DECLARATION OF COVENANTS.PDF

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
WHEN RECORDED, RETURN TO
Maricopa County
Attn: Human Services Department
234 N. Central Ave. Ste. 300
Phoenix, AZ 85004
DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS
HOME Investment Partnerships Program
Effective this day of ___________, 2017, [the Housing Authority of Maricopa County, whose local
address is 8910 N. 78th Avenue, Peoria, AZ (the “Declarant”) hereby agrees to bind itself and its
successors and assigns and the Project in accordance with this Declaration of Covenants, Conditions, and
Restrictions (“the Declaration”), for the benefit of the Maricopa County by and through the Human
Services Department, an agency of the Maricopa County, (collectively “County”) together with any
successor and/or assignees to its rights, duties and obligations.
RECITALS
A. The County has been authorized pursuant to Arizona Revised Statutes §11-251 et seq. to, among
other things, facilitate development of affordable housing in Arizona by providing funding for property
development through loans and grants.
B. The Project, as defined below, is located at 9209 Calle Tomi, Guadalupe, AZ 85283, is the subject of
this Declaration and is more fully described in Attachment 1, incorporated herein by reference.
C. The Declarant applied to the County for funding for the Project; and the County relied on the
representations made in the Declarant’s application for funding including any documents, materials,
reports, appraisals or studies, provided by Declarant in support of the application for funding.
D. As consideration, in part, for funding awarded to the Declarant by the County, the Declarant agrees to
bind the Project and otherwise abide by the covenants, restrictions, duties and obligations set forth in this
Declaration.
E. Among other things, this Declaration describes use restrictions on the Project necessary to comply
with the specific program requirements for the source of funding provided by the County to the Project,
including without limitation the HOME Program and other funding programs administered by the
County.
F. The Declarant agrees that execution and recordation of this Declaration is a material condition to the
County’s agreement to provide funding to the Project and that the use of the Project shall be restricted for
the term of this Declaration
AGREEMENT
NOW, THEREFORE, the Declarant, under the terms of this Declaration, intend, declare, acknowledge,
and covenant for themselves, their successors and assigns that the warranties, covenants, obligations, and
duties set forth herein, are covenants running with the Project for the term stated herein and as follows:
1. Incorporation. The above recitals are incorporated herein and are part of this Declaration.
2. Definitions. The capitalized terms used in this Declaration shall be understood as follows:
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“Affordability Period” means the term of this Declaration which shall begin on the date that the
Project receives a Certificate of Occupancy and terminate 17 years from the date the Completion
Report is entered into HUD’s Integrated Disbursement and Information System (IDIS) by the County.
“Adjusted Income”, “Annual Income”, “Monthly Adjusted Income”, “Monthly Income” mean the
income amounts as determined by the County in accordance with the definitions of these terms in 24
CFR 5, subpart F.
“County” or “Beneficiary” means the Maricopa County by and through the Human Services
Department as the context requires.
“County Guidance” means guidance provided from time to time by the County relevant to
multifamily rental development programs that it administers.
“Date of Completion” means the date upon which the project is certified for occupancy,
regardless of whether the units are occupied.
“Fair Market Rent” means the fair market rent determined from time to time by HUD for existing
housing for comparable units in the area in accordance with 24 CFR 888.111.
“Funding Agreement” means the agreement dated ______________, executed by and between
the Declarant and the County that sets forth the terms and conditions of the County’s funding of the
Project.
“HOME Program” means the HOME Investment Partnerships Program administered by the U.S.
Department of Housing and Urban Development (“HUD”). The HOME Program is authorized under
Title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, which is codified at
42 U.S.C. § 211 et seq., along with the implementing regulations at 24 CFR 92 and described by
other relevant federal guidance.
“Loan Documents” means the Promissory Note, Deed of Trust, and other documents executed by
the Declarant in favor of the County for the purpose of memorializing and securing loans or grants of
financial assistance by the County for the Project.
“Low-Income Households” means families whose annual incomes do not exceed 60 percent of
the median income for the area, as determined by HUD.
“Project” means the project real property, including all buildings, improvements, and fixtures
thereto, that are under common ownership and control of the Declarant, located within Maricopa
County and commonly known as A.R.M. of Save the Family.
“County Housing Funds” means funds made available by the County through either the HOME
Program through allocations and reallocations, plus all matching funds, repayments and interest or
other return on the investment of these funds.
“Utility Allowance” means the monthly utility allowance authorized by the County in accordance
with applicable program requirements for use in determining the maximum amount of rent allowable
on a County HOME assisted Unit.
“Very Low-Income Household” means households whose annual incomes do not exceed 50
percent of the median household income for the area, as determined by HUD with adjustments for
smaller and larger households, except that HUD may establish income ceilings higher or lower than
50 percent of the median for the area on the basis of HUD findings that such variations are necessary
because of prevailing levels of construction costs or fair market rents, or unusually high or low family
incomes.
