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HomeMy WebLinkAbout2013-490 Housing - Habitat for Humanity #144304 Rusch Hollow Subdivision Prepared by and return after recording to: Annette Moore,Orange County Attorney's Office,P.O.Box 8181,Hillsborough,NC 27278 NORTH CAROLINA ORANGE COUNTY ASSIGNMENT,ASSUMPTION AND CONSENT TO TRANSFER REAL PROPERTY This Assignment, Assumption and Consent to transfer real property is between Habitat for Humanity, Orange County, North Carolina, Inc., a non-profit corporation (hereinafter referred to as "Habitat") organized and operated exclusively for charitable and educational purposes and which has established its tax exempt status under Section 501 (c)(3) of the Internal Revenue Code, The Town of Chapel Hill, a North Carolina Municipal Corporation., (hereinafter referred to as "Town"); and the Orange County, a political subdivision of the State of North Carolina (hereinafter referred to as"Orange County). WITNESS THAT: Whereas, Habitat was established for the purpose to bring together people and resources to help families in need build and own quality, affordable homes and safe and supportive communities); and Whereas, Orange County, through its Housing and Community Development Department, has provided funding to qualified organizations to expand the supply of affordable housing in Orange County; and Whereas, Orange County provided $280,000 in affordable housing bond funds to Habitat for future housing development in the in the Rusch Hollow Subdivision in 2004; and Whereas, Orange County, to assure the long term affordability of these properties, caused the properties to be encumbered by various means including development agreements, declaration of restrictive covenants, and deeds of trust; and Whereas, Habitat desires to transfer a duplex located at 105 Zieger Lane, in Chapel Hill, North Carolina 27516 (hereinafter referred to as the "Property"), and described in EXHIBIT A attached hereto and incorporated herein;and Whereas,the Declaration of Restrictive Covenants, found in the Orange County Register of Deeds, Deed Book 2186, Page 213,which is attached as EXHIBIT B and incorporated herein, provides that the owner may transfer the Property to a non-profit corporation of like purpose or Orange County; subject to the requirements of the Development Agreements attached hereto as EXHIBIT C and D and incorporated herein, the Declaration of Restrictive Covenants, and the Orange County Affordable Housing Bond Program requirements; provided the owner obtains written agreement, in a form satisfactory to Orange County, from the person acquiring the Property, that such acquisition is subject to the requirements of the Declaration of Restrictive Covenants, the Development Agreements and the Orange County Affordable Housing Bond Program; and Whereas,Orange County and Habitat desire to transfer the Property to Town, a municipal Corporation, of like purpose subject to the requirements of the Declaration of Restrictive Covenants, the Development Agreements and the Orange County Affordable Housing Bond Program;and Whereas, Habitat desires to assign to Town its obligations contained within the Declaration of Restrictive Covenants, the Development Agreements, and under the Orange County Affordable Housing Bond Program; and Whereas, Town desires to accept the transfer of property from Habitat subject to the requirements of the Declaration of Restrictive Covenants, the Development Agreements and the Orange County Housing Affordable Bond Program; and Whereas, Town desires to accept from Habitat the assignment of the obligations of Habitat in the Declaration of Restrictive Covenants, the Development Agreements and the Orange County Affordable Housing Bond Program; and Whereas, Orange County consents to the transfer and the acceptance of the transfer of the Property subject to the requirements of the Declaration of Restrictive Covenants, the Development Agreements and the Orange County Affordable Housing Bond Program along with the assignment of the obligations contained in the above mentioned documents; NOW THEREFORE,Habitat does hereby: (1) Give, transfer, assign, and deliver unto Town, and its successors, nominees and 2 assignees all of its rights, title and interest, and all addenda, modifications and amendments thereto, in and to the Property described in EXHIBIT A (2) Assign and transfer to Town, its obligations contained in