FOUNTAINHEAD PARTNERS - Laserfiche WebLink

Home Browse Search

11/14/03 D. The Loan Agreement contains certain provisions relating to the use of the Property; and E. The City wishes to assign to the Agej)cy the right to enforce certain affordable housing provisions of this Agreement. NOW, THEREFORE, CITY, DEVELOPER AND AGENCY COVENANT AND ACrR.EE 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 afif'ordablo housing for seniors of Low and Very Low income, as provided in this Agreement and in the Loan Agreement. 2. DEVELOPER, for itself and its successors and assigns, hereby covenants and agrees that "of the 89 apartments in the Property (tire "Units") shall be rented. exclusively, at Affordable Rent, to Low/'Very Low Income Households (the "Restricted Units'), and that only such households shall be eligible to occupy the Restricted Units. Area median income levels and Affordable Rents are subject to adjustment from time to time as provided in Section 3 below. The restrictions set forth in this Section 2 shall remain in effect for fifty-five (55) years cormnencing upon the issuance of the Certificate of Occupancy. (a) Maximinn Incomes. The maximum incomes of residential tenant's eligible to rent the Restricted Units shall be determined on the basis of the Area Median Income for the Orange County, California.PMSA, published approximately annually by the United States Department of Housing and Urban Development ("HUD"). For purposes of this Agrec:raent, the term "Very Low Income" shall mean a household income that does not exceed 50% of the area median income, adjusted for family size as determined by the HUD or successor agency and the terra "Low Income" shall mean a household income that does not exceed 80% of the area median incorne, as determined by HUD, adjusted for family size (as provided in the DOME Regulations, 24 CFR § 912). (b) 1�/ a—In�rruni Rents- HOME Assists Units. The maximum rent that may be charged to such persons (gross rent less utilities) shall be determined by DEVELOPER. and approved by the Executive Director, but shall not exceed the lowest of the following: (i) the maximum amount permitted under the HOME Regulations, 24 CFR § 92,252; or (ii) the product of 30 percent times 40 percent of the area median income adjusted for family size for the 40% units; or 30 percent times 50 percent of the area median income adjusted for family size for the 50% units (less utility allowance appropriate for the Unit), and (iii) the annual rent adjustment factor for existing housing, as published from time to time by HUD. City, Agency and DEVELOPER agree that the initial rents for the HOME assisted Restricted Units shall be as follows: 2of14