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AMENDED EXHIBIT E
<br /> Form of
<br /> USE RESTRICTION COVENANT AGREEMENT
<br /> This Use Restriction Covenant Agreement (the "Covenant Agreement") by and between
<br /> Housing Hope, a Washington non-profit corporation, (the "Grantor" or "Agency"), and
<br /> the City of Everett, (the "Grantee" or "City"), a municipal corporation of the State of
<br /> Washington, is part of the consideration for the financial assistance provided by County
<br /> pursuant to the Loan Agreement (the "Loan Agreement") entered into by the County and the
<br /> Agency, dated _, 2016, and as may be amended, for the rehabilitation of that
<br /> certain real property legally described on Exhibit 1 attached hereto ("the "Property"), together
<br /> with all tenements, privileges, reversions, remainders, irrigation and water rights, and stock,
<br /> oil and gas rights, royalties, minerals and mineral rights, hereditaments and appurtenances
<br /> belonging or in any way pertaining to the Property, and the rents, issues, and profits thereof.
<br /> This Covenant Agreement will be filed and recorded in the official public land records of
<br /> Snohomish County, Washington, and shall constitute a restriction upon the use of the
<br /> Property described herein, subject to and in accordance with the terms of this Covenant
<br /> Agreement, for fifteen (15) years from September 25, 2015, until September 30, 2030.
<br /> The covenants contained herein are to be taken and construed as covenants running with
<br /> the land and shall pass to and be binding upon the Owner, its successors and assigns, heirs,
<br /> grantees, or lessees of the Property, beginning on the date of this Covenant Agreement.
<br /> Each and every contract, deed, or other instrument covering or conveying the Property, or
<br /> any portion thereof, shall be conclusively held to have been executed, delivered, and
<br /> accepted subject to such covenants, regardless of whether such covenants are set forth in
<br /> such contract, deed, or other instrument.
<br /> NOW, THEREFORE, it is hereby covenanted as follows:
<br /> 1. The Agency shall operate the Property with residential units remaining affordable to Very
<br /> Low-Income affordability levels as specified in the Loan Agreement for fifteen (15) years
<br /> from the Effective Date of the Amended Loan Agreement, until September 30, 2030. The
<br /> determination of Very Low-Income units shall be made by application of the income limits
<br /> established and revised periodically by the U.S. Department of Housing and Urban
<br /> Development ("HUD") based upon median incomes in the Seattle/Bellevue/Everett PMSA
<br /> and adjusted for household size. If at any time HUD no longer estimates median income,
<br /> the income standard shall be based on a program selected by the City. The Agency shall
<br /> verify Property residents' income only in accordance with methods prescribed by or
<br /> agreed to by the City.
<br /> 2. The Agency shall provide seven (7) Units targeted to Very Low-Income households that
<br /> have annual incomes at or below 50% of Area Median Income (AMI), for the Seattle-
<br /> Bellevue, WA HUD Metro FMR ("fair market rents") area at move-in.
<br /> 3. For the term of the HOME Program Compliance Period, which runs through September
<br /> 30, 2030, as defined in Section I.G., Section III and Exhibit A of the Loan Agreement,
<br /> seven (7) residential units, including one (1) two-bedroom unit and six (6) three-bedroom
<br /> Amended Exhibit E
<br /> Housing Hope's Kennedy Court Improvement Project
<br /> Page 1 of 4
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