the Declaration of Restrictive Covenants, the Development Agreements, and the Orange County Affordable Housing Bond Program requirements. Said assignment is subject to all terms and conditions found in the Declaration of Restrictive Covenants, the Development Agreements, and all addenda, modifications and amendments thereto and shall remain in effect under this assumption and for any successor Assignor or any successor Assignee who shall assume all duties and obligations of the original borrower. [SIGNATURE PAGE TO FOLLOW] 3 IN WITNESS WHEREOF, the signatories below have caused this instrument to be signed in their corporate names by duly authorized officers. By execution hereof, Orange County specifically consents to the assignments to Town contained herein. ORANGE COU Y, ORTH CARO IN Mic ael al ert, nt im ounty Manager ATTEST: Donfia Baker, Clerk Clerk to the Board of Commissioners A ve s to form and legality O ange C unty Att ey's Office NORTH CAROLINA ORANGE COUNTY , 1, a Notary Public of the County and State aforesaid, certify that Donna Ilaker personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County,North Carolina and that by authority duly given and as the act of said County,the foregoing instrument was signed in its name by the County Manager and attested by her as Clerk to said Board of Commissioners. Witness my hand and notary seal,this the °Z day of , 20_0. Notary Public My Commission Expires: t411Mj""cc���'' NOTARY PUBLIC so 4 HABITAT FOR HUMANITY ORANGE COUNTY,NORTH CAROLINA,INC. l f e- lU�: dl� Acsld� Attest: 14 i NORTH CAROLINA ORANGE'C/OUNTY I, KaClQ/�, Vw��S SC�d�.1/, Notary Public in and for the above named County and State, do her by certify that on this day personally appeared before me �o,6A E f;a with whom I am personally acquainted,who, being by me duly sworn, says that he is Secretary and (g_Q Kc.-L low is thelPresident, and that by the authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President and attested to by its S r2 �" Witness my hand and notary seal,this the,,)-G day of �J ap tti-+bQ� 20/3 7"1 //,-, Notary Public My Commission Expires: V/V/ NLb0 N Z 5 4� TOWN OF CHAPEL HILL t �LORCN :.Nr Mil Printed Name and Title ATTEST: Clerk,Town of Chapel Hill Approved as to form and legality Town of Chapel Hi ft Attorney's Office NORTH CAROLINA ORANGE COUNTY I, &iS'}1U1(,I � • S�u�-�; a Notary Public of the County and State aforesaid, certify that S b Yia AI . Oi i Xr personally came before me this day and acknowledged that s/he is Clerk to the Town of Chapel Hill,North Carolina and that by authority duly given and as the act of said County,the foregoing instrument was signed in its name by the Town Manager and attested by her/him as Clerk to said Town Council. Witness my hand and notary seal,this the y day of 5?VWbzr ,201\3. Notary Public n G My Commission Expires: An( ) 0 Notp� EXHIBIT A Property Description Rusch Hollow Lot 3 in the Orange County,North Carolina, Register of Deeds Office, Plat Book 96, Page 84 and extended by recombination to include Lot 3A as shown on the Recombination Plat Lot 3 Rusch Hollow & Lot 3, Block A, "Property of Roberts Construction Company" and recorded in Plat Book 101,Page 91: BEGINNING at an iron in the Southwest corner of Lot 3, Rusch Hollow, as shown as Plat Book 96,Page 84, Orange County Registry;running from said beginning point North 66°21' 27"West 203.27 feet to an iron, thence South 0° 03' 34" East 43.89 feet to an iron, thence South 56° 14' 27" East 175.66 feet to an iron, thence North 33° 50' 07" 72.22 feet to the place and point of BEGINNING, containing 10,431 square feet,more or less. 7 1 Prepared by: Coleman;: Gledhill & Hargraves Return to: Bagwell & Holt, PEA. anon DECLARATION OF RES COVENANTS THIS DECLARATION OF RESTRICTIVE COVENANTS (Declaration), dated 01/18101 , by HABITAT FOR HUMANITY, ORANGE COUNTY, N.C„ INC., and its successors and assigns (Owner), is given as a condition precedent to the award of Federal HOME Investment Partnership Program funds by Orange County, a body politic and corporate, a political subdivision of the State of North Carolina, together with any successor to its rights,duties,-and obligations. I RECITALS: •g670-53'O�� �s L'a-14LV WHEREAS,the Orange County HOME Consortium has designated$50,000 in FY 1999 HOME funds for the purpose of conveying these funds to assist with the acquisition of a 2.5 acre tract of land in the Chapel Hill Township in