49-2020 - TIF for Solove Development Detroit, Parkwood, Wyandotte

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Exhibit B — Affordability Requirements and Definitions Area Median Income (AMI): AMI is as defined by the US Department of Housing and Urban Development (HUD). The annual median income is calculated and adjusted annually for various Household sizes within the Elyria -Cleveland Metropolitan Statistical Area (MSA) by the HUD, and must be calculated as detailed in 24 CFR 5.609. Affordable Rental Housing Unit: Housing set aside for exclusive rental to tenants whose an- nual household income is up to 80% of area median income (AMI) or 120% of AMI; and for which the annual Rent charged does not exceed 30% of 80% AMI or 120% AMI (as applicable), inclusive of a reasonable allowance for tenant paid utilities including gas, electric, water and sewer (as more particularly described below in the requirements for Rent). The owner or succes- sor owner of a Development Project shall provide an annual certification attesting that it has ver- ified that Households occupying Affordable Rental Housing Units are qualifying Households (i.e. that their combined annual income did not exceed 80% or 120% of AMI at the time of the initial lease and upon any annual renewal of such lease term, as applicable, and that Rent for the unit, inclusive of the utility allowance, did not exceed 30% of the 80% AMI or 120% AMI re- quirement, as applicable) . Affordable Rental Housing Unit Requirement: a minimum of 10% of the units set aside exclu- sively for rental to Households making up to 80% Area Median Income (AMI) at the time of the initial lease of each of such units and 10% of the units set aside exclusively for rental to House- holds making up to 120% AMI at the time of the initial lease of each of such units, and upon any annual renewal of the lease term, as applicable. Household: All individuals, regardless of familial status, residing in a single housing unit. Development Project: new construction of housing units in multi -family and/or mixed -use structures. A single Development Project may consist of multiple housing units within a single structure or housing units contained in multiple structures, including mixed -use projects. Rent: the cost of tenancy in a housing unit, including only the rental rate stated in the lease, and an allowance to cover reasonable utility expenses. The Director can determine the initial utility allowance at the approval of building permits for a Development Project. Annual increases in utility expense allowance shall not exceed 3% over the prior year. If the Owner fails to provide the number of Affordable Rental Housing Units required by the Af- fordable Rental Housing Unit Requirement for a period of 180 days (an "Affordable Housing Requirement Failure"), and does not cure such Affordable Housing Requirement Failure within ninety (90) days following written notice from the City of such Affordable Housing Requirement Failure (the "Initial Cure Period"), then the City shall have cause to take such action as necessary to cause the abatement to cease and return the property to fully taxable status. The Cure Period shall be extended for ninety (90) additional days following the expiration of the Initial Cure Pe- riod (the "Extended Cure Period"), so long as the Owner is using commercially reasonable ef- forts throughout the Initial Cure Period and the Extended Cure Period to cure the Affordable Housing Requirement Failure. 12777360 v4