RecDoc 2020-073799 Affordable Housing Regulatory Agreement

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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) all of the residential units in the Project shall be subject to the rent restrictions set forth in Section 2.2 below and occupied (or if vacant, available for occupancy) by Eligible Households. 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 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 household income eligibility or affordability requirements than those imposed hereby, the requirements (including without limitation, the rent and occupancy requirements imposed in connection with the use of project based Section 8 vouchers, housing choice vouchers, or other rent subsidies) of such other lenders, investors or regulatory agencies shall prevail. Without limiting the generality of the foregoing, if any residential units in the Project are subsidized with Section 8 project -based vouchers through a Housing Assistance Payment Contract with HUD or a local Housing Authority, the rules and regulations applicable to such program shall prevail with respect to the setting of rents, implementation of occupancy requirements, and determination of household Gross Income for such units. 2.2 Restricted Rents. For all residential units in the Project, rents shall be limited to Affordable Rents. Notwithstanding the foregoing, no tenant qualifying as an Eligible Household at initial occupancy shall be denied continued occupancy of a unit in the Project because, after admission, such tenant's household income increases to exceed the qualifying limit for Eligible Households. In the event that upon recertification, it is determined that a tenant's household Gross Income exceeds 80% of AMI but is less than 120% of AMI, the unit occupied by such tenant will continue to be considered as satisfying the requirements of this Agreement if the rent charged for such unit does not exceed the lesser of (i) fair market rent as published by the U.S. Department of Housing and Urban Development, (ii) 30% of the tenant's household Gross Income, or (iii) 30% times 110% of Area Median Income Adjusted for Family Size Appropriate for the Unit. In the event that upon recertification, it is determined that a tenant's household Gross Income is equal to or greater than 120% of AMI, the unit occupied by such tenant will continue to be considered as satisfying the requirements of this Agreement if the rent charged for such unit does not exceed the lesser of (i) fair market rent as published by the U.S. Department of Housing and Urban Development, and (ii) 30% of the tenant's household Gross Income. Whenever a vacancy occurs in the Project, Owner shall rent, or make available for rent, each vacant unit to an Eligible Household at Affordable Rent. REV: 02-25-2020 PR ATTY/AGR.2020.039/Premia 1180 Main Owner, LLC (Page 18 of 42)