Orange County hereinafter referred to as the "Project",which property is more particularly described in Exhibit A attached hereto and made a part of this Agreement(hereinafter referred to as the"Property"); . WHEREAS, the County is the lead entity of the Orange County HOME Consortium, so designated in an agreement dated August 27, 1992,and amended January 26, 1993,and July 28, 1993, and as such is 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 wit the Title 11 of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d) et. seq.) (hereinafter referred to as the "Act"), and as further defined in the Federal Program Requirements provided by. the U.S. Department of Housing and Urban Development;and WHEREAS, Habitat for Humanity of Orange County, NC, Inc. intends to develop five single family dwelling units on the property with the necessary infrastructure with dwelling units available to first-time homebuyers earning up to 50% of HUD area median income as described in their HOME Program Request dated October 2, 2000 and hereafter referred to as "The Project";and WHEREAS, a first-time homebuyer for the purposes of this.-program is defined as any household earning up to 50%of HUD area median income that has not owned a home within the past three (3) years including households living in manufactured housing not permanently affixed to a foundation,or owner-occupants of homes not feasible for rehabilitation. WHEREAS, Orange County requires and Owner agrees. to the requirement, as a condition precedent to the awarding of HOME Investment Partnership Program funds, that Owner execute, deliver and record this Declaration in the Office of the Register of Deeds of Orange County in order to create certain covenants pertaining to the Property and running with the land for the purpose of enforcement of the affordability requirements of the HOME Investment Partnership Program. Declaration of Restrictive Covenants Page I %u J BODK��SU PA014 NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth and of other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner intends, declares, and covenants that the. regulatory and restrictive covenants set forth herein governing the use, occupancy, and transfer of the Property shall be and are covenants pertaining to the Property and running with the land for the term stated herein and are binding upon all subsequent owners of the Property and for such term, except as specifically provided herein,and are not merely personal covenants of Owner. SECTION 1 REPRESENTATIONS,COVENANTS AND WARRANTIES OF OWNER Owner hereby represents,covenants and warrants as follows: a. It is contemplated that the Property and the Project will be used, during the ninety-nine years after Project Completion, for owner-occupied housing to families earning up to 50%of HUD area median income. In the event Owner sells,transfers or exchanges the Property or any portion of the Property,the following shall pertain: 1. Subject to the requirements of the DEVELOPMENT AGREEMENT (Exhibit B hereto), the Federal HOME Investment Partnership Program and this Declaration, Owner may sell, transfer,or exchange the Property to a non-profit fund,foundation, or corporation of like purpose which is organized and operated exclusively for charitable and educational purposes and which has established its tax exempt status under Section 501 (c)(3) of the Internal Revenue Code, or to Orange County; provided,however,Owner shall obtain the written agreement,in form satisfactory to Orange County.,of any buyer or successor or other person acquiring the Property or any interest therein, that such acquisition is subject to the requirements of this Declaration and to the requirements of the DEVELOPMENT AGREEMENT and the Federal HOME Investment Partnership Program. Owner agrees that County may void any sale,transfer,or exchange of the Property or any portion of this Property if the buyer or successor or other person fails to assume in writing the requirements of this Declaration and the requirements of the DEVELOPMENT AGREEMENT and the Federal HOME Investment Partnership Program. 