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DocuSign Envelope ID:837C993F-4D81-4CE1-8185-B2C0610EDD8B <br /> only upon satisfactory completion of an environmental review and receipt by Orange County of a <br /> Release of Funds from the U.S. Department of Housing and Urban Development under 24 CFR <br /> Part § 58 if 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. The HOME Awardee shall perform the projects or tasks related to its allocation of <br /> HOME funds as provided in this Agreement, Exhibit A, Scope of Services, <br /> Exhibit B, Proposed Budget and Source of Funds and the Declaration of <br /> Restrictive Covenants the form of which is attached as Exhibit C. All Exhibits, <br /> 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 <br /> now reads or as it may be modified by the Parties. <br /> B. The HOME Awardee may not request disbursement of funds under this <br /> Agreement until the funds are needed for payment of eligible costs. The amount <br /> of each request must be limited to eligible costs as determined by Orange County <br /> staff. <br /> C. Said funds shall be disbursed by check payable to the HOME Awardee. <br /> D. HOME funds will be a fixed subsidy provided in the form of a deferred loan. <br /> II. AMOUNT OF HOME FUNDS/LOAN TERMS <br /> A. The County shall make available to the HOME Awardee up to One Hundred <br /> Eighty One Thousand Dollars ($181,000) at an interest rate of zero percent <br /> (0%)pursuant to this Agreement. <br /> I.The funding provided by the County will be provided as a fixed subsidy in <br /> the form of a deferred second mortgage to the individual families at the <br /> time of sale of the Property to them. The investment will be secured by a <br /> forty(40) year Deed of Trust(the form of which is attached as Exhibit D) <br /> and Promissory Note (the form of which is attached as Exhibit E) <br /> forgivable at the end of forty(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 Requirements of this Agreement, <br /> the form of which is provided in Exhibit C and any lien as provided in <br /> subsection 3 below. <br /> 2 <br />