Agmt William 14th & Callan Street Owner 04102023

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1.11 "Term" means the term of this Regulatory Agreement, which commences as of the Effective Date and shall terminate on the fifty-fifth (55 h) anniversary of the issuance by the City of the certificate of occupancy or equivalent for the Project. 2. Use and Affordability Restrictions. Owner hereby covenants and agrees that Owner shall use the Property solely for the construction and operation of the Project subject to the occupancy and affordability restrictions set forth herein for the Term of this Agreement. 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 Occupancy Requirements. 2.1.1 Restricted Units. The Restricted Units shall be rented to and occupied by or, if vacant, available to a household for which total household income upon initial occupancy does not exceed One Hundred Percent (100%) of the Area Median Income. 2.1.5 Intermingling of Units. All Restricted Units shall be intermingled and of comparable quality. Tenants in all Restricted Units shall have equal access to and enjoyment of all common facilities of the Project. 2.1.2 Construction of the Restricted Units. All of the Restricted Units shall be constructed and offered for occupancy concurrently with, earlier than, or in proportion with other dwelling units in the Project. For every twenty (20) units in the Project made available for occupancy, at least one (1) shall be a Restricted Unit. 2.2 Qualifying Rent for Restricted Units. 2.2.1 Very Low -Income Unit Rent. Subject to the provisions of Section 2.3 below, the Rent charged to Tenants of the Restricted Units shall not exceed one -twelfth (1/12th) of thirty percent (30%) of one hundred percent (100%) or less of Area Median Income, adjusted for Assumed Household Size. 2.2.2 Rent Amount. The initial Rent for all Units must be approved by the City prior to occupancy. No later than sixty (60) days prior to the proposed implementation of any Rent increase affecting a Restricted Unit, Owner shall submit to the City a schedule of any proposed increase in the Rent charged for the Units. 2.2.3 Rents Increases. The Rent for such Units may be increased no more than once annually based upon updated rent schedules corresponding to the Affordable Housing Regulatory Agreement — Centro Callan November 28, 2022