202 Use Agreement 1

Attachment 3

USE AGREEMENT
FOR “CONSTRUCTED ADDITION OR OTHER FACILITY FOR THE ELDERLY
IN OR ADJACENT TO THE PROJECT, INCLUDING ASSISTED LIVING
FACILITIES”
This Agreement entered into this _____ day of
________, 20__ by and between
______________________________ (herein called “Owner") and
the Secretary of Housing and Urban Development, acting by
and through the Assistant Secretary for Housing-Federal
Housing Commissioner (herein called “HUD"),
Witnesseth:
WHEREAS, the United States Department of Housing and
Urban Development is directed, pursuant to Section 811 of
the American Homeownership and Economic Opportunity Act of
2000 (AHEO Act), as amended by Public Law 111 – 372, to
permit the Owner of a Section 202 Direct Loan to prepay
Section 202 direct loans; and
WHEREAS, in consideration of the promise to permit the
prepayment of the Section 202 Direct Loan, Owner agrees to
implement this Use Agreement for the “Construction of an
addition or other facility in or adjacent to the project,
including assisted living facilities”, as authorized by the
AHEO Act, as amended by Public Law 111 – 372.
The “addition or other facility in or adjacent to the
project, including assisted living facilities” (Project)
shall be identified as the premises located at
___________________________________________________________
___________
___________________________________________________________
___________
NOW THEREFORE,

the

parties

agree

as

follows:

1. Owner, for itself, its successors and assigns, covenants
with HUD that Owner will comply with certain provisions
contained with the American Homeownership and Economic
Opportunity Act of 2000, as amended by Public Law 111372. Specifically, Owner agrees to that the proceeds
from the refinancing of the Section 202 Direct Loan will

Attachment 3
be used in the provision of affordable rental housing
and/or related social services for elderly persons for
the Project.
2. This Use Agreement shall expire on
______________________.
3. In the event of a breach or a threatened breach of any
of the above covenants and agreement by the Owner, HUD
and/or any tenant as a third-party beneficiary shall be
entitled to institute legal action to enforce
performance and observance of such covenants and
agreements and to enjoin any acts which violate such
covenants and agreements. HUD and/or any tenant as a
third-party beneficiary may also seek an award of
damages and/or other relief as may be appropriate.
4. Owner, for itself, its successors and assigns, hereby
agrees and acknowledges that this Use Agreement shall
be recorded in the appropriate land records.
5. Ownership of the project will at all times be controlled
by a “private nonprofit organization”, as defined in 12
U.S.C. 1701q(k)(4).
This definition includes a forprofit limited partnership entity of which the general
partner is a: (1) private nonprofit affordable housing
provider; (2) for profit corporation wholly owned and
controlled by one or more private non-profit affordable
housing provider; or (3) a limited liability company
wholly owned and controlled by one or more private nonprofit affordable housing provider.
6. Owner will comply with the provisions of any Federal,
State or local law prohibiting discrimination in
housing on the grounds of race, color, religion or
creed, sex, handicap, familial status or national
origin, including the Fair Housing Act of 1968, as
amended.