Homes and Hope Community Land Trust 8/25/2020

DECLARATION OF RESTRICTIVE USE COVENANT THIS DECLARATION OF RESTRICTIVE COVENANT (this "Declaration") is made and entered into effective as of , 2020 (the "Effective Date"), by HOUSING AUTHORITY OF THE CITY OF EVERETT a public body corporate and politic of the State of Washington ("Everett Housing Authority") and HOMES AND HOPE COMMUNITY LAND TRUST, a Washington nonprofit corporation("HHCLT"). Recitals: A. Effective as of the Effective Date, Everett Housing Authority has sold to HHCLT that certain real property located in Snohomish County, Washington, legally described on Exhibit A attached hereto and referred to herein as the "Property," pursuant to that certain Commercial & Investment Real Estate Purchase & Sale Agreement dated as of September 17, 2019 (as amended, the "Purchase Agreement"). All capitalized terms not defined herein shall have the meanings set forth in the Purchase Agreement. B. As a material inducement to Everett Housing Authority's agreement to sell the Property to HHCLT, and in connection with the conveyance of the Property, Everett Housing Authority and HHCLT desire to enter into this Covenant in order to impose a restrictive covenant on the Property as set forth below. Agreement: NOW, THEREFORE,the parties agree as follows: 1. Recitals. The foregoing recitals are true and correct and are hereby incorporated into this Covenant by this reference. 2. Use Restriction. The Property shall be used for the provision of housing for persons of low income (the "Provision") for a period of no less than fifty (50) years, pursuant to RCW 35.82.070(5) ("Restriction Period"). The 50-year Restriction Period shall commence and be in full force and effect upon the earlier of (i) HHCLT's receipt of certificates of occupancy for the property with regard to the Provision, and (ii) January 1, 2022. For purposes of this Covenant, the phrase "persons of low income" means individuals and families whose gross incomes are equal to or less than 80% of the area median income for Everett, Washington (as such area median income is determined by the U.S. Department of Housing and Urban Development ("HUD") from time to time for purposes of HUD's Section 8 rent subsidy program). A dwelling unit occupied by an individual or family who, at the commencement of such occupancy, qualifies as a "person of low income" shall be treated as occupied by a "person of low income" during such individual's or family's tenancy in such unit regardless of the future income levels of such individual or family; moreover, a dwelling unit shall be treated as occupied by a "person of low income" until occupied by another occupant, at which time the character of the dwelling unit shall be redetermined. 3. Binding Effect. This Covenant shall run with the land and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, transferees or successors in interest. EXHIBIT C CITY OF EVERETT-LOCAL IMPROVEMENT DISTRICT Housing Authority Restrictive Covenant C-4 FG:53759634.5