Housing Hope HCS-15-42-1213-198(1) 7/25/2016

very low-income tenants must occupy units with rents at or below the Low HOME Rent limit. b. In addition to the affordability restrictions set forth elsewhere in this Loan Agreement, the Agency shall make best efforts to have 90 percent of the initial occupants in HOME-Assisted Units be tenants with gross household annual incomes that do not exceed 60 percent of the area median income. The balance of the HOME-Assisted Units rental units must assist tenants with incomes that do not exceed 80 percent of the area median income. Prior to project Close-out, the Agency shall make available or submit to the City for review and approval, income verification documentation to establish the eligibility of the initial tenants in the HOME-Assisted Units. B. Period of Affordability The HOME-Assisted Units shall remain affordable per the provisions of 24 CFR 92.252 throughout the HOME Compliance Period, and shall remain in effect without regard to the term of any loan or mortgage, repayment of the HOME investment, or the transfer of ownership. C. Rent Restriction 1. Establishing Initial Rents - the Agency shall establish a rent schedule for the Project that complies with the HUD established HOME rent limit affordability requirements of 24 CFR Section 92.252. The maximum HOME rent limits are recalculated on a periodic basis after HUD determines fair market rents and median incomes. The Agency shall provide to the City for its review and approval, a rent schedule for the Project that does not exceed the current HUD established HOME rent limits, and that identifies the monthly allowances for tenant paid utilities and services (excluding telephone), prior to the commencement of marketing or initial occupancy. Current HOME Rent Limits can be found at: https://www.hudexchange.info/manage-a-program/home-rent-limits/ From the Effective Date for the Project, the Agency shall charge only those rents approved by the City and established pursuant to federal, state and HOME Program statutes and regulations; provided that in no event will such rents exceed the maximum rent permitted under Internal Revenue Code Section 42 and the regulations thereunder. In determining maximum allowable rents and utility allowances, the Agency shall comply with the 2013 HOME Final Rules issued by HUD, and referenced in the Rules and Regulations in the Federal Register, Vol. 78, No. 142, July 24, 2013. Amended HOME Loan Agreement Housing Hope's Kennedy Court Improvement Project Page 21 of 53