3. Use Restrictions. The Declarant covenants that for the term of this Declaration, the Project shall be
used as a multifamily rental as follows:
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a) Program Requirements. The Project shall comply with all applicable program requirements
during the term of this Declaration.
i) All HOME Program requirements apply to Projects financed with HOME Program funds.
Other applicable federal requirements are identified in the Funding Agreement.
ii) HOME Program requirements specifically identified in this Declaration and the Funding
Agreement also apply to Projects financed solely with nonfederal funds.
iii) Conflict. In the event that rules and regulations of multiple funding programs, the Project
must comply with the strictest of the applicable rules and regulations.
b) Affordability Restrictions. The income and rent restrictions described in Attachment 3 shall apply
to all County HOME assisted units. During the Affordability Period Declarant will maintain the
County HOME assisted units as rental housing and rent or hold available for rental each County
HOME assisted unit on a continuous basis.
c) Uniform Physical Condition Standards (UPCS). During the Affordability Period, the Declarant
must maintain the project suitable for occupancy; and, in decent, safe, and sanitary condition and
good repair in accordance with the applicable health, safety, and building codes and federal
physical conditions standards described in 24 CFR 92.251 or such other physical conditions
standards as may be adopted by HUD from time to time. Physical condition standards apply to
the entire Project rather than solely to the County HOME assisted units.
4. Tenants’ Rights. The Declarant shall abide by the following requirements when renting any County
HOME assisted unit:
a) Lease. Tenant leases shall be in writing, signed by the Declarant or the Declarant’s agent and the
tenant, and for a term of not less than twelve (12) months or for such other term by written mutual
agreement between the tenant and the Declarant.
b) Prohibited Residential Lease Terms. The following terms and provisions are prohibited in any
lease or agreement for a County HOME assisted unit:
i) Agreement to be sued. Agreement by the tenant to be sued, to admit guilt, or to a
judgment in favor of the Declarant in a lawsuit brought in connection with the lease;
ii) Treatment of the Tenant personal property. Agreement by the tenant that the Declarant
may take, hold, or sell personal property of household members without notice to the tenant and a
court decision on the rights of the parties. This prohibition, however, does not apply to an
agreement by the tenant concerning disposition of personal property remaining in the housing
unit after the tenant has moved out of the unit. The Declarant may dispose of this personal
property in accordance with Arizona law;
iii) Excusing Declarant from Responsibility. Agreement by the tenant not to hold the
Declarant or the Declarant’s agents legally responsible for any action or failure to act, whether
intentional or negligent;
iv) Waiver of Notice. Agreement of the tenant that the Declarant may institute a lawsuit
without notice to the tenant;
v) Waiver of Legal Proceedings. Agreement by the tenant that the Declarant may evict the
tenant or household members without instituting a civil court proceeding in which the tenant has
the opportunity to present a defense, or before a court decision on the rights of the parties;
vi) Waiver of a Jury Trial. Agreement by the tenant to waive any right to a trial by jury;
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vii) Waiver of right to appeal court decision. Agreement by the tenant to waive the tenant's
right to appeal, or to otherwise challenge in court, a court decision in connection with the lease;
and
viii) Tenant Chargeable With Cost of Legal Actions Regardless of Outcome. Agreement by
the tenant to pay attorney's fees or other legal costs even if the tenant wins a court proceeding by
the Declarant against the tenant. The tenant, however, may be obligated to pay costs if the tenant
loses.
c) Termination of Tenancy: Declarant may not terminate the tenancy or refuse to renew the lease of
a tenant of a County HOME assisted unit as specified herein except for: serious or repeated
violation of the terms and conditions of the lease; for violation of applicable federal, state, or
local law; or for other good cause. Any termination or refusal to renew must be preceded by the
Declarant’s service upon the tenant of a written notice specifying the grounds for the action,
which notice must be delivered to the tenant at least 30 days before the termination or refusal to
renew is to be effective. Declarant may immediately terminate a lease in accordance with A.R.S.
§ 1368 (2) unless the Project is funded with HOME Program funds and applicable HOME
Program regulations prohibit immediate termination of the lease.
d) The form of lease for any County HOME assisted unit in the Project shall provide for immediate
termination of the lease and eviction in accordance with Arizona Revised Statues for failure to
meet tenant income limits as a result of any material misrepresentation made by the tenant or
prospective tenant with respect to the income certification, or any material misrepresentation
made in conjunction with execution of the lease or the failure by such tenant to execute an
income certification at least annually.
e) Residential rental units in the Project will be rented or available for rental to the public on a
continuous basis and no tenant shall be evicted without cause.
f) No prospective tenant shall be denied occupancy solely because the person holds a Section 8
voucher or certificate.
