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3 <br />2. The County agrees to enter into a subordination agreement, subordinating the lien, <br />operation and effect of the Loan Documents to the lien, operation and effect of the <br />documents evidencing and securing the Permanent Loan. <br />3. The Deed of Trust shall be given by Owner to secure the indebtedness of Sponsor. <br />Owner will derive a material and direct benefit from the loan evidenced by the Note, <br />and in accordance therewith, Owner agrees that such interest and benefit are <br />sufficient consideration to support the Deed of Trust executed by Owner. Owner <br />expressly acknowledges that it has conveyed and granted to the trustee identified <br />in the Deed of Trust and such trustee’s successors and assigns, in trust, with power <br />of sale the property more particularly described therein. Owner further <br />acknowledges that all terms and conditions of the Deed of Trust are incorporated <br />herein by reference and that Owner is bound by all of the terms and conditions set <br />forth in the Deed of Trust. In the event of a default by Sponsor under the Note, <br />Owner expressly acknowledges, covenants, and agrees that the County shall have <br />all rights and remedies pursuant to the Deed of Trust for default. Owner expressly <br />agrees that, upon such default, the County may elect to enforce any rights and <br />remedies which it may have under the Deed of Trust. The foregoing provisions are <br />set forth and made by Owner as an inducement to the County to enter into the Loan. <br /> <br />III. TIMELINESS <br />Owner shall complete the Project by December 31, 2022. However, in the event of any alterations <br />or addition or circumstances beyond the control of the Owner, which in the opinion of the Director <br />of the County’s Department of Housing and Community Development Department will require <br />additional time for completion of the Project, then in that case, the time of completion may be <br />extended by the County Manager in writing for a period of time not to exceed six (6) months , if <br />feasible. Any further allowable extension will require the approval of the Orange County Board of <br />County Commissioners. <br />IV. DURATION OF THE AGREEMENT <br />This Agreement will remain in effect for the Period of Affordability as provided in Section V, <br />Affordability Requirements, the term of which is ninety-nine (99) years from proper recording of <br />the Loan Documents in the Orange County Registry. <br />V. AFFORDABILITY REQUIREMENTS <br />A. Owner agrees to lease the Project dwelling units located at its Perry Place <br />development to households whose income does not exceed 60% of the HUD area <br />median income by family size, with priority given to homeless and/or disabled <br />households, throughout the 99 year Period of Affordability. The area median <br />income by family size is determined by the U.S. Department of Housing and Urban <br />Development (“HUD”) and amended from time to time. Residential leases shall not <br />exceed one year in term. <br />DocuSign Envelope ID: C902EFF9-56ED-450F-9212-1E71966C673A