Item 13 - Affordable Housing Project at 1411 N Broadway

Home Browse Search

EXHIBIT 3 termination, or nonrenewal of the Rental Subsidy and/or depletion of the HOME-ARP Subsidy Reserve and/or evidence that the Project is not operating at a financially stable level, (b) a Management Plan (as defined in Section 6.1(d) of this Agreement) for the Project for the City’s approval pursuant to Sections 6.1(d) and Exhibit F of this Agreement, showing the impact of the depletion of the HOME-ARP Subsidy Reserve and/or loss, termination, or reduction of the Rental Subsidy, (c) a proposed operating budget reflecting the requested rent increases (the “Operating Budget”), and (d) a description of efforts to obtain alternate sources of rental subsidy and/or maintain financial stability. The number of the Restricted Units subject to the rent increase and the amount of the proposed increase may not be greater than the number or amount required to ensure that the Project generates sufficient income to cover its operating costs, required deposits to replacement reserves, and debt service on approved financing as shown on the Operating Budget, and as is necessary to maintain the financial stability of the Project. In addition, Developer hereby agrees to the following: (a)Developer shall use good faith commercially reasonable efforts to obtain alternative sources of rental subsidies and shall provide the City with annual progress reports on efforts to obtain alternative sources of rental subsidies that would allow the rents to be reduced. Upon receipt of any alternative rental subsidies, Developer shall reduce the rents back to the original restrictions to the extent that the alternative rental subsidies provide sufficient income to cover the operating costs, required replacement reserves and debt service of the Project as shown on the Operating Budget. (b)Developer shall provide tenants in the Restricted Units with notice of any rent increase pursuant to this Section 7.7, and shall notify the tenant that if they have received a tenant-based voucher from the Housing Authority they may use the tenant-based voucher for their Restricted Unit. (c)All rent increases for the Restricted Units are subject to City approval pursuant to the terms of this Section 7.7. No later than sixty (60) days prior to the proposed implementation of any rent increase, Developer shall submit to the City a schedule of any proposed increase in the rent. The City will disapprove a rent increase if it does not comply with the restrictions set forth in this Section 7.7. Notwithstanding the foregoing, rent increases for the Restricted Units shall be subject to review and approval of the City. (d)Developer shall give tenants of all Restricted Units written notice at least sixty (60) days prior to any rent increase. With respect to any Restricted Units for which City has authorized Developer to increase rents pursuant to this Section, the preference to rent to Chronically Homeless households shall automatically terminate. The City’s local preferences as described in Section 11.4 of this Agreement and Section 7.5 of the Affordability Restrictions on Transfer of Property shall remain. 7.8.Developer shall prepare a written Management Plan in accordance with the Affordability Restrictions on Transfer of Property, which shall include, among other things, tenant selection policies and provide for the selection of tenants through the Coordinated Entry System. 21 WISEPlace Permanent Supportive Housing City HOME-ARP Loan Agreement