5. Tenant Selection. The Declarant must adopt written tenant selection policies and criteria for County
HOME assisted units that:
a) are consistent with the purpose of providing housing for very low-income and low-income
families;
b) are reasonably related to program eligibility and the applicant's ability to perform the obligations
of the lease;
c) provide for the selection of tenants from a written waiting list in the chronological order of their
application, insofar as is practical;
d) provide for the prompt written notification to any rejected applicant of the grounds for any
rejection; and,
e) provide affirmative fair housing marketing procedures as described in Attachment 2 to this
Declaration.
6. Term of Declaration
a) The Affordability Period and this Declaration shall terminate 17 years from the date the HOME
Completion Report is entered into HUD’s Integrated Disbursement and Information System
(IDIS) for each property.
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b) The warranties, covenants, obligations, and duties described in this Declaration shall commence
on the date of execution of this Declaration and shall continue in effect during the full term of this
Declaration.
c) In the event of transfer of the Project as the result of a judicial foreclosure, trustee’s sale, or by
deed in lieu of foreclosure to the holder of a legal interest in the Project that is senior in time or
right to the County, the warranties, covenants, obligations, and duties described in this
Declaration shall terminate.
7. Monitoring and Enforcement. County shall conduct periodic monitoring and review of the Project for
the purpose of determining compliance with applicable program requirements and this Declaration.
Monitoring and review includes on-site inspections and review of documents supplied to the County
by the Declarant or others on behalf of the Declarant or the Project.
a) Entry and Inspection. The Declarant shall permit, during normal business hours and upon
reasonable notice, any duly authorized representative of the County to conduct on-site inspections
of the Project land and improvements and to inspect any facility, document book, and record of
the Declarant relating to the Project.
b) Certifications. By March 15th of each year, the Declarant will submit such certifications as may
be identified in the Funding Agreement, in County Guidance, or otherwise required by the
County.
c) Books and Records. The Declarant shall keep and maintain at the Project all documents, books,
and records required by the Funding Agreement, applicable program requirements, and County
Guidance.
d) Information. The Declarant shall submit any other information, documents or certifications that
the County shall deem reasonably necessary.
8. Breach. The Declarant covenants and agrees to inform the County by written notice of any breach of
the Declarant’s obligations hereunder within five (5) business days of first discovering any such
breach. Violations shall be cured within the deadlines described in paragraph 9, below. If any such
breach is not corrected to the satisfaction of the County within the cure period, the County may,
without further notice, declare a default under this Declaration, and the County may apply to any
court, state or federal, for any of the remedies described in paragraph 9 of this Declaration.
9. Remedies. Subject to the written requirements of the Deed of Trust of even date with this Declaration,
and an agreement between a lender and the County, if any, in the event that Declarant’s breach any
warranty, covenant, obligation, or duty set forth in this Declaration, and if such breach remains
uncured for a period of one hundred twenty (120) calendar days after notice thereof by the County,
the County shall be entitled to any or all of the remedies described below:
a) If the County determines that the Declarant has taken and diligently, continually, and in good
faith continues corrective action and that the breach cannot be corrected within the 120-day cure
period, the County may, in its sole discretion, allow the Declarant such additional time as may be
reasonably necessary to cure the breach;
b) In the event of an uncured breach the County may:
i) demand return of all funds provided by the County to the project, plus interest at the
default rate described in the Loan Documents, and/or an amount attributable to the increase in
equity in the Project attributable to the infusion of any County Housing Funds for any purpose;
resort to any court having jurisdiction of the subject matter for specific performance of this
Declaration, for an injunction against any violation of this Declaration, for an accounting, for the
appointment of a receiver to take over and operate the Project in accordance with the terms of this
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Declaration, the Loan Documents, and program requirements, or for initiation of foreclosure
proceedings; or such other relief as may be appropriate, it being acknowledged by Declarant that
the beneficiaries of Declarant’s obligations hereunder cannot be adequately compensated by
monetary damages in the event of Declarant’s breach of this Declaration, because the
beneficiaries include the low-income families to be benefited by the funds invested by the County
to the Project.
ii) The County shall be entitled to reimbursement of reasonable attorneys' fees and all costs
incurred in any judicial action in which the County shall prevail.
iii) The County may require reasonable assurances of security for repayments required
pursuant to this section in the form of appropriate amendments, revisions, or additions to the
Loan Documents.
