Housing Hope - Low Income Covenant recorded7/25/23, 12:29 PM
Landmark Web Official Records Search
OVENAN 5tia71
COVENANT
RECEIVED
Re $211.50
7/25/2023 10:30 AM I of9
Jul 25 2023 BLD2022-1323
WA HOMfSH COUNTY,
WA
CITY OF EDMONDS
DEVELOPMENT SERVICES
DEPARTMENT
Return Recorded Instrument To:
City of Edmonds — Clerk's Office
121 5th Ave. N, Edmonds, WA 98020
COVENANT TO ENSURE PERMANENT
LOW-INCOME HOUSING:
Limitations on Rents and Tenant Income
Compliance with the provisions of this Covenant shall be deemed to be a
requirement of title.
Property Address: 8215 236TH ST SW
Assessor's Parcel Number: 00576700002614
Legal Description: LOT A, EDMONDS LLA PLN2018-0027, REC.
201809215002, BEING PTN LOT 26, SKELTONS LAKE
MCALEER 5 ACRE TRACTS, VOL 6, PG 21, IN NE 1/4
SEC 31, TWP 27N, RGE 4E, SNOHOMISH CO.
Grantor: ELCFA LLC
Grantee: City of Edmonds
Related Permit Numbers: BLD2022-1319
This Covenant to Ensure Permanent Low -Income Housing ("Covenant") is entered into as
of the 21" day of July, 2023, by the undersigned owner(s) of real property legally described in
Exhibit A hereto, ELCFA LLC, a Washington limited liability company (the "Owner" or
"Grantor"), in favor of the City of Edmonds, Washington, a municipal corporation (hereafter the
"City" or "Grantee") as required for the issuance to the Owner(s) of a permit allowing the
construction and/or use of the property described in Exhibit A hereto (the "Property").
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 1/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
2023072.50071 Document: COVENANTS Rec: $211.50 Page-2 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
RECITALS
WHEREAS, the City has provided Owner an exemption from paying 80 percent of street impact
fees, as allowed in ECC 3.36.040.B, which amounted to $116,524.43 at the time of project
permitting; and
WHEREAS, the City has provided Owner an exemption from 100 percent of park impact fees, as
allowed in ECC 3.36.040.C, which amounted to $121,688.32 at the time of project permitting; and
WHEREAS, Owner has benefited from these incentives; and
WHEREAS, Owner has agreed to permanently limit the rents charged and impose maximum
income requirements for the occupancy of the Property; and
WHEREAS, subsequent residents will benefit from the rent limitations which this Covenant
requires; and
WHEREAS, the intent of the City is to permanently preserve through this Covenant the
affordability of the Property for persons of low income, and to assign to the City the right to enforce
compliance with this Covenant; and
WHEREAS, Owner hereby acknowledges and agrees that this Covenant is a deed restriction that
limits rent on the Property and is designed to provide affordable housing stock pursuant to an
Agreement between the City and Owner; and
NOW THEREFORE, in consideration of the benefits received by the parties, the sufficiency of
which is hereby acknowledged, the parties agree as follows:
DEFINITIONS
The following terms shall have the meanings defined herein:
A. "Area Median Income" means the Area Median Income reported annually for single persons
and households of various size by the United States Department of Housing and Urban
Development, or by any successor United States Government department, agency, or
instrumentality, for the Primary Metropolitan Statistical Area "PMSA" which includes the City of
Edmonds, WA.
B. "HUD" means the United States Department of Housing and Urban Development, or any
successor governmental agency.
C. "HUD Low Income Limit' means the maximum gross household income that allows a
household to be considered "low income" for the purposes of HUD financial assistance. These
limits are reported annually by HUD and reflect the low income limit for a particular area.
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 2/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
2023072.50071 Document: COVENANTS Rec: S211.50 Page-3 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
D. "Income" means the definition of income under Section 8 of the United States Housing Act
of 1937, codified at 42 U.S.C.S. § 1437a(b) (1990), as further determined by the United States
Secretary of Agriculture in 24 CFR § 813.106 (1997). In the event that Section 8 is repealed or
the definition of income under Section 8 is substantially modified, then "income" shall mean the
anticipated total income for the next twelve month period received from all sources by each
member of the household, excluding, however, temporary or non -recurring income (including
gifts), income from the employment of children under age 18, payments for the care of foster
children or foster adults, and amounts received specifically for the reimbursement of medical
expenses for a member of the household.
