2021-531-E-Housing-CASA-Affordable Housing Bond – Perry Place Rental Development

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BT:834055v4 NORTH CAROLINA ORANGE COUNTY This is an AGREEMENT among ORANGE COUNTY, a political subdivision of the State of North Carolina, (hereinafter referred to as the “County” or “Orange County”), CASA, a North Carolina non-profit corporation, (hereinafter referred to as “Sponsor”) and Merritt Mill Apartments LLC, a North Carolina limited liability company, (hereinafter referred to as “Merritt Mill” or “Owner”). The effective date of this agreement is September 28, 2021. WITNESSTH WHEREAS, Sponsor submitted applications for funding to the County to assist in the construction of a 48-unit affordable apartment development in Carrboro and Chapel Hill, North Carolina, to be known as Perry Place (the “Project”), which applications are incorporated by reference into this Agreement and are on file in the office of the Orange County Department of Housing and Community Development; and WHEREAS, the County awarded Sponsor the total sum of $1,373,366.00 in FY 2016 Affordable Housing Bond Program funds (referred to also as “Project Funds”) in the form of a loan to Sponsor to assist in the construction of the Project; and WHEREAS, the Sponsor is the managing member of Merritt Mill and Merritt Mill will develop, own and operate the Project, and WHEREAS, the Sponsor wishes to assign the allocation of Project Funds to Merritt Mill so that Merritt Mill can develop, own and operate the Project, and Sponsor has agreed that throughout the term of the Agreement that Sponsor, along with Merritt Mill, will be responsible to the County for Merritt Mill’s performance of the terms of the Agreement; and WHEREAS, because Sponsor has agreed to be, along with Merritt Mill, responsible to the County for Merritt Mill’s performance of the terms of the Agreement the County has agreed to assign the Project Funds allocated to Sponsor in the form of a Loan (the “Loan”) to Merritt Mill to develop, own and operate the Project; and WHEREAS, the Project Funds, along with other funds, will be used to finance the construction of the Project, a new forty-eight (48) unit affordable housing development owned by Merritt Mill and serving low income families earning less than 60% of the area median income and which will remain affordable for low income families throughout the term of the ninety-nine (99) year period of affordability. The Project will be located on Merritt Mill Road in Carrboro and Chapel Hill, North Carolina. The Project dwelling units are to be constructed on the property more particularly described in Exhibit A, Property Legal Description attached hereto and made a part of this Agreement (hereinafter referred to as “the Property”). NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: DEVELOPMENT AGREEMENT DocuSign Envelope ID: C902EFF9-56ED-450F-9212-1E71966C673A