HopeWorks Station Residential 5/1/2018

residents' income only in accordance with methods prescribed by or acceptable to by the City. 2. The Agency shall lease HOME-Assisted Units during the HOME Affordability Period to eligible low-income families as required to include: a. Initial Occupancy of Vacant Units, consistent with 24 CFR § 92.252: 1) Within six (6) months from the date of project completion, if a rental unit remains unoccupied, the Agency shall provide to the City information about current marketing efforts and, if appropriate, an enhanced plan for marketing the unit so that it is leased as quickly as possible. 2) Within eighteen (18) months from the date of project completion, if efforts to market the unit are unsuccessful and the unit is not occupied by an eligible tenant, the Agency must repay to the City, pursuant to 24 CFR §92.252, all HOME funds invested in the unit. A unit that has not served a low- or very low- income household has not met the purposes of the HOME program. Therefore, the costs associated with the unit are ineligible. b. Leases Required for Rental Units. Leases are required for all HOME-assisted rental units and must be consistent with 24 CFR §92.253. c. Initial Rent and Utility Allowances. In establishing the maximum allowable rents, the Agency shall comply with 24 CFR §92.252(d). d. Rent Review during the HOME Affordability Period. The Agency shall establish rents for the HOME-Assisted Units that comply with the affordability provisions of 24 CFR §92.252; provided that in no event will such rents exceed the maximum rent permitted under Internal Revenue Code Section 42 and the regulations thereunder. e. Tenant Protections and Selection. The Agency shall operate the project during the HOME Affordability Period consistent with the provisions 24 CFR §92.253 regarding lease requirements, prohibited lease terms, termination of tenancy, and tenant protections and selection. G. Maintenance The Agency shall maintain units and common areas in a safe and sanitary manner in accordance with all applicable local codes (including health, building and housing codes), rehabilitation standards, ordinances and zoning ordinances at the time of Project completion, and the Management Plan provided for in this Agreement. 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 Loan Agreement Housing Hope Properties Page 22 of 51