E. "Institutional Lender" means any bank, savings and loan association, or any other institutional
lender which is licensed to engage in the business of providing purchase money mortgage
financing for residential real property.
F. "Real Property" means land and improvements or common interest ownership and
improvements.
G. "Rent," as used in this Covenant shall include, without limitation, all customary charges and
fees to manage the rental units including water, sewer, and trash service and shall not include all
other utilities, except that it shall not include amounts charged to tenants by the Owner to
reimburse the Owner for actual amounts that the Owner is required to pay to utility companies
for service to the rental units as a result of the lack of credit worthiness, failure to pay their own
utility bills, or neglect on the part of the tenant.
H. "Transfer" means any sale, assignment or transfer, voluntary, involuntary or by operation of
law (whether by deed, contract of sale, gift, devise, bequest, trustee's sale, deed in lieu of
foreclosure, or otherwise) of any interest in the Property, including but not limited to a fee simple
interest, a joint tenancy interest, a tenancy in common, a life estate, a leasehold interest, or any
interest evidenced by a land contract by which possession of the Property is transferred and Owner
retains title.
COVENANTS
1. Number of Affordable Units. Owner agrees that it will provide fifty-two (52) permanently
affordable rental housing units (as defined in Section 3, below) located on the Property
incorporated herein by this reference (each an "Affordable Rental Unit" and collectively, the
"Affordable Rental Units").
2. Location, Configuration, Size of the Affordable Rental Units. The location, size, configuration,
of the Affordable Rental Units on the Property shall be as follows:
52 apartment units in four 3-story buildings
The unit location and other identifying unit characteristics of the Affordable Units to be
constructed reference the plans as approved by the City, issued on or about May 12, 2023 under
building file number BLD2022-1319, as filed and on record with the City.
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 3/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
202307250071 Document: COVENANTS Rec: S211.50 Page-4 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
3. Maximum Income: No single household in the specified permanently affordable dwelling units
of the Property shall have an income which is greater than the HUD low-income limit for the
PMSA applicable to Edmonds, WA at initial occupancy. However, the above notwithstanding, a
person, or family, whose income increases above the limits set forth above after he, she, or they
become occupants of one of the units, may be allowed to renew the lease for occupancy of the
unit, provided that his, her, or the family's, gross income does not exceed 140 percent of the
applicable income limit for each affordable dwelling unit. The foregoing lease renewability
provision shall be of no force and effect if prohibited by binding restrictions imposed by Project
financing, such as the provisions of Section 42 of the federal Internal Revenue Code, the
regulations promulgated thereunder or other applicable law or ordinance.
4. Annual Income Recertification: In addition to initial income certifications performed when
applicants are determined eligible to receive assistance, income recertification must be completed
on each tenant's "anniversary date" (one year from the date of initial certification).
5. Maximum Rents: The maximum rents charged to tenants for each specified permanently
affordable housing unit (by unit size) are to be set at amounts published annually by the
Washington State Housing Finance Commission ("WSHFC") for Snohomish County or another
source designated by the City. The City shall have the discretion to substitute an alternative index
which shall be published annually.
6. Rent Increases: Rent may be increased no more than once each year up to the applicable
WSHFC maximum rents for Snohomish County. The Owner must provide tenants with at least
thirty days written notice before rent increases are implemented.
7. Additional Funding: No additional funding for building maintenance or any other purpose shall
be provided by or through the City of Edmonds without a reduction of the Maximum Income, as
specified in item #2 of this Covenant, such that the reduced Maximum Income shall be no higher
than 80 percent of the HUD low-income limit for the PMSA containing Edmonds.
8. Rental Covenant: The parties acknowledge that that the Owner has voluntarily entered into this
Covenant to maintain the specified rental units as permanently affordable low-income units.
9. Transfer: This Covenant shall run with the land and be binding on any successor owner of the
Property.
