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HomeMy WebLinkAbout1996 NS Housing - HOME Program Development Agreement Amendment The Magnolia Place Subdivision 4 NORTH CAROLINA AMENDMENT#1 ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT AMENDMENT between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as'the "County") and ORANGE COMMUNITY HOUSING CORPORATION, a North Carolina nonprofit corporation (hereinafter referred to as"OCHC"). The date of this Agreement Amendment is August 5, 1996. WITNESSETH WHEREAS, the Orange HOME Consortium was awarded $200,000 in July 1993, for the purpose of conveying these funds to OCHC to develop Magnolia Place subdivision, and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated August 27, 1992, and amended January 26, 1993, and July 28, 1993 and as such shall act as the lead entity in a representative capacity for all members of the Orange HOME Consortium for the purposes of carrying out the HOME Program in accordance with the Title II of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d.) et. se q.) (hereinafter referred to as the "Act"), and as further defined in the State Program Requirements for funding provided directly by the State; and WHEREAS, the County, as Lead Entity, entered into a Development Agreement with the Orange Community Housing Corporation for Magnolia Place on or about March 15, 1994; NOW, THEREFORE, the County and Orange Community Housing Corporation agree that Paragraphs 3, 5 and 7 of the Agreement is amended to read as follows: 3. OCHC agrees to sell and construct 42 single-family housing units on the Property. All units will be sold to low and moderate income persons. The HOME funds provided to OCHC pursuant to this contract shall be targeted to a minimum of twelve (12) of the 42 units, none of which twelve (12) targeted units shall be the same as the twenty (20) units targeted with the $247,050 CDBG grant referenced in paragraph number 1 of this Agreement. 5. OCHC shall then market and sell the lots, construct homes for the selected buyers, and complete the sale of the homes on the targeted three lots by June 30, 1997. 7. At the dosing of the sale to a homebuyer of two of the targeted lots, OCHC shall repay the County $10,000. For the remaining ten (10) lots, OCHC shall repay the County a maximum of $20,000 in the form of a credit to the homebuyer. The credit to the homebuyer shall be documented by a promissory note from the homebuyer to the • 3 County which note shall be secured by a Deed of Trust on the property naming the County as beneficiary. The County shall provide a release deed to OCHC at the closing of each sale to a homebuyer, releasing the parcel to be sold from further obligation under the master note and deed of trust between OCHC and the County. The County agrees to subordinate its mortgage on each home to a first lien private mortgage acquired by the buyer. The promissory notes and deeds of trust shall be substantially in the form of Exhibit B to this Agreement. The period of affordability for HOME funds in accordance with the Act, its regulations and State Program Requirements shall be 20 years from the date of execution of this Agreement. The default rate shall be 7% per annum. 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. COUNTY OF ORANGE, NORTH CAROLINA (SEAL) Moses Carey, Jr., Chairman Orange County Board of Commissioners ATTEST: Beverly A Blythe Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY This is to certify that on this day personally came before me Beverly A Blythe, with whom I am personally acquainted, and being by me duly sworn, says that Moses Carey, Jr., is the Chairman of the Orange County Board of Commissioners, and that she the said Beverly A Blythe, is the Clerk to the Board of Commissioners of the County of Orange, the body politic and corporate named within and.which executed the foregoing instrument; that she knows the common seal of said County; that the seal affixed to said instrument is said common seal; that the name of Orange County was subscribed thereto by the said Chairman of the Orange County Board of Commissioners and that the said Chairman of the Orange County Board of Commissioners and said Beverly A Blythe subscribed their names hereto and said common seal was affixed, all by order of the Board of County Commissioners of Orange County and that said instrument is the act and deed of Orange County. 2 } 4 Witness my hand and notarial seal, this the day of 1996. Notary Public My commission expires: ORANGE COMMUNITY HOUSING CORPORATION (SEA-) Keith D. Cook, Chair Board of Directors ATTEST: Secretary Board of Directors NORTH CAROLINA ORANGE COUNTY I, . Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me , with whom I am personally acquainted, who, being by me duly sworn, says at he/she is Secretary and that Keith D. Cook is Chair of the Board of Directors of Orange Community Housing Corporation, a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested to by its Secretary. Witness my hand and notarial seal, this the day of 1996. Notary Public My commission expires: 3