c) The Declarant and the County each acknowledge that the primary purpose for requiring
compliance by the Declarant with the restrictions provided in this Declaration are to assure
compliance of the Project and the Declarant with the program requirements, AND BY REASON
THEREOF, THE DECLARANT IN CONSIDERATION FOR RECEIVING COUNTY
HOUSING FUNDS FOR THIS PROJECT HEREBY AGREE AND CONSENT THAT THE
COUNTY AND THE LOW-INCOME TENANT(S) (WHETHER PROSPECTIVE OR
PRESENT OCCUPANTS OF THE PROJECT) (OR EITHER OF THEM) SHALL BE
ENTITLED, FOR ANY BREACH OF THE PROVISIONS HEREOF, AND IN ADDITION TO
ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC
PERFORMANCE BY THE DECLARANT OF ITS OBLIGATIONS UNDER THIS
DECLARATION IN ANY ARIZONA STATE COURT OF COMPETENT JURISDICTION, the
Declarant hereby further specifically acknowledging that the beneficiaries of the Declarant’s
obligations hereunder cannot be adequately compensated by monetary damages in the event of
any default hereunder.
10. Representations, Covenants and Warranties of Declarant. The Declarant hereby warrants and
covenants that the warranties, covenants, and declaration of obligations and duties set forth herein
may be relied upon by the County and all persons interested in Project compliance under the program
requirements. In performing its duties and obligations hereunder, the County may rely upon
statements and certificates of the Declarant pertaining to occupancy of the Project. In addition, the
County may consult with counsel, and the authorization and protection in respect of any action taken
or suffered by the County hereunder in good faith and in conformity with the opinion of such counsel
shall be applicable to the County's reliance upon such opinion of counsel. The Declarant further
represents, covenants and warrants to the County that:
a) The Declarant is: the Housing Authority of Maricopa County and its parent and/or affiliates.
i) Is duly organized under the laws of the State of Arizona, and qualified to transact
business within the State of Arizona;
ii) has the power and requisite authority to own its properties and assets as owned, where
owned, and to carry on its business as now being conducted (and as now contemplated) by this
Declaration and the Loan Documents; and
iii) has the full legal right, power, and authority to execute and deliver this Declaration.
b) The execution and performance of this Declaration and the Loan Documents by the Declarant:
i) will not violate or, if applicable, have not violated any provision of law, rule or
regulation, or any order of any court or other governmental agency;
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ii) will not violate or, if applicable, have not violated any provision of any indenture,
declaration, mortgage, mortgage note or other instrument to which the Declarant is a party or by
which it or the Project is bound;
iii) will not result in the creation or imposition of any prohibited lien, charge or encumbrance
of any nature.
c) The Declarant will, at the time of execution and delivery of this Declaration, have good and
marketable title to the real property and improvements constituting the Project free and clear of
any lien or encumbrance (subject to the Permitted Encumbrances identified in the Loan
Documents).
d) There is presently no action, suit or proceeding at law or in equity or by or before any
governmental instrumentality or other agency now pending, or, to the knowledge of the
Declarant, threatened against or affecting it, or any of its properties or rights, which, if adversely
determined, would materially impair the Declarant’s rights to carry on business substantially as
now conducted (and as now contemplated) by this Declaration and the Loan Documents or which
would materially, adversely affect its financial condition. Neither the Declarant, nor their
principals, shareholders, managers, members nor general partners, as the case may be, have any
judgment entered against them which would, when recorded, constitute a lien against or
otherwise impair the security of the Project.
e) No actions will be taken by the Declarant which will in any way adversely affect the use of the
Project.
f) To the extent that the Project involves rehabilitation of existing residential rental units, relocation
of tenants complies with all the requirements of the Uniform Relocation Act.
g) The Project is in full compliance with the requirements of the Fair Housing Act Design
Standards.
h) Declarant has read and is familiar with the applicable provisions of the HOME Program and
relevant federal guidance and County Guidance that describe the obligations and duties of the
Declarant to acquire and/or rehabilitate, operate, and maintain the Project.
i) Release and Indemnification. The Declarant warrants, covenants and agrees that they have not
relied upon or sought any information from the County, its successors and/or assigns, its agents,
counsel or employees in conjunction with the application for, or award of funding for the Project.
In conjunction with the each Declarant’s application for funding through the County, the
Declarant acknowledges and agrees for itself and on behalf of any of its partners, limited partners,
special limited partners, members, special members or any other constituent entity of the
Declarant, and the Declarant’s successors and assigns that it shall hereby release the County, its
agents, counsel and employees from any claim, loss, demand or judgment as a result of the
provision of funding of the Project or the recapture of such funding by HUD, including any
interest and penalties thereon; and the Declarant hereby further agrees for itself, and on behalf of
any of its partners, limited partners, special limited partners, members, special members or any
other constituent entity of Declarant, and its successors and assigns to indemnify the County, its
agents, counsel and employees from any claim, loss, demand or judgment, to include reasonable
attorneys’ fees in the event of the decision of HUD to recapture of funds provided by the County.
