Res13 15282 - Laserfiche WebLink

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07/22/2013 force and effect for the term of the Loan regardless of whether the loan the is paid off before its maturity date 3. Form of CDBG Subsidy - The CDBG financial assistance from the City as provided under this Agreement shall be evidenced by a Promissory Note in favor of the City, in the form attached hereto as Exhibit "C" (the "Promissory Note") and secured by a deed of trust on the Property (the "Deed of Trust"), in the form attached hereto as Exhibit "D". The Promissory Note shall provide that the loan will be at zero percent (0%) interest for thirty (30) years with principal and interest payments deferred for the Loan Term, except in the case of default, and shall be repaid in full at the end of the Loan Term, except in the case of a default, in which case repayment may be accelerated. The "Loan Term" shall be the date which is thirty (30) years from the date the Promissory Note is fully executed. Contractor shall not further encumber, subordinate, sale nor transfer title, nor take any other actions which would jeopardize the economic sustainability and affordability of the property being acquired, without the prior written consent of the City.` 4. CDBG Affordability Covenant — Projects receiving CDBG funds must record on title a CDBG affordability covenant ("Covenant") or deed restriction ("Deed Restriction") that runs with the land and restricts household incomes and rents of CDBG assisted units such that the units remain continuously affordable to low income persons for a specified period of time. The term of said CDBG affordability restriction for this Project shall be fifteen (15) years. The period of affordability becomes effective upon initial occupancy of CDBG assisted units notwithstanding that HUD defines Project Completion as the date when the final CDBG funds are drawn down and the City has entered project completion information into HUD's disbursement and information system. The Covenant will incorporate the following provisions: CDBG Definitions, Requirements, Rent and Occupancy Restrictions - The following definitions, requirements and references may be adjusted from time -to time by HUD or the City, and any such adjustments shall be incorporated:. by reference into this Agreement: a. Maximum Allowable Rent and Utility Allowances: The maximum allowable CDBG rents must be reduced if the tenant/s pays for utilities. The maximum rent includes all utilities and housing -related services, except telephone. Allowances provide a mechanism for reducing the maximum allowable CDBG rent when some or all utilities are paid by the tenant/s. Redwood City uses the San Mateo County Housing Authority current allowance schedule to determine utility allowances which vary depending on the type of unit and utilities available in the unit. b. Maximum Rents: The total monthly rent cannot exceed the current HUD rent limits for low income (at or below 80 percent of area median) adjusted for unit size. c. Tenant Income: All households must be low-income (incomes at or below 80 percent of area median). Income limits will be prepared and made available` by RESO. # 15282 MUFF # 608