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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 (the
<br /> "Owner"), and the City of Everett, a Washington municipal corporation (the "City"), is part of the
<br /> consideration for the financial assistance provided by the City pursuant to the Affordable Housing
<br /> Trust F d Agreement ("AHTF Agreement") entered into by and between the City and Owner,
<br /> dated 1 , 2019, for the acquisition and development of certain real property legally
<br /> described on Attachment 1 attached hereto, 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 (the "Property").
<br /> The Owner will construct on the Property sixty-five (65) units of affordable housing for low-
<br /> income and formerly homeless individuals and families with income below fifty percent (50%) of
<br /> the area median income (the "Project").
<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.
<br /> The covenants contained herein are to be taken and construed as covenants running with
<br /> the land and shall pass to and be binding upon the Owner, its successors and assigns, heirs,
<br /> grantees, and lessees of the Property, beginning on the date of the AHTF Agreement and
<br /> continuing for forty (40) years from the date the Project certificate of occupancy is issued until
<br /> December 31, 2059. Each and every contract, deed, or other instrument covering or conveying
<br /> the Property, or any portion thereof, shall be conclusively held to have been executed, delivered,
<br /> and accepted subject to such covenants, regardless of whether such covenants are set forth in
<br /> such contract, deed, or other instrument.
<br /> This Covenant Agreement is intended to be co-existent with, and not cumulative of, any
<br /> other tenant income restrictions in place upon the Property.
<br /> NOW, THEREFORE, it is hereby covenanted as follows:
<br /> 1. Two (2) units in the Property shall be deemed City AHTF-Assisted Units, as that term is
<br /> defined in the AHTF Agreement. From the date that the Project certificate of occupancy is
<br /> issued and continuing for forty (40) years until December 31, 2059, the Owner shall operate
<br /> the City AHTF-Assisted Units in the Project exclusively as independent housing for low-
<br /> income and formerly homeless individuals and families. The determination of Very Low-
<br /> Income shall be made by application of the income limits set and revised periodically by the
<br /> U.S. Department of Housing and Urban Development ("HUD") based upon median incomes
<br /> in the Seattle/Bellevue/Everett PMSA and adjusted for household size. If at any time HUD no
<br /> longer estimates median income, the income standard shall be based on a program selected
<br /> by the City. The Owner shall verify Project residents' income only in accordance with methods
<br /> prescribed by or agreed to by the City.
<br /> 2. The Owner shall verify the income of tenants occupying the City AHTF-Assisted Units only in
<br /> accordance with methods prescribed by, or agreed to by, the City.
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