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6 <br />pursuant to this Section 4 shall be in force commencing immediately. <br /> <br />3. Sales After Failure to Exercise Rights of Refusal. If Orange County does not advise the <br />Owner in a timely fashion of its intent to purchase the Property, then the Own er shall <br />be free to transfer the property in accordance with this Section of the Declaration. <br /> <br />4. Assignability. Orange County may assign its right of first refusal without Owner’s <br />consent. <br /> <br />B. Resale Provisions <br /> <br />1. If the Owner no longer uses the Property as affordable rental property, then Owner must <br />sell, transfer, or otherwise dispose of its interest in the Property only to an agency with <br />similar interest in affordable housing and to serve families with incomes not exceeding <br />60% of the area median household income by family size, as determined by the U.S. <br />Department of Housing and Urban Development at the time of the transfer. The non- <br />profit fund, foundation, or corporation of like purposes must have established its tax- <br />exempt status under Section 501 (c)(3) of the Internal Revenue Code. <br /> <br />2. However, if the property is not sold, transferred, or otherwise disposed of to an agency <br />with similar interest in affordable housing during the term of affordability, the net sales <br />proceeds (sales price less: (1) selling cost, and (2) the unpaid principal amount of the <br />initial Orange County contribution and any other initial government contribution <br />secured by a deferred payment promissory note and deed of trust) or “equity” will be <br />divided 50/50 by the seller of the Property and Orange County. If the initial County <br />contribution does not have to be repaid because the sale occurs more than forty years <br />after the County contribution is made, then the seller of the Property and the County will <br />divide the entire equity realized from the sale. <br /> <br />3. In the event that Net Sales Proceeds are insufficient to repay the County Bond Funds, <br />including principal plus interest, the amount to be recaptured shall be any funds <br />remaining after payment of all liens senior to the County’s lien and closing costs. In no <br />event shall the borrower be required to use funds other than net proceeds to repay the <br />Bond Funds. <br /> <br />4. The resale provisions shall remain in effect for the full affordability period – 99 years. <br /> <br />C. Owner covenants that it will not knowingly take or permit any action that would result in a <br />violation of the Orange County Long Term Affordability Policy requirements. Orange <br />County, together with Owner, may execute and record any amendment or modification of <br />this Declaration and such amendment or modification shall be binding on third parties <br />granted rights under this Declaration. <br />D. Owner acknowledges that the primary purpose for requiring compliance by Owner with <br />DocuSign Envelope ID: C902EFF9-56ED-450F-9212-1E71966C673A