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

The income and set-aside requirements are set forth herein and are subject to the requirements of Section III of the Loan Agreement. IV. HOME-ASSISTED UNITS From the Effective Date of 9/25/2015 and thereafter for the HOME Program Compliance Period, the Agency shall operate and manage the HOME-Assisted Units for occupancy by Very Low-Income households as provided above. As provided in Section III of the Loan Agreement, seven (7) of the eight (8) units are "Floating HOME-Assisted Units", which shall include one (1) two-bedroom unit and six (6) three-bedroom units. The HOME-Assisted Units shall be rented only to households whose incomes do not exceed fifty percent (50%) of the AMI limit ("Very Low-Income") at the time of initial occupancy. Prior to the Effective Date of 9/25/2015, the Agency shall designate and identify to the City the seven (7) HOME-Assisted Units. Said Units are thereupon designated "floating HOME Units" pursuant to 24 CFR § 92.252(j). If and as necessary to accommodate tenant applicants' and occupants' circumstances and changes in post-occupancy income, the Agency may from time to time re-designate units as HOME-Assisted Units, subject to the comparability requirements of 24 CFR § 92.252(j). The Agency shall maintain continuous accounting and documentation for all such changes. V. TENANT INCOME AND OCCUPANCY PROVISIONS Income limits are those set and revised periodically by the U.S. Department of Housing and Urban Development and are based upon median incomes in the Seattle-Bellevue, WA HUD Metro Fair Market Rent ("FMR") area and adjusted to household size. These limits are available at: http://www.huduser.orq/portal/datasets/il.html. The Agency shall be responsible for utilizing the current annually adjusted income limits. The County shall make the current year's income limits available to the Agency upon written request. The Agency shall provide seven (7) units targeted to Very-Low Income households that have annual incomes at or below 50% of Area Median Income (AMI), for the Seattle-Bellevue, WA HUD Metro FMR area. If at any time HUD no longer estimates median income, the income standard shall be based on a program selected by the City. The Agency shall verify Property residents' income only in accordance with methods prescribed by or agreed to by the County. The HOME-Assisted Units shall be rented only to households whose income does not exceed the 50% of Area Median Income (AMI) limit at the time of initial occupancy. Each tenant household's income shall be ascertained and verified, as provided at 24 CFR § 92.203 and 24 CFR Part 5. Further, tenant household income shall be reexamined annually in accordance with 24 CFR § 92.252(h) and rents for households determined to be over-income shall be adjusted according to 24 CFR Amended Exhibit A Housing Hope's Kennedy Court Improvement Project Page 3 of 7