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3 <br />NORTH CAROLINA <br />ORANGE COUNTY <br />DEVELOPMENT AGREEMENT <br />This is an AGREEMENT between ORANGE COUNTY, a general local governmental <br />unit of the State of North Carolina, (hereinafter referred to as the "County") and the TOWN OF <br />CHAPEL HILL, a general local governmental unit of the State of North Carolina hereinafter <br />referred to as the " Town"). The effective date of this agreement is <br />WITNESSTH <br />WHEREAS, the County, in the implementation of the Orange County Affordable <br />Housing Bond Program solicited applications for funding from interested non-profit <br />organizations; <br />WHEREAS, the Town of Chapel Hill Department of Housing submitted an application <br />for Housing Bond funding dated May 30, 2001 for $100,000 for the acquisition of one dwelling <br />unit in Chapel Hill to develop a proposed transitional housing that was approved by the Board of <br />County Commissioners on June 19, 2001 awarding $75,000; and <br />WHEREAS, the Town intends to lease the unit to current public housing family with a <br />rent paying ability of at least $450 per month and with incomes not exceeding 50% and below of <br />median income; and <br />WHEREAS, RSI agrees to utilize bond funds provided by the County for the purpose of <br />acquiring one dwelling unit for transitional housing as described in their bond application dated <br />May 29, 2001 which is incorporated by reference as EXHIBIT A to this Agreement, and <br />hereinafter referred to "the Project". <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 />1. Project Activities <br />1.1 The Town shall acquire the dwelling unit defined in Project, obtain all permits and <br />licenses necessary to rehabilitate the unit in the Project if necessary, and ensure <br />compliance with all applicable building and zoning ordinances as well as Section 8 <br />Housing Quality Standards (HQS). <br />1.4 Financial assistance in the amount of $75,000 for the dwelling unit for a total of $75,000 <br />in Orange County Housing Bond funds will be provided in the form of a deferred loan <br />with a forty (40) year loan tern, forgivable at the end of 40 years. The Housing Bond <br />investment will be secured by a Deed of Trust and Promissory Note. This Deed of Trust