Applicant: _______________________
Address: _________________________
Date: ___________________
PROMISSORY NOTE
WHEREAS, the undersigned Applicant has applied to the City for a reduction in the
water and sewer facility fees for affordable housing dwelling units imposed pursuant to Article
III (Water and Sewers Generally) of Chapter 31 (Utilities) of the Charlottesville City Code, 1990,
as amended; and
WHEREAS, the City has approved the Applicant’s application for reduced water and
sewer connection fees, pursuant to §§ 31-102.1 and 31-106.1 of the City Code, as amended; and
WHEREAS, the Applicant has agreed to pay to the City the difference between the
reduced fee(s) and the standard fee(s) for water and sewer connections should the dwelling unit
cease to be affordable housing as defined by the above-cited City Code sections, within five (5)
years of the date of this Note; now, therefore,
For Value Received, __________________________ (“Applicant”), promises to pay to
the order of the City of Charlottesville, P.O. Box 911, Charlottesville, Virginia 22902 ("the
Noteholder"), the principal sum of _________________ and __/100 DOLLARS
($__________________).
Repayment of the original principal amount is due if, within Five (5) Years of the date of
this Note, any or all of the property at _______________________ (City TMP ______________)
the “Property”), ceases to be Affordable Housing, defined as:
A dwelling unit (1) to be purchased and occupied by an individual or
family with a household income less than eighty percent (80%) of the
Area Median Income; and (2) that has a sales price no greater than
the maximum sales price established by the Virginia Housing
Development Authority for its first time homebuyer loan programs in
the Charlottesville metropolitan statistical area (non-federal targeted
area); or that is developed as rental property with financial
assistance from a federal, state or local program requiring the
dwelling units to be leased to tenants with a household income less
than eighty percent (80%) of the Area Median Income.
In the event the Property ceases to meet the above definition of Affordable Housing prior
to ________________, 20___, the Applicant shall be in default and shall pay to the City of
Charlottesville the full principal amount of this Note. The personal liability of any person liable
hereon shall under no circumstances exceed $____________________. At the expiration of the
loan term period, if the Note has not been paid in full and Applicant is not in default, the loan