Furthermore, Declarant, and its successors and assigns to indemnify the County, its agents,
counsel and employees from any claim, loss, demand or judgment, to include reasonable
attorneys’ fees as a result of or arising out the ownership, operation, management or any other
activities undertaken pursuant to this Declaration. Notwithstanding the foregoing, the
indemnification and releases above are only applicable to actions caused solely by the Declarant
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and do not extend to actions of the County, or its agents, contractors or assigns, related to and
causing, partially or otherwise, such claim, loss, demand or judgment as detailed above.
11. Declarant’s Obligations and Duties
a) Declarant agrees that it will not knowingly take or permit to be taken any action which would
have the effect, either directly or indirectly, of subjecting the Declarant or the Project to non-
compliance with program requirements. Moreover, Declarant agrees to take any lawful action
(including amendment of this Declaration as may be necessary in the opinion of the County) to
comply fully with pertinent law and with all applicable rules, rulings, policies, procedures,
regulations or other official statements promulgated or proposed by HUD from time to time
pertaining to Declarant's obligations under the program regulations.
b) Declarant agrees that it will not cause or acquiesce in its voluntary or involuntary dissolution or
otherwise fail to correct within 120 days after legal notice thereof, any breach of, violation of, or
practice that is materially inconsistent with laws of the State of Arizona or other jurisdiction in
which Declarant is organized relating to the regulation and formation of business entities, or the
Declarant’s Articles, Bylaws, or other such writing setting forth the formalities and requirements
of Declarant’s form of organization.
c) Declarant agrees not to discriminate on the basis of race, creed, color, sex, age, handicap, marital
status, or national origin in the leases for occupancy of the Project or in conjunction with the
employment or application for employment of any person or persons for the operation and
management of said Project.
d) Religious Organizations. During the Affordability Period, the Project will not be provided for
rental or use to any primarily religious organizations, such as churches, for any activity including
secular activities. The Project must be used exclusively by the Declarant’s entity for secular
purposes, available to all persons regardless of religious affiliation. In particular, there must be no
religious or membership criteria for tenants of the Project.
e) Affirmative Marketing. During the Affordability Period specified herein, Declarant shall comply
with the Affirmative Marketing Procedures more fully described in Attachment 2.
f) As a condition of occupancy, the Declarant shall require each applicant for tenancy of a County
HOME assisted unit to certify in writing to the County that the person’s sources and amount of
income declared for the purposes of program eligibility are true and correct. Existing tenants of
County HOME assisted units shall be required to certify the same to the County annually. In
addition, the Declarant shall require each applicant for tenancy to provide whatever other
information, documentation, or certifications deemed necessary by the County to verify the
tenant’s eligibility for occupancy of a County HOME assisted unit.
g) During the term of this Declaration, Declarant shall comply with all federal, state and local laws,
codes, ordinances, rules and regulations, conditions, and assurances, and shall keep and maintain
in effect at all times any and all licenses, permits, notices, and certifications which may be
required with regard to the Project.
h) Declarant agrees that if it shall become aware of any situation, event or condition which would
result in noncompliance of the Project or the Declarant’s compliance with this Declaration or
program requirements (collectively, “Compliance Issue”), then the Declarant shall give written
notice to the County within thirty (30) days of Declarant’s becoming aware of the Compliance
Issue.
i) Project Records
i) Declarant shall keep and maintain the Project Records described in 24 CFR 92.508(a)(3)
and (7)(i)(A) (equal opportunity and fair housing records) and (7)(ii)(A)(affirmative marketing
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process records). If the Declarant received funds as a Community Housing Development
Organization, then each Declarant shall also keep and maintain the CHDO Records described in
24 CFR 92.508 (a)(4).
ii) Period of Record Retention: All records described in subparagraph (i) above plus all
pertinent documents, books, papers, accounts, reports, files, tenant lists, applications, leases,
waiting lists, income examinations, and other records relating to the project specified in this
Declaration or the Funding Agreement shall be retained for five (5) years the end of the
affordability period. Notwithstanding the foregoing, if any litigation, claim, negotiation, audit, or
other action has been started before the expiration of the Affordability Period, the records must be
retained for five years following completion of the action and resolution of all issues which arise
from it, or for five years following the end Affordability Period, whichever is later.
j) Inspection and/or Audit of Records: Declarant shall make available at all reasonable times and
upon seven (7) days written notice to Declarant, for inspection, transcription, excerpting,
examination, copying, and audit by the County, the State Auditor General, HUD, the Comptroller
General of the United States, or any of their representatives and designees, all pertinent books,
documents, papers, accounts, reports, files, tenant lists, applications, leases, waiting lists, income
examinations, and other records (hereinafter referred to as "Records") relating to the project
specified herein. Upon request by such inspecting or auditing entity, a legible copy of all such
Records shall be produced by the Declarant at the specified office of, the County, the State
Auditor General, or at any other reasonable location. The original of all such Records shall also
be available and produced for inspection, copying, and audit when needed to verify the
authenticity of a copy.
