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DocuSign Envelope ID:66F168C2-3C54-4274-9428-4F16B3F1802A <br /> 1. CHT agrees to lease dwelling units to 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.F. 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 /> Value must be established by one of the following methods: <br /> i. An appraisal by a qualified appraiser. <br /> ii. Tax assessments may be used to establish value, but only if they are <br /> current and can be computed at 100% of market value. <br /> 2 <br />