815 N. HARBOR, L.P. (HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS) 2-2015

Home Browse Search

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, Low, and Moderate 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 and 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 units on the Property available to very low,low, and moderate income households at rents affordable to such households for fifty -five (55) years from the date of full occupancy of the Project. The HOME restrictions for the two (2) HOME assisted units shall be enforced until the date that is twenty (20) 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 20 year HOME compliance period, the City will enforce affordability of the two (2) HOME assisted 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 seventy units; 69 affordable units, with one on -site manager unit. There shall be two (2) three - bedroom 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. Rental increases shall be in conformance with federal and state law. After the twenty (20) 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. Affordable rents shall be governed by California Health and Safety Code Sections 50052.5 and 50053(b)(1), and as provided in the HOME Regulations 24 CFR section 92.2. 3.2 Affordable Gross Starting Rents (Less Reasonable Utility Allowance): Initial rents may be recalculated to allowable rental amounts at the time of initial tease -up following completion of constriction in accordance with any changes in allowable rent and income tables as published by HUD. 2of10