k) The Declarant shall not demolish any portion of the Project or substantially subtract from any real
or personal property comprising the Project; or permit the use of any residential rental unit for
any purpose other than rental housing during the term of this Declaration.
l) The Declarant shall not grant commercial leases or licenses relating to the Project (other than
commercial leases with respect to insubstantial portions of the Project on a square footage basis)
or permit the sale, transfer, conveyance or other encumbrance of the Project or any portion
thereof (except for leases of County HOME assisted units) during the effective term of this
Declaration, provided that this Declaration shall not apply to any encumbrance, conveyance or
transfer in conjunction with a sale, transfer or other conveyance of the Project that complies with
the requirements of the Loan Documents and this Declaration.
12. Casualty, Condemnation, and Eminent Domain. Subject to the written requirements of the Deed of
Trust of even date with this Declaration, and an agreement between a Lender and the County, if any,
the Declarant represents, warrants and agrees that if the Project, or any portion thereof, shall be
damaged or destroyed or shall be condemned or acquired for public use, that the proceeds of any such
condemnation or acquisition shall be assigned in full and paid to the County as required by the Loan
Documents, who shall cause such proceeds to be used to repair and restore same to substantially the
same condition as existed prior to the event causing such damage or destruction, or to relieve the
condemnation, and thereafter operate the Project in accordance with the terms of the Loan Documents
and this Declaration. Provided, however, that if repair or restoration of the Project is not practicable,
the Declarant shall not be obligated to repair or restore the Project, and an award of damages under
this paragraph up to the amount of the unpaid principal and accrued interest of the Obligation Secured
described in the Loan Documents may be retained by the County and any remaining balance shall be
paid to Declarant. The County shall be a party to any agreement relating to the use of condemnation
proceeds or insurance proceeds from damage to the Project to repair and restore the Project. The
County may, at the County’s option, appeal from any such award in the name of Declarant.
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13. Covenants Run with the Land; Successors Bound Thereby
a) Upon execution and delivery by the Declarant, Declarant shall cause this Declaration and all
amendments and exhibits hereto to be recorded and filed in the official records of the county
recorder's office in the county in which this Project is located and, if applicable, with the
recording office of the appropriate Indian tribe if the Project is located on tribal land, and pay all
fees and charges incurred in conjunction with recording of this Declaration and all addenda or
amendments thereto. Upon recording, Declarant shall immediately transmit or cause to be sent
directly from the recorder's office to the County an executed original of the recorded Declaration
showing the date, book and page number of recording. Where pertinent, the County may require
Declarant to furnish a condition of title report for the Project prior to or after recordation of this
Declaration.
b) Declarant intends, declares and covenants, on behalf of itself and all future Declarants and
operators of the Project and land upon which the Project is constructed that, during the term of
this Declaration, all of the covenants and restrictions set forth in this Declaration regulating and
restricting the use, occupancy and transfer of the Project: (i) shall be and are covenants running
with the Project, encumbering the Project and land upon which the Project sits for the term of this
Declaration, and are binding upon the Declarant’s successors in title and all subsequent
Declarants and operators of the Project and the land upon which the Project sits; (ii) are not
merely personal covenants of Declarant; and, (iii) shall bind Declarant (and the benefits shall
inure to the County and any past, present, or prospective tenant of a County HOME assisted unit)
and its and their respective successors and assigns during the term of this Declaration.
c) Declarant hereby agrees that any and all requirements of the laws of the State of Arizona to be
satisfied in order for the provisions of this Declaration to constitute deed restrictions and
covenants running with the land shall be deemed to be satisfied in full, and that any requirements
or privileges of estate or title are intended to be satisfied hereby, or in the alternative, that an
equitable servitude has been created to ensure that these restrictions will run with the land. For
the longer of the period this credit is claimed or the term of this Declaration, each and every
contract, deed or other instrument hereinafter executed conveying the Project or any portion
thereof shall expressly provide that such conveyance is subject to this Declaration, provided,
however, that the covenants contained herein shall survive and be effective regardless of whether
such contract, deed, or other instrument hereafter executed conveying the Project or any portion
thereof provides that such conveyance is subject to this Declaration.
d) Declarant further covenants and agrees to obtain the consent of any prior recorded lien holder on
the Project to this Declaration and the recording thereof, and such consent shall be a condition
precedent to the execution of this Declaration.