Owner or Owner's Representative shall inform the City in writing thirty business days (30) prior
to any transfer or conveyance of the Property.
Written notice via postal mail to:
Planning and Development
121-5th Ave. N
Edmonds, WA 98026
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 4/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
202307250071 Document: COVENANTS Rec: $211.50 Page-5 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
10. Enforcement Actions: This Covenant maybe specifically enforced against the Owner or any
successor in interest of the Owner. Venue for such action shall be proper in Snohomish County,
Washington, and service may be made or notice may be given by posting such service or notice
on the Property. Enforcement actions may include, without limitation, repayment of City -
determined overcharges to tenants, eligibility for future funding, payment to the City of the
$238,212.75 in impact fees that were initially waived pursuant to this Covenant together with interest
from the date of breach, or other available remedies. The City shall be entitled to its reasonable
attorneys' fees in the event that it is the substantially prevailing party in any such enforcement
action. If a violation of this Covenant occurs, the City has the right to institute such actions or
proceedings as it may deem necessary, desirable, or appropriate for enforcing the purposes of this
Covenant and the obligations set forth herein. If the City should prevail in any such legal action
to enforce this Covenant, the person against whom the City prevailed shall pay all of the City's
costs and expenses, including reasonable attorneys' fees, incurred in connection with the City's
efforts to enforce this Covenant.
11. Indemnification: The Owner shall defend, indemnify and hold harmless the City from and
against all losses, claims, suits, judgements or liabilities incurred as a result of the Owner's actions
or failures to act, and as part of such indemnification obligation shall pay all costs and attorney's
fees, if any, incurred by the City as a result of any such claims or suits.
12. The Owner shall comply with all applicable laws and regulations of the City, State, and
Federal governments.
13. The Owner shall maintain the Property in good, safe, and habitable condition in all respects,
except for normal wear and tear, and in full compliance with all applicable laws, ordinances,
rules, and regulations of any governmental authority with jurisdiction over matters concerning
the Property.
14. The Owner shall comply with the City's annual reporting requirements.
15. The Owner shall maintain reasonable records of its performance under this Covenant, as
follows:
a. The Owner shall require documentation to verify the income status of all residents of the
Affordable Rental Units. Documentation may include, but is not limited to, third -party income
verification, federal income tax returns, W-2's, Supplemental Security Income, Social Security
Disability Income, child support, and pay stubs.
b. The Owner shall retain complete records on applicants and tenants for the most recent five-
year period showing the following information collected for Fair Housing purposes:
i. ethnicity;
ii. race;
ii. female head of household;
iii. household income; and
iv. disabled household:
"Disabled household" is a household composed of one or more persons at least one of
whom is an adult who has a disability. A person is considered to have a disability if the
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 5/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
202307250071 Document: COVENANTS Rec: $211.50 Page-6 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
person is determined to have a physical, mental or emotional impairment that:
a) is expected to be of long, continued and indefinite duration;
b) substantially impedes his/her ability to live independently; and
c) is of such a nature that the ability could be improved by more suitable housing
conditions; OR
d) has a developmental disability as defined in Section 102 of the Developmental
Disabilities Act and Bill of Rights Act.
c. The documentation retained shall be sufficient to support the information provided by the
Owner to the City.
d. The Owner will allow access to these records at any time during normal business hours by the
City. These records will be kept in the Owner's local office.
16. No residential lease for the Property or any part thereof may contain any of the following
provisions:
A. Agreement by the tenant to be sued, to admit guilt, or to a judgment in favor of the Owner in
a lawsuit brought in connection with the lease;
B. Agreement by the tenant that the Owner may take, hold, or sell personal property ofhousehold
members without notice to the tenant and a court decision on the rights of the parties. This
prohibition 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 Owner may
dispose of this personal property in accordance with state law;
C. Agreement by the tenant not to hold the Owner or the Owner's agents legally responsible for
any action or failure to act, whether intentional or negligent;
D. Agreement of the tenant that the Owner may institute a lawsuit without notice to the tenant;
E. Agreement by the tenant that the Owner 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;
F. Agreement by the tenant to waive any right to a trial by jury;
G. 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
H. Agreement by the tenant to pay attorney's fees or other legal costs even if the tenant wins in a
court proceeding by the Owner against the tenant. The tenant may be obligated to pay costs if the
tenant loses.
