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2 <br />WHEREAS,notwithstanding any provision of this Agreement, the County and Habitat <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 />NOW, THEREFORE, in consideration of the mutual covenants, promises, and <br />representations contained herein, it is agreed between the parties hereto as follows: <br />I.USE OF HOME FUNDS/SUBSIDY TYPE <br />A.Habitatshall perform the projects or tasks related to its allocation of HOME funds as <br />provided in this Agreement, Exhibit A, Scope of Services,Exhibit B, Proposed Budget <br />and Source of Fundsand the Declaration of Restrictive Covenantsthe form of which is <br />attached as Exhibit C.All Exhibits, attachments and addendums annexed hereto or <br />referred to herein are hereby incorporated intoand made a partof this Agreement as if set <br />forth herein, as it now reads or as it may be modified by theParties. <br />B.Habitatmay not request disbursement of funds under this Agreement until the funds are <br />needed for payment of eligible costs. The amount of each request must be limited to <br />eligible costs as determined by Orange County staff. <br />C.Said funds shall be disbursed by check payable toHabitat. <br />D.HOME funds will be a fixed subsidy provided in the form of adeferred loan. <br />II.AMOUNT OF HOME FUNDS/LOAN TERMS <br />A.The County shall make available to Habitatup to Two Hundred Eleven Thousand <br />Eight Hundred Thirty Dollars ($211,830) at an interest rate of zero percent (0%) <br />pursuant to this Agreement. <br />1.The funding provided by the County will be provided as a fixed subsidy in the <br />form of a deferred second mortgage to the individual families at the time of <br />saleof the Property to them. The investment will be secured by a forty (40) <br />year Deed of Trust (Exhibit D) and Promissory Note (Exhibit E)forgivable at <br />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 Requirementsof this Agreement, the <br />form of which is providedin Exhibit Cand any lien as provided in subsection <br />3 below. <br />DocuSign Envelope ID: 12C19140-2C02-498E-AD84-772B4830D31B