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

Rents for the HOME-Assisted Units shall not exceed thirty percent (30%) of the income of the target population to be served in that unit, as stated in Exhibit A. Maximum rents are determined by the number of bedrooms in each unit minus the monthly allowance for utilities (excluding telephone, cable television and other telecommunications), paid by the tenant. 2. Maximum Rents with Federal or State Rent Subsidy Programs - If the HOME- Assisted Unit receives Federal or State project-based rental subsidy and the very low-income family pays as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the Federal or State project-based rental subsidy program. The maximum rent for HOME-Assisted Units supported by tenant-based rental assistance programs is the maximum HOME rent. 3. Rent Increases - for the HOME-Assisted Units shall be comparable to non- HOME assisted units. Rents may be increased to cover reasonable increases in operating costs, including property management, repair and maintenance, necessary services, project reserves, debt service costs, and other reasonable expenses. The HOME-assisted unit rents must not exceed the then-established HOME maximum rents in effect, as may be revised by HUD after HUD determines fair market rents and median incomes. The Agency shall provide to the City annually, documentation of rents and occupancy, as well as annual operating expenses. 4. Rent Overcharges - If at any time during the period of this Loan Agreement the Agency charges rents higher than those set forth in the rent restriction provisions included in Exhibit A, the Agency will take remedial corrective actions including refunding any overcharges to residents, correcting lease terms and other such actions necessary to bring the project into compliance with the terms and covenants of this Loan Agreement. Repayment for tenant overcharges will be due within thirty (30) days from the date of a written notice of violation delivered to the Agency by the City. D. Designation of HOME Units; Floating Units: The HOME-Assisted Units shall be considered as "floating units", meaning that units originally designated as HOME-Assisted Units may change over time. The number of HOME-Assisted Units in the Project may never be less than a total of seven (7), including one (1) two-bedroom unit and six (6) three-bedroom units; and shall be comparable, in size, features and number of bedrooms to those units originally identified as HOME-Assisted Units. The Agency may not duplicate reporting the HOME-Assisted Units as identified herein, with another participating jurisdiction's HOME-Assisted Units. Amended HOME Loan Agreement Housing Hope's Kennedy Court Improvement Project Page 22 of 53