HomeMy WebLinkAboutDeclaration of Deed Restrictions between Orange Community Housing Corporation and Orange County PREPARED BY AND RETURN TO: Robert 0. Belo, Atty.
P.O. Box 51579
Durham, NC 27717-1579
NORTH CAROLINA
ORANGE COUNTY
DECLARATION OF DEED RESTRICTIONS
THIS DECLARATION OF DEED RESTRICTIONS (this "Declaration"), made and
entered into as of March 24, 1994 by and between Orange Community Housing
Corporation (the "Owner") and Orange County (the "Lender").
WITNESSETH
In consideration of the mutual covenants and understandings set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Owner and the Lender hereby agree as follows:
Section 1. Definitions and Interpretation. The following terms shall have the
respective meanings set forth below:
"Deed of Trust" means the mortgage or deed of trust that secures the Mortgage
Loan and constitutes a lien on a fee simple interest in the Development and the Land.
"Development" means the residential housing unit(s) to be acquired, constructed
or rehabilitated with the proceeds of the Mortgage Loan and to be located on the Land.
"Land" means the real property described in Exhibit A attached hereto.
"Mortgage Loan" means the loan made to the Owner by the Lender to finance the
acquisition, construction or rehabilitation of the Development.
"Note" means the instrument that contains the promise of the Owner to pay the
sum of money stated therein at the time stated therein and that evidences the obligation
of the Owner to repay the Mortgage Loan.
"Period of Affordability" means the period beginning on (i) the day on which the
Project is acquired by Owner where no Mortgage Loan funds are earmarked for
construction or rehabilitation, or (ii) the date of Project completion (as evidenced by a
"Certificate of Compliance" issued by the appropriate governmental authority) where all
or a portion of the Mortgage Loan funds are earmarked for construction or rehabilitation
(the "Commencement Date") and ending on the date that is 20 years after the
Commencement Date.
"Regulations" means the rules and regulations promulgated by the Department of
Housing and Urban Development in 24 CFR Part 92.
"State" means State of North Carolina.
Unless the context clearly requires otherwise, as used in this Agreement, words
of the masculine, feminine, or neuter gender shall be construed to include any other
gender when appropriate and words of the singular number shall be construed to include
the plural number, and vice versa, when appropriate. This Agreement and all the terms
and provisions hereof shall be construed to effectuate the purposes set forth herein and
to sustain the validity hereof.
The titles and headings of the sections of this Agreement have been inserted for
convenience of reference only, and are not to be considered a part hereof and shall not
in any way modify or restrict any of the terms or provisions hereof or be considered or
given any affect in construing this Agreement or any provisions hereof or in ascertaining
intent, if any question of intent shall arise.
Section 2. Residential Property. The Owner hereby represents, covenants,
warrants and agrees that:
(a) The Development will be acquired, constructed or rehabilitated for the purpose
of providing "affordable housing": (i) as prescribed in 24 CFR Part 92.252 in the event the
Owner uses the Project for rental purposes, or (ii) as prescribed in 24 CFR Part 92.254
in the event the Owner occupies the Project as its residence; and
(b) That, subject to the provisions of Section 4 below, the Project shall continue
as affordable housing for the full Period of Affordability.
Section 3. Covenants to Run with the Land. The covenants, reservations and
restrictions set forth herein shall be deemed covenants running with the Land and, except
as provided in Section 4 hereof, shall pass to and be binding upon the Owner's heirs,
assigns and successors in title to the Land or the Development; provided, however, that
upon the termination of this Agreement in accordance with the terms hereof said
covenants, reservations and restrictions shall expire. Except as provided in Section 4
hereof, each and every contract, deed or other instrument hereafter executed covering
and conveying the land or the Development or any portion thereof shall conclusively be
held to have been executed, delivered and accepted subject to such covenants,
reservations and restrictions are set forth in such contract, deed or other instruments.
If a portion of portions of the development are conveyed, all of such covenants,
reservations and restrictions shall run to each portion of the Development.
Section 4. Term. This Agreement shall remain in full force and effect until the
expiration of the Period of Affordability provided, however, that this Agreement shall
automatically terminate in the event of foreclosure or transfer of title by deed in lieu of
foreclosure. In the case of foreclosure or transfer of title by deed in lieu of foreclosure
or similar event, such termination will cease to be in effect if, at any time during the
remainder of the Period of Affordability, the Owner of record immediately prior to the
foreclosure or deed in lieu of foreclosure obtains an ownership interest in the
Development or the Land.
