Res18 15644 - Laserfiche WebLink

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shall not be unreasonably denied, the maximum tenant household income and rents limitations for the Assisted Units may be increased to amounts necessary to make operation ofthe Project financially feasible, including the payment of all required operating costs and debt service, but in no event may (a) the household income limitation for any unit exceed 60% of AMI, or (b) the maximum rent limitation for any unit exceed 30% of 60% of AMI. In the case of increases due to termination or material reduction of project - based Section 8 or other project -based rental assistance for Assisted Units, these increases may continue until such time that the full amount of the rental assistance or equivalent operating subsidy is restored. However, these affordability covenants 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 whom the former owner has or had family or business ties, obtains ownership interest in the Property. Owner grants to the City the right to take any and all legal action necessary to enforce the provisions of these affordability covenants, and Owner will be responsible for all reasonable legal expenses incurred by the City in the enforcement of these affordability covenants. The City will have the right to waive any and all breaches of the terms of these affordability covenants, but any such waiver shall not be deemed a waiver of any previous or subsequent breaches. 8. Affirmative Marketina: The Project must comply with affirmative marketing responsibilities that meet federal and state requirements. Owner shall submit an affirmative marketing plan to the City prior to disbursement of funds under the Agreement. 9. Leases, Tenant Protection and Selection: Owner must adhere to a fair lease, tenant selection and grievance procedure and must provide a plan for and follow a program of tenant participation in management decisions, which participation may include the opportunity for tenants to provide input at tenant meetings held by Owner. Said plan shall be submitted to the City prior to or at the time of Project Completion. Owner shall adopt written tenant selection policies and criteria that are consistent with the purpose of providing housing for Low Income Households, Very Low Income Households, and Extremely Low Income Households; are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease; provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and give prompt written notification to any rejected applicant of the grounds for any rejection. 10. Reversion of Assets: If Owner elects to sell the Property or discontinue the affordable housing program and not perform the conditions of the Agreement or these affordability covenants, Owner shall pay to the City the sum of One Million One Hundred Thousand and no/100 Dollars ($1,100,000.00) and any additional sums due to the City pursuant to the Agreement. 11. Non Profit Status of Owner: Owner agrees to maintain its status as a nonprofit entity and that its failure to do so shall be grounds for termination of the Agreement and acceleration of the Promissory Note. ATTY/AGR/2018.027/MID PEN MOSIAC GARDENTS (ATHERTON COURT) REV: 02-06-18 JS Page 22 of 41