GROUND LEASE - Laserfiche WebLink

The undersigned agree that the following rent mechanism shall apply to the forty (40) HDG- restricted units in Ridge View Commons located in Pleasanton, California, HDG Project No. CA031HG701. 1. Section 17 of the United States Housing Act of 1937 and the HDG regulations promulgated thereunder and contained in 24 CFR Part 850, restrict rents charged for lower income units during the Project Term to not more than thirty percent of the adjusted income of a family whose income equals fifty percent of the median income for the area, as determined by HUD with adjustments for smaller and larger families. Section 17 and the HUD /Grantee Grant Agreement require the Grantee to review and approve rents proposed by the owner to be charged for lower income units. The grantee also is required to assure that the type and number of units specified in Section 1.01 (e) (2) of the Grant Agreement are occupied or available for occupancy by lower income families during the Project Term. The Grant Agreement requires the grantee to have established a Rent Mechanism to implement the above responsibilities of the grantee. 2. The grantee acknowledges that HUD periodically will determine the income limits for lower income and very low - income families. Based upon the Very Low - Income limits, the HUD occupancy standards limiting the number of persons in each bedroom size category (i.e., 0 -Br, 1 -Br, etc.), the prototypical adjust- ments to income established by HUD, and the owner's estimate of the monthly cost of utilities and other essential housing services (utility allowance) to be paid for directly by the tenant, the owner will determine the maximum monthly net rent for each lower income unit. In calculating this amount the owner will follow the format contained in Exhibit M -5 of this packet. 3. Except as noted below, the initial rent schedule for lower income units and the utility allowances shall be as contained in the application approved by HUD. 4. The Owner shall recalculate the rent schedule and the utility allowances and submit the recalculated schedule and allowances to the grantee for review not later than 6U days prior to initial occupancy. The rent schedule recalculation shall be based upon the most recent HUD determination of the Very Low - Income limits and prototypical adjustments. The utility allowances shall approximate a reasonable consumption of utilities by an energy conscious household of modest circumstances. 5. In estimating reasonable consumption levels, the owner shall use. as appropriate, the following sources of information on the cost of utilities and services: Consumption data on residential use of utilities obtained from utility suppliers or other sources (such as public service commissions, real estate and property management firms, state and local agencies). (b) Engineering calculations based on technical data concerning energy requirements of appliances and equipment. (c) Data obtained from energy audits. 6. In establishing allowances, the owner shall take into account relevant factors affecting consumption including (a) The equipment and functions intended to be covered by the allowance. (a) RENT MECHANISM