940 S. MINNIE, LP - 2014 - Laserfiche WebLink

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NOW, THEREFORE, CITY AND DEVELOPER COVENANT AND AGREE AS FOLLOWS: 1. Developer covenants and agrees (for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof) that Developer, such successors, and such assigns shall use the Property exclusively to provide affordable housing of Very Low Income households, as provided in these Restrictions and in the Loan Agreement. 2. Developer, for itself and its successors and assigns, hereby covenants and agrees that all of the apartments in the Property (the "Units ") shall be rented exclusively, at Affordable Rent, to Very Low Income households. Area median income levels and Affordable Rents are subject to adjustment from time to time as provided in Section 3 below. 3. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF THE PROPERTY 3.1 Use Covenants and Restrictions. A. Developer agrees and covenants, which covenants shall run with the land and bind Developer, its successors, its assign and every successor in interest to the Property that Developer will make all rental units on the Property available to very low households at rents affordable to such households for fifty -five (55) years from the effective date of this Agreement. The HOME restrictions for the eight (8) HOME assisted units shall be enforced until the date that is fifteen (15) years after the date on which the City reports the Project as complete to the Department of Housing and Urban Development. Upon expiration of the 15 year HOME compliance period, the City will enforce affordability of the eight (8) units with the same income and rent restrictions as the other units, pursuant to City guidelines and the California Health and Safety Code. B. The Project shall consist of eight units. There shall be eight (8) HOME assisted units. The HOME assisted units shall be floating units and shall be distributed throughout the complex with comparable amenities to the other units. C. At initial lease up, households in the HOME assisted units cannot earn more than 50% of AMI, however existing tenants at the Property who are otherwise eligible under the HOME Program may continue their tenancy at the Property. Rental increases shall be in conformance with federal and state law. After the fifteen (15) year HOME compliance period, the City shall require that the units remain affordable, with rents calculated based on assumed household size at the same income levels, as required by the California Health & Safety Code. D. All of the units will be restricted to occupancy by fifty percent (50 %) of the Area Median Income (AMI). Current residents whose incomes exceed eighty percent (80 %) of the AMI will be allowed to remain. Rents for these households will be increased to either thirty (30 %) percent of their monthly household income or market rent for the neighborhood, whichever is lower. 2of12