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<br /> <br />E. Resale Provisions <br /> <br />Owner shall assure compliance with affordability of each of the Project dwelling <br />units through the Declaration of Restrictive Covenants. The Declaration of <br />Restrictive Covenants shall include at least the following elements in its resale <br />provisions: <br /> <br />a. If Owner no longer uses the Property as rental property or is unable to <br />continue ownership, then the Owner must sell, transfer, or otherwise dispose <br />of its interest in the Property only to an agency with similar interest in <br />affordable housing and serve families with incomes not exceeding 60% of the <br />HUD area median household income by family size at the time of the transfer. <br />The non-profit fund, foundation, or corporation of like purposes must have <br />established its tax-exempt status under Section 501(c)(3) of the Internal <br />Revenue Code. <br /> <br />b. However, if the Property is sold, transferred, or otherwise disposed of other <br />than to an agency with similar interest in affordable housing during the period <br />of affordability, the Right of First Refusal provision in the County’s Long- <br />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 <br />the original first mortgage and (3) the unpaid principal amount of the initial <br />County contribution and any other initial government contribution secured by <br />a deferred payment promissory note and deed of trust) or “equity” will be <br />divided 50/50 by the seller of the Property and the County. <br /> <br />c. The resale provision shall remain in effect for the full affordability period – 99 <br />years. <br /> <br />d. Any proceeds from the recapture of funds under this provision will be used <br />to facilitate the acquisition, construction, and rehabilitation of housing for the <br />purposes of promoting affordable housing. <br /> <br />VII. OWNER PERFORMANCE UNDER THIS AGREEMENT <br /> <br />A. Owner agrees to lease the Project dwelling units to households whose income does not <br />exceed 60% of the HUD area median income by family size, as determined by the U.S. <br />Department of Housing and Urban Development and amended from time to time, with <br />priority given to homeless and/or disable households. Monthly rents must not exceed the <br />HUD Published Fair Market Rents in effect at the time of occupancy. Residential leases <br />shall not exceed one year in term. <br /> <br />B. Owner shall use the Project funds to demolish and remove eight (8) existing elevated metal- <br />and-concrete stairwell landings and fabricate and install of new stairwell landings at Chase <br />Park Apartments. Notwithstanding any other provision of this Agreement, in the event <br />DocuSign Envelope ID: D9F5DB48-6B35-4950-A760-8532DDEBD76E