25B - AGMT - CDBG HOUSING LOAN - Laserfiche WebLink

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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 extremely -low, very low and low income households at rents affordable to such households for fifty- five (55) years from the effective date of the issuance of the Certificate of Completion. b. The Project shall consist of approximately fifty -eight (58) units of which there will be twenty -six (26) one - bedroom units, fifteen (15) two- bedroom units and seventeen (17) three - bedroom units. There will be six (6) units with incomes at or below 30% AMI, twenty -four (24) units for households with incomes at or below 50% AMT; twenty -seven (27) units for households with incomes at or below 60% AMI; and the remaining unit will be reserved for the on -site manager. If entitlement changes the number of units, the City Project Manager must approve affordability mix. C. Affordable rents shall be governed as provided in the CDBG Regulations and Inclusionary Housing Funds Procedures. Rental increases shall be in conformance with federal and state law. d. Initial rents may be recalculated to allowable rental amounts at the time of initial lease -up following completion of construction in accordance with any changes in allowable rent and income tables as published by HUD. 3.2 Rent Increases A. On an annual basis, the City shall provide the Developer with the maximum allowable schedule of incomes and rents (less utility allowance appropriate for the Restricted Units for the Property. B. Owner, its successors and assigns shall not charge rents for the Restricted Units in excess of the amounts set forth in the tables as adjusted from time -to -time by HUD. The City Manager shall notify Owner in writing of the adjusted allowable maximum incomes and rents. 4. Miscellaneous Provisions: A. Owner shall adopt and include as part of its Management Plan (described in subsection G below), written tenant selection policies and criteria for the Units, that meet the following requirements: (a) Are consistent with the purpose of providing housing for Very Low Income households; (b) Are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease; (c) Give reasonable consideration to the housing needs of households that would have a preference under 42 CFR §906.211 (Federal selection preferences for admission to Public Housing); 25B -58