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Contractor has identified the minimum HOME match in the amount of $150,000 in the form of City of Pleasanton Lower Income Housing Funds. HOME Affordability Covenant. Three (3) 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 is twenty years. This restriction will be binding on the owner of the HOME - assisted unit ("Owner") and any and all successors in interest. Contractor will record the restriction, which will become effective at Project Completion. The City defines Project Completion as the date of issuance of the Certificate of Occupancy or some other document acceptable to City 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: (1) HOME Definitions 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) for Alameda County, High HOME Rent is calculated at 60% of the Area Median Income (AMI). 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 Housing Authority of the County of Alameda (HACA). b. Low HOME Rent is rent that is 30% of annual income for households at the Very Low -Income limit (or 50% AMI) for Alameda County, adjusted for family size, minus 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 Housing Authority of the County of Alameda (HACA). c. Very Low -Income is the qualifying income with adjustments for family size, for very low-income households as established by HUD pursuant to Section 8 of the United States Housing Act of 1937, as amended. These income limits are adjusted from time to time. A-3 191\52\1543377.4