Item 27 - Public Hearing - Approve an Amended and Restated Regulatory Agreement for Garden Court Apartments Rehabilitation Project

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EXHIBIT 1 and such assigns shall use the Property to provide affordable housing in compliance with this Agreement. In addition to all other terms and conditions set forth herein, this Agreement is subject to the following: (a) Owner agrees and acknowledges prior receipt of a loan from the City in the amount of One Million One Hundred Thousand Dollars ($1,100,000.00) ("City HOME Loan"), evidenced by a Promissory Note Secured by Subordinated Deed of Trust, dated May 26, 1995, and secured by a Subordinated Deed of Trust with Assignment of Rents (Securing Home Loan), recorded in the Official Records of Orange County as Document No. 95-0225206 ("City HOME Deed of Trust"). Owner represents and warrants that it is not in default of the City HOME Loan and agrees that this Agreement does not amend, restate or modify the loan agreement and promissory note evidencing the City HOME Loan nor the City HOME Deed of Trust or the obligations thereunder. (b) Owner and City agree to amend the affordability covenants in Section 2 of the Original Agreement on the terms and conditions set forth herein, which shall be effective upon the recordation of this Agreement and continue for a term of at least fifty-five (55) years (the "Term" (c) The covenants against discrimination set forth in Section 9, below, shall remain in effect in perpetuity. 2. Owner, for itself and its successors and assigns, hereby covenants and agrees that the 84 apartments on the Property (the "Units") shall be restricted as follows: (i) forty-one (41) Units, consisting of fifteen (15) one bedroom, one -bathroom Units and twenty-six (26) two - bedroom, two -bathroom Units (the "60% AMI Units") shall be rented exclusively, at Affordable Rent, to 60% Income Households as defined in subsection (a) below, and to Existing Households as set forth in subsection (b) below; and, (ii) forty-two (42) Units, consisting of nine (9) one bedroom, one -bathroom Units and thirty-two (32) two -bedroom, two -bathroom Units (the "80% AMI Units) shall be rented exclusively, at Affordable Rent, to 80% Income Households, as defined in subsection (a) below. The 60% AMI Units and the 80% AMI Units are collectively referred to as the "Restricted Units," which shall only be occupied by eligible households for the 60% AMI Units or 80% AMI Units, as applicable. Area median income levels and Affordable Rents are subject to adjustment from time to time as provided in this Section 2 below. The restrictions set forth in this Section 2 shall remain in effect for fifty-five (55) years after the date of recordation of this Agreement. "Affordable Rent" shall mean the maximum rent for Existing Restricted Tenants (as defined below) as set forth in subsection (b) or the maximum rent for 60% AMI Units or 80% AMI Units, as applicable, as set forth in subsection (c). (a) Maximum Incomes. (i) 60% AMI Units. The maximum incomes of residential tenants eligible to rent the 60% AMI Units shall be an individual or household that has a household income equal to or less than sixty percent (60%) of then current Area Median Family Income for the Santa Ana -Anaheim -Irvine, CA HUD Metro FMR Area, adjusted for household size, as published by the California Tax Credit Allocation Committee ("TCAC") annually ("60% 2 Error! Unknown document property name.