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202301320 WHEREAS, as a condition to the receipt of HOME Program funds, the Owner must ensure that rent and occupancy -eligibility limitations required by the HOME Program regulations are met throughout the affordability period using deed restrictions, land use restriction agreements, or both. NOW THEREFORE, the following is established as a Covenant running with the land: 1. Restriction. For the term of this Covenant, the HOME units under the Project shall be used primarily to provide housing for low-income tenants under the following rent limitations and other conditions. For the purposes of this Covenant, "low-income tenants" means, initially, tenants earning at or below 60% Area Median Income (AMI), and for subsequent occupants of the Home units, tenants earning at or below 80% AMI. 2. Rent Limitation. The maximum rent allowed for the Home units of the Project shall be the lesser of: a. the fair market rent for existing housing for comparable units in the area as established by HUD; or b. a rent that does not exceed thirty percent (30%) of the adjusted income of a family whose annual income equals sixty-five percent (65%) of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. 3. Nondiscrimination Against Rental Assistance Subsidy Holders. The Owner may not refuse to lease the Project units to a certificate or voucher holder under the Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the holder of a comparable document evidencing participation in a HOME tenant -based rental assistance program because of the status of the prospective tenant as a holder of such certificate, voucher, or comparable HOME tenant -based assistance document. 4. Period of Affordability. The HOME units must meet the affordability requirements for not less than the applicable twenty (20) year period, beginning after project completion. The affordability requirements apply without regard to the term of any loan or mortgage or the transfer of ownership but may terminate upon foreclosure or transfer in lieu of foreclosure. The Department may use purchase options, rights of first refusal, or other preemptive rights to purchase the housing before foreclosure or deed in lieu of foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family of business ties, obtains an ownership interest in the project or property. 5. Approval of Rents. Throughout the Affordability Period, the Owner shall notify the Department of any changes it proposes to its rents on HOME -assisted units prior to the effective date of change. The proposed rents shall not take effect until the Department has given its approval. Page 2 of 4