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<br />EXHIBIT 3 <br />“Restricted Units” means the forty-seven (47) units restricted to Extremely Low <br />Income Households during the City Restriction Period, which includes the sixteen (16) <br />HOME-ARP Units assisted under the HOME-ARP Program and available for rental to <br />HOME-ARP Qualifying Populations during the HOME-ARP Compliance Period. <br />“Very Low Income” means an adjusted income that does not exceed fifty percent <br />(50%) of the area median income for the Orange County, California PMSA, adjusted for <br />household size, as published by HUD. <br />“Very Low Income Household” means an individual or family whose annual <br />income qualifies as Very Low Income, adjusted for household size, as published by <br />HUD. <br />5.AFFORDABILITY REQUIREMENTS, USE AND MAINTENANCE OF <br />THE PROPERTY <br />5.1.Use Covenants and Restrictions. <br />(a) Developer agrees and covenants, which covenants shall run with the <br />land and bind Developer, its successors, its assigns and every successor in interest to the <br />Property, that all Restricted Units on the Property will be made available for rent as follows: <br />(i)Except as set forth in sub-paragraph (ii) of this Section <br />5.1(a), the Restricted Units shall be rented to Extremely Low Income Households for the <br />City Restriction Period. <br />(ii)During the HOME-ARP Compliance Period, all HOME- <br />ARP Units must be rented to a HOME-ARP Qualifying Population as allowed by the <br />HOME-ARP Program. After the HOME-ARP Compliance Period expires, all Units shall <br />be restricted under sub-paragraph (i) of this Section 5.1(a). <br />(b)The HOME-ARP Units shall be studio units, with comparable <br />amenities to the other Restricted Units. The HOME-ARP Units shall be initially distributed <br />throughout the complex, but thereafter shall be allowed to “float” . <br />(c)It is anticipated that during the Term of Agreement the Project will <br />be supported by Project-Based Section 8 rental subsidy payments provided by the <br />Housing Authority of the City of Santa Ana (“Housing Authority”) for not less than <br />twenty-five (25) of the Restricted Units (the “PBV Rental Subsidy”), and the HOME- <br />ARP Subsidy Reserve will be utilized to cover operating deficits associated with the <br />sixteen (16) HOME-ARP Units. To the extent allowed by the HOME-ARP Program, the <br />HOME-ARP Subsidy Reserve cannot be used for HOME-ARP Qualifying Households <br />with project-based vouchers or project-based rental assistance (but may be used for <br />HOME-ARP Qualifying Households with tenant based rental assistance). The PBV <br />Rental Subsidy may not be placed on any HOME-ARP Unit. <br />(d)The Developer shall establish a preference for renting Restricted <br />4 <br />WISEPlace Permanent Supportive Housing <br />City HOME-ARP Affordability Restrictions on Transfer of Property