14. Subordination. Except for the Permitted Encumbrances identified in the Loan Documents or an
Intercreditor and Subordination Agreement or similar agreement executed by and between the County
and a Lender, Declarant warrants that it has not and will not execute any other agreement, lien or
security interest, or otherwise become a party to such an agreement, lien or security interest with
provisions contradictory to, or in opposition to, the provisions of this Declaration, and that in any
event, the requirements of this Declaration are paramount and controlling as to the rights and
obligations herein set forth and supersede the requirements and conflicts contained in any other
agreement. In the event of a conflict between the provisions of this Declaration and the Loan
Documents, the provisions of the Loan Documents shall control.
15. Effect of Other Restrictive Covenants. In the event that the Project is subject to declarations of
restrictive covenants relating to other governmental sources of funding, then the more restrictive
requirements shall apply. Upon the expiration or termination of any such declaration during the term
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of this Declaration, the Affordability Period and other requirements of this Declaration shall continue
to apply to any County HOME assisted unit.
16. Amendment. This Declaration may be amended with the prior written approval of the County to
correct factual errors contained herein or to reflect changes in pertinent law, and program
requirements. No amendment to this Declaration may be made without the prior written approval of
the County. Each Declarant hereby expressly agrees to enter into all amendments hereto which, in the
opinion of the County's legal counsel, are reasonably necessary or desirable to correct factual errors
or for maintaining compliance with program requirements.
17. Severability. The invalidity of any clause, part or provision of this Declaration shall not affect the
validity of the remaining portions thereof.
18. Notices. All notices to be given pursuant to this Declaration shall be in writing and shall be deemed
given when mailed by certified or registered mail, return receipt requested, to the parties hereto at the
addresses set forth below, or to such other place as a party may from time to time designate in
writing.
To the County: Rachel Milne, Assistant Director
Maricopa County Human Services Dept.
234 N. Central Ave. Ste. 300
Phoenix, AZ 85004
Attention: Housing and Community Development
Assistant Director
To the Declarant: Gloria Munoz, Executive Director,
Housing Authority of Maricopa County
8910 N. 78th Ave
Peoria, AZ 853445
The County, and the Declarant, may, by notice given hereunder, designate any further or different
addresses to which subsequent notices, certificates or other communications shall be sent.
20. Governing Law. This Declaration shall be governed by the laws of the State of Arizona and, where
applicable, the laws of the United States of America. In accordance with Arizona law, the County and
State of Arizona may cancel this Declaration without penalty or further obligation under the
provisions of A.R.S. § 38-511. The parties further agree to use arbitration to the extent required by
A.R.S. § 12-1518.
21. Venue. The Declarant consent to venue in the Arizona Superior Court for Maricopa County for any
legal action arising under this Declaration.
22. Survival of Obligations. The obligations of the Declarant as set forth herein and in the Application
shall survive the disbursement of the funding that is the subject of this Declaration, which shall not be
deemed to terminate or merge with the distribution of funds or termination of the Funding
Agreement. Notwithstanding termination of the Funding Agreement pursuant to the terms thereof or
otherwise, the program requirements identified in the Funding Agreement that are applicable during
the period of operation of the Project shall be enforceable through this Declaration.
23. [Rider Language if any]
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IN WITNESS WHEREOF, each Declarant has caused this Declaration to be signed by its respective duly
authorized representative, as of the day and year first above written, such Declaration being
acknowledged by the Beneficiary, below.
BY DECLARANT: BY MARICOPA COUNTY:
_______________________________________ _______________________________________
Gloria Munoz, Executive Director Chairman, Board of Supervisors
Housing Authority of Maricopa County
___________________________ ___________________________
Date Date
Attested By:
_______________________________________
Clerk of the Board
APPROVED AS TO FORM:
_______________________________________
Deputy County Attorney Date
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STATE OF ____________ )
) ss
County of _____________ )
On this the ________ day of _____________, 2017, before me, a Notary Public, personally
appeared __Denny Barney, Chairman of the Maricopa County Board of Supervisors, known to me or
satisfactorily proven to be the person whose name is subscribed to this instrument and acknowledged that
he executed the same. If this person’s name is subscribed in a representative County, it is for the principal
named and in the County indicated.
_____________________________________ _______________________________________
Notary Expiration Date Signature of the Notary Public for Declarant
[STAMP/SEAL]
STATE OF ____________ )
) ss
County of _____________ )
On this the ________ day of _____________, 2017, before me, a Notary Public, personally
appeared Housing Authority of Maricopa County, Executive Director, known to me or satisfactorily
proven to be the person whose name is subscribed to this instrument and acknowledged that she executed
the same. If this person’s name is subscribed in a representative County, it is for the principal named and
in the County indicated.
