99 year Ground Lease <br />(renewable for an additional 99 years) to the project dwelling unit. The Ground Lease, <br />the form of which is Exhibit D hereto, provides for the long term affordability (at least <br />99 years) of the housing unit and provides remedies to insure the long term affordability <br />of the housing unit. CHT hereby declares and covenants, on behalf of itself and all <br />future owners of the Property, that, during the term of the Declaration of Restrictive <br />Covenants, the County is a third party beneficiary of and successor to each and every <br />remedy intended to insure the long term affordability of the housing unit that is provided <br />for in the Ground Lease and may, in the event of the failure or default of the Lessor in <br />the Ground Lease to insure the long term affordability of the housing unit as provided <br />for in the Ground Lease, exercise all rights and remedies available to the Lessor in the <br />Ground Lease for that purpose. <br />3. Each housing unit must have a value that does not exceed 95% of the area median <br />purchase price for that type of housing. <br />2 <br />