Agmt17 HIP Housing Funds to Acquie 1512 Stafford

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