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HomeMy WebLinkAbout2012-126 Housing - Habitat for Humanity development agreement amendmentNORTH CAROLINA ORANGE COUNTY AMENDMENT TO DEVELOPMENT AGREEMENT THIS AMENDMENT, made and entered into this the 14 day of April, 2012 by and between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County ") and HABITAT FOR HUMANITY OF ORANGE COUNTY, NC, INC., a North Carolina non - profit housing organization (hereinafter referred to as "Habitat "). WITNESSTH WHEREAS, the County and Habitat entered into a "Development Agreement" ( "Original Agreement "), dated February 10, 2012 in which the County on behalf of the Orange County HOME Consortium designated FY 2011 HOME funds to Habitat to provide second mortgage funds to ten (10) housing units in the Phoenix Place subdivision in Orange County; and WHEREAS, the County and Habitat desire to amend the Original Agreement, while keeping in effect all terms and conditions of the Original Agreement not inconsistent with the terms and conditions set forth below. NOW THEREFORE, for and in consideration of the mutual covenants and agreements made herein, the parties agree to amend the following sections of the Original Agreement as follows: 1. In the second paragraph amend as follows: WHEREAS, the Orange County HOME Consortium has designated $175,000 in FY 2011 HOME funds for providing second mortgage funds for ten (10) housing units in the Phoenix Place subdivision in Orange County which are hereinafter designated as "the Properties" and; 2. In Section l.c. amend as follows: c. The funding provided by the County will be provided as a fixed subsidy in the form of a deferred second mortgage to the individual families at the time of sale to them. The investment will be secured by a forty (40) year Deed of Trust and Promissory Note, forgivable at the end of 40 years. This Deed of Trust and Promissory Note shall constitute a lien on the Properties, subordinate only to the Declaration of Restrictive Covenants described in paragraph 4 of this Agreement, with the County as the secured party/beneficiary. At the time of closing of the sale of each of the dwelling units to a homebuyer, the homebuyer shall receive $17,500.00 in HOME funds as second mortgage assistance which shall be documented by a Promissory Note from the homebuyer to the County which note shall be secured by a Deed of Trust on the Properties naming the County as beneficiary. The County agrees to subordinate its Deed of Trust lien to a lien securing private permanent financing acquired by the homebuyer. Except for the changes made to the second paragraph and Sections l.c. herein, the Original Agreement shall remain in full force and effect to the extent it is not inconsistent with this Amendment. In the event that there is a conflict between the Original Agreement and this Amendment, this Amendment shall control. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands and seals on the day and year first above written. rtFj �p� COUNTY OF ORANGE, NORTH CAROLINA -jg L- Frank W. Clifton r., County Manager 7 t , ATTEST: Don a aker Clerk to the Board of Commissioners 4ed s rm and legality Anette Mo e, Staff ttomey This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. `/ !/„ , Clarence G. Grier, Financial Services Director [SIGNATURES TO FOLLOW] Habitat for Humanity of Orange County, NC, Inc. (SEAL) le 7-q "/ � esident AV, ATTEST: Secretary