2. Any assignment, sale, transfer, conveyance or other disposition of the Property or any part of the Property other than as described in subparagraph 1 above, whether voluntary or involuntary or by operation of law shall be subject to the provisions of SECTION 4 of this Declaration. b. Owner will, at the time of execution, delivery and recording of this Declaration, have good and marketable title to the Property, free and clear of any lien or encumbrance (except encumbrances created pursuant to this Declaration or other permitted encumbrances). C. Owner warrants that it has not and will not execute any other declaration with provisions contradictory to, or in opposition to, the provisions hereof, and that in any event, the requirements of this Declaration are paramount and controlling as to the rights and obligations herein set forth and supersede any other requirements in conflict herewith. Declaration of Restrictive Covenants Page 2 i 8=2186 PaL215 SECTION 2 TERM OF DECLARATION a. This Declaration,and the Terms of Affordability specified herein, apply to the Property immediately upon recordation, and Owner shall comply with all restrictive covenants herein. This declaration shall terminate ninety-nine years after Project Completion, unless Orange County Federal HOME Investment Partnership Program affordability restrictions are terminated due.to the sale of the Property to a non-qualified buyer as provided herein. SECTION 3. RECORDING AND FILING;COVENANTS TO RUN WITH THE LAND a. Upon execution of this Declaration by Owner,Owner shall cause this declaration and all amendments hereto to be recorded and filed in the Office of the Register of Deeds of Orange County.The Owner shall,pay all fees and charges incurred in connection therewith. b. 'Owner intends, declares and covenants, on behalf of itself and all future Owners of the Project during the term of this Declaration, that this Declaration and the covenants and restrictions set forth in this Declaration regulating and restricting the use,.occupancy and i transfer of the Property (1) shall be and are covenants running with the land, encumbering the Property for the term of this declaration, binding upon Owner's successors in title and all subsequent Owners of the Property; (2) are not merely personal covenants of Owner; and (3) shall bind Owner(and the benefits shall inure to the County and any past,present or prospective owner of the Property) and its respective successors and assigns during the term of this Declaration. Owner hereby agrees that any and all requirements or privileges of estate are intended to be satisfied,or in the alternate,that an equitable servitude has been:created to insure that these restrictions run with the Property. For the term of this Declaration, each and every contract,deed or other instrument hereafter executed conveying the Property or portion thereof shall expressly provide that such conveyance is subject to this Declaration,provided,however, the covenants contained herein shall survive and be effective regardless of whether such• - contracts, deed, or other instrument hereafter executed conveying the Property or portion thereof provides that such conveyance is subject to this Declaration. It is further the responsibility of Owner to rerecord the Declaration of Restrictive Covenants no later than one day before the expiration of 30 years of the date of its sale of each of the 5 dwelling units in the event the homeowner purchasing the property from Owner is still the owner of the dwelling unit at the time of the re-recording. Orange County retains the right to periodically and every 30 years after the first recording of the Declaration of Restrictive Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of preservation of the Restrictive Covenants on the Property as provided in North Carolina General Statute§47B-4 or i any comparable preservation law in effect at the time of the recording of the notice of preservation.'It is the intent of this Section of this Declaration that the 99 year affordability requirement contained herein be accomplished and that Owner and Orange County will do what is necessary to ensure that the same is not extinguished by the Real Property Marketable Title Act or any comparable law purporting to extinguish, by the passage of time, non possessory interests in real property. Both Owner and Orange County agree to do what each must do to accomplish the 99-year affordability requirement. Declaration of Restrictive Covenants Page 3 I 800K 2186 PrcE 2. .6 SECTION 4 ENFORCEMENT OF AFFORDABLE HOUSING REQUIREMENTS A. Rights of Refusal a. Grant and Effect. Orange County and Habitat for Humanity of Orange County, NC, Inc. each are herein ranted a right of first