Affordable Housing Reg Agmt APN 752812 7528112 04232020

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"Area Median Income" or "AMI" means the area median income for Alameda County, California, adjusted for household size, as published by the California Tax Credit Allocation Committee ("TCAC"). If TCAC ceases to make such determination, Area Median Income shall be the median income applicable to Alameda County, with adjustments for household size, as determined from time to time by the U.S. Department of Housing and Urban Development ("HUD") pursuant to the United States Housing Act of 1937 as amended, or such other method of median income calculation applicable to the City of San Leandro that HUD may hereafter adopt in connection with such Act. "Eligible Household" means a household for which gross household income upon initial occupancy does not exceed the maximum income level for a Restricted Unit as specified in Section 2.2 and that meets the requirements set forth in Section 2.1. "Low-Income" means an annual gross household income that is less than or equal to sixty percent (60%) of AMI. "Qualifying Rent" means a monthly rent that does not exceed one-twelfth of 30% of the applicable income level set forth for a Low-Income or Very Low-Income household. "Restricted Unit" means a dwelling unit which is reserved for occupancy at a Qualifying Rent by a Very Low-Income or Low-Income household in accordance with and as set forth in Sections 2.1 and 2.2. "Very Low-Income" means an annual gross household income that is less than or equal to fifty percent (50%) of AMI. 2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that the Property shall be used solely for the construction and operation of a 62-unit rental housing development in compliance with the Loan Agreement, the development approvals granted by the City of San Leandro, and the requirements set forth herein. City acknowledges that there are five units in the Project that will not be income restricted under any funding sources (the "Market Rate Units"): 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. Notwithstanding the foregoing or anything to the contrary contained herein, if the terms of financing for the Project require greater affordability restrictions than those imposed hereby, the requirements of such other financing shall prevail for the term thereof. 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, thirty (30) of the dwelling units in the Project shall be both Rent-Restricted (as defined below) and occupied (or if vacant, available for occupancy) by Eligible Households whose income does not exceed Very Low-Income. A dwelling unit shall qualify as "Rent-Restricted" 2890662.3 3