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4918-5821-5178.6 011249.016 <br />CalHFA Standstill Agreement (Density Bonus – Locality) <br />______________– CalHFA No. ______________ <br />12/05/2024.OGC.ogc.HFMF-478357159-19 <br />REV: 05-28-25 LF <br />Locality shall have the right to exercise all rights, remedies, and requirements of Locality <br />set forth therein or otherwise without restriction. Notwithstanding anything in this <br />Agreement to the contrary, CalHFA shall comply with all applicable law, rules, orders, and <br />requirements and with the terms and conditions of its own regulatory agreements recorded <br />against the Development. Further, during the Standstill Term, CalHFA shall provide, upon <br />written request of Locality, a progress report of its actions regarding its attempts to find <br />qualified purchasers for the Development, and with other information that CalHFA has <br />collected for itself in connection with the Development. Such progress reports shall not be <br />requested more frequently than once per quarter. CalHFA shall reasonably cooperate with <br />Locality regarding any other requested information of Locality regarding the Development, <br />and Locality and CalHFA shall cooperate in good faith to facilitate a sale or transfer of the <br />Development to a third party should CalHFA become owner of the Development. <br /> <br />(b) In the event of any: (1) judicial foreclosure sale; (2) non-judicial foreclosure; (3) <br />deed-in-lieu of foreclosure; or (4) loss or reduction of Section 8 rental subsidies which <br />results in a debt service coverage ratio of less than 1.05, Locality shall, to the extent <br />necessary to achieve a debt service coverage ratio of 1.05 or greater (“Financial <br />Feasibility”) for the Development, increase the Affordability Limitations for some or all <br />of the Development’s units. <br /> <br />i. Rents may be increased to the lesser of: (A) 1/12th of 30% of 60% AMI, less a <br />reasonable utility allowance; or (B) the maximum extent permitted under the <br />federal or state laws or regulations underlying the Locality’s Affordability <br />Limitations, including but not limited to, Government Code § 65915(c)(1). <br /> <br />ii. CalHFA agrees to provide Locality thirty (30) calendar days’ notice prior to <br />increasing the Affordability Limitations. <br /> <br />iii. CalHFA agrees to cooperate with the Locality and the Borrower, pursuant to <br />this subsection 1(b) and make good faith efforts to minimize displacement of <br />current tenants. Any increase in tenants’ rents shall be subject to Section 7(b) <br />of the CalHFA Regulatory Agreement. <br /> <br />iv. Any increase to the maximum household income and rents set forth in the <br />Locality’s Affordability Limitations shall only be for the period of time required <br />for CalHFA to achieve and sustain Financial Feasibility, after which the <br />household incomes and rents should be reduced back and the Affordability <br />Limitations shall otherwise be complied with. <br /> <br />v. Upon request by the Locality, CalHFA shall provide Locality, and Borrower, if <br />applicable, evidence of the then-existing debt service coverage ratio and its <br />impact on the Development. The number of units subject to the rent increase <br />and the amount of the proposed increase may not be greater than such amount <br />as is necessary for the Development to maintain Financial Feasibility, subject <br />to the limitations set forth in this Section 1(b). <br />ATTY/AGR.2025.127/California Housing Finance Agency (CalHFA) (Page 4 of 11) <br />6.K. - Page 8 of 15 <br />90