Res17 15621 - Laserfiche WebLink

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2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that the Property shall be used solely for the development and operation of a multifamily rental senior housing development in compliance with the DDA and the requirements set forth herein. Owner represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that is inconsistent with such restrictions without the express written consent of City. Owner has elected to operate the Project as a senior housing development and as such to require all dwelling units in the Project except for the manager's unit to be occupied or held available for occupancy by households that include "elderly" or "senior" residents in accordance with applicable law. To the extent applicable, the Project will be operated at all times in accordance with (a) the Unruh Act, including without limitation California Civil Code Sections 51 .2, 51 .3 , and 51 .4; (b) the federal Fair Housing Act, 42 U. S .C. Section 3607(b) and 24 CFR 100.304; (c) the California Fair Employment and Housing Act, Government Code Section 12900 et seq., and (d) all other applicable laws and regulations. Owner shall develop and implement appropriate age verification procedures to ensure compliance with this Section 0, and shall provide City with a copy of such verification procedures. Owner will indemnify, protect and hold the Indemnitees harmless from all Claims arising out of Owner's failure to comply with applicable legal requirements related to housing for seniors. The indemnity provisions of this paragraph shall survive the expiration of the term of this Agreement or other termination of this Agreement. 2. 1 . Affordability Requirements. For a term of fifty-five (55) years commencing upon the date of issuance of a final certificate of occupancy or equivalent for the Project, not less than forty-nine percent (49%) of the residential units in the Project shall be both Rent Restricted (as defined below) and occupied (or if vacant, available for occupancy) by Eligible Households whose income is no greater than sixty percent (60%) of Area Median Income, and the remaining residential units in the Project (except for the manager's unit which will not be subject to affordability restrictions) shall be both Rent Restricted and occupied (or if vacant, available for occupancy) by Eligible Households whose income is no greater than eighty-five percent (85%) of Area Median Income. One ( 1 ) of the residential units in the Project shall be a manager's unit for which the rent will not be restricted. All of the residential units in the Project except the manager's unit shall be occupied or held for occupancy by households that include "elderly" or "senior" residents of age 62 or older. In the event that recertification of tenant incomes indicates that the number of Restricted Units actually occupied by Eligible Households falls below the number reserved for each income group as specified in this Section 0, Owner shall rectify the condition by renting the next available dwelling unit(s) in the Project to Eligible Household(s) until the required income mix is achieved. A dwelling unit shall qualify as "Rent Restricted" if the gross rent charged for such unit does not exceed the Affordable Rent for the applicable household income category, subject to Section 0. Notwithstanding anything to the contrary contained in this Agreement, if other Project lenders, Project investors or regulatory agencies restrict a greater number of units than restricted ATY/AGR/2017.218/RWC — BRADFORD — DDA REV: 09-18-17 VR Page 66 of 94