refusal to purchase the property ty g as described in this Section. Any assignment, sale, transfer, conveyance, or other disposition of the Property or any part thereof whether voluntarily or involuntarily or by operation of law ('Transfer") shall not be effective unless and until the below-described procedure is followed. b. Right of_F Just Refusal. If the original homebuyer or any subsequent qualified homebuyer ("Buyer")contemplates a Transfer to a non low-income household as defined herein, Buyer shall send to Orange County and Habitat for Humanity of Orange County,NC,Inc.,at the addresses noted in the Notice section of this Declaration, not less than 90 days prior to the contemplated closing date of the Transfer, a"Notice of Intent to Sell." This Notice of Intent to Sell shall be accompanied by a copy of a completed, fully executed bona fide offer to purchase the Property on the then current North Carolina Bar Association "Offer to Purchase and Contract" form. If Orange County or Habitat for Humanity of Orange County, NC, Inc. elects to exercise its said right of refusal, it shall notify the Buyer of its election to purchase within 30 days of its receipt of the Notice and shall purchase the Property or portion thereof within 90 days of the receipt of the"Notice of Intent to Sell." As between Orange County and Habitat for Humanity of Orange County,NC,Inc.,if both wish to and have the means to exercise the right of first refusal, Habitat for Humanity of Orange County, NC, Inc. shall have . priority. C. Sales After Failure to Exercise Rights of Refusal If neither Orange County nor Habitat for Humanity of Orange County,NC,Inc.advise the Buyer in a timely fashion of an intent to purchase the Property,then the Buyer shall be free to Transfer the property in accordance with this Section. d. Assignability; Orange County and Habitat for Humanity of Orange County, NC, Inc.each may assign their said rights of first refusal,one to the other, without the Buyer's consent. B. Resale Provisions a. If the buyer no longer uses the Property as a principal residence or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to a qualified homebuyer, i.e.,a low-income household,one whose combined income does not exceed 50% 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 transfer,to use as their principal residence. Declaration of Restrictive Covenants Page 4 i I BOOR2186 Pkct 217 b. However,if the property is sold during the term of affordability to a non-qualified homebuyer, the Right of First Refusal provision of the New and Existing First Time Homebuyer Program portion of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the initial County contribution and any other initial government contribution secured by a deferred payment promissory note and deed of trust) or "equity" will be divided 50150 by the seller of tine Property and the County. C. The resale provisions shall remain in effect for the full affordability period—99 years, C. Owner covenants that it will not knowingly take or permit any action that would result in a violation of the affordability requirements of the Federal HOME Investment Partnership Program, Orange County, together with Owner, may execute and record any amendment or modification of this Declaration and such amendment or modification shall be binding.on third parties granted rights under this Declaration.. D. Owner acknowledges.that the primary purpose for requiring compliance by Owner with restrictions provided in this Declaration is to assure compliance with the affordability requirements of the Orange County Federal HOME Investment Partnership Program, AND BY REASON THEREOF, OWNER IN CONSIDERATION FOR RECEIVING FEDERAL HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR THE PROPERTY HEREBY AGREES AND CONSENTS THAT ORANGE COUNTY SHALL BE ENTITLED, FOR ANY BREACH OF THE PROVISIONS HEREIN, AND IN ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE BY SPECIFIC PERFORMANCE OWNER'S OBLIGATIONS UNDER THIS DECLARATION IN A STATE COURT OF COMPETENT JURISDICTION,WITH VENUE IN ORANGE COUNTY. Owner hereby further specifically acknowledges that the beneficiaries of Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder. E. This Declaration may be enforced by Orange County or its designee in the event Owner fails to satisfy any of the requirements of this Declaration by proceedings at law or in equity against any person or persons violating