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HomeMy WebLinkAbout2024-534-E-Housing Dept-Habitat for Humanity of Orange County-Affordable HousingNORTH CAROLINA ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT between ORANGE COUNTY, a local governmental political subdivision 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 organization (hereinafter referred to as “Habitat”). The effective date of this Agreement is _______________. WITNESSTH WHEREAS, the Orange County HOME Consortium has designated $167,241 in FY 2022-23 HOME funds to provide homebuyer assistance for home ownership for up to sixteen (16)households located in Orange which are hereinafter designated collectively as “the Property” or “the Properties”; and WHEREAS, Orange County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated July 1, 2011, 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 with the Title II 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 is constructing the housing units on the Properties for first-time homebuyers earning between 30% and 80% of HUD area median income described in the HOME Awardee’s FY 2022-2023 Application for Funding, Orange County HOME Program dated, February 25, 2022 which is hereby incorporated into this Agreement as if written herein, and hereafter referred to as “The Project.” A copy of the HOME Program Applications are on file in the office of the Orange County Housing and Community Development Department; and WHEREAS, Habitat is constructing the housing units on the Properties for first-time homebuyers described in the HOME Awardee’s FY 2022-2023 Application for Funding, Orange County HOME Program dated, February 25, 2022 which is hereby incorporated into this Agreement as if written herein, and hereafter referred to as “The Project.” A copy of the HOME Program Applications are on file in the office of the Orange County Housing and Community Development Department; and WHEREAS, the HOME Awardee intends to assist first-time homebuyers, in the Gattis Court, Fairview, and Weavers Grove neighborhoods in Orange County, as described in the HOME Consortium meeting minutes dated, January 4, 2024 which is hereby incorporated into this agreement as if written herein. A copy of the HOME Consortium meeting minutes are on file in the office of the Orange County Housing and Community Development Department; WHEREAS, a first-time homebuyer for the purposes of this program is defined as any low-income household 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- Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 occupants of homes not feasible for rehabilitation and has lived or worked in Orange County for at least one year prior to the home purchase; WHEREAS, notwithstanding any provision of this Agreement, the County and the HOME Awardee hereto agree and acknowledge that this Agreement does not constitute a commitment of funds or site approval, and that such commitment of funds or approval may occur only upon satisfactory completion of an environmental review and receipt by Orange County of a Release of Funds from the U.S. Department of Housing and Urban Development under 24 CFR Part § 58 if applicable. The parties further agree that the provision of such funds to the project is conditioned on Orange County’s determination to proceed with, modify, or cancel the project based on the results of a subsequent environmental review. NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: I. USE OF HOME FUNDS/SUBSIDY TYPE A. The HOME Awardee shall perform the projects or tasks related to its allocation of HOME funds as provided in this Agreement, Exhibit A, Scope of Services, Exhibit B, Proposed Budget and Source of Funds and the Declaration of Restrictive Covenants the form of which is attached as Exhibit C. All Exhibits, attachments and addendums annexed hereto or referred to herein are hereby incorporated into and made a part of this Agreement as if set forth herein, as it now reads or as it may be modified by the Parties. B. The HOME Awardee may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. The amount of each request must be limited to eligible costs as determined by Orange County staff. C. Said funds shall be disbursed by check payable to the HOME Awardee. D. HOME funds will be a fixed subsidy provided in the form of a deferred loan. E. Any program income received by the HOME Awardee (e.g., repayment of the second mortgage loan by the homebuyer) is to be remitted to the County. II. AMOUNT OF HOME FUNDS/LOAN TERMS A. The County shall make available to the HOME Awardee up to One Hundred and Sixty-Seven Thousand Two Hundred and Firty-One Dollars ($167,241) at an interest rate of zero percent (0%) pursuant to this Agreement. 1.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 of the Property to them. The investment will be secured by a forty (40) year Deed of Trust (Exhibit D) and Promissory Note (Exhibit E) forgivable at the end of forty (40) years. Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 2.This Deed of Trust and Promissory Note shall constitute a lien on the Properties, subordinate only to the Declaration of Restrictive Covenants described in Section VI, Affordability Requirements of this Agreement, the form of which is provided in Exhibit C and any lien as provided in subsection 3 below. 