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4 <br /> <br />passage of time, non possessory interests in real property. Any future owner, Owner <br />and Orange County agree to do what each must do to accomplish the 99-year duration <br />of this Declaration of Restrictive Covenants. <br /> <br />B. Resale Provisions. The Declaration of Restrictive Covenants shall include at least the <br />following elements in their resale provisions for the Improvements: <br /> <br />1. If the buyer no longer uses the Property as a principal residence or is unable to continue <br />ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in <br />the Property only to a qualified homebuyer, i.e., a low-income household, one whose <br />combined income does not exceed 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 transfer, to use as their principal residence. <br /> <br />2. If the Property is sold, transferred, or otherwise disposed of during the Period of <br />Affordability to a non-qualified homebuyer or to other than an agency with similar <br />interest in affordable housing, the Right of First Refusal provision of the then current <br />County’s Long-Term Housing Affordability Policy must be followed and the net sales <br />proceeds (sales price less: 1) selling cost, 2) the unpaid principal amount of the original <br />first mortgage and 3) the unpaid principal amount of the initial County contribution <br />and any other initial government contribution secured by a deferred payment <br />promissory note and deed of trust) or "equity" will be divided 50/50 by the seller of <br />the Property and the County. If the initial County contribution does not have to be <br />repaid because the sale occurs more than forty years after the County contribution is <br />made, then the seller of the Property and the County will divide the entire equity realized <br />from the sale. <br /> <br />3. The resale provision shall remain in effect for the full Period of Affordability. <br /> <br />4. 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 to families whose income does not exceed 60% of the <br />area median income by family size, as determined by the U.S. Department of Housing and <br />Urban Development and as may be amended from time to time. Monthly rents must not <br />exceed the HUD Published Fair Market Rents in effect at the time of occupancy. <br />Residential leases will not exceed one year in term. <br /> <br />B. The Project shall be occupied no later than six months after project completion. (See <br />Section IV) In the event that Owner is unable to complete its obligations to occupy the <br />Project within this time or by extensions approved by the County under the terms of this <br />Agreement, Owner will be required to repay the full amount of the County’s outstanding <br />loan as provided in the loan documents. <br />DocuSign Envelope ID: FDEBA80C-B05F-4BF1-B91C-624A1EA2F697