RecDoc 2015-116655 - Laserfiche WebLink

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(3) Over-Income Tenants - In the event that the income of a qualifying tenant household increases so that the tenant no longer meets the income criteria , the Owner will be allowed a variance to the income criteria of this Restriction until such time as said formerly qualifying tenant vacates the unit, or another unit of comparable size in the 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 . (4) 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. IN WITNESS WHEREOF, Declarant has executed this Declaration on the date first written above . "DECLARANT" HIP Housing Development Corporation • as Arai / `e i/ t 'ArS ATTY/AGR/2015.172/DECLARATION OF AFFORDABILITY COVENANTS HHDC REV: 08-14-15 RL Page 3 of 4