Item 12 - Density Bonus Agreement No. 2025-03

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pursuant to this Agreement. The Affordability Term shall be determined for each individual Affordable Unit. 3.2 Memorializing Commencement of Affordability. Developer shall keep or cause to be kept detailed records of the commencement date of the Affordability Term for each Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control. 3.3 Levels of Affordability. 3.3.1 Affordable Rent. Developer covenants that all three (3) Affordable Units in the Project shall at all times during the Affordability Term be rented to, or held vacant and available for immediate occupancy by an Eligible Household, at an Affordable Rent. 3.3.2 Affordable Rent for Very Low Income Tenants. The Affordable Rent for Very Low Income Tenants shall not exceed the limits set forth in California Health and Safety Code Section 50053 and implementing regulations, which provide that the Affordable Rent shall not exceed thirty percent (30%) times fifty percent (50%) of the Median Income, as adjusted for family size appropriate to the unit. 3.3.3 Affordable Rent Schedule. Prior to issuance of a Certificate of Occupancy for the Project, and on each anniversary of the issuance of the initial Certificate of Occupancy for the Project, Developer shall provide to the City the Affordable Rent Schedule, which City shall have not less than thirty (30) days to review and approve or disapprove, which approval shall not be unreasonably withheld. 4. OPERATION OF THE PROJECT BY DEVELOPER 4.1 Payment of Density Bonus Setup Fee. A Density Bonus Setup Fee in the amount of Two Thousand Five Hundred Sixty One Dollars and Seventy -Two Cents ($2,561.72), was paid by the Developer on November 20, 2024, prior to execution of this Agreement. 4.2 Recording of Documents; Priority. 4.2.1 No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. The date of recording of the Agreement shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and Project for the Term of this Agreement. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State 2130 East Fourth Street Density Bonus Agreement 5 53 94.0010 1 \43846773.1