Orange County NC Website
Browse       Search
<br /> <br />B. Resale Provisions <br /> <br />1. Resale Provisions. The Declaration of Restrictive Covenants shall include at least the <br />following elements in their resale provisions: <br /> <br />a. If the buyer no longer uses the Property rental housing to families eligible to rent <br />a dwelling unit under this Agreement or is unable to continue ownership, then the <br />buyer must sell, transfer, or otherwise dispose of their interest in the Property only <br />to an agency with similar interest in affordable housing and serve families with <br />incomes not exceeding 80% of the area median household income by family size, <br />as determined by the U.S. Department of Housing and Urban Development at the <br />time of the transfer. The non-profit fund, foundation, or corporation of like <br />purposes must have established its tax-exempt status under Section 501 (c) (3) of <br />the Internal Revenue Code. <br />b. If the Property is sold, transferred, or otherwise disposed of during the Period of <br />Affordability to other than an agency with similar interest in affordable housing as <br />provided in a. above, the Right of First Refusal provision of the then current <br />County’s Long-Term Housing Affordability Policy must be followed and the net <br />sales proceeds (sales price less: 1) selling cost, 2) the unpaid principal amount of <br />the original first mortgage and 3) the unpaid principal amount of the initial <br />County contribution and any other initial government contribution secured by a <br />deferred payment promissory note and deed of trust or "equity" will be divided <br />50/50 by the seller of the Property and the County. If the initial County <br />contribution does not have to be repaid because the sale occurs more than forty <br />years after the County contribution is made, then the seller of the Property and the <br />County will divide the entire equity realized from the sale. <br />2. The resale provision shall remain in effect for the full affordability period – 99 years. <br /> <br />3. Any proceeds from the recapture of funds under this provision will be used to <br />facilitate the acquisition, construction, and rehabilitation of housing for the purposes of <br />promoting affordable housing. <br /> <br />VII. OWNER PERFORMANCE UNDER THIS AGREEMENT <br /> <br />A. Owner agrees to lease the Project dwelling units to a veteran whose family income does <br />not exceed 60% of the area median income by family size, as determined by the U.S. <br />Department of Housing and Urban Development and as may be amended from time to <br />time. Monthly rents must not exceed the HUD Published Fair Market Rents in effect at <br />the time of occupancy. Residential leases will not exceed one year in term. <br /> <br />B. Owner shall rehabilitate the Project dwelling unit. The Project shall be occupied no later <br />than six months after project completion. In the event that Owner is unable to complete <br />its obligations to acquire, rehabilitate, and occupy the Project dwelling units within this <br />time or by extensions approved by the County under the terms of this Agreement, Owner <br />DocuSign Envelope ID: 1DB0D1D0-6B1C-4086-81CB-264D8410FEAB