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USE RESTRICTION COVENANT AGREEMENT
<br /> This Use Restriction Covenant Agreement (the "Covenant Agreement") by and between
<br /> HOPEWORKS STATION RESIDENTIAL LLLP, a Washington limited liability limited partnership,
<br /> (the "Grantor" or the "Owner") and City of Everett (the "Grantee" or the "City"), a municipal
<br /> corporation of the State of Washington, is part of the consideration for the financial assistance
<br /> provided by City pursuant to the HOME Loan Agreement (the "Loan Agreement") entered into by
<br /> the City and the Owner, dated I L(,l t 1 J , 2018, and as may be amended, for the
<br /> development and construction of a portion of certain real property legally described on Attachment
<br /> 1 attached hereto ("the "Property"), together with all tenements, privileges, reversions,
<br /> remainders, irrigation and water rights, and stock, oil and gas rights, royalties, minerals and
<br /> mineral rights, hereditaments and appurtenances belonging or in any way pertaining to the
<br /> 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 Property
<br /> described herein, subject to and in accordance with the terms of this Covenant Agreement, for
<br /> period ending on December 31, 2059, (the "City Compliance Period").
<br /> The covenants contained herein are to be taken and construed as covenants running with the
<br /> 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. Each
<br /> and every contract, deed, or other instrument covering or conveying the Property, or any portion
<br /> thereof, shall be conclusively held to have been executed, delivered, and accepted subject to
<br /> such covenants, regardless of whether such covenants are set forth in such contract, deed, or
<br /> other instrument.
<br /> This Covenant Agreement shall survive any payment, release, satisfaction or cancellation of the
<br /> Note, the Loan or the Deed of Trust occurring prior to the expiration of the term of the Covenant.
<br /> The covenants herein are independent of and in addition to the covenants in the Deed of Trust
<br /> and Loan Agreement. No transfer of the Property shall operate to relieve Grantor or any successor
<br /> of its obligations hereunder unless expressly so agreed in writing by the City.
<br /> NOW, THEREFORE, it is hereby covenanted as follows:
<br /> 1. The Owner shall operate the Property with residential units remaining affordable to Extremely
<br /> Low-Income or Very Low-Income affordability levels as specified in the Loan Agreement
<br /> throughout the City Compliance Period. The determination of Extremely Low-Income and Very
<br /> Low Income and Low Income units shall be made by application of the income limits set and
<br /> revised periodically by the U.S. Department of Housing and Urban Development ("HUD")
<br /> based upon median incomes in the Seattle-Bellevue, WA HUD Metro Fair Market Rents
<br /> ("FMR") area and adjusted for household size. If at any time HUD no longer estimates median
<br /> income, the income standard shall be based on a program selected by the City. The Owner
<br /> shall verify Property residents' income only in accordance with methods prescribed by or
<br /> agreed to by the City.
<br /> The Agency shall provide Thirty-Three (33) units, targeted to Extremely Low Income
<br /> households that have annual incomes at or below 30% of Area Median Income (AMI), and
<br /> Thirty-two (32) units targeted to Very Low Income households at or below 50% of AMI for the
<br /> HUD Seattle-Bellevue FMR ("Fair Market Rents") area.
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