_____________________________________ _______________________________________
Notary Expiration Date Signature of the Notary Public for Declarant
[STAMP/SEAL]
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ATTACHMENT 1
LEGAL DESCRIPTION
That portion of the Northwest quarter of Section 9, Township 1 South, Range 4 East of the
Gila and Salt River Base and Meridian, Maricopa County, Arizona, described as follows:
BEGINNING at the Northwest corner of Section 9, Township 1, South, Range 4 East: thence
South 89 degrees 43 minutes 10 seconds East along the North line of said Section 9, a distance
of 1318.19 feet to a point; thence South 55 feet to the Point of Beginning, said point being on
the south right of way line of Guadalupe Road, and on the West line of RANCHITOS
PLACE, a subdivisión recorded in Book 31 of maps, page 37, records of Maricopa County,
Arizona; thence South 00 degrees 04 minutes 43 seconds East along the West line of said
RANCHITOS PLACE, a distance of 556.34 feet to a point; thence North 89 degrees 42
minutes 52 seconds West, 92.67 feet; thence South 77 degrees 46 minutes 54 seconds West,
60.96 feet; thence South 87 degrees 55 minutes 35 seconds West, 101.66 feet, thence South 70
degrees 29 minutes 55 seconds West, 97.53 feet; thence South 80 degrees 32 minutes 49
seconds West, 50.12 feet; thence South 76 degrees, 30 minutes 17 seconds West, 81 feet; thence
South 85 degrees 12 minue 16 seconds West, 59 feet; thence North 65 degrees 23 minutes 17
seconds West, 159 feet; thence North a distance of 129 feet; thence North 52 degrees 45
minutes, 50 seconds East, 146 feet; thence North 20 degrees 10 minutes 29 seconds East, 152.87
feet; thence North 05 degrees 31 minutes 26 seconds East, 214.00 to a point on the South right
of way line of Guadalupe Road, said point being 55 feet South of the North line of Section 9;
thence South 89 degrees 43 minutes 10 seconds East, along a line 55 feet South of the North
line of Section 9 and parallel to said Section line, a distance of 487.02 feet to the Point of the
Beginning:
Except streets described in Quit Claim Deed recorded in recording number 19830150182,
Maricopa County records.
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ATTACHMENT 2
AFFIRMATIVE MARKETING PROCEDURES
All correspondence, notices, and advertisements related to the County Housing Funds shall contain either
the Equal Housing Opportunity logo or slogan.
Projects assisted with County Housing Funds must comply with the following procedures for the
Affordability Period (depending on the source of program funds):
1. Declarant advertising vacant units must include the Equal Housing Opportunity logo or statement.
Advertising media must include general audience and minority-owned newspapers, radio, television,
brochures, leaflets, or may involve simply a sign in a window.
2. The Declarant shall implement special outreach efforts to solicit applications for vacant units from
protected persons in the housing market who are least likely to apply for the housing assisted with County
Housing Funds. Special outreach efforts should be designed to notify potential applicants regardless of
existing neighborhood racial or ethnic patterns, location of housing in the metropolitan area, price, or
other factors, and welcome them to apply and have the opportunity to rent.
3. The Declarant may use community organizations, places of worship, employment centers, fair
housing groups, housing counseling agencies, social service centers, or medical service centers as
resources for this outreach.
4. The Declarant must maintain a file containing all marketing efforts (i.e. copies of newspaper ads,
memos of phone calls, copies of letters, etc.) and the records to assess the results of these actions, and
make said documents available for inspection by the County.
5. The Declarant shall maintain a listing of all tenants residing in each unit at the time of application
submittal through the end of the compliance period.
6. The County will assess the affirmative marketing efforts of the Declarant by comparing
predetermined occupancy goals (based upon the area from which potential tenants will be drawn) to
actual occupancy data that the Declarant are required to maintain. Outreach efforts of the part of the
Declarant will be evaluated by reviewing marketing efforts.
7. The County will assess the efforts of the Declarant receiving County Housing Funds during the rent-
up period and marketing of the units by use of a compliance certification or personal monitoring visit to
the project according to the County’s monitoring schedule.
Where the Declarant fails to follow the affirmative marketing requirements, corrective actions shall
include extensive outreach efforts to appropriate contacts to achieve occupancy goals, or other actions the
County may deem necessary.
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ATTACHMENT 3
Maricopa County HOME Program Income Limits and
HOME Program Rent Limits
Maricopa County HOME assisted unit will be comprised of 20 total units: five [5] one-bedroom units, six
[6] two-bedroom units, six [6] three-bedroom units and three [3] four-bedroom units.
Of the 20 units, four [4] shall be a Low Program Rent units and must be occupied by very low-income
households initially earning no more than 50% of the area median income adjusted by family size.
HOME income limits are updated annually and will be provided to you by the Maricopa County Human
Services Department upon request.
HOME INCOME LIMITS
HOME RENT LIMITS
Subject to change on an annual basis
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