Section 5. Correction of Noncompliance. The failure of the Owner to comply with
any of the provisions of Section 2 of this Agreement shall not be deemed a default
hereunder unless such failure has not been corrected within a period of 60 days following
the date that any of the parties hereto learned of such failure or should have learned of
such failure by the exercise of reasonable diligence.
Section 6. Remedies: Enforceability. If a violation of any of the provisions hereof
occurs or is attempted, the Lender and its successors and assigns may institute and
prosecute any proceeding at law or in equity to abate, prevent or enjoin any such
violation or attempted violation, to compel specific performance hereunder, or to recover
monetary damages caused by such violation or attempted violation. The provisions
hereof are imposed upon and made applicable to the Land and shall run with the Land
and shall be enforceable against the Owner or any other person or entity that has or had
an ownership interest in the Development at the time of such violation or attempted
violation. No delay in enforcing the provisions hereof as to any breach or violation shall
impair, damage or waive the right of any party entitled to enforce the provisions hereof
or to obtain relief against or recover for the continuation or repetition of such breach or
violation or any similar breach or violation hereof at any later time or times.
Section 7. Filing. This Agreement shall be duly recorded in the office of the
Register of Deeds for the county in which the Land is located within ten days following
its execution.
Section 8. Governing Law. This Agreement shall be governed by the laws of the
State of North Carolina.
Section 9. Amendments. Except as provided in Section 4, this Agreement shall
not be amended, revised, or terminated except by a written instrument, executed by the
parties hereto or their successors in title, and duly recorded in the office of the Register
of Deeds for the county in which the Land is located.
Section 10. Notice. Any notice required to be given hereunder shall be given by
certified or registered mail, postage prepaid, return receipt requested, at the address
specified below, or at such other addresses as may be specified in writing by the parties
hereto:
Lender: Orange County
c/o Housing and Community Development
P.O. Box 8181
Hillsborough, NC 27278
ATTN: Director
Owner: Orange Community Housing Corporation
P.O. Box 307
Carrboro, NC 27510
ATTN: Executive Director
Notice shall be deemed given on the third business day after the date of mailing.
Section 11. Severability. If any provision hereof shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining portions hereof
shall not in any way be affected or impaired thereby.
Section 12. Multiple Counterparts. This Agreement may be simultaneously
executed in multiple counterparts, all of which shall constitute one and the same
instrument, and each of which shall be deemed to be an original.
IN WITNESS WHEREOF,the Lender and the Owner have executed this Agreement
by duly authorized representatives, all on the date first written hereinabove.
LE
ATT T:
OWNER
ORANGE COMMUNITY HOUSING CORPORATION
(Name of Corporation)
By: , President
ATTEST:
Secretary
.,(SEAL)
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 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.
Witness my hand and notarial seal, this the day of �� , 1994.
y�9L:EeIPro
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Wary Public F
ry �
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My commission expires: DPC`Pm'hPr 10,, l 995 > >:
NORTH CAROLINA
ORANGE COUNTY
s i ni P Sc,, , Notary Public in and for the above named County
and State, do hereby certify that on this day personally appeared before me Susan
Rodemeir, with whom I am personally acquainted, who being by me duly sworn, says at
she is Secretary and that Donna L. Dyer is President 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 —)c/ &�- day of m 4-al N , 1994.
Notary Public
My commission expires:
EXHIBIT A
All those certain lots or parcels of land situated, lying and being on the
South side of Pickard Street and known and designated as Lot Nos . 99 and
100 of COLE HEIGHTS EXTENSION as surveyed and plotted by F.M. Carlisle or
November 10 , 1945 , and which said lots are more particularly described a _
BEGINNING at a stake in the South property line of the said Street , the
Northwest corner of Lot No . 98 , and which point is established by
measuring North 840 35 ' 'West 350 feet from the Southwestern intersection
Of Pickard Street and Crest Drive; running thence with the line of Lot No .
98 South 5° ' 15 ' West 150 feet to a stake, the Northeast corner of Lot No .
70 ; running thence with the line of Lots 70 and 69 North 840 35 ' West 50
feet to a stake, the Southeast corner of Lot No. 101 , running thence mith
the line of the said lot North 50 15 ' East 150 feet to a stake in the
South property line of Pickard Street ; running thence along the South
property line of the said Street South 840 35 ' East 50 feet to the
beginning, and being part of the same land conveyed to A.D. Clzrk and
wife, Ethel by Chapel Hill Ipvestment Corporation by deer dated AuCUSL 13 ,
1959 , and recorded in Book 172 , at pace 567 . -
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