Agda Pkt 2024.08.26 Regular Meeting

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ATTY/RESO.0053/CC RESO AMENDING AFFORDABLE HOUSING PRESERVATION PROGRAM – EXHIBIT B REV: 08-19-24 LF Page 10 of 86 number of Affordable Units are rented to Qualifying Households. Owner shall prioritize making Affordable Units available to the lowest income category of households if there is a shortfall in both categories of units. Notwithstanding anything contained herein or in the Loan Agreement to the contrary, the following shall apply with respect to all tenants occupying an Affordable Unit as of the Effective Date (the “Existing Tenants”): (i) An Existing Tenant which does not qualify as a Qualifying Household (a “Non-Qualifying Existing Tenant”) may continue to occupy an Affordable Unit until such Non- Qualifying Existing Tenant vacates such Affordable Unit; the Owner may continue to charge such Non-Qualifying Existing Tenant rent in the amount set forth in such Non-Qualifying Existing Tenant’s lease; and if such lease is renewed, Owner may increase such rent by an amount comparable to the rent increases then-applicable to market rate rental units in the Redwood City, California area; (ii) (ii) An Existing Tenant which does not cooperate with the Owner’s good faith efforts to determine whether such Existing Tenant is a Qualifying Household (a “Noncompliant Existing Tenant”) shall be treated as a Non-Qualifying Existing Tenant and the provisions of subsection (i) above shall apply to such Noncompliant Existing Tenant; and (iii) If a Non-Qualifying Existing Tenant or a Noncompliant Existing Tenant shall subsequently become certified as a Qualifying Tenant, then, effective as the date of such certification, the Affordable Unit rented to such Non-Qualifying Existing Tenant or Noncompliant Existing Tenant shall be treated as having been rented to a Qualifying Household. Further, and notwithstanding anything contained herein or in the Loan Agreement to the contrary, neither the Owner nor any of its affiliates shall be deemed in breach of this Regulatory Agreement, or otherwise penalized by the City, by reason of any Non-Qualifying Existing Tenants or Noncompliant Existing Tenants occupying Affordable Units, provided that Owner makes a good faith effort to certify such Existing Tenants as Qualifying Households within six (6) months of the Effective Date and upon any renewal of such Existing Tenants’ leases. 2.4 Term of Affordability for Affordable Units. The Affordable Units that are confirmed to be rented to Qualifying Households in the initial Annual Report shall be rented or Available to Qualifying Households as an Affordable Rent from the date of recordation of this Regulatory Agreement through the end of the term as set forth herein. Thereafter, Affordable Units that are vacated by Non-Qualifying Tenants shall be rented at an Affordable Rent to Qualifying Households for the remainder of the term as set forth herein. The term of this Regulatory Agreement shall commence with the recordation of the Regulatory Agreement and shall continue thereafter until fifty-five (55) years after the date upon which the Owner verifies to the City through submission of an Annual Report to City that at least eighty percent (80%) of the total number of Affordable Units required by this Regulatory Agreement are rented to Qualifying Households. At the time Owner submits such Annual Report to the City, Owner will request that City verify the date for expiration of the term of this Regulatory Agreement. Provided that City confirms that Owner is renting at least eighty percent (80%) of the Affordable Units to Qualifying Households, City will confirm in writing the expiration date as fifty-five (55) years after 6.M. - Page 83 of 110 539