Orange County NC Website
Browse       Search
3 <br />a i 'tation <br />All loans provided under this program should not exceed.30% of the house sales price. The loan <br />shall be either a deferred payment loan or an amortized loan over a period of forty (40) years. <br />The loan shall be secured by a Deed of Trust and Promissory Note subordinate only to the first <br />mortgage loan. Primarily, loan refinancing to lower interest rates and for home improvements <br />will be reviewed by the County. Refinancing for debt consolidation will not be permitted. The <br />loan may not be refinanced or assumed without the prior consent of the County. There should be <br />no additional encumbrances against the property during the term of the Loan without the prior <br />consent of the County. <br />anture/Resale Provision <br />All financial contributions provided by the County will be provided as a deferred second loan <br />secured by a forty (40) yeaz Deed of Trust and Promissory Note, forgivable at the end of 40 <br />years. This Deed of Trust and Promissory Note shall constitute a lien on the Property; <br />subordinate only to private construction financing or permanent first mortgage financing. <br />The period of affordability will be 99 yeazs and each individual housing unit will be secured by a <br />Declaration of Restrictive Covenants that will incorporate a right of first refusal that may be <br />exercised by a sponsoring non-profit organization and/or Orange County. <br />The non-profit organization and/or the County as applicable retains full responsibility for <br />compliance with the affordability requirement for assisted units throughout the term of <br />affordability, unless affordability restrictions are terminated due to the sale of the Property to a <br />non-qualified buyer. <br />Tf the buyer no longer uses the Property as a principal residence or is unable to continue <br />ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the <br />Property only to a qualified homebuyer, i.e., aloes-income household, one whose combined <br />income does not exceed 80% of the area median household income by family size, as determined <br />'by the U.S. Department of Housing and Urban Development at the time of the transfer, to use as <br />theix principal residence. <br />However, if the property is sold during the term of affordability to anon-qualified homebuyer to <br />be used as their principal residence, the net sales proceeds (sales price less selling costs and 1 sc <br />mortgage payoff) or "equity", after repayment, if required by the Note and Deed of Trust, of the <br />initial County contribution, will be divided 50/50 by the seller of the Property and the County. If <br />the initial Caunty contribution does not have to be repaid because the sale occurs more than forty <br />yeazs 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 />Any proceeds from the recapture of funds under this provision will be used to facilitate the <br />acquisition, construction, and/or rehabilitation of housing for the purposes of promoting <br />affordable housing. <br />3 <br />