80A - HOUSING AND SUBORDINATION LOANS

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EXHIBIT 3 A. The City/HOME Loan Note shall become immediately due and payable, in the event of any of the following: (1) violation of any of the use covenants and restrictions contained in this Agreement after the expiration of any applicable notice and cure periods; (2) an Event of Default by Developer which is not timely cured after expiration of any applicable notice and cure periods pursuant to the terms of this Agreement. 6.9 Closing Costs and Fees. Developer shall pay (a) all escrow fees and charges, (b) all recording fees and charges on any document recorded pursuant to this Agreement, and (c) the premium for the title insurance required hereunder. 7. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF THE PROPERTY 7.1 Use Covenants and Restrictions A. Developer agrees and covenants, which covenants shall run with the land and bind Developer, its successors, its assigns and every successor in interest to the Property that Developer will make all rental units on the Property available to very low-income households (50% Area Median Income) at rents affordable to such households for fifty-five (55) years from the issuance of the Certificate of Completion. B. The Project shall consist of one -hundred, twenty-six (126) units, including one (1) on -site manager's unit. C. Rental increases shall be in conformance with federal and state law. The City shall require that the units remain affordable, with rents calculated based on assumed household size at the same income levels D. Developer must have a written lease between tenant and owner for a period of at least one year, unless a shorter period is mutually agreed upon. Leases must be consistent with the HOME Program regulations at 24 CFR section 92.209(g). 7.2 Affordability Levels/Unit Mix: All affordable rents in the Project shall be governed by the rents published annually by the California Tax Credit Allocation Committee for households at 50% Area Median Income upon the termination of the initial HOME Compliance Period, as applicable. Utility allowances must be deducted from the Maximum Gross Monthly Rent. The Housing Authority of the City of Santa Ana publishes the Utility Allowance Schedule. 7.3 Rent Increases: On an annual basis, the City shall provide Developer with the maximum allowable schedule of rents for the Property in accordance with changes in allowable rent and income tables published by the California Tax Credit Allocation 11 80A-47