3.At the time of closing of the sale of each of the dwelling units to a homebuyer, the homebuyer shall receive HOME funds as second mortgage assistance which shall be documented by a Promissory Note from the homebuyer to the County, which 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. 4.The amount of second mortgage assistance provided to each homebuyer shall be determined using the Orange County Homebuyer Underwriting Standards, in accordance with 24 CFR 92.250(b). The underwriting, subsidy layering, and refinancing guidelines in the Homebuyer Underwriting Standards are incorporated below. Housing Debt (Front-End Ratio) The County has established a maximum front-end ratio of 30 percent, meaning the maximum ratio of principal, interest, taxes, and insurance (PITI) to gross monthly income cannot be more than 30 percent, to ensure housing costs are affordable to the homebuyer. HOA dues and ground lease fees will also be included in calculating PITI. The County recommends a minimum front-end ratio of 20 percent to ensure the household is only receiving enough HOME assistance to complete the transaction and is not over-subsidized. Lower front-end ratios may be considered, depending on the buyer’s circumstances, on a case-by-case basis. Total Debt (Back-End Ratio) The maximum back-end ratio is 43 percent, meaning that long-term debt (six months or longer) plus PITI cannot exceed 43 percent of gross monthly income. Exceptions to this standard may be requested if student loans cause a homebuyer’s back-end ratio to exceed 43 percent, as long as the ratio does not exceed 50 percent. Assets HOME Awardees must have a liquid asset policy and establish a method to evaluate liquid assets and the ability of assisted homebuyers to financially contribute to the acquisition of their home. All HOME-assisted homebuyers must contribute a minimum of $250 to the purchase of the home. Exceptions to this standard may be requested if the only source of household income is Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 Homebuyers with non-home assets of more than $50,000 (after down payment and closing costs have been applied) are ineligible for assistance. Exceptions to this policy may be considered on a case-by- case basis. Other Loan Terms The County requires that HOME Awardees providing direct homebuyer assistance examine the terms of all other loans a homebuyer will receive, particularly any private mortgages, to ensure the terms are reasonable and sustainable. Loans containing terms and conditions that are predatory or harmful to the homebuyer, including excessive fees or interest rates and balloon payments, are not eligible to be paired with HOME assistance from the County. Interest rates must be competitive and must not be a “higher priced” loan as defined by Consumer Financial Protection Bureau. Higher priced loan are those that exceed the Average Prime Offer Rate by more than 1.5% as of the date of the loan’s rate lock. Loans can be checked against the Average Prime Offer Rate by visiting the following website: http://www.ffiec.gov/ratespread/newcalc.aspx. Lending products should be fully amortizing 30‐year fixed rate loans. While some buyers may prefer shorter (e.g. 15 year) loan terms, the County will only consider such loans if it is determined that the buyer’s payment is sustainable and that the use of a shorter‐term product does not require significant additional HOME assistance compared to a 30‐year loan. Approval by the County is also required for adjustable interest rate mortgages. Subsidy Limits Per 24 CFR 92.205(c), a minimum of $1,000 in HOME funds must be invested per unit. The Orange County HOME program maximum amount of subsidy per unit for direct homebuyer assistance is $40,000. Homebuyer Home Price and Value Limits Section 215(b) of the National Affordable Housing Act (NAHA) requires that the initial purchase price or after-rehabilitation value of homeownership units assisted with HOME funds not exceed 95% of the area median purchase price for single-family housing, as determined by HUD. Separate limits are provided for both existing housing and new construction. Current and past limits are available on the HUD Exchange at: https://www.hudexchange.info/resource/2312/home-maximum- purchase-price-after-rehab-value/. Homeownership value limits are updated and published regularly by HUD. Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 Pre-Purchase Homebuyer Counseling Pre-purchase homebuyer counseling, conducted with a HUD-certified agency and counselor, is required for all homebuyers assisted with HOME funds. All eligible applicants will need to provide proof of completion of homebuyer counseling from a HUD-certified agency and counselor prior to the commitment of HOME funding. Subordination of HOME-funded Liens After providing assistance to eligible homebuyers, the County has ongoing interests in the success of those buyers. To help prevent future foreclosures and to protect the County’s financial investment in assisted units, subordination of HOME‐funded liens to future refinancing by assisted buyers will be considered on a case-by-case basis. In general, subordinations will only be considered under the following circumstances: • The new loan is for the purpose of improving the rate and/or extending the term of the existing loan and must result in a low monthly payment for the homeowner. The County (including any of its HOME Awardees who hold secondary liens securing direct assistance provided to buyers) will not typically subordinate for “cash out” refinancing. • The proposed new loan must meet all requirements in the Other Loan Terms section above. The proposed new loan must result in a lower monthly payment for the assisted owner. 