HOME Affordability Covenant Clause Samples
A HOME Affordability Covenant is a legal provision that requires a property to remain affordable to low- or moderate-income households for a specified period, often as a condition of receiving public funding or incentives. This clause typically restricts the resale price of the property or limits occupancy to eligible buyers or renters, and may require ongoing compliance monitoring. Its core function is to ensure that housing developed with public assistance continues to serve the intended community and prevents the rapid loss of affordable units due to market forces.
HOME Affordability Covenant. [Add Total HOME-Assisted Units] units in Project are HOME-assisted. In accordance with HOME Program requirements, all Projects receiving HOME funds must record on title a HOME affordability covenant (“Covenant”) or deed restriction (“Deed Restriction”) that runs with the land and restricts household incomes and rents of HOME-assisted units such that these units remain continuously affordable to very low and low income tenants for a specified period of time. The minimum affordability term ranges from five to twenty years depending on the per-unit HOME costs and HOME-funded activity. This restriction will be binding on the owner of the HOME-assisted unit and any and all successors in interest. Borrower will record the restriction, which will become effective at Project Completion. The County defines Project Completion as the date of issuance of the Certificate of Occupancy or some other document acceptable to DOH evidencing completion, notwithstanding that HUD currently defines Project Completion as the date when final HOME funds are drawn down and project completion information has been entered in the disbursement and information system established by HUD. The Covenant will incorporate the following provisions: The following definitions and dollar amounts referred to in these definitions may be adjusted from time to time based upon action by the United States Department of Housing and Urban Development (HUD) or any successor agency, and any such adjustments shall be incorporated by reference into this Agreement. High HOME Rent is rent that does not exceed the lesser of (1) the Section 8 Fair Market Rents (FMRs), as established by HUD under 24 CFR Part 888, for existing housing minus tenant-paid utilities; or (2) 30% of annual income for households at the High HOME income limit for San Mateo County described below and adjusted for family size, less tenant-paid utilities. If tenant is paying any utilities, a "utility allowance" must be deducted from the above rent figures. This allowance is calculated by HUD under 24 CFR Part 880 - 886 and should be obtained annually by contacting the San Mateo County Housing Authority.
HOME Affordability Covenant. Eleven (11) units in Project are HOME-assisted. In accordance with HOME Program requirements, all Projects receiving HOME funds must record on title a HOME affordability covenant (“Covenant”) or deed restriction (“Deed Restriction”) that runs with the land and restricting household incomes and rents of HOME-assisted units such that these units remain continuously affordable to very low and low income tenants for a specified period of time. The minimum affordability term ranges from five to twenty years depending on the per-unit HOME costs and HOME- funded activity. This restriction will be binding on the Owner and any and all successors in interest. Contractor shall record the restriction such that it will become effective no later than start of project occupancy. This Covenant will incorporate the following provisions: The following definitions and dollar amounts referred to in these definitions may be adjusted from time to time based upon action by the United States Department of Housing and Urban Development (HUD) or any successor agency, and any such adjustments shall be incorporated by reference into this Agreement.
HOME Affordability Covenant. Nineteen
HOME Affordability Covenant. Property will be subject to the HOME Affordability Covenant to be recorded on the Property in the Office of the County Recorder. Upon redevelopment of the site for multifamily housing, County will release the HOME Affordability Covenant and Contractor will execute a new Affordability Covenant covering the entire development. The Affordability Term (“HOME Affordability Term”) for the initial and subsequent Covenants will be effective upon Project Completion, defined as upon acquisition in the first event and in the subsequent event, upon the later of Project in receipt of a Certificate of Occupancy or when final HOME funds are drawn down and project completion information has been entered in the disbursement and information system established by HUD. Both Covenants will include the following language (except the initial covenant will refer to a single dwelling unit, and the subsequent covenant will specify the number units under HOME assistance): To be determined # of units in Project are HOME-assisted. In accordance with HOME Program requirements, all Projects receiving HOME funds must record on title a HOME affordability covenant (“Covenant”) or deed restriction (“Deed Restriction”) that runs with the land and restricting household incomes and rents of HOME-assisted units such that these units remain continuously affordable to very low and low income tenants for a specified period of time. The minimum HOME Affordability Term ranges from five to twenty years depending on the per- unit HOME costs and HOME-funded activity. For acquisition of subject Property in this Agreement, the minimum period will be 15 years. This restriction will be binding on the Owner and any and all successors in interest. Contractor shall record the restriction such that it will become effective no later than start of project occupancy. This Covenant will incorporate the following provisions: The following definitions and dollar amounts referred to in these definitions may be adjusted from time to time based upon action by the United States Department of Housing and Urban Development (HUD) or any successor agency, and any such adjustments shall be incorporated by reference into this Agreement.
a. High HOME Rent is rent that does not exceed the lesser of (1) the Section 8 Fair Market Rents (FMRs), as established by HUD under 24 CFR Part 888, for existing housing minus tenant-paid utilities, or (2) 30% of annual income for households at the HOME income limit for San Mateo County, adju...
HOME Affordability Covenant. In accordance with HOME program requirements, all projects receiving HOME funds must record on title a HOME affordability covenant (“Covenant”) or deed restriction (“Deed Restriction”) that runs with the land and restricts household incomes and rents of HOME assisted units such that the units remain continuously affordable to very low and low income persons for a specified period of time. The term of said HOME affordability restriction for this Project shall be fifteen (15) years, the minimum term of affordability required for HOME assisted acquisition of existing housing when the per unit investment is greater than $40,000 per unit. The period of affordability becomes effective upon initial occupancy of HOME assisted units notwithstanding that HUD defines Project Completion as the date when the final HOME funds are drawn down and the City has entered project completion information into HUD’s disbursement and information system.