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a~- <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. <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 <br />to the sale of the Property to anon-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., slow-income household, one <br />whose combined income does not exceed $0% of the area median household income by <br />family size, as determined by the U.S. Department of Housing and Urban Development <br />at the time of the transfer, to use as their principal residence. <br />However, if the property is sold during the term of affordability to anon-qualified <br />homebuyer to be used as their principal residence, the net sales proceeds (sales price less <br />selling costs and 1g` mortgage payoff] or "equity", after repayment, if required by the <br />Note and Deed of Trust, of the initial County contribution, will be divided 50/50 by the <br />seller of the Property and the County. If the initial County contribution does not have to <br />be repaid because the sale occurs more than forty years after the County contribution is <br />made, then the seller of the Property and the County will divide the entire equity realized <br />from the sale. <br />IV. Policy Review <br />This policy will be reviewed by County staff and officials within two (2) years of the <br />original approval date to ensure continued congruency with local affordable <br />housing programs. <br />Effective Date: Apri13, 2000 <br />