Item 4 - Low-Income Prop Tx Ex. - Laserfiche WebLink

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including utilities will be consistent with current Low HOME Rent Limits. The units will remain affordable for twenty (20) years from the completion of construction. One of the 40 units will be reserved for an on-site manager. The manager unit will be exempt from the affordability requirements. 4.2 Construction of the forty (40) new units of housing, shall be completed within twenty four (24) months of the execution of this agreement. Construction completion date may be extended by a period equal to any delay in construction reasonably beyond the control of Metro or Metro's assignee. In addition, City may, at its sole option, grant an extension of the date for completion and City agrees to grant a reasonable extension upon demonstra- tion to City's satisfaction (a) of the need for an extension and (b) that Metro or its assignee has been and will continue to be diligent in its efforts to complete the Project. 4.3 For a period of twenty (20) years from completion of construction of the Metro Project, at least 51 percent of all households renting units in the Project will be very Iow or lower income families, as determined in accordance with CDBG regulations described on attached Exhibit C. Compliance with this requirement shall be determined on an annual certification basis, i.e. during each year following completion of the Project, at least 51 percent or all households renting units must meet the very Iow and lower income family guidelines. 4.4 As used herein, the term completion means the date when construction, has been completed in accordance with the construction contract for the work and the plans and specifications as evidenced by a certificate prepared and executed by the Metro Project architect indicating that construction of the Project has been completed in accordance with the construction plans and specifications, except for punch list items which are not material and do not affect the rental of space in the Project on a full rent paying basis. 5. N£DCO Covenants. NEDCO agrees that their two lots will be used as Iow-income housing in accordance with the,following: 5.1 NEDCO agrees to cooperate and provide assistance to Metro in all aspects required by Metro in the partition process of the two single family unit lots for the existing units, 200 Edgewood Drive and 220 Edgewood Drive. 5.2 In the event that Metro is unable to proceed with any aspect of the Project in a timely manner and no improvements are made to the Property, including the infrastructure required to complete the partition process, and Metro is unable to transfer ownership of the two single family lots to NEDCO, then the ownership of the Property shall revert back to City. City shall repay NEDCO fifteen thousand dollars ($15,000), NEDCO's initial investment in the purchase of the property. City shall have no further obligation to NEDCO regarding their participation in the Apple Orchard development. Repayment shall be made within 45 days following the determination of Metro's inability to complete the partition process. 5.3 Following transfer of ownership of the two single family lots, 200 and 220 Edgewood Drive, NEDCO will complete the rehabilitation of the two existing houses on the Apple Orchard development site. Rehabilitation of both units shall be completed within eighteen (18) months of the transfer of ownership. After rehabilitation, units will either be sold Metro Apple Orchard Apartments Land Grant Agreement - 3