Inst 2014298535 - Laserfiche WebLink

Home

♦ "Restricted Unit" means a dwelling unit which is reserved for occupancy at an Affordable Rent by a household of not more than a specified household income in accordance with and as set forth in Sections 2.1 and 2.2 and Exhibit B. "Very Low-Income" means an annual gross household income that is less than or equal to the qualifying limits for households of Very Low-Income, adjusted for actual household size, as determined periodically by HUD on the basis of gross annual household income, and published by HCD in the Regulations for Alameda County. If HUD ceases to make such determination, "Very Low-Income" shall be defined as not greater than fifty percent (50%) of Area Median Income adjusted for household size, as published by HCD in the Regulations. If both HCD and HUD cease to make such determinations, City in its reasonable discretion may designate another definition of "Very Low-Income" used by any other federal or state agency so long as such definition is no more restrictive than that set forth herein. 2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that the Owner's interest in the Property shall be used solely for the operation of a multifamily rental housing development that may include commercial and retail space, in compliance with the OPA and the requirements set forth herein. Owner represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that is inconsistent with such restrictions without the express written consent of City. 2.1 Affordability Requirements. For a term of fifty-five (55) years commencing upon the date of issuance of a final certificate of occupancy for the Project not less than fifty-five (55) of the residential units in the Project shall be shall be both Rent Restricted (as defined below) and occupied (or if vacant, available for occupancy) by Eligible Households who qualify as Very Low-Income, and not less than an additional fifty-eight (58) of the residential units in the Project shall be both Rent Restricted and occupied (or if vacant, available for occupancy) by Eligible Households whose income is less than or equal to ninety percent (90%) of Area Median Income. In the event that recertification of tenant incomes indicates that the number of Restricted Units actually occupied by Eligible Households falls below the number reserved for each income group as specified in this Section, Owner shall rectify the condition by renting the next available dwelling unit(s) in the Project to Eligible Household(s) until the required income mix is achieved. A dwelling unit shall qualify as "Rent Restricted" if the gross rent charged for such unit does not exceed the Affordable Rent for the applicable household income category as set forth in Exhibit B, subject to Section 2.2.1. Notwithstanding anything to the contrary contained in this Agreement, if other lenders, investors or regulatory agencies restrict a greater number of units than restricted by this Agreement or require stricter household eligibility or affordability 144\221\1339451.5 Page 4