#03 - Local Affordable Housing Aid Agreement

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5 The affordability period will be documented through a Declaration of Land Use Agreement. 3. Rent Increase Limits: Developments receiving GROW Funds shall be subject to a restriction on rent increases at annual lease renewal. Once the project is placed in service, annual rent increases for existing residents in all GROW Units shall not exceed the lower of the maximum allowed under the Section 42 of the Internal Revenue Code or up to a 6% increase from the existing resident’s prior year contract rent. GROW Units are not required to charge the maximum rent allowed and are encouraged to charge lower rents where financially feasible. For GROW Units with project-based or tenant-based rental assistance, annual contract rents may be increased to the applicable Fair Market Value or Housing Assistance Payment Standard. If the applicable Fair Market Value or Housing Assistance Payment Standard is lower than the maximum allowed under Section 42 of the Code, annual rent increases for GROW Units with project-based or tenant-based rental assistance shall be subject to the same annual rent increase limitations stated above for existing residents. Where actual operating expenses have been significantly higher than projected, the Owner may submit a request to the CDA for an annual rent higher than allowed under this section. This request shall be submitted at least 90 days prior to the proposed implementation date of annual rent increase and shall be subject to CDA review and approval in its sole discretion. 4. Acceptance of Rental Vouchers: Developers of rental units will be required to sign an agreement that it will participate in the Section 8 Housing Choice Voucher and other rental voucher programs for the duration of the affordability period. Participation means that to the extent the developer has units that meet the requirements of the GROW Fund, they will not exclude from consideration qualified families receiving tenant-based rental assistance through the Section 8 Housing Choice Voucher and other rental voucher programs. F. Loan Limits and Terms Rental Developments: The maximum available to affordable rental housing applications meeting Threshold Eligibility Requirements is $25,000 per eligible unit, up to $1,000,000 per project. When the Threshold Eligibility Requirements are exceeded in any of the following ways, Developers may request an increased award of $50,000 per qualifying unit: 1. Project aims to renew/extend the affordability commitment for a LIHTC development nearing the end of its initial compliance or extended use period; 2. Rental project includes eligible units with rents and incomes restricted to 30% AMI; 3. Rental project includes project-based rental assistance; 4. Project will set aside units for special populations (High Priority Homeless; Persons with Disabilities) and provide supportive services to those households; and/or 5. Project has extraordinary development costs as a result of historic preservation, environmental conditions, or utility extensions.