Agenda Packet_2023-03-07 - Laserfiche WebLink

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EXHIBIT 3 coverage) is $10,000 or more, Developer shall promptly notify City of such claim. Section 7. AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF THE PROPERTY 7.1. 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 all Restricted Units on the Property will be made available for rent as follows: (i) Except as set forth in sub -paragraph (ii) of this Section 7.1(a), the Restricted Units shall be rented to Extremely Low Income Households for the City Restriction Period. (ii) During the HOME -ARP Compliance Period, all HOME - ARP Units must be rented to a HOME -ARP Qualifying Population as allowed by the HOME -ARP Program. After the HOME -ARP Compliance Period expires, all Units shall be restricted under sub -paragraph (i) of this Section 7.1(a). (b) The HOME -ARP Units shall be studio units, with comparable amenities to the other Restricted Units. The HOME -ARP Units shall be initially distributed throughout the complex, but thereafter shall be allowed to "float". (c) It is anticipated that during the Term of Agreement the Project will be supported by Project -Based Section 8 rental subsidy payments provided by the Housing Authority of the City of Santa Ana ("Housing Authority") for not less than twenty-five (25) of the Restricted Units (the "PBV Rental Subsidy"), and the HOME - ARP Subsidy Reserve will be utilized to cover operating deficits associated with the sixteen (16) HOME -ARP Units. The HOME -ARP Subsidy Reserve cannot be used for HOME -ARP Qualifying Households with project -based vouchers or project -based rental assistance. The PBV Rental Subsidy may not be placed on any HOME -ARP Unit. (d) The Developer shall establish a preference for renting Restricted Units to individuals and families who qualify as Chronically Homeless in accordance with the Affordability Restrictions on Transfer of Property, provided however that any preference applicable to the HOME -ARP Units must comply with the HOME -ARP Program. (e) Rental increases in the Restricted Units shall be subject to and in conformance with federal, state law, and local law. (f) Maximum Occupancy for Restricted Units will be two persons per studio unit, unless a different number is required by state or federal law. (g) For all Restricted Units, Developer must have a written lease between tenant and owner for a period of at least one year, unless a shorter period is 16 WlSSEPlace Permanent Supportive Housing Itl an Agreement Rounc13 — 30 3/7/2023