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<br /> 11 <br /> <br />6.10 Other Terms and Conditions of Loan. <br /> <br /> A. The Note shall become immediately due and payable, in the event of any <br />of the following: <br /> (1) failure to complete the Project within four (4) years of the <br />recording date; <br /> <br /> (2) all CDBG rental units do not achieve initial occupancy within 6 <br />months of project completion. <br /> <br /> (3) violation of any of the use covenants and restrictions contained in <br />this Agreement after the expiration of any applicable notice and cure <br />periods; <br /> <br />(4) an Event of Default by Developer which is not timely cured after <br />expiration of any applicable notice and cure periods pursuant to the <br />terms of this Agreement. <br /> <br />6.11 Closing Costs and Fees. Developer shall pay (a) all escrow fees and charges, <br />(b) all recording fees and charges on any document recorded pursuant to this Agreement, <br />and (c) the premium for the title insurance required hereunder. <br /> <br />7. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF THE <br />PROPERTY <br /> <br />7.1 Use Covenants and Restrictions. <br /> <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 extremely 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 CDBG restrictions shall be enforced until the date that is <br />fifteen (15) years after the date on which the Certificate of Completion is issued or until <br />repayment of principal and all accrued interest on the CDBG Loan, whichever comes last. <br />The City permits the Developer to limit the eligibility and/or give preference to a particular <br />segment of the population in accordance with 24 CFR 92.253(d). <br /> <br />B. The Project shall consist of ninety-one (91) units, two (2) of which shall be on-site <br />manager units. <br /> <br />C. At initial lease up, households in the units cannot earn more than 30% of AMI. <br />Rental increases shall be in conformance with federal and state law. After the fifteen (15) <br />year CDBG Compliance Period, the City shall require that the units remain affordable for <br />the Term of this Agreement, with rents calculated based on assumed household size at the <br />same income levels. <br /> <br />EXHIBIT 3