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5 <br />The twenty-five (251 homes will remain affordable to low/moderate income families for at least <br />99 years. The 99 year affordability period is a policy of the Orange County Board of <br />Commissioners, the applicant for this project funding. A Declaration of Restrictive Covenants <br />is recorded at closing with the buyer. This Covenant requires the buyer to sell their home to <br />another low-moderate income buyer, and runs with the land far 99 years. HHOC is required <br />by the County to monitor the affordability of the homes aver the 99 year period. <br />b. Identify other parties involved in increasing affordability such as any federal, state or local <br />government contribution to affordability. Include grants, loans, land, development <br />concessions, utility extensions; mortgage subsidies, and all relevant terms of the <br />assistance. Provide a letter confirming the availability of any contributions. <br />Orange County, through its Affordab/e Housing Bond Program, has committed $460,000 to <br />the project in the form of a loan to Habitat for Humanity (HHOCI which will convert to zero <br />interest, deferred payment second mortgages for the buyers at the time of sale. Orange <br />County also reimburses HHOC for impact fees paid on the homes. HHOC is applying for <br />5250,000 in Self-Help Homeownership Program (SHOP1 funds, which is a partnership between <br />HUD and Habitat for Humanity /nternational. These funds are structured as a 75% grant, 25Ro <br />loan at zero interest payable by HHOC over afour-year period. HHO.C has previously received <br />SHOP funding of 5110,000 for infrastructure deve/opment far an a%ven home subdivision in <br />Chapel Hill. Notification of funding awards is schedu/ed to take place in August 2000. HHOC <br />will also app/y through a local bank, Hillsborough Savings Bank, in September 2000 for <br />5175,000 from the Federal Home Loan Affordab/e Housing Program. The balance of the funds <br />for the project will come from HHOC's fundraising efforts among individuals, churches, <br />foundations, and corporations. <br />In addition, the Orange County School Board has granted an easement to HHOC to allow <br />access to sanitary sewer from their property, and will allow a path to be constructed from their <br />property to the Richmond Hills subdivision to give children a safe walkway to the adjacent <br />elementary schoo% <br />c. Income Targeting <br />The percentage of LMI households that must benefit from each activity varies depending on <br />the type of activity. Please contact Program Development staff with questions on benefit. <br />- Number of units reserved for households between <br />71 % and 80% of the area median income <br />- Number of units reserved for households between <br />61 °~ and 70% of the area median income <br />- Number of units reserved for households between <br />51 % and 60% of the area median income <br />- Number of units reserved for households at <br />50% of the area median income and below 100% <br />Please note: HUD median income for a family of four in the Raleigh-Durham-Chapel Hill MSA is <br />currently 562,800. Thus, 5096 of the area median income would be 531,150 for a family of four. <br />Habitat is proposing that all potential homebuyers would be below 50 of the area median income. <br />