NORTH HARBOR HOUSING PARTNERS, LP (CO JAMBOREE HOUSING CORPORATION (2)

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E. The Loan Agreement provides, among other things, for the use of the Property for affordable housing with all Assisted Units being restricted to Extremely -Low Income households, at Affordable Rent(s). F. The Loan Agreement contains certain provisions relating to the use of the Property. 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 for Extremely -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 units in the Property (less two managers' units) (the "Units") shall be rented exclusively, at Affordable Rent, to Extremely -Low Income households to the extent provided for herein. Area median income levels and Affordable Rents are subj ect 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 assigns and every successor in interest to the Property that Developer will make all rental units on the Property available to extremely low-income households at rents affordable to such households for fifty-five (55) years from the issuance of the Certificate of Completion. The CDBG restrictions shall be enforced until the date that is fifteen (15) years after the date on which the Certificate of Completion is issued or until repayment of principal and all accrued interest on the CDBG Loan, whichever comes last. The City permits the Developer to limit the eligibility and/or give preference to a particular segment of the population in accordance with 24 CFR 92.253(d). B. The Project shall consist of ninety-one (91) units, two (2) of which shall be on -site manager's units. C. At initial lease up, households in the units cannot earn more than 30% of AMI. Rental increases shall be in conformance with federal and state law. After the fifteen (15) year CDBG Compliance Period, the City shall require that the units remain affordable for the Term of this Agreement, with rents calculated based on assumed household size at the same income levels. D. All of the units will be restricted to occupancy by families earning no more than thirty (30%) of the Area Median Income (AMI), adjusted for household size. 2of14