Agenda - 05-01-2001-8k - Laserfiche WebLink

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6 1.2 Financial assistance in the amount of $50,000 for each dwelling unit for a total of $100,000 in Federal HOME Program funding will be provided in the form of a deferred loan with a forty (40) year loan term, forgivable at the end of 40 years. The HOME Program investment will be secured by a Deed of Trust and Promissory Note. This Deed of Trust and Promissory Note shall constitute a lien on the Property, second only to the Declaration of Restrictive Covenants described in paragraph ~ of this Agreement, with the County as the secured party beneficiary. The County agrees to subordinate its Deed of Trust lien to ~ a lien securing private, first-time permanent financing obtained by EmPOWERment, Tnc. at the time of purchase. 1.3 The period of affordability will be 99 years and will be secured by a Declaration of Restrictive Covenants that will incorporate a right of first refusal that may be exercised by EmPOWERment and/or Orange County. 1.~ EmPOWERment shall make certain that the seller is aware of their rights under the federal Uniform Relocation Act prior to completing the sale of the property. The seller must also complete a Lead Based Paint Disclosure Form if the property was built prior to 1978. 1.5 The property to be acquired must have a value that does not exceed 9S°Io of the area median purchase price for that type of housing. Value must be established by one of the following methods: i. An appraisal by a qualified appraiser. ii. Tax assessments may be used to establish value, but only if they are current and can be computed at 100% of market value. 1.G An annual rental operations budget must be submitted to the County each year at least sixty days prior to the July 1 beginning date for the fiscal year. Further, not more than 90 days after the end of each fiscal year, EmPOWERment must furnish to the County an annual accounting of income and expenses for each dwelling unit. The operating assumptions allowed at the time of initiation of this project including reasonable rent increases will be acceptable for future budgets and reports. Any excess cashflow must be returned to the County within 90 days of the end of the fiscal year for deposit into the local HOME Program Trust Fund for use in future affordable housing projects. 1.7 EmPOWERment agrees to lease the property to families whose income does not exceed 80°Io of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. Monthly rents must established in accordance with HOME Program guidelines. Residential leases will not exceed one year in term. The Project must not cause displacement of existing tenants. 1.8 EmPOWERment is responsible for verifying the income of prospective tenants and maintaining eligibility data. EmPOWERment shall maintain tenant files as part of its Books and Records as required and for the period of time required by Section 5c. of this