JAMBOREE HOUSING CORPORATION-2017

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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 of Extremely -Low and Very -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 apartments in the Property (less one manager's unit) (the "Units") shall be rented exclusively, at Affordable Rent, to Extremely -Low and Very -Low Income households to the extent provided for herein. Area median income levels and Affordable Rents are subject 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 assign and every successor in interest to the Property that Developer will make all rental units on the Property available to extremely low and very low households at rents affordable to such households for fifty-five (55) years from the effective date of this Agreement. The HOME restrictions for the ten (10) HOME assisted units shall be enforced until the date that is five (5) years after the date on which the City reports the Project as complete to the Department of Housing and Urban Development. Upon expiration of the 5 year HOME compliance period, the City will enforce affordability of the ten (10) HOME assisted units) with the same income and rent restrictions as the other units, pursuant to City guidelines and the California Health and Safety Code. 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 seventeen (17) One -Bedroom units. There shall be ten (10) HOME assisted units. The HOME assisted units shall be fixed units with comparable amenities to the other units (Units 810-02, 810-03, 810-04, 810-05, 810-06, 810-07, 810-10, 810-12, 810-14, and 810-16). The affordability mix for the Project is as follows: UnitT e AMI Level 4 of Units One -Bedroom I 50%AMI 1 10 C. At initial lease up, households in the HOME assisted units cannot earn more than 50% of AMI, however existing tenants at the Property who are otherwise eligible under the HOME Program may continue their tenancy at the Property. Rental increases shall be in conformance with federal and state law. After the five (5) year HOME compliance period, the City shall require that the units remain affordable, with rents calculated based 2of12