RecDoc 2010-110432 - Laserfiche WebLink

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EXHIBIT D FORM OF DECLARATION OF AFFORDABILITY COVENANTS Recording requested by And when recorded mail to: City of Redwood City 1017 Middlefield Road Box 391 Redwood City, California 94064 Attention: Housing Coordinator Exempt from recording fees pursuant to Cal. Gov't Code § 27383 APN: 058 - 214- 320 DECLARATION OF AFFORDABILITY COVENANTS This Declaration of Affordability Covenants ( "Declaration ") dated 1 2 "2 "Effective Date "), is made by KAINOS HOME & TRAINING CENTER, a California non - profit public benefit corporation ( "Declarant ") with respect to certain property located at 1122 Valota Road in the City of Redwood City, County of San Mateo, California, as more fully described in Attachment 1, attached hereto and incorporated herein ( "Property "). RECITALS The following recitals are a substantive part of this Agreement. A. Declarant is the fee owner of the Property. B. The City, in its efforts to create affordable rental housing opportunities for extremely low income persons with developmental disabilities, entered into an Agreement for Funding to Acquire the Property, dated .6Cpt• 20 , 2010 (the "Funding Agreement "). The Funding Agreement provides, among other things, for (i) Declarant's use of the Property for the purposes of providing six bedrooms within a single - family dwelling for extremely low income persons with development disabilities at an affordable rent (each an "Affordable Bedroom," and collectively, the "Affordable Bedrooms "); (ii) City's provision of funds derived from the United State Department of Housing and Urban Development's ( "HUD ") HOME Investment Partnership Act Program ( "HOME ") and Community Development Block Grant Program ( "CDBG ") to be used for a portion of Declarant's acquisition cost of the Property; and (iii) the establishment of certain covenants and restrictions to ensure the Property is used in accordance with the Funding Agreement and this Declaration. C. Under the Funding Agreement the City has provided Declarant FOUR HUNDRED THOUSAND DOLLARS ($400,000.00), in the form of a forgivable loan, conditioned upon Declarant's compliance with the Funding Agreement and this Declaration ( "City Loan "). Declarant has executed a promissory note of even date herewith ( "City Note ") for repayment of the City Loan in the event of a default by Declarant under the Funding Agreement or this Declaration, or in the event of a Permitted Sale conditioned on repayment of the City Loan pursuant to Section 5.02 hereof. The City Note is secured by a deed of trust of even date herewith recorded against the Property ( "Deed of Trust "). Exhibit D 1