RES 2024040 - Laserfiche WebLink

4879-3324-5885v3 8 in the amounts required by lenders that have provided Project financing that is payable on a non- residual receipts basis) divided by annual debt service payable on non-residual receipts loans equals at least 1.10. The increased rents and income-targeting permitted pursuant to this Section may remain in effect only for so long as required to maintain Financial Feasibility. Owner will use best efforts to obtain alternate sources of financing or adjustments in the terms of Project financing provided by lenders other than City in efforts to avoid the necessity for rent increases and enable the Project to comply with the rent and occupancy restrictions set forth in Section 3.2(c). Any rent increases permitted pursuant to this Section will be subject to the applicable regulations of other agencies that have provided financing for the Project and applicable law. If rents for any Restricted Units are increased pursuant to this Section, Owner shall include in each Annual Report submitted pursuant to Section 4.4 below, documentation that the increase in rents is required for Financial Feasibility, and documentation regarding Owner’s efforts to secure additional sources of rent or operating subsidy for the Project. 3.4 Project Based Vouchers and Other Subsidies. If any residential units in the Project are subsidized with Section 8 project-based vouchers through a Housing Assistance Payment Contract with HUD or the Housing Authority of the County of Alameda, or with another source of rent or operating subsidy, the rules and regulations applicable to such programs shall prevail with respect to the setting of rents, implementation of occupancy requirements, and determination of household Gross Income for the units assisted by such programs. 3.5 Compliance with Most Restrictive Requirements. Notwithstanding anything to the contrary set forth in this Agreement, if the CTCAC Regulatory Agreement or restrictions imposed by Project lenders, Project investors, or regulatory agencies restrict a greater number of units than restricted by this Agreement or require stricter household income eligibility or affordability requirements than those imposed by this Agreement, the requirements of the CTCAC Regulatory Agreement and such other lenders, investors or regulatory agencies shall prevail during the time that that they are effective. 3.6 Increased Resident Income. No tenant qualifying for a Restricted Unit shall be denied continued occupancy of a unit in the Project because, after admission, such tenant's household Gross Income increases to exceed the qualifying limit for such Restricted Unit. A household which at initial occupancy qualifies in a particular income category shall be treated as continuing to be of such income category so long as the household’s Gross Income does not exceed one hundred forty percent (140%) of the applicable income limit. In the event the household Gross Income of a household that qualified at the applicable income limit at initial occupancy exceeds the applicable income limit for a Restricted Unit, that unit will continue to be considered as satisfying the applicable income limit if the rent for the unit remains at not greater than the applicable restricted amount. In the event a tenant’s household income exceeds the limits specified in this Section, Owner shall apply the rules applicable to the Project pursuant to Section 42 of the Internal Revenue Code of 1986, as amended, the federal regulations applicable thereto, and the CTCAC Regulations. In the event of inconsistency between the provisions of this Section and the Applicable Rules and Regulations, the Applicable Rules and Regulations shall prevail.