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WHEREAS, it is anticipated that the PHA will ultimately be dissolved and that Owner <br /> will succeed certain of its responsibilities; <br /> WHEREAS, HUD has approved the conveyance of the Disposition Property to Owner <br /> for the purchase price of One and No/100ths Dollar($1.00); <br /> WHERAS, Owner will lease the Disposition Property to the Lessee in accordance with <br /> that certain Ground Lease (Phase I of Kottinger Gardens Development Project) by and between <br /> Owner and Lessee dated as of , 2016 (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 three (103)housing units (collectively, the <br /> "Units," or singularly, a "Unit") and operated as affordable and reserved for households at or <br /> below eighty percent(80%) of Area Median Income for a minimum of thirty (30)years from the <br /> date the Lessee receives a Certificate of Occupancy_ for_all of the U nits (the "Restricted <br /> Period"); and <br /> WHEREAS, in connection therewith and in accordance with the terms of the Ground <br /> Lease, the Lessee will demolish the existing buildings located on the Disposition Property and <br /> construct the 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. Use Requirement. Each of the Lessee and the Owner, for itself and for its <br /> successors and assigns, hereby covenants and agrees for the benefit of PHA and HUD that the <br /> Disposition Property shall be used exclusively for the development of one-hundred three (103) <br /> housing units and operated as affordable and reserved for households at or below eighty percent <br /> (80%) of Area Median Income (the "Use Requirement") for the duration of the Restricted <br /> Period. <br /> 2. Exceptions to the Use Requirement. The following events shall not constitute a <br /> breach of the Use Requirement: <br /> A. Vacant Units. If one or more of the Units are left vacant for a <br /> commercially reasonable period (i) while one tenant is moving out of a Unit and before another <br /> has moved in to such Unit, (ii) while waiting for a new qualifying tenant for a Unit in the event <br /> there are no tenants immediately available to move in after the previous qualifying tenant <br /> vacates, or(iii)while a Unit is being renovated and/or repaired. <br /> Page 2 of 16 <br />