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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 °sq, Wary Public F ry � � a 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 . - R�4� -C) o;.03