S Housing - Development Agreement Orange Co and Affordable Rentals Ins $140,000

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NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: 1. OCHLT agrees to construct the project dwelling units and lease them in the following manner. a. OCHLT shall acquire the land and construct the dwelling units defined in the Project, obtain all permits and. licenses necessary, and comply with applicable building and zoning ordinances and the N.C. Housing Finance Agency Energy Standards. The Project shall be undertaken without residential displacement. b. OCHLT shall lease the housing units, as herein defined, to qualified buyers whose income is up to but no more than 80% of the area median household income by family size, as determined by the U.S. Department of Housing and Urban Development at the time of the sale. c. The period of affordability will be at least 99 years and will be secured by an OCHLT Ground Lease of the housing units with restrictions to ensure compliance. Further security shall be in the form of a Declaration of Restrictive Covenants (Exhibit B) that will make the County a third party beneficiary of and successor to the long term affordability remedies in the Ground Lease in the event of a failure of or inability of OCHLT to enforce the long term affordability remedies in the Ground Lease. d. OCHLT is responsible for soliciting OCHLT Ground Lease tenants for the housing units. OCHLT and/or the Ground Lease tenants shall be responsible for securing permanent mortgage financing for the housing units. e. OCHLT is responsible for verifying the income of the Ground Lease tenants, explaining the land trust program and the OCHLT Ground Lease to potential tenants and certifying by written documentation signed by the tenants that the program requirements have been fully explained. OCHLT shall maintain purchaser files as part of its Books and Records as required and for the period of time required by Section 7.c. of this Agreement. 2. At the time of resale of each of the project dwelling units, OCHLT will convey a housing unit to a qualified homebuyer. Each housing unit will consist of a 99 year Ground Lease (renewable for an additional 99 years) to the project dwelling unit. The Ground Lease, the form of which is Exhibit C hereto, provides for the long term affordability (at least 99 years) of the housing unit and provides remedies to insure the long term affordability of the housing unit. OCHLT hereby declares and covenants, on behalf of itself and all future owners of the Property, that, during the term of the Declaration of Restrictive Covenants, the County is a third party beneficiary of and successor to each and every remedy intended to insure the long term affordability of the housing unit that is provided for in the Ground Lease and may, in the event of the failure or default of the Lessor in the Ground Lease to insure the long term affordability of the housing unit as provided for in the Ground Lease, exercise all rights and remedies available to the Lessor in the Ground Lease for that purpose. 2