17. The Owner may not terminate the tenancy or refuse to renew the lease of a tenant of the
Property 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
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 6/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
202307250071 Document: COVENANTS Rec: S211.50 Page-7 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
refusal to renew must be preceded by not less than 30 days by service upon the tenant of a written
notice from the Owner specifying the grounds for the action.
18. The Owner shall affirmatively market the Residential Units to all people, regardless of sex,
handicap, and familial status.
19. The Owner shall adopt written tenant selection policies and procedures for the Residential
Units that are consistent with state and local law.
20. The Owner shall create and maintain a waiting list for the Residential Units that is consistent
with state and local law.
21. The Owner shall maintain the Property in compliance with all applicable housing quality
standards and City code requirements.
22. This Covenant shall be perpetual, shall run with the land and in favor of the City of Edmonds,
and shall be recorded by the Owner in the real property records of Snohomish County.
23. If any provision of this Covenant shall be held by a court of proper jurisdiction to be invalid,.
illegal or unenforceable, the remaining provisions shall survive and their validity, legality or
unenforceability shall not in any way be affected or impaired thereby.
24. Nothing in this Covenant shall be deemed to create an agency, partnership, joint venture or
employment relationship between the City and the Owner.
25. The Mayor or his or her designee shall have the right to modify the conditions of this Covenant
to deal with exigent circumstances.
26. Remedies: The impact fees not paid at the time of development of the Property, equal to
$238,212.75 plus interest a rate of nine percent (9%) per annum from the date this Covenant was
breached, shall be paid to the City by Owner within thirty (30) days of the City's written notice to
the Owner that pursuant to the reporting under Sections 14 and 15 above, the Property is not in
compliance with Sections 1, 3, or 4 of the Covenant. In the event that such impact fees are not paid
within the time specified in this Section 26, interest shall continue to accrue on the amount due at
a rate of nine percent (9%) per annum.
[Remainder of Page Left Blank]
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 7/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
202307250071 Document: COVENANTS Rec: S211.50 Page-8 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
Signature Page to Covenant to Ensure Permanent Low Income Housing
ELCFA LLC,
a Washington limited liability company
By: ELCFA Manager LLC,
a Washington limited liability company
Its: Managing Member
By: Housing Hope Properties,
a Washington nonprofit corporation
Its: Manager
By: &Ll�
Donna Moulton, Chief Executive Officer
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
I certify that I know or have satisfactory evidence that Donna Moulton is the person who appeared before
me and said person acknowledged that said person signed this instrument, on oath stated that said person
was authorized to execute the instrument and acknowledged it as the Chief Executive Officer of Housing
Hope Properties, the Manager of ELCFA Manager LLC, the Managing Member of ELCFA LLC, a
Washington limited liability company, to be the free and voluntary act such party for the uses and purposes
mentioned in the instrument.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this day of ow k
, 2023. `,a'n,nIFF1 ""
41 vV �Ng1202s
�pTARY `�:
PUBOC Rz;
%(Pl�Ss..........� NuXI�
OF 5�``,
1
"JAI
Seal/stamp
Ul ! msc-��
(print or ty a name)
NOTARY PUBLIC in and for the State of Washington,
residing at SS
My Commission expires: 1 Z 1Le 1 2 0
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 8/9
7/25/23, 12:29 PM
Landmark Web Official Records Search
202307250071 Document: COVENANTS Rec: $211.50 Page-9 of 9
Record Date:7/25/2023 10:30 AM Snohomish County, WA
EXHIBIT A
LEGAL DESCRIPTION
LOT A, CITY OF EDMONDS LOT LINE ADJUSTMENT NO. PLN2018-0027, RECORDED
SEPTEMBER 21, 2018 UNDER RECORDING NO. 201809215002, IN SNOHOMISH
COUNTY, WASHINGTON.
https://www.snoco.org/RecordedDocuments/search/index?theme=.blue§ion=searchCriteriaRecordDate&quickSearchSelection=# 9/9