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term. A Deed of Trust and Promissory Note will secure the loan funds. This Deed of <br />Trust and Promissory Note shall constitute a lien on the Property subordinate only to the <br />Declaration of Restrictive Covenants described in Section 2 of this Agreement. <br />The Project dwelling units must remain affordable for a period of 99 years. This 99 year <br />affordability requirement will be secured by a Deed of Trust, Promissory Note, and <br />Declaration of Restrictive Covenants that will incorporate a right of first refusal that <br />may be exercised by the County.. <br />c. The Property shall be acquired and the Project dwelling units rehabilitated and <br />occupied by June 30, 2009. In the event that CASA is unable to complete its obligations <br />to acquire, rehabilitate,. and occupy the Project dwelling units within this time or by <br />extensions approved by the County under the terms of this Agreement, CASA will be <br />required to repay the full amount of the County's outstanding loan as provided in the <br />loan documents. <br />d. Each Project dwelling unit must have a value that does not exceed 100% of its <br />appraised value. An independent, qualified appraiser must conduct the appraisal. <br />e. An annual rental operations budget must be submitted to the County each year at <br />least sixty days prior to the July 1 beginning date for the fiscal year. <br />f. CASA is responsible for verifying the income of prospective tenants and <br />maintaining eligibility data. CASA shall maintain tenant files as part of its Books and <br />Records as required and for the period of time required by Section 4c. of this <br />Agreement. CASA must provide the County an initial occupancy report verifying the <br />income eligibility of all tenants at the time of initial lease-up. CASA must furnish the <br />County with an annual report on the Project dwelling units by July 31 of each year <br />thereafter certifying that all tenants earn less than 50% of the area median income by <br />family size, as determined by the U.S. Department of Housing and Urban Development <br />and as amended from time to time. <br />2. Affordability Requirement. Each of the Project dwelling units must remain affordable <br />for a period of ninety-nine years. CASA retains full responsibility for compliance with <br />the affordability requirement for each of the Project dwelling units, unless affordability <br />restrictions are terminated due to the sale of the Property to anon-qualified buyer in <br />which event the Resale Provisions of Section 3 of this Agreement pertain. CASA shall <br />assure compliance with affordability of each of the Project dwelling units by having <br />recorded a "Declaration of Restrictive Covenants" (EXHIBIT B) on the Property. This <br />Declaration shall constitute and remain a first lien on the Property during the period of <br />affordability. <br />It is further the responsibility of CASA to rerecord the Declaration of Restrictive <br />Covenants periodically and no less often than one day less than every 30 years from the <br />date hereof for the purpose of renewing the rights of first refusal in the Property or <br />portion thereof including any leasehold interest in the Property or portion thereof. <br />2 <br />