RecDoc2025-012794 1540 El Camino Real Declaration of Affordabilty

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As of the date of these affordability covenants, such incomes shall not exceed 80% of Area Median Income. C. "Maximum Rent for Low Income Households" means a total monthly rent that does not exceed the City published rent limits for Low Income Households at 80% AMI, adjusted for unit size 2. Maximum Allowable Rent and Utility Allowances: The Maximum Rent for Low Income Households must be reduced if the tenant/s pay/s for utilities and/or any mandatory fees. The Maximum Rent for Low Income Households includes all utilities and mandatory fees, except non-essential utilities including landline telephones, cable television, cell phones, internet, and any appliances not shown in the Utility Allowance Schedule published by the County of San Mateo Housing Authority. Utility allowances provide a mechanism for reducing the Maximum Rent for Low Income Households when some or all utilities are paid by the tenant/s. The City uses the County of San Mateo Housing Authority Utility Allowance Schedule plus City sewer charges and other mandatory fees, if applicable, to determine utility allowances which vary depending on the type of unit and utilities available in the unit. 3. Maximum Rents CDBG Unds : The total monthly rent cannot exceed the Maximum Rent for Low Income Households. 4. Tenant Income: To be eligible for the CDBG Units, households must be Low Income Households. Income limits will be prepared and made available by the City annually based on the income data published by HUD for County of San Mateo. 5. Subordination: These affordability covenants shall be subordinate to any mortgage or deed of trust and the Affordability Period shall be terminated in the event of a foreclosure or transfer in lieu of foreclosure if the foreclosure or transfer recognizes any contractual or legal rights of the City to take actions that would avoid the termination of affordability for Low Income Households. 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. Within the CDBG program guidelines, 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. 6. Affirmative Marketing: 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. REV: 02-07-25 LF ATTY/AGR.2025.018/First Community Housing (Affordability Covenant - Villa) (Page 2 of 6)