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D. The Loan Agreement provides, among other things, for the use of the Property for <br />affordable housing with all Restricted Units being restricted to Extremely Low Income, <br />Very Low Income and Low Income households, at Affordable Rent(s). <br />E. The Loan Agreement contains certain provisions relating to the use of the Property. <br />NOW, THEREFORE, CITY AND DEVELOPER COVENANT AND AGREE AS <br />FOLLOWS: <br />1. Developer covenants and agrees (for itself, its successors, its assigns, and every <br />successor in interest to the Property or any part thereof) that Developer, such successors, <br />and such assigns shall use the Property exclusively to provide affordable housing of <br />Extremely Low Income, Very Low Income and Low Income households, as provided in <br />these Restrictions and in the Loan Agreement. <br />2. Developer, for itself and its successors and assigns, hereby covenants and agrees <br />that all of the apartments in the Property (less one manager's unit) (the "Units") shall be <br />rented exclusively, at Affordable Rent, to Extremely Low Income, Very Low Income and <br />Low 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 <br />land and bind Developer, its successors, its assigns and every successor in interest to the <br />Property that Developer will make all Restricted Units on the Property available to <br />Extremely Low Income, Very Low Income and Low Income households at rents affordable <br />to such households for sixty-two (62) years from the issuance of the Certificate of <br />Completion. The HOME restrictions for the City's twelve (12) HOME assisted units shall <br />be enforced until the date that is twenty (20) years after the date on which the Certificate <br />of Completion is issued. 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 eighty-six (86) units, including one (1) <br />on -site manager's unit. The City's HOME assistance shall require twelve (12) HOME <br />assisted units. The HOME assisted units shall be six (6) 2-bedroom units, four (4) 3- <br />bedroom units, and two (2) 4-bedroom units, fixed, and shall be distributed throughout the <br />complex with comparable amenities to the Restricted Units. <br />(c) At initial lease up, households in the HOME assisted units cannot <br />earn more than the Very -Low Income limits (50% of AMI) as published by HUD in <br />compliance with the HOME Program for the Orange County, California PMSA, adjusted <br />2 <br />The Crossroads at Washington <br />City HOME Affordability Restrictions on Transfer of Property <br />