Common use of HOME Affordability Covenant Clause in Contracts

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.