RecDoc 2019-047033 Affordable Housing Reg Agmt

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"Rent Restricted" is defined in Section 2.1. "Restricted Unit" means a dwelling unit that is reserved for occupancy at an Affordable Rent by Eligible Households of specified household income levels as set forth in Section 2.1. 2. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that throughout the term of this Agreement (as defined in Section 4.1), the Property shall be used solely for the operation of an affordable multifamily rental housing development in compliance with the Loan Agreement and the requirements set forth in this Agreement. 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. 2.1 Affordability and Occupancy Requirements. Throughout the term of this Agreement (as defined in Section 4.1 below): (i) not less than two (2) of the residential units in the Project shall be both Rent Restricted and occupied (or if vacant, available for occupancy) by Eligible Households whose household Gross Income is no greater than fifty percent (50%) of AMI; and (ii) not less than an additional nineteen (19) of the residential units in the Project shall be both Rent Restricted and occupied (or if vacant, available for occupancy) by Eligible Households whose household Gross Income is no greater than eighty percent (80%) of AMI. One of the residential units in the Project will be a manager's unit that will not be subject to rent or occupancy restrictions. 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 as specified in this Section. Provided that Owner complies with all regulations and requirements that apply pursuant to financing and subsidies provided for the Project, and all applicable local, state, and federal rules, regulations, ordinances, statutes, and laws, including without limitation, all applicable notice requirements, at the expiration of the term of a tenant's lease or occupancy agreement, Owner may elect not to renew such lease or occupancy agreement if the tenant's Gross Income exceeds 120% of the applicable household Gross Income limit and such nonrenewal is permitted under the terms of all applicable Project financing and regulatory agreements. 2.1.1 CDBG and HOME Units. Nineteen (19) residential units in the Project shall be CDBG Units and shall be subject to the affordability and occupancy requirements of the CDBG Program. The CDBG Units shall be restricted for occupancy by Eligible Households whose household Gross Income is no greater than eighty percent (80%) of AMI. Two (2) residential units in the Project shall be HOME Units and shall be subject to the affordability and occupancy requirements of the HOME Program. The HOME Units shall be "floating units." The HOME Units shall be restricted for occupancy by Eligible Households whose household Gross Income is no greater than fifty percent (50%) of AMI, and rents for the HOME Units shall be restricted to Low HOME Rents. For purposes of calculating allowable rents for the CDBG Units and the HOME Units, imputed household size shall be 1.5 persons per bedroom. 2.1.2 Relationship to Other Affordability Restrictions. Notwithstanding any contrary provision of this Agreement, if other Project lenders, Project investors, or regulatory agencies restrict a greater number of units than restricted by this Agreement or require stricter 5 OAK #4820-8711-2085 v4 ATTY/AGR.2019.148/Redwood Oaks Associates 11 LP - Regulatory Agreement