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ATTY/AGR/2017.145/ STAFFORD FUNDING AGREEMENT <br />REV: 06-21-17 JS <br />Page 23 of 41 <br />Exhibit B <br />(Declaration of Affordability Covenants) <br /> <br />RECORDING REQUESTED BY: <br />CITY OF REDWOOD CITY <br /> <br /> <br />When Recorded Mail To: <br />CITY OF REDWOOD CITY <br /> <br />City Clerk <br />1017 Middlefield Road <br />Redwood City, CA 94063 <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />SPACE ABOVE THIS LINE FOR RECORDER’S USE Exempt from Recording Fees under Govt. Code Section 27383 <br /> <br />DECLARATION OF AFFORDABILITY COVENANTS <br /> <br />HIP Housing Development Corporation, hereinafter referred to as "Owner,” agrees that <br />the property described in Attachment 1, which is incorporated herein by reference, and <br />more commonly known as 1512 Stafford Avenue (the “Property”), shall be restricted for <br />a period of Fifty-Five (55) years from the date of Project Completion (the “Affordability <br />Period”). The Owner further agrees that (a) six of the units (the “CDBG/Affordable <br />Housing Fund Units”) shall remain continuously affordable to Low Income Households for <br />the entire Affordability Period and (b) separately, one two-bedroom unit (the “Home- <br />Funded Unit”) shall be affordable to Very Low Income Households for 10 years (the <br />“Home Affordability Period”) and, thereafter, shall be affordable to Low Income <br />Households for the remaining 45 years of the Affordability Period. The housing facility to <br />be operated by Owner at the Property is hereinafter referred to as the “Project.” “Project <br />Completion” shall be defined as the date of issuance of the Promissory Note <br />memorializing the loan from City to Owner of One Million Five Hundred Seventy-Seven <br />Thousand, Seven Hundred Fifty and no/100 Dollars ($1,577,750.00) (the “Promissory <br />Note”) for acquisition of the Property, notwithstanding that the United States Department <br />of Housing and Urban Development (“HUD”) defines Project Completion as the date when <br />the CDBG and HOME funds are drawn down and the City has entered project completion <br />information into HUD’s disbursement and information system. These covenants will be <br />binding on the Owner and any and all successors in interest. <br /> <br />Provisions set forth in these affordability covenants that are designated as “HOME- <br />Funded Unit Only” shall only apply to the designated HOME-Funded Unit, and such <br />restrictions shall only apply to the HOME-Funded Unit during the HOME Affordability <br />Period. After the expiration of the HOME Affordability Period, all other provisions of these <br />affordability covenants, including provisions explicitly pertaining to CDBG/Affordable <br />Housing Fund Units, shall apply to all units in the Project, including the HOME-Funded <br />Unit, for the remainder of the Affordability Period. <br /> <br />6.3.E. - Page 35