2006/05/31 Council Agenda Packet

S Attachment E When recorded return to: City of Everett 2930 Wetmore Avenue, Suite 8B Everett, WA 98201 Form of USE RESTRICTION COVENANT AGREEMENT This Use Restriction Covenant Agreement (the "Covenant Agreement") by Monte Cristo Partners, L.P., a Washington Limited Partnership (the "Owner"), is part of the consideration for the financial assistance provided by the City of Everett (the "City") pursuant to the City of Everett HOME Loan Agreement (the "HOME Agreement") entered into by the City and the Owner dated June 2006, , for the rehabilitation of certain real property legally described on Exhibit 1 attached hereto ("the "Property"), together with all tenements, privileges, reversions, remainders, irrigation and water rights, and stock, oil and gas rights, royalties, minerals and mineral rights, hereditaments and appurtenances belonging or in any way pertaining to the Property, and the rents, issues, and profits thereof. This Covenant Agreement will be filed and recorded in the official public land records of Snohomish County, Washington, and shall constitute a restriction upon the use of the Property described herein, subject to and in accordance with the terms of this Covenant Agreement, until December 31, 2047. The covenants contained herein are to be taken and construed as covenants running with the land and shall pass to and be binding upon the Owner, its successors and assigns, heirs, grantees, or lessees of the Property, beginning on the date of this Covenant Agreement. Each and every contract, deed, or other instrument covering or conveying the Property, or any portion thereof, shall be conclusively held to have been executed, delivered, and accepted subject to such covenants, regardless of whether such covenants are set forth in such contract, deed, or other instrument. NOW, THEREFORE, it is hereby covenanted as follows: 1. One residential unit in the Property shall be deemed City HOME assisted units. The maximum monthly rent and utility allowance and the tenant household income limits for the City HOME assisted units shall be established annually by the Owner in conformance with the HOME Agreement and the Department of Housing and Urban Development HOME InvestmentPartnership Act Program Regulations. 2. The Owner will provide safe and sanitary housing and will comply with all state and local housing codes, nondiscrimination, licensing requirements, and other requirements regarding the condition of the structure and the operation of rental housing in the jurisdiction in which the housing is located. 9 3