Homes and Hope Community Land Trust 8/25/2020

411./ l I.nr it IV lMAA1111%.111..v V V 1-11I L11111J 111.16A.• L71 VV.JV 1 Ll Wi,-il Vl V Record Date:8/25/2020 3:46 PM Snohomish County, WA DECLARATION OF RESTRICTIVE USE COVENANT THIS DECLARATION OF RES CTIVE COVENANT (this "Declaration") is made and entered into effective as of �trju5-t- G'�L _,2020(the"Effective Date"),by HOMES AND HOPE COMMUNITY LAND TRUST, a Washington nonprofit corporation ("HHCLT") and CITY OF EVERETT,a Washington municipal corporation("City"). Recitals: A. Everett Housing Authority is selling 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." B. The Property was previously conveyed to the Everett Housing Authority by quit claim • deed by the City on February 24, 1995. The quit claim deed contains a provision(the"LID Provision") that requires repayment of certain funds to the City. C. HHCLT intends to purchase the Property from the Housing Authority for purpose of developing low-income housing. In order to facilitate this,the HHCLT has requested the City to release the LID Provision and defer payment. The City has so agreed under the terms and conditions of the Repayment Agreement dated contemporaneously herewith between the City and HHCLT(the "Repayment Agreement").One of the requirements of the Repayment Agreement is the recording of 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(A)twenty(20)years or(B)the date that HHCLT pays in full the monies due under the Repayment Agreement,whichever of(A)or(B) is later("Restriction Period"). The Restriction Period shall commence and be in full force and effect(i) upon HHCLT's receipt of certificates of occupancy for the Property or(ii)January 1,2022,whichever of(i)or(ii)is earlier. 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.