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NOW, THEREFORE, CITY AND DEVELOPER COVENANT AND AGREE AS <br />FOLLOWS: <br />1. Developer covenants and agrees (for itself, its successors, its assigns, and <br />every successor in interest to the Property or any part thereof) that Developer, such <br />successors, and such assigns shall use the Property exclusively to provide affordable <br />housing of Extremely -Low, Very -Low and Low Income households, as provided in these <br />Restrictions and in the Loan Agreement. <br />2. Developer, for itself and its successors and assigns, hereby covenants and <br />agrees that all of the apartments in the Property (less one manager's unit) (the "Units") <br />shall be rented exclusively, at Affordable Rent, to Extremely -Low, Very -Low and Low <br />Income households to the extent provided for herein. Area median income levels and <br />Affordable Rents are subject to adjustment from time to time as provided in Section 3 <br />below. <br />3. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF <br />THE PROPERTY <br />3.1 Use Covenants and Restrictions. <br />A. Developer agrees and covenants, which covenants shall run with the land and bind <br />Developer, its successors, its assigns and every successor in interest to the Property that <br />Developer will make all rental units on the Property available to low- or very low-income <br />households at rents affordable to such households for fifty-five (55) years from the issuance of <br />the Certificate of Completion. The HOME restrictions for the two (2) HOME assisted units <br />shall be enforced until the date that is twenty (20) years after the date on which the Certificate <br />of Completion is issued or until payment of principal and all accrued interest on the HOME <br />Loan, whichever comes last. The City permits the Developer to limit the eligibility and/or give <br />preference to a particular segment of the population in accordance with 24 CFR 92.253(d). <br />B. The Project shall consist of seventy-six (76) units, including one (1) on-site <br />manager's unit(s). There shall be two (2) HOME assisted units. The HOME assisted units <br />shall be one 1 -bedroom unit and one 2 -bedroom unit, floating, and shall be distributed <br />throughout the complex with comparable amenities to the other units. <br />C. At initial lease up, households in the HOME assisted units cannot earn more than <br />30% of AMI. Rental increases shall be in conformance with federal and state law. After <br />the twenty (20) year HOME compliance period, the City shall require that the units remain <br />affordable, with rents calculated based on assumed household size at the same income <br />levels <br />D. All of the HOME units will be restricted to occupancy by families earning no more than <br />thirty (30%) of the Area Median Income (AMI). <br />E. Maximum Occupancy will be two (2) people per room plus one (1). Example for a two- <br />bedroom unit, five (5) people would be maximum occupancy. <br />2of14 <br />