2003 S Housing - Affordable Rentals, Inc for Housing Bond Program Development Agreement

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Any tenants residing in the Project dwelling unit at the time of acquisition of the Project dwelling unit that are displaced due to the repair work must be notified in writing of the need for temporary relocation and must be adequately housed in the community. Affordable Rentals, Inc. must submit within 90 days of the date of this Agreement a detailed written report of the relocation plan for all tenants. All relocation activities will be fully funded by the Affordable Rentals, Inc. Affordable Rentals, Inc. agrees to lease the Project dwelling unit to a family whose income does not exceed 50% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. Monthly rents must not exceed the HUD Published Fair Market Rents in effect at the time of occupancy. Residential leases will not exceed one year in term. b. Financial assistance in the amount of $101,342 in Orange County Housing Bond Funding will be provided in the form of a deferred loan with aninety-nine (99) year loan term. A Deed of Trust and Promissory Note will secure the loan funds. This Deed of Trust and Promissory Note shall constitute a lien on the Property subordinate only to the Declaration of Restrictive Covenants described in Section 2 of this Agreement. The Project dwelling unit must remain affordable for a period of 99 years. This 99 year affordability requirement will be secured by a Deed of Trust, Promissory Note, and Declaration of Restrictive Covenants that will incorporate a right of first refusal that may be exercised by the County. a The Property shall be acquired and the Project dwelling unit rehabilitated and occupied by December 31, 2008. In the event that Affordable Rentals, Inc. is unable to complete its obligations to acquire, rehabilitate, and occupy the Project dwelling unit within this time or by extensions approved by the County under the terms of this Agreement, Affordable Rentals, Inc. will be required to repay the full amount of the County's outstanding loan as provided in the loan documents. d. The Project dwelling unit shall be purchased for not more than 100% of its appraised value. An independent, qualified appraiser must conduct the appraisal. e. An annual rental operations budget must be submitted to the County each year at least sixty days prior to the July 1 beginning date for the fiscal year. f. Affordable Rentals, Inc. is responsible for verifying the income of prospective tenants and maintaining eligibility data. Affordable Rentals, Inc. shall maintain tenant files as part of its Books and Records as required and for the period of time required by Section 4c. of this Agreement. Affordable Rentals, Inc. must provide the County an initial occupancy report verifying the income eligibility of all tenants at the time of initial lease-up. Affordable Rentals, Inc. must furnish the County with an annual report on the Project dwelling unit by July 31 of each year therea8er certifying that all tenants earn less than 50% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and as amended from time to time. 2