5. Before the HOME Awardee provides HOME assistance to a homebuyer, the County must verify that the family is low-income and must inspect the housing for compliance with the property standards in 24 CFR 92.251. For homebuyer assistance, the applicable property standard is the North Carolina Building Code. 6.No fees (e.g., servicing fees, origination fees or points) may be charged to a homebuyer for the HOME homeownership assistance provided, except nominal housing counseling fees to homebuyers, in accordance with 24 CFR 92.254(e), 24 CFR 92.504(c) and 92.214(b)(1)(iii). As described in the Orange County Homebuyer Underwriting Standards and pursuant to 24 CFR 92.254(e), the County must determine that the fees and other amounts charged to the homebuyer by the lender for the first mortgage financing are reasonable. B. Said funds shall be disbursed by the County to the HOME Awardee for performance of the services described in Exhibit A. III. LIEN POSITION Orange County hereby acknowledges that the terms and conditions of its (i) HOME Program Development Agreement, (ii) Promissory Note, (iii) Deed of Trust and Security Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 Agreement and (iv) Declaration of Restrictive Covenants (collectively referred to as “Orange County Loan Documents”), shall not expressly be subordinated to any other documents except those documents scribed in §§ II.A.2. and II.A.3 above. IV. TIMELINESS The HOME Awardee shall complete the Project by June 30, 2024, and sell all homes by October 31, 2024. However, in the event of any alterations or additions or of circumstances beyond the control of the HOME Awardee, which in the opinion of the Director of the County’s Department of Housing and Community Development will require additional time for completion of the Project, then in that case, the time of completion shall be extended by the County Manager in writing for a period of time not to exceed six (6) months. Any further extensions will require the approval of the Orange County Board of County Commissioners. A ratified sales contract for the Property or Properties must be executed with an eligible homebuyer(s) within nine (9) months of the date of completion of construction or rehabilitation. V. DURATION OF THE AGREEMENT This Agreement will remain in effect for the HOME Affordability Period as provided in Section VI, Affordability Requirements. Upon expiration of the Agreement, the HOME Awardee must transfer to the County any HOME funds on hand at the time of expiration and any accounts receivable attributable to the use of HOME funds. VI. AFFORDABILITY REQUIREMENTS A. The HOME Awardee agrees to build and sell the Project dwelling units to up to sixteen (16) low-income families earning between 30% and 80% of the area median income as determined during the initial eligibility period. Families may not earn more than 80% of the area median income at the time of sale of the property. Area Median Income by family size is determined by the U.S. Department of Housing and Urban Development and amended from time to time. The HOME Awardee must follow the income determination procedures specified in the Orange County Homebuyer Underwriting Standards, in accordance with 24 CFR 92.203. The income determination procedure is incorporated below. Income Determination HOME regulations limit assistance to households with incomes at or below 80% of the Area Median Income (AMI). Income eligibility will be determined using the Part 5 (Section 8) definition of income. The total household income will be used for eligibility purposes and must be documented with at least one month of source documentation (e.g. paystubs, benefit records, bank statements). Income attributable to all household members, whether or not related to one another by blood or marriage, will be Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 included for eligibility purposes. However, for underwriting purposes, the following adjustments will be made: • The income of adults who will not have an ownership interest in the property will be excluded. For example, in a circumstance where an elderly parent is part of the household but is neither being listed on title to the property nor included on the loan documents, that individual’s income will not be included in calculations of the income available to make the mortgage payment. However, this exclusion for “non‐ purchasing” adults is not intended to artificially exclude the income of a household member with marginal credit. In the case of married couples, the income of both spouses will always be included for underwriting purposes. • Significant sources of income such as social security benefits, child support payments, or the like that