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HomeMy WebLinkAbout031 County Affordable Housing CovenantExhibit B Affordability Covenant Original to: Gallatin County Clerk &Recorder 311 W. Main St, Room 203 Bozeman, Montana, 59715 Ths Od uitu coc(QcaPkix -3)ttil\Act. 0,5 cicA4_ Vzo Con4-raci--/ r, DECLARATIC kTotcLir 4 Lz-L 241 NANTS FOR PERPETUAL LOW-INCOME HOUSING GALLATIN COUNTY, MONTANA, a political subdivision of the State of Montana, by and through its Board of County Commissioners, with principal offices at 311 West Main, Bozeman, Montana 59715, hereafter the Declarant, declares as follows regarding the real property owned by the Declarant and more particularly described as: Lots of Minor Subdivision No._, located in the SW1/4 of Section 1, Township 2 South, Range 5 East, P.M.M., City of Bozeman, Gallatin County, Montana; Hereafter referred to as the "Property." WHEREAS, Declarant intends to sell the Property to Human Resource Development Council, of District IX Inc (HRDC), for less than full unrestricted fair market value for the construction of affordable housing, specifically multi-household rental dwellings and townhome and/or rowhome land trust housing on portions of the Property; WHEREAS, HRDC intends to build townhouses or rowhomes that will serve as owner occupied homes in a community land trust; WHEREAS, pursuant to § 7-8-2522(5), MCA, Gallatin County may donate or sell real property at a reduced price for the purpose of constructing a multifamily housing development operated by a corporation for low-income housing or for single-family houses; WHEREAS, pursuant to § 7-8-2522(6), MCA, land transferred pursuant to § 7-8-2522(5), MCA, must be used to permanently provide low-income housing; WHEREAS, because § 7-8-2522, MCA, does not define "low-income housing," Gallatin County adopts the definition at § 7-15-4402(16), MCA, pertaining to municipal housing authorities, which defines "persons of low income" as "persons or families who lack the amount of income that is necessary, as determined by the authority undertaking the housing project, to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings without overcrowding;" WHEREAS, Gallatin County finds this definition to accurately represent the low-income housing contemplated by § 7-8-2522(5), MCA, and to which the County desires this covenant to apply; WHEREAS, Gallatin County determines the amount of income that is necessary to qualify for "low-income housing" is below 120 percent Area Median Income ("AM!"). All references to AMI are to the most recent Area Median Income established by the U.S. Department of Housing and Urban Development (HUD); WHEREAS, this determination is based on the definition of "Affordable Home" in the Bozeman Unified Development Code § 38.700.020, which states: "A residential dwelling unil for rent or purchase that a subdivider or developer has committed to making affordable as an affordable home at the AMI levels to qualify for the incentives in 38.380 [requiring less than 120 percent AMU" as well as the findings in the 2019 Bozeman Community Housing Needs Assessment, the 2020 Bozeman Community Housing Action Plan, the 2021 Economic & Planning Systems, Inc. Bozeman Economic and Market Update, and the 2022 Gallatin Association of Realtors Housing Report. WHEREAS, the purpose of this Declaration is to restrict the Property in perpetuity to bc used solely for such low-income housing in accordance with § 7-8-2522(5), MCA, and as further described below. NOW, THEREFORE, Declarant hereby declares the following: 1. The Property shall be used only for low-income housing in accordance with § 7-8-2522(5), MCA, and accessory uses to the low-income housing such as, but not limited to, a community room, a rental office, gym, playground, and daycare facility. 2. The low-income housing must be affordable to households with income no greater than 120 percent of the AMI as reported annually for single persons and households of various sizes by HUD, or by any successor United States Government department, agency, or instrumentality, for the Primary Metropolitan Statistical Area that includes the City of Bozeman. 3. The low-income housing may be operated as rental units or owner-occupied units with restrictions on resale prices. 4. This Declaration shall attach to and run with the Property in perpetuity and shall constitute a legal and equitable servitude upon the Property and every part of it, including all titles, interest, and estates as may be held, conveyed, owned, claimed, devised, encumbered, used, occupied, and improved. The Declaration shall restrict and apply to all persons and entities hereafter acquiring any title or interest in the Property, and their successors, assigns, and heirs, to remain in full force and effect, forever. The Declaration shall continue in effect with respect to the entire Property, notwithstanding any partition or division thereof. 2 5. The determination of invalidity of any portion of this Declaration shall not in any matter affect the other portions or provisions hereof, which shall remain in full force and effect. 6. Each and every contract, deed, or other instrument executed after the date of this Declaration conveying any part or all of the Property shall conclusively be held to have been executed, delivered, and accepted subject to the terms of this Declaration, regardless of whether the terms herein are set forth in the instrument conveying the Property. 7. This Declaration may not be amended, modified, or revoked without the prior written consent of Gallatin County. 8. The Declarant or any owner or tenant of real property within the Property may take action to enforce the provisions of this Declaration. Enforcement may be by injunction, declaratory judgment, action for damages, Or any other legal claims, all of which shall be cumulative and non-exclusive. The prevailing party in any action shall be entitled to recover, in addition to other damages, its reasonable litigation expenses, including attorney's fees, as may be awarded in the judgment of the court. 9. This Declaration shall be governed by the laws of the State of Montana and venue shall be in Gallatin County, Montana. // // // // // // GALLATIN COUNTY, MONTANA 3 Name: ..5•4z-71-44.4,./-1:3.-44.---c7 Title: STATE OF Alopki-mA County of (9 01(pd-Ctev On this 2-day of by ("W++ Anif"-AtetatAfr Commissioners on behalf of whom this . . . SEAL 4-c OF .M9%.„,, • • MINDY KARL Notary PublIc for the State of Mot~thi Residing at: Bozeman, Montana My Commission Expires: January 20, 2027 28596343v1 , 2074 this instrument was acknowledged before me as the Chair of the Board of Gallatin County instrument was executed 4 Notary Signatur Notary Printed Name Notary Public for the State of Or Residing at: "R:042,•elmvA.) My Commission Expires: / /20 1f Vitvi Adm