|
Affordable Housing Covenant – Teanaway Court (Kittitas County) Page 1
<br />AFFORDABLE HOUSING COVENANT
<br />(TEANAWAY COURT)
<br />
<br />This Affordable Housing Covenant (“Covenant”) is made as of [________] 2026 by Teanaway
<br />Court Associates LLLP, a Washington limited liability limited partnership (“Grantor”) and for the benefit
<br />of Kittitas County, a political subdivision of the State of Washington (“County”), and is part of the
<br />consideration for the financial assistance provided by County.
<br />
<br />WHEREAS the County and Grantor desire that decent, safe and sanitary housing for low-income
<br />households be provided in the multifamily rental complex, consisting of 41 units initially to be known as
<br />Teanaway Court (the “Project”) located on the real property legally described on Exhibit A hereto (the
<br />“Property”). The Grantor holds a fee estate in the Property.
<br />
<br />WHEREAS, the County has committed, subject to certain terms and conditions, to make a grant
<br />funded pursuant to RCW 36.22.250 to HopeSource, a Washington nonprofit corporation and general partner
<br />of the Grantor (“Sponsor”), pursuant to that certain Homeless Housing Program Grant Agreement, Contract
<br />HH-2021-001-HopeSource-CIP, dated July 15, 2021, as amended (the “Contract”). Sponsor of even date
<br />hereof has reloaned the County grant funds to Grantor (the “Loan”), to finance a portion of the costs of the
<br />Grantor’s development of the Property, and in partial consideration of the Loan the Grantor is willing to
<br />commit to provide low-income housing on the Property as described below.
<br />
<br />WHEREAS, the County is willing to permit the Sponsor to loan the proceeds of the Loan to the
<br />Partnership in partial consideration of the recording of this Affordable Housing Covenant as an
<br />encumbrance of the Property.
<br />
<br />WHEREAS, this Covenant is filed and recorded in the official public land records of Kittitas
<br />County, Washington and shall constitute a restriction upon the use of the Project, subject to and in
<br />accordance with the terms of this Covenant until December 31 of the year in which the fortieth (40th)
<br />anniversary of the date the Grantor first receives a certificate of occupancy for the Project occurs (the
<br />“Affordability Period”).
<br />
<br />WHERAS, the covenants contained herein are to be taken and construed as covenants running with
<br />the land and shall pass to and be binding upon the Grantor, its successors and assigns, heirs, grantees, or
<br />lessees of the Property, beginning on the date of initial residential occupancy after the construction of the
<br />Project contemplated by the Contract. Each and every contract, deed, mortgage or other instrument covering
<br />or conveying the Property, or any portion thereof, shall be conclusively held to have been executed,
<br />delivered and accepted subject to such covenants, regardless of whether such covenants are set forth in such
<br />contract, deed, mortgage or other instruments.
<br />
<br />NOW THEREFORE, it is hereby covenanted during the Affordability Period as follows:
<br />
<br />1. Grantor will cause this Covenant to be filed and recorded in the official public land records
<br />of Kittitas County, Washington and shall constitute a restriction upon the use of the Property and is
<br />construed as running with the land which shall pass to and be binding upon the Grantor, its successors and
<br />assigns, heirs, grantees, or lessees of the Property. Each and every contract, deed or other instrument
<br />covering or conveying the Property, or any portion thereof, shall be conclusively held to have been
<br />executed, delivered and accepted subject to this Covenant for the Affordability Period, regardless of
<br />whether the covenants herein are set forth in such contract, deed, or other instruments. This Covenant shall
<br />be senior in priority to all monetary liens on the Property entered on or after the date hereof.
<br />
|