will not continue for three (3) years will be excluded. For example, while child support received for a 16 ½ year old is included in the Part 5 definition of income because it will continue over the upcoming 12 months, the source of income will cease in about a year and a half when the child turns 18 and should not be counted on in sizing the buyer’s mortgage. B. Upon determining the amount to be invested in a Project dwelling unit, the HOME Awardee shall record a Declaration of Restrictive Covenants encumbering the Project dwelling unit in accordance with Subsection VI(C), below. C. The Declaration of Restrictive Covenants shall provide that each of the Project dwelling units must remain affordable, according to the requirements of the HOME Program, for the HOME Affordability Period of up to 15 years, after which time, each of the Project dwelling units must adhere to the requirements of the County’s Long-Term Housing Affordability Policy and continue to remain affordable for a period of ninety-nine years. The HOME Awardee shall retain full responsibility for compliance with the affordability requirement for each of the Project dwelling units, unless affordability restrictions are terminated due to the sale of the Property to a non-qualified buyer and repayment of the HOME investment. If the original homebuyer(s) wish to sell or transfer the Property during the HOME Affordability Period, the HOME Resale Provisions of this Agreement pertain. In the event of a sale of the Property, the HOME Awardee assures compliance with affordability requirements of each of the Project dwelling units as provided in the Declaration of Restricted Covenants on the Property. In the event that the original homebuyer(s) violate the HOME principal residence requirement, to include sale or transfer of the Property to a non- qualified buyer during the HOME Affordability Period, the Property will be found noncompliant with HOME requirements and the HOME investment must be repaid to the County. The Declaration of Restricted Covenants shall constitute and remain a lien on the Property during the entire period of affordability. Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 D. The HOME Awardee agrees to retain full responsibility for compliance with the Affordability Requirements provided in Section IV.B above and the Recapture Provisions provided in Section 4B of Exhibit C, Declaration of Restrictive Covenants. VII. HOME AWARDEE’S PERFORMANCE UNDER THIS AGREEMENT A. The HOME Awardee agrees and authorizes the County to conduct on- site reviews, examine client and contractor records, client applications and to conduct any other procedures or practices to assure compliance with these provisions. B. The HOME Awardee agrees to not violate any State or Federal laws, rules or regulations regarding a direct or indirect illegal interest on the part of any employee or elected official of the HOME Awardee in the Project or payments made pursuant to this Agreement. C. The HOME Awardee agrees that to the best of its knowledge, neither the Project nor the funds provided therefore, and the personnel employed in the administration of the program shall be in any way or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code, referred to as the Hatch Act. D. The HOME Awardee shall comply with audit requirements contained in 2 CFR, Subpart F which requires the HOME Awardee to have an annual audit conducted within nine (9) months of the end of their fiscal year, if the HOME Awardee has an aggregate expenditure of more than $750,000 in federal funds in a fiscal year. the HOME Awardee shall submit to the County copy of said audit report. the HOME Awardee shall permit the authorized representatives of the County, HUD and the Comptroller General of the United States to inspect and audit all data and reports of Owner relating to its performance under the Agreement. Any deficiencies noted in audit reports must be fully cleared by the HOME Awardee within thirty (30) days after receipt of same. If the HOME Awardee is not required to perform an audit per the 2 CFR, Subpart F requirements, it must have and maintain adequate internal financial/cash management principles and reporting policies. E. County shall provide, upon request, copies of all laws, regulations and orders cited in this Agreement. F. The HOME Awardee certifies by executing this Agreement that the HOME Awardee has not been identified, and has not utilized the services of any agent or subcontractor identified, on the list created by the State Treasurer pursuant to G.S. 147- 86.58. By executing this Agreement, the HOME Awardee certifies that the HOME Awardee has not been identified, and has not utilized the services of any agent or subcontractor identified, on the list created by the State Treasurer pursuant to G.S. 147- 86.81. By executing this Agreement, the HOME Awardee affirms that the HOME Awardee is and shall remain in compliance with Article 2 of Chapter 64 of the North Carolina General Statutes. Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 G. The HOME Awardee and County shall at all times observe and comply with Title 24 CFR Part 92 and all applicable laws, ordinances or regulations of the Federal, State, County, and local government, which may in any manner affect the performance of this Agreement, and the HOME Awardee shall perform all acts with responsibility to the County in the same manner as the County is required to perform all acts with responsibility to the Federal government. H. The HOME Awardee hereby assures and certifies that it will comply with the regulations, policies, guidelines and requirements with respect to the acceptance and use of HOME funds in accordance with the policies of the County. Also, the HOME Awardee certifies with respect to the Project that it will be conducted and administered in compliance with: 1.Title VI of the Civil Rights Act of 1964 (Pub. L. 88- 352, 42 U.S. C.§§ 2000d et seq.) and implementing regulations issued at 24 CFR Part I; 2.Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208, 42 U.S. C. §§ 2000d at seq.), as amended; and that the HOME Awardee will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; 3.Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant hereto; 4.Section 3 of the Housing and Urban Development Act of 1968, as amended; 5.Executive Order 11246-Equal Opportunity, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; 6.Executive Order 11063- Equal Opportunity in Housing, as amended by Executive Order 12259, and implementing regulations at 24 CFR Part 107; 7.Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93- 112), as amended, and implementing regulations when published in effect; 8.The Age Discrimination Act of 1975 (Pub. L. 94135), as amended, and implementing regulations when published for effect; 9.The Fair Housing Act (42 U.S. C. 3601- 20); 10. Title II of the American Disabilities Act; VIII. COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) REQUIREMENTS Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 If the HOME Awardee is a Community Housing Development Organization (CHDO) and is using set-aside funds under 24 CFR 92.300, the requirements in this section apply. The CHDO must transfer title of the Property or Properties and the HOME obligations to the eligible homebuyer(s) within the timeframe of project completion specified in section IV of this Agreement. The CHDO must return any project proceeds to Orange County. IX. ADMINISTRATION AND REPORTING REQUIREMENTS The HOME Awardee shall submit to the County a quarterly Progress Report no later than the fifth day of the months of January, April; July; October until the activity has been reported completed. X. MISCELLANEOUS PROVISIONS A.Uniform Administrative Requirements. The HOME Awardee must comply with the applicable uniform administrative requirements of 24 CFR §92.505. B.Other Program Requirements. The HOME Awardee must carry out each activity in compliance with all Federal laws and regulations described in 24 CFR, Part 35 subparts A, B, J, K, M, and R, as applicable; 24 CFR, Part 92, subpart F for homeownership projects, including but not limited to the applicable property standards at 92. 251; and 24 CFR, Part 92, subpart H including but not limited to labor requirements prescribed in 92.354 and the lead hazard control requirements at 92.355, except that the HOME Awardee does not assume the responsibilities for environmental review or intergovernmental review. Applicable property standards shall apply throughout the HOME Affordability Period. C.Affirmative Marketing. If HOME funds will be used for housing containing five (5) or more assisted units, the HOME Awardee must prepare and submit an Affirmative Marketing Plan to the County. D.Termination of Agreement. The full benefit of the Project will be realized only after the completion of the affordability periods for all Project dwelling units. It is the County's intention that the full public benefit of the Project shall be completed under the auspices of the HOME Awardee for the assisted units as follows: 1.In the event that the HOME Awardee is unable to proceed with any aspect of the Project in a timely manner, and County and the HOME Awardee determine that reasonable extension(s) for completion will not remedy the situation, then the HOME Awardee will retain responsibility for requirements for any dwelling units assisted and County will make no further payments to the HOME Awardee. 2.In the event that the HOME Awardee, prior to the contract completion date, is unable to continue to function due to, but, not limited to, dissolution or insolvency of the organization, its filing a petition for bankruptcy or similar proceedings, or is adjudged bankrupt or fails to Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 comply or perform with provisions of this agreement, then the HOME Awardee shall, upon the County's request, convey to the County the Property assisted with HOME funds. Conveyance shall be at the sole discretion of County and on a Project dwelling unit by Project dwelling unit basis. Conveyance shall be on the terms set forth herein: a. Conveyance shall occur within thirty (30) days of County and the HOME Awardee’s agreement of the HOME Awardee’s inability to continue as a viable organization. b. The HOME Awardee shall convey the Property to the County by general warranty deed, free and clear of all liens and encumbrances of record except those which create a beneficial interest in County (Declaration of Restrictive Covenants