or attempting to violate any covenant.If legal costs are incurred by Orange County, such legal costs, including attorney fees and court costs (including costs of appeal),are the responsibility of,and may be recovered from the Owner. SECTION 6 MISCELLANEOUS I a. Severability. The invalidity of any clause,part,or provision of this Declaration shall not affect.the validity of the remaining portions thereof, b. Notices, Any Notice shall be in writing and shall be given by depositing the same in the United States mail,post-paid and registered or certified, and addressed to the party to be notified, with return-receipt requested, or by delivering the same in person to an officer or principal of such party. Notice deposited in the mail in the manner hereinabove described shall Declaration of Restrictive Covenants Page 5 I eocK2186 pi4218 be effective upon mailing. For purposes of Notice, the:,addresses of the parties shall, unless changed as hereinafter provided,be as follows: i. To the County: Orange County c%,Housing and Community Development Department P.O.Box 8181 Hillaborough,.NC 27278 ATTN:Director ii. To Habitat for Humanity of Orange County,NC,Inc.: ' I Habitat for Humanity of Orange County,NC, Inc. P.O.Box 407. Hillsborough;NC 27278 ATM:Executive Director C. 92ya igg Law. This Declaration shall be governed by the laws of the State of North Carolina and,where applicable,the.laws of the United States of America. IN WITNESS WHEREOF, the Owner has caused this Declaration to be signed by its duly authorized representative,on the day and year first above written. HABITAT FOR-HUMANITY, ORANGE COUNTY, N.C., (SEAL) ,! INC. By; �, Xl President ATTEST: Assistant ,Secretary NORTH CAROLINA ORANGE COUNTY **Marekita Wrison I, MmmarR. xsit 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 that he is and that Sue- K. ft-yi-n is President of Habitat for Humanity of Orange County,NC,Inc.,a North Carolina corporation,and that by authority duly given and as the act of the corporation, the foregom' strument was signed in its j name by its President, d attested to by iMetary. i Witness my hand and notarial seal,this a January 2001. Tho No mas &. Holtz N�TaRy �� My commission expires: September 10, 2001 _o Dechmadon4 v. C►" ou F LED 19 JAN 2001, at 03,40,26pm NORTN CAROLINA • ORANGE COUNTY Book 2166, Page 2* - 2d Joyce H. Pearson The foregdingcertlilcate0Qof�,� e5? Register of Deeds, Orange County, N. C. A Notary(oalaimlee)Public of the designated Governmental uunb Is We)certified to be correct. Filed for registration r this the -/QA% day of.�daX'_ &121— .,at J"90, o'clock, /1111 in Record Book__�[�1e� Pa(/ge Jo oe .Pearson egiater of Deeds Return: By: i' m*M R 1 � BOOK2186 PA01 219 EXHIBIT A Legal Description TRACT ONE: BEGINNING at a stake on the north side of Allen Street 430 feet in a northeast and eastern direction from the northeast side of Rogers Road,at the southeast corner of Lot#5 in Block A as shown on the plat hereinafter referred to, and running thence North 40 53' East 200 feet to a stake; thence south 85° 07'West 90 feet to a stake;thence South 4°53' west 200 feet to a stake on the north side of Allen Street; thence along and wit the north side of Allen Street North 851 07' West 90 feet to a stake, the point of beginning and being Lot #6 in Block A of the PROPERTY OF ROBERTS CONSTRUCTION COMPANY INC. as per plat and survey of Credle Construction Company,dated February 1962. TRACT TWO: BEGINNING at an iron located in the southeastern corner at the end of the 60-foot right-of-way of Rusch.Road, said comer also being the northwestern corner of the tract conveyed to Larry T. Caldwell by deed of record in Book 1715,Page 73,Orange County Registry,and running thence N 040 48 32" E 260.03 feet to an.iron, thence N 85° 29'45" W 90.09 feet to an iron, thence N 850 07' 15" W 179.94 feet to an iron,thence S 71° "20' 00"W 202.87 feet to an iron,thence.N 280 47' 00"W 68.94 feet to an iron, thence N 55°04' 00" E 318.10 feet to an iron,comer with Thomas C. Tucker, thence S 86° 15' 00" E 300.12 feet to an iron in the line of Margaret Ann Purefoy,et al,thence S 04°05'24"W 445.25 feet to an iron,thence N 85° 11' 31"W.56.05 feet to the place and point of BEGINNING and being a 2.246 acre tract on the plat of survey entitled BOUNDARY SURVEY SURVEYED FOR ORANGE COUNTY HABITAT FOR HUMANITY, INC." by Charles R. Billings, Professional Land Surveyor, dated November 17, 2000. i