Agmt15 HIP Housing Development Corporation (HHDC) (Oxford Apts. Rehab)

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Project becomes available, at which time that unit must be rented to a qualifying tenant and the restriction shall transfer to the new unit. The rent for an over-income tenant whose income exceeds 80% AMI, adjusted for household size, must be calculated at 30% of adjusted gross income, capped at market rent for comparable unassisted units, provided however, that if the tenant is occupying a unit that has been allocated low- income housing tax credits pursuant to Section 42 of the Internal Revenue Code o f1986 (26 USC 42), the rent will be governed by that provision. Subordination - The Covenant shall be subordinate to any mortgage or Deed of Trust and the affordability period shall be terminated in the event of a foreclosure of transfer in lieu of foreclosure if the foreclosure or transfer recognizes any contractual or legal rights of the City of Redwood City to take actions that would avoid the termination of low-income affordability. However, this affordability restriction shall be revived if, during the original term hereof, the owner of record before the foreclosure or other transfer, or any entity that includes the former owner or those with who the former owner has or had family or business ties, obtains ownership interest in the property. Contractor/Owner grants to the City of Redwood City the right to take any and all legal action necessary to enforce the provisions of this restrictive covenant, and owner will be responsible for all reasonable legal expenses incurred by the City in the enforcement of this restrictive covenant. Within the HOME program guidelines, the City will have the right to waive any and all breaches of the terms of the affordability restrictive covenant, but any such waiver shall not be deemed a waiver of any previous or subsequent breaches. 6. Affirmative Marketinq - Projects containing five or more units, regardless of funding source, must comply with affirmative marketing responsibilities that meet federal and state requirements. Projects with five or more HOME-assisted units must also comply with affirmative marketing standards enumerated at HOME regulation 24 CFR 92.351. Contractor shall submit affirmative marketing plan to City prior to disbursement of funds under this Agreement. 7. Tenant Protection and Selection — Pursuant to 24 CFR 92.303 Contractor must adhere to a fair lease and grievance procedure and must provide a plan for and follow a program of tenant participation in management decisions. Said plan shall be submitted to the City prior to or at the time Contractor signs this agreement..Contractor shall adopt written tenant selection policies and criteria that are consistent with the purpose of providing housing for very low-income and low-income families; are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease; provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and give prompt written notification to any rejected applicant of the grounds for any rejection. Tenant selection and leases for HOME-assisted units shall comply with provisions enumerated at HOME 24 CFR 92.253 and 24 CFR 92.254. 8. Environmental Review - City shall conduct the necessary environmental review consistent with NEPA regulations to commit and disburse funds under this agreement. ATTY/AGR/2015.165/HHDC Oxford Apts Rehabilitation REV:08-13-15 RL Page 19 of 35