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HomeMy WebLinkAbout2013-323 Housing - Habitat for Humanity for 2011-2012 HOME Program $146,592 p 3r- 32.E NORTH CAROLINA ORANGE COUNTY AMENDMENT TO DEVELOPMENT AGREEMENT THIS AMENDMENT, made and entered into this the 20th day of June, 2013 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 qou ty and Habitat entered into a"Development Agreement" ("Original Agreement"), dated 2/in which the County on behalf of the Orange County HOME Consortium designated Y 2011 HOME funds to Habitat for pre-development and acquisition costs for a nine(9) acre tract on School House Road in Orange County; and WHEREAS, the Orange County HOME Consortium has designated approximately $71,592 in FY 2012 HOME funds to Habitat to provide additional funding for pre-development and acquisition costs; 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 Section H. Amount of HOME Funds/Loan Terms amend as follows: The County shall make available to Habitat up to One Hundred Forty-six Thousand Five Hundred Ninety-Two Dollars ($146,592) at an interest rate of zero percent (0%) pursuant to this Agreement. 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 6 of this Agreement, and provided in Exhibit D, and which is hereby incorporated by reference. At the time of closing of the sale of each of the dwelling units to a homebuyer, the homebuyer shall receive $14,659.20 in HOME funds as second 1 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. 2. Exhibit B: Scope of Services shall be amended to add funding for FY 2011-2012 and FY 2012-13 as follows: HOME funds will be used for pre-development costs for a nine (9) acre tract located in the Efland Cheeks Township in Orange County. The proposed plan for the property will yield approximately 28 single family lots. Five homes will constructed on the property in accordance with the Habitat for Humanity HOME Program application dated February 24, 2011. Another five homes will be constructed in accordance with the February 27, 2012 Habitat for Humanity HOME Program Application. All homes will be sold to qualified first-time homebuyers earning 65% with the exception of two homes that will be sold to persons at 80% or less of the AMI. 3. Exhibit C: Source of Funds shall be amended to total$146,592 in Orange County HOME Funds. Except for the changes made to Sections II, Exhibit B and Exhibit 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. [SIGNATURES PAGE TO FOLLOW] 2 SIGNATURE PAGE 000 ` 0& e COUNTY OF ORANGE,NORTH CAROLINA ( E 52 Frank W. Clifton, , County Manager "lb ATTEST: Doifna Baker Clerk to the Board of Commissioners Apr ved form and legality Arlhette Moore, Staf Attorney This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. Clarence G. Grier,Asst. County Manager/CFO HABITAT FOR HUMANITY OF ORANGE COUNTY NORTH CAROLINA,IN (SEAL) ��T 0(1 RO �1 °�/! � � ��President ATTEST: 4a� ^, l �L , Secretary 3