Orange County NC Website
Browse       Search
<br /> <br />shall be free to transfer the property in accordance with the provisions in this <br />Section. <br /> <br />2. Assignability. Orange County may assign its right of first refusal without Owner’s <br />consent. <br /> <br />2. Resale and Recapture Provisions <br /> <br />a. If the Owner no longer uses the Property as affordable rental property or is unable to <br />continue ownership, then Owner must sell, transfer, or otherwise dispose of their <br />interest in the Property only to a qualified homebuyer, i.e., a low -income household, <br />one whose combined income does not exceed 80% of the area median household <br />income by family size, as determined by the U.S. Department of Housing and Urban <br />Development at the time of the transfer, to use as their principal residence. Subsequent <br />resales are allowable to households earning up to 115% of the area median income. <br /> <br />b. However, if the property is sold during the term of affordability, the Right of First <br />Refusal provision of the New and Existing First-Time Homebuyer Program portion of <br />the County’s Long-Term Housing Affordability Policy must be followed and the Net <br />Sales Proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the <br />original first mortgage and (3) the unpaid principal amount of the initial County <br />contribution and any other initial government contribution secured by a deferred <br />payment promissory note and deed of trust) or “equity” will be divided 50/50 between <br />the Seller of the Property and the County. <br /> <br />c. In the event that Net Sales Proceeds are insufficient to repay the County Funds, <br />including principal plus interest, the amount to be recaptured shall be any funds <br />remaining after payment of all senior non-County debt and closing costs. In no event <br />shall the borrower be required to use funds other than net proceeds to repay the County <br />Funds. <br /> <br />d. The recapture provisions shall remain in effect following the expiration of the <br />Affordability period until the expiration of the full affordability period – 99 years. <br /> <br />B. Owner covenants that it will not knowingly take or permit any action that would result in a <br />violation of the affordability requirements of Orange County. Orange County, together with <br />Owner, may execute and record any amendment or modification of this Declaration and such <br />amendment or modification shall be binding on third parties granted rights under this <br />Declaration. <br /> <br />C. Owner acknowledges that the primary purpose for requiring compliance by Owner with <br />restrictions provided in this Declaration is to assure compliance with the affordability <br />requirements of Orange County, AND BY REASON THEREOF, OWNER, IN <br />CONSIDERATION FOR RECEIVING ORANGE COUNTY FUNDS, HEREBY AGREES <br />AND CONSENTS THAT ORANGE COUNTY SHALL BE ENTITLED, FOR ANY <br />BREACH OF THE PROVISIONS HEREIN, AND IN ADDITION TO ALL OTHER <br />DocuSign Envelope ID: 8C0299D2-0578-4D1C-BF2F-2064EE2D4392