RecDoc 2017-055496 Declaration of Convenants

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ueaararnon or Arroraaowry r,ovenant Page 2 of 6 five (55) years. Owner may request that DOH approve longer affordability periods. For this Project, the affordability period shall be 55 years. b) Existino Tenants: Upon acquisition and from that point forward, Borrower will continue to honor the leases of all Existing Tenants. Subject to the provisions of any local rent control ordinances and the rules and regulations of any rent subsidies utilized by Existing Tenants, the leases of Existing Tenants may be adjusted annually, at most, by 5% for any 12 -month period. In the event of syndication of the project under California Tax Credit Allocation Committee C'CTCAC"), rents may be established according to CTCAC regulations and future adjustments made according to CTCAC regulations. Relocation of existing tenants shall be permitted to facilitate a future syndication and compliance with CTCAC regulations. To the greatest extent possible, Borrower will work with DOH to structure LIHTC financing to minimize relocation of existing tenants. In the case of Existing Tenants who, at the time of Owner's acquisition, pay more than 30% of their household income toward rent as determined by Owner after acquisition of the Project, to the greatest extent possible, Owner must work with DOH to structure the LIHTC financing or other refinancing in order to allow Owner to reduce the Existing Tenants' share of rent payments at the earliest possible time, with a goal of setting such tenant share of rent payments at approximately 30% of their household income or the amount required under any applicable rental subsidy program. Nothing herein shall be construed to prevent Owner from collecting total rent payments that equate to more than 30% of the income of an Existing Tenant or future tenant for a unit where a tenant -based or project -based rental subsidy is applied and authorized to pay the rent requested by Owner up to the amount approved by the agency issuing such rental subsidies. c) Vacant Units: Upon acquisition by Owner and from that point forward, all units (except for an onsite manager's unit) must be rented upon vacancy to households earning, at most, 80% of AMI, and must be rented at rates affordable to such households. Affordable rents shall be defined to mean that the tenant share of rent is no more than 30% of their household income or the amount approve by any applicable rental assistance program. If the unit is not filled within 30 Days, the Owner may proceed to select a client from an active waitlist as long as the income of the client selected does not exceed 80% AMI. For ARAPP-Restricted Units, where tenant -based or project -based rental subsidies are applied, the tenant portion of rent payments for a unit will be restricted to the amount required by any tenant -based or project -based rental subsidy program applicable to a unit. The total rent for a unit may be set at the sum of the tenant's portion of rent and the rental subsidy payment, up to the maximum amount permitted by the rental subsidy program. d) Countv Client Referred Tenants: Upon acquisition and from that point forward, Owner must rent the first available ARAPP-Restricted Unit to a Client referred by the County, and the second available unit to a Client referred by the County, and the third available vacancy to a client referred from a HIP Housing maintained waitlist (Waitlist) and verified through DOH, with an income not to exceed 80% AMI. For this Project, Owner must rent a minimum of two (2) Units to County referred clients and a minimum of one (1) to any client off of the Waitlist with an income no greater than 80%AMI.