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to benefit Extremely Low Income households from the Effective Date of this Agreement and throughout the term of this Loan Agreement. The initial thirty-seven (37) City- Assisted units are comprised of 17 studio units serving homeless young adults aged 18-24 and 20 single room occupancy units of transitional housing for homeless youth aged 15-17. Upon completion of the HOME Compliance Period, all 40 units, including twenty (20) single room occupancy, and twenty (20) studio units shall be City Assisted Units. 3. The Agency further agrees that the HOME-Assisted Units ("HOME-Assisted Units") shall be used, subject to the provisions of Section 1.B and Section III.0 of this Agreement, as housing to benefit Extremely Low-Income young adults aged 18-24, who are homeless or at risk of homelessness, throughout the HOME Compliance Period of the Loan Agreement. Three (3) units shall be considered HOME Assisted units for the term of the HOME Compliance Period, as defined in Section I. G. and this Section of this Agreement. 4. The Agency may not duplicate reporting the HOME-Assisted Units with another participating jurisdiction's HOME Assisted Units. 5. The Agency will use the 24 CFR 5.609 (commonly referred to as "Part 5--Section 8 Housing") standards in determining income eligibility for households to be assisted. 6. In projects of five or more HOME-Assisted Units, at initial occupancy and throughout the HOME Compliance Period of affordability at least 20 percent of the HOME- Assisted Units must be occupied by families who have gross annual incomes that are 50 percent or less of area median income. These very low-income tenants must occupy units with rents at or below the Low HOME Rent limit. 7. Prior to project Close-out, the Agency shall make available or submit to the City for review and approval, income verification documentation to establish the eligibility of the initial tenants in HOME-Assisted and City-Assisted units. B. Period of Affordability 1. The HOME-Assisted Units shall remain affordable per the provisions of 24 CFR 92.252 throughout the HOME Compliance Period, and shall remain in effect without regard to the term of any loan or mortgage, repayment of the HOME investment, or the transfer of ownership. Upon completion of the HOME Compliance Period, the HOME-Assisted Units shall thereafter be designated City-Assisted Units for the remaining term of the Agreement. 2. The City-Assisted Units shall remain affordable consistent with the provisions of 24 CFR 92.252, or such other affordable housing program standard as the City may determine, throughout the City Compliance Period, and Term of this Loan Agreement, without regard to the term of any loan or mortgage, repayment of the City investment, or the transfer of ownership. C. Rent Restriction Loan Agreement Cocoon House Page 17 of 51