Agmt13 Mental Health Association of San Mateo Co. (MHA)

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Redwood City annually based on the income data published by HUD and the State California Housing and Community Development. d. Subordination: The Covenant shall be subordinate to any mortgage or Deed of Trust and the affordability period shall be terminated in the event of a foreclosure of transfer in lieu of foreclosure if the foreclosure or transfer recognizes any contractual or legal rights of the City of Redwood City to take actions that would avoid the termination of low-income affordability. However, this affordability restriction 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 who the former owner has or had family or business ties, obtains ownership interest in the property. Contractor/Owner grants to the City of Redwood City the right to take any and all legal action necessary to enforce the provisions of this restrictive covenant, and owner will be responsible for all reasonable legal expenses incurred by the City in the enforcement of this restrictive covenant. Within the CDBG program guidelines, the City will have the right to waive any and all breaches of the terms of the affordability restrictive covenant, but any such waiver shall not be deemed a waiver of any previous or subsequent breaches. 5. Affirmative Marketinq - Projects containing five or more units, regardless of funding source, must comply with affirmative marketing responsibilities that meet federal and state requirements. Contractor shall submit affirmative marketing plan to City prior to disbursement of funds under this Agreement. 6. Leases. Tenant Protection and Selection —Contractor must adhere to a fair lease, tenant selection and grievance procedure and must provide a plan for and follow a program of tenant participation in management decisions. Said plan shall be submitted to the City prior to or at the time Contractor signs this agreement. Contractor shall adopt written tenant selection policies and criteria that are consistent with the purpose of providing housing for low-income households; are reasonably related to program eligibility and the applicants' ability to perform the obligations of the lease; provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and give prompt written notification to any rejected applicant of the grounds for any rejection. 7. Environmental Review - City shall conduct the necessary environmental review consistent with NEPA regulations to commit and disburse funds under this agreement. 8. Reversion of Assets - If Contractor elects to sell the property or discontinue the affordable housing program and not pertorm the conditions of this Agreement Contractor shall pay to the City the sum of Four Hundred Thousand and no /100 Dollars and any additional sums due to the City pursuant to this Agreement. 9. Non Profit Status of Contractor — Contractor agrees to maintain its status as a nonprofit corporation and that its failure to do so shall be grounds for termination of this Agreement, and acceleration of the Note. ATTY/AGR/2013.116/MHA FUNDING AGREEMENT REV:07-12-13 VR Page 18 of 32