Laserfiche WebLink
WHEREAS, after conveyance of the Disposition Property to Owner, Owner will lease the <br /> Disposition Property to Lessee pursuant to the draft Ground Lease, a copy of which was <br /> submitted to HUD for review(the"Ground Lease"); <br /> WHEREAS, HUD has conditioned its approval for the transfer of the Disposition <br /> Property as set forth in the HUD Disposition Approval and on the further condition that the <br /> Disposition Property be developed with one hundred thirty-one(131) housing units (collectively, <br /> the "New Units," or singularly, a "New Unit") and operated as affordable and reserved for <br /> households at or below eighty percent (80%) of Area Median Income for a minimum of thirty <br /> (30) years from the date Lessee receives a Certificate of Occupancy for all of the New Units (the <br /> "Restricted Period"); <br /> WHEREAS, HUD has conditioned its approval for the transfer of the Disposition <br /> Property as set forth in the HUD Disposition Approval and on the further condition that fifty(50) <br /> of the New Units (the "PBV Units," or singularly, a "PBV Unit") will be developed and <br /> operated as assisted housing under HUD's Section 8 project-based voucher program in <br /> accordance with Section 8(o) of the Act, 24 C.F.R Part 983, and the applicable Housing <br /> Assistance Payments Contract (the "HAP Contract") for the duration of the Restricted Period; <br /> and <br /> WHEREAS, in connection therewith and in accordance with the terms of the Ground <br /> Lease, Lessee will demolish the existing buildings located on the Disposition Property and <br /> construct the New Units, which will include the PBV Units. <br /> AGREEMENT <br /> NOW THEREFORE, in consideration of the promises and covenants herein set forth and <br /> other good and valuable consideration, the receipt and sufficiency of which is hereby <br /> acknowledged, the parties hereby agree as follows: <br /> 1. Disposition of the Disposition Property. PHA shall not convey, assign, transfer, <br /> sublease, pledge, hypothecate, encumber or otherwise dispose of the Disposition Property prior <br /> to HUD releasing the Declaration(s) of Trust encumbering the Disposition Property. <br /> 2. Use of the Disposition Property. PHA shall encumber, or cause to be <br /> encumbered, the Disposition Property with a use agreement among PHA, Owner, Lessee and <br /> HUD substantially in the form attached hereto and incorporated herein as Exhibit C (the "Use <br /> Agreement"). The Use Agreement shall be recorded against the Disposition Property in a first- <br /> lien position, with the exception of(i) property taxes and assessments not yet due and payable, <br /> (ii) easements for the establishment, operation and maintenance of public utilities, and (iii) <br /> encumbrances that do not constitute a lien or other security interest on the Disposition Property <br /> or grant any party the right to a lien or security interest on the Disposition Property. <br /> 3. PBV Units Set-Aside for Public Housing Tenants. The PBV Units initially will <br /> be set aside for any household with a lease in effect at the Disposition Property at the time the <br /> Declaration of Trust is released (the "Existing Public [lousing Households"), to the extent <br /> Page 2 of 10 <br />