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2 <br />WHEREAS, the Property would be held in a Community Land Trust (CLT), ensuring <br />affordability of the home for at least 99 years; and <br />WHEREAS, notwithstanding any provision of this Agreement, the County and the Owner <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 from <br />the U.S. Department of Housing and Urban Development under 24 CFR Part §58 if applicable. <br />The parties further agree that the provision of such funds to the project is conditioned on Orange <br />County’s determination to proceed with, modify, or cancel the project based on the results of a <br />subsequent environmental review. <br />NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations <br />contained herein, it is agreed between the parties hereto as follows: <br />1.CHT agrees to convey the housing unit to a homebuyer with income of 80% or less of the <br />area median household income by family size, as determined by the U.S. Department of <br />Housing and Urban Development at the time of the sale. A housing unit will consist of a 99- <br />year ground lease (renewable for an additional 99 years) to the housing unit and a warranty <br />deed to any improvements on the leased premises. <br />2.The period of affordability will be at least 99 years and will be secured by a CHT Ground <br />Lease of the housing unit with restrictions to ensure compliance. Further security shall be in <br />the form of a Declaration of Restrictive Covenants (Exhibit D) that will make the County a <br />third party beneficiary of and successor to the long term affordability remedies in the Ground <br />Lease in the event of a failure of or inability of CHT to enforce the long term affordability <br />remedies in the Ground Lease. <br />3.CHT is responsible for soliciting CHT Ground Lease tenants for the housing unit. CHT and/or <br />the Ground Lease tenants shall be responsible for securing permanent mortgage financing for <br />the housing unit. <br />4.CHT is responsible for verifying the income of the Ground Lease tenants, explaining the land <br />trust program and the CHT Ground Lease to potential tenants and certifying by written <br />documentation signed by the tenants that the program requirements have been fully explained. <br />CHT shall maintain purchaser files as part of its Books and Records as required and for the <br />period of time required by Section 15.F. of this Agreement. <br />5.At the time of resale of the housing unit, CHT will convey the housing unit to a qualified <br />homebuyer. The housing unit will consist of a 99 year Ground Lease (renewable for an <br />additional 99 years) to the project dwelling unit. The Ground Lease, the form of which is <br />Exhibit E hereto, provides for the long term affordability (at least 99 years) of the housing <br />unit and provides remedies to insure the long term affordability of the housing unit. All <br />Exhibits, attachments and addendums annexed hereto or referred to herein are hereby <br />incorporated into and made a part of this Agreement as if set forth herein, as it now reads or <br />DocuSign Envelope ID: BDBF6EEB-BEEA-472C-85F1-0820A6F699C3