2007/12/05 Council Agenda Packet

The Agency agrees to keep the Premises in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building that may be constructed, damaged, or destroyed, and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting the Premises or requiring any alterations or improvements to be made; not to commit or permit waste thereof; not to commit, suffer, or permit any act upon the Premises in violation of law; and to do all other acts which from the character or use of the Premises may be reasonably necessary to preserve and conserve its value. C. Taxes, Assessments, and Encumbrances The Agency agrees to pay before delinquency all taxes, assessments, and any other charges affecting the Premises when due, and all encumbrances, charges, and liens, with interest, on the Premises or any part, subject to the Agency's right to contest such taxes, assessments and other charges in good faith. D. Rent Restriction At the time of initial occupancy, the Agency shall charge only those rents established pursuant to Federal, State and HOME Program statutes and regulations. If at any time during the period of this HOME Agreement the Agency charges rents higher than those set forth in the rent restriction provisions included in Attachment A, the Agency will repay all City funds provided pursuant to this HOME Agreement. Repayment will be due within ninety (90) days from the date of a written notice of violation delivered to the Agency by the City. The Agency agrees to place rent restrictions on the property through the Deed of Trust (Attachment D) and the Use Restriction Covenant Agreement (Attachment G) attached hereto. E. Eligibility for Admission An applicant is eligible for admission to the Project if he or she meets all of the following criteria: 1. The applicant meets the income and other requirements of the HOME Program as set forth in the HOME Regulations and this HOME Agreement and meets the income eligibility requirements of any other funding sources providing funds for the Project. 2. The Agency may determine that an applicant is not eligible for admission if, on the basis of substantial, factual evidence of that person's prior actions, there is good cause to believe that the applicant will repeatedly fail to pay rent, will create a substantial threat to the health and safety of other residents, or will repeatedly breach material requirements of the lease. Unsubstantiated oral statements will not be deemed substantial factual evidence. 3. The above eligibility criteria shall be exclusive and no other factors shall be considered in determining eligibility of applicants. F. Resident Selection Procedures; - 7 -