RES 2024040 - Laserfiche WebLink

4879-3324-5885v3 5 (a) The rent restrictions and household Gross Income restrictions set forth in Section 3.2(c) shall remain in effect for the period (the “Initial Affordability Restriction Period”) commencing on the Effective Date and terminating on the fifty-fifth (55th) anniversary of the date upon which the Project construction loan converts to permanent financing. If such date cannot be ascertained, the Interim Affordability Restriction Period shall terminate on the fifty-seventh (57th) anniversary of the Effective Date of this Agreement. (b) Upon the expiration of the Initial Affordability Restriction Period, the rent restrictions and household Gross Income restrictions set forth in Section 3.2(d) shall apply for the remainder of the Term, and all other provisions of this Agreement, including without limitation, the provisions restricting annual rent increases, shall remain in effect throughout the Term. 2.2 Effectiveness Succeeds Conveyance of Property and Repayment of Loan. This Agreement shall remain effective and fully binding for the full Term regardless of (i) any sale, assignment, transfer, or conveyance of the Project or Owner’s leasehold interest in the Property, or any part thereof or interest therein, (ii) any payment, prepayment or extinguishment of the Loan or the Note, or (iii) any reconveyance of the Deed of Trust. 2.3 Reconveyance. Upon the termination of this Agreement, the Parties agree to execute and record appropriate instruments to release and discharge this Agreement; provided, however, the execution and recordation of such instruments shall not be necessary or a prerequisite to the termination of this Agreement upon the expiration of the term. 3. Use and Affordability Restrictions. Owner hereby covenants and agrees, for itself and its successors and assigns, that the Property shall be used solely for the operation of a multifamily senior housing development in accordance with the requirements set forth in this Agreement. Owner represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that is inconsistent with such restrictions without the express written consent of City. 3.1 Senior Housing. Owner has elected to operate the Project as a senior housing development and as such to require all dwelling units in the Project except for the managers’ units to be occupied or held available for occupancy by households that include “elderly” or “senior” residents in accordance with applicable law. To the extent applicable, the Project will be operated at all times in accordance with (a) the Unruh Act, including without limitation California Civil Code Sections 51.2, 51.3, and 51.4; (b) the federal Fair Housing Act, 42 U.S.C. Section 3607(b) and 24 CFR 100.304; (c) the California Fair Employment and Housing Act, Government Code Section 12900 et seq., and (d) all other applicable laws and regulations. Owner shall develop and implement appropriate age verification procedures to ensure compliance with this Section 3.1, and shall provide City with a copy of such verification procedures. Owner will indemnify, defend, and hold the Indemnitees harmless from all Claims arising out of Owner’s failure to comply with applicable legal requirements related to housing for seniors. The indemnity provisions of this paragraph shall survive the expiration or other termination of this Agreement.