and Deed of Trust). E. Default, Remedies. This Agreement may be terminated by a non-defaulting party upon an event of default hereunder, after written notice thereof and thirty (30) days grace period in which the defaulting party may act to cure. As used herein, the term “an event of default” shall mean and refer to a failure or act of omission by either party with respect to any undertaking, obligation, covenant or condition as set forth in this Agreement. With respect to any event of default, the non-defaulting party may exercise any right available to it at law or in equity with respect to such default. Notwithstanding and in addition to the above, in accordance with 24 CFR 200.338 and 24 CFR 200.339, this Agreement may be suspended or terminated by the County, in whole or in part, if the HOME Awardee materially fails to comply with any term of the Agreement. Remedies for breach of the provisions of this Agreement include but are not limited to repayment of any funds deemed to be expended in an ineligible manner. Repayment of HOME funds is required if the housing does not meet the affordability requirements for the HOME Affordability Period. F. Books and Records. The HOME Awardee shall maintain records of its grant requirements under this contract for a period of not less than five (5) full fiscal years following the contract completion date. 1.The HOME Awardee shall ensure access to records and financial statements, as necessary, to provide effective monitoring and evaluation of project performance. Additionally, the HOME Awardee shall submit a copy of its annual audit to the County. 2.Upon reasonable advance notice, County or its authorized representatives may from time to time inspect, audit, and make copies of any of the HOME Awardee’s records that relate to this contract. If any audit by County discloses that payments to the HOME Awardee were in excess of the amount to which the HOME Awardee was entitled under this contract, the HOME Awardee shall promptly pay to County the amount of such excess. If the excess is greater than 1% of the contract amount, Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 the HOME Awardee shall also reimburse County its reasonable costs incurred in performing the audit. 3.The HOME Awardee shall maintain files of all homebuyers, regardless of length of occupancy, residing in assisted units. Documentation shall verify eligibility for federal assisted housing at the point of initial purchase. Information maintained shall include: tenant income level; name of family members; ethnic data; family type (e. g., female head of household); disability status; and monthly rent. 4.The HOME Awardee shall maintain records verifying the affordability of the dwelling units. G. 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 here in above described shall be effective upon mailing. For purposes of Notice, the addresses of the parties shall, unless changed as hereinafter provided, be as follows: 1.To the County: Orange County c/o Housing and Community Development Dept. P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director 2.To HOME Awardee: Habitat for Humanity, Orange County, N.C., Inc. 8 Vilcom Center Dr, Suite 110 Chapel Hill, NC 27514 ATTN: Executive Director Either the County or the HOME Awardee may change the person or address to which any future Notice shall be given as herein provided. H. No Assignment. No transfer or assignment of the interest of the HOME Awardee in this Agreement shall occur without the prior written consent of the County; neither may the HOME Awardee assign this Agreement without the prior written consent of County. I. Conflict of Interest. The HOME Awardee agrees to abide by the provisions of 24 CFR 92.356(f) and 24 CFR 570.611, as applicable, with respect to conflicts of interest, and covenants that it presently has no financial interest and shall acquire any financial interest, direct or indirect, that would conflict in any manner or degree with the performance of services required under this Agreement. The HOME Awardee further covenants that in performance of this Agreement no person having such a financial interest shall be employed or retained by the HOME Awardee hereunder. These conflicts of interest provisions apply to any person who is an employee, agent, consultant, or elected official or appointed Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 official of the County, or any designated public agencies or subrecipients that are receiving funds under the Orange County HOME Investment Partnership Program. J. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. K. Indemnification. To the extent legally possible, the HOME Awardee shall indemnify and hold County, its officers, agents, and employees, harmless from and against any and all claims, actions, liabilities, costs, including attorney fees and other costs of defense, arising out of or in any way related to any act or failure to act by the HOME Awardee, its employees, agents, officers, and contractors in connection with this contract. In the event any such action or claim is brought against County, HOME Awardee shall, upon County's tender, defend the same at the HOME Awardee’s sole cost and expense, promptly satisfy any judgment adverse to County or to County and the HOME Awardee jointly, and reimburse the County for any loss, cost, damage, or expense, including attorney fees suffered or incurred by the County. L. Subcontracting. The HOME Awardee shall not subcontract work under this Agreement, in whole or in part, without the County's prior written approval. The HOME Awardee shall require any approved subcontractor to agree, as to the portion subcontracted, to comply with all applicable federal, state, and local laws, rules, ordinances, and regulations at all times and in the performance of the work and to comply with all applicable obligations of the HOME Awardee specified in this contract. Notwithstanding County's approval of a subcontractor, the HOME Awardee shall remain obligated for full performance of this contract and County shall incur no obligation to any subcontractor. The HOME Awardee shall indemnify, defend, and hold County harmless from all claims of its contractors. By executing this Agreement the HOME Awardee affirms that they and any subcontractors of the HOME Awardee are and shall remain in compliance with Article 2 of Chapter 64 of the North Carolina General Statutes. The HOME Awardee also certifies that they have not been identified, and have not utilized the services of any agent or subcontractor, on the list created by the State Treasurer pursuant to G.S. § 147- 86.58. M. No Joint Venture or Agency. The County and the HOME Awardee each agree and acknowledge that nothing contained herein or otherwise, including, without limitation, any act of the County and the HOME Awardee under this Agreement, shall be deemed or construed to create any relationship of joint venture, partnership or agency between the parties. N. Effect of Waiver or Forbearance. No failure by the County to insist upon the strict performance of any term or condition of this Agreement, or to exercise any right or remedy upon the breach by the HOME Awardee of any of its obligations, agreements, or covenants hereunder, shall be a waiver of such affected term or condition or of such breach; nor shall any forbearance by the County to seek a remedy for any breach by the HOME Awardee be a waiver by the County of its rights and remedies with respect to that or any other breach. Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 O.Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of North Carolina. Any litigation arising out of this Agreement shall be brought in courts sitting in North Carolina, with venue in Orange County. P.Severability. The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by the fact that for any reason any other provision may be invalid or unenforceable in whole or in part. If any provision of this Agreement or the application thereof to any person or circumstances shall, to any extent, be or become invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. The County and the HOME Awardee agree to substitute for such provision of this Agreement or the application thereof determined to be invalid or unenforceable, such other provision as most closely approximates, in a lawful manner, such invalid, illegal or unenforceable provision. If the County and the HOME Awardee cannot agree, they shall apply to a court of competent jurisdiction to substitute such provision as the court deems reasonable and judicially valid, legal and enforceable. Such provision determined by the court shall automatically be deemed part of this Agreement ab initio. Q.Equal Opportunity. The HOME Awardee shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, handicap, or familial status in the implementation of the Project. R.Headings. Headings are for convenience only and shall not be used to interpret or construe its provision. S. Gender; Singular and Plural. As used herein, the neuter gender includes the feminine and masculine. The masculine includes the feminine and neuter, and the feminine includes the masculine and neuter and each includes a corporation, partnership or other legal entity when the context so requires. The singular number includes the plural and vice versa, whenever the context so requires. T.Recording. The parties hereto agree that upon notice to the other and at its own cost and expense, a party may record this Agreement in the Office of Register of Deeds for Orange County. U. Compliance with Laws. To the extent applicable, each party hereto agrees to comply with all laws, ordinances and regulations affecting the Property from and after the date hereof. Without limiting the generality of the foregoing, the HOME Awardee shall comply with all federal, state and local laws, regulations and ordinances applicable to the expenditure of funds provided by the County, to purchase and develop the Property. Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 V. Publicity; Signage. The HOME Awardee agrees to provide such publicity with respect to the County's participation in the development of the Property as the County shall reasonably require. Any signage at the Property shall acknowledge the County's role and contribution. W. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute on and the same instrument. X. No Third Party Rights. The parties hereto covenant and agree that nothing contained in this Agreement or any act by the County or the HOME Awardee shall be deemed or construed by the parties or any third party to create any relationship of third party beneficiary, including third party principal or agent, or to create any right, claim or cause of action against the County, the HOME Awardee or any of their respective officers, agents or employees by any third party. Y. Performance of Government Functions. Notwithstanding anything in this Agreement which may be to the contrary, nothing contained in this Agreement shall in any way stop, limit or impair the County from exercising or performing any regulatory, policing or governmental powers or functions with respect to the Property including, without limitation, inspection of the Property in the performance of such functions. Z. Duration of Agreement. This Agreement shall be effective on the date of execution and shall remain in effect during the period of affordability required by the Act under 24 CFR Part 92. AA. Training. The HOME Awardee agrees to attend training and/or technical assistance workshops provided by the County related to the administration of this Agreement and that the Department of Housing and Community Development deems mandatory. BB. Entire Agreement and Signatures: The parties have read this Agreement and agree to be bound by all of its terms, and further agree that it constitutes the complete and exclusive statement of the Agreement between the parties unless and until modified in writing and signed by the parties. Modifications may be evidenced by telefacsimile signature. This Agreement together with any amendments or modifications may be executed electronically. All electronic signatures affixed hereto evidence the consent of the Parties to utilize electronic signatures and the intent of the parties to comply with Article I IA and Article 40 of North Carolina General Statute Chapter 66. [SIGNATURES ON FOLLOWING PAGE] Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 IN WI1NESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands and seals on the day and year first above written: HABITAT FOR HUMANITY OF ORANGE COUNTY, NC, INC. ORANGE COUNTY, NORTH CAROLINA Blake Rosser, Housing and Community Development Director This document has been pre- audited in accordance with the N.C. Local Government and Fiscal Control Act. _________________________________ Gary Donaldson, Finance Director Approved as to form and legality _________________________________ Morgan Pierce, Staff Attorney Travis Myren, County Manager Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 Revised 04/23 1 ORANGE COUNTY—INTERNAL USE ONLY ______________________________________________________________________________ Finance Information Vendor Name: Habitat for Humanity of Orange County Vendor Contact Person: Jennifer Player Phone: 919-932- 7077 Address: 88 Vilcom Center Drive City Chapel Hill State: NC Zip: 27514 Department: Housing Amount: $167,241 Purpose: Affordable Housing Budget Code(s): 32473020-789012-47322 Vendor # 15086 Vendor Status with NCSOS: Vendor is a BOCC consultant: Yes No Contract Details Contract Type: New Amendment (Original Contract: ) (Most Recent Amendment ) Effective Date End Date Notice Date (Notice Purpose ) Award Approved by Board (Agenda Date: ); Made or Administered by Signature Authority - BOCC Express Delegation (Agenda Date: ) - Policy 9.4: Under $5,000; Service Under $90,000; Construction Under $250,000 - Budget Policy Section XV (Capital Improvement Project: ) Bidding Informal Bidding ($30k-$90k); Formal RFP ($90k+); Other (<$30k); Exception(# ) Department Affirmation This agreement is approved as to technical form and content and I as Department Director affirmatively state work on this project has not been initiated prior to execution of the agreement. Services related to this agreement have already begun or been completed. Description of the nature of the emergency condition that was addressed: Department Director’s Signature ________________________________________ Date: ________ Information Technologies This agreement has been reviewed and is approved as to information technology content and specifications: Office of the Chief Information Officer___________________________________ Date: ________ Inapplicable because no hardware/software purchases or related services Risk Management This agreement is approved for sufficiency of insurance standards, specifications, and requirements: Office of the Risk Management Officer___________________________________ Date: _________ Financial Services This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act: Office of the Chief Financial Officer ____________________________________ Date: _________ Legal Services This agreement is approved as to legal form and sufficiency: Office of the County Attorney __________________________________________Date: ________ Clerk to the Board All Docusign contracts must be copied to the Clerk upon completion: occlerkdocs@orangecountync.gov The following signature block is for hard copies only and is not required for Docusign contracts: Received for record retention: Office of the Clerk to the Board __________________________________________Date:_________ Docusign Envelope ID: 9307EECF-67A0-42F5-A601-DB137FFD8FA3 9/13/2024 9/16/2024 9/17/2024 9/18/2024