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IS <br /> B. Equity Sharing <br /> All financial contributions provided by the County will be provided as a deferred <br /> second loan secured by a forty (40) year Deed of Trust and Promissory Note, forgivable <br /> at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on <br /> the Property, subordinate only to private construction financing or permanent first <br /> mortgage financing. <br /> The 99 year period of affordability for each individual housing unit will be <br /> secured by a declaration of restrictive covenants that will incorporate a right of first <br /> refusal that may be exercised by a sponsoring non-profit organization and/or Orange <br /> County. This declaration of restrictive covenants will be further secured by a deed of <br /> trust. <br /> The non-profit organization and/or the County as applicable retains full <br /> responsibility for compliance with the affordability requirement for assisted units <br /> throughout the term of affordability,unless affordability restrictions are terminated due to <br /> the sale of the Property to a non-qualified buyer, <br /> If the buyer no longer uses the Property as a principal residence or is unable to <br /> continue ownership, then the buyer must sell, transfer, or otherwise dispose of their <br /> interest in the Property only to a qualified homebuyer, i.e., a low-income household, one <br /> whose combined income does not exceed 80% of the area median household income by <br /> family size,as determined by the U.S.Department of Housing and Urban Development at <br /> the time of the transfer, to use as their principal residence. <br /> However, if the property is sold during the term of affordability to a non-qualified <br /> homebuyer to be used as their principal residence, the net sales proceeds (sales price less: <br /> 1) selling cost, 2) the unpaid principal amount of the original first mortgage and 3) the <br /> unpaid, principal amount of the initial County contribution and any other initial <br /> government contribution secured by a deferred payment promissory note and deed of <br /> trust) or "equity" will be divided 50150 by the seller of the Property and the County. If <br /> the initial County contribution does not have to be repaid because the sale occurs more <br /> than forty years after the County contribution is made, then the seller of the Property and <br /> the County will divide the entire equity realized from the sale. <br /> Any proceeds from the recapture of funds under this provision will be used to <br /> facilitate the acquisition,construction, and/or rehabilitation of housing for the purposes of <br /> promoting affordable housing. <br /> IV. Policy Review <br /> This policy will be reviewed by County staff and officials within two (2) years of <br /> the original approval date to ensure continued congruency with local affordable <br /> housing programs. <br /> Effective Date: April 3, 2000 <br /> Revised: June 6,2000 <br /> 13 <br />