AFFORDABLE HOUSING

Recording Requested by:

And When Recorded Mail To:

Monterey Peninsula Water Management District

Post Office Box 85

Monterey, California 93942-0085

NOTICE AND DEED RESTRICTION

REGARDING LIMITATION ON USE

OF WATER ON A PROPERTY

FOR AFFORDABLE HOUSING

NOTICE IS GIVEN that the Monterey Peninsula Water Management District (hereinafter referred to as the Water Management District), duly formed as a water district and public entity pursuant to the provisions of law found at Statutes of 1977, Chapter 527, as amended (found at West’s California Water Code Appendix, Chapters 118-1 to 118-901), has approved water service to the real property referenced below as “Subject Property”.

NOTICE IS FURTHER GIVEN that the real property affected by this agreement is situated in the {JURISDICTION}:

{STREET ADDRESS}

{LEGAL DESCRIPTION}

ASSESSOR’S PARCEL NUMBER {000-000-000-000}

This real property is hereinafter referred to as the “Subject Property.” The Subject Property is located within the jurisdiction of the Water Management District. {PROPERTY OWNER NAME(S)}, hereinafter referred to as Owner(s), are record owner(s) of the Subject Property.

Owner(s) and the Water Management District each acknowledge and agree that {INSERT NUMBER OF AFFORDABLE UNITS} of the {INSERT NUMBER OF ALL DWELLING UNITS} dwelling units located at the Subject Property shall be occupied as Affordable Housing as defined in this document, consistent with the District’s Rules and Regulations. This is a permanent requirement of the Subject Property.

Affordable Housing shall mean and refer to housing that is affordable to moderate‑income households in compliance with the standards set by the California Department of Housing and Community Development (HCD) and the Monterey County Housing Authority for resale and occupancy. Such housing is affordable if the sales price is equal to or less than three times the maximum annual moderate‑income household income; or if rented, if the annual rent is equal to or less than 25% of the maximum annual moderate‑income household income. "Moderate Income" shall include all salaries, rents and similar sources of income as well as the economic value of property, savings, stocks, bonds, and other assets.

Owners and Water Management District further agree that the maximum permitted water use for the Affordable Housing at the Subject Property is limited to supply the potable water requirements for {NUMBER} {TYPE OF DWELLING UNITS} consisting of:

· {# of fixtures and name of fixture (per listing and description on permit)}

· {# of fixtures and name of fixture}

· Reasonable outdoor water use as needed and as allowed by District Rules

No water use fixtures other than those listed above have been approved for use in the Affordable Housing on the Subject Property.

NOTICE IS FURTHER GIVEN that Water Management District has determined that {0.000} acre-feet of water is associated with the water permit for the Affordable Housing. District Rule 25.5-B (1) allows a partial fee exemption when the project meets the definition of Affordable Housing. Each residential connection which supplies water to a “Dwelling Unit” meeting the definition of Affordable Housing shall be exempt from fifty percent (50%) of the connection charge required pursuant to Rule 24 during the period that the “Dwelling Unit” continuously meets the definition of “Affordable Housing.”

NOTICE IS FURTHER GIVEN that any change of water use from an Affordable Housing use to any other residential or non-residential use shall constitute an intensification of use which shall require payment at the then-present value of connection charges to the District both for the intensification of water use capacity and for the increment of water use which had originally been exempted from the full fee. All other permit conditions, including processing fees and surcharges shall apply to these connections, and all water conservation standards required as a condition of the water permit or other applicable regulations.

Owner(s) acknowledges that the condition requiring these dwelling units to be occupied as Affordable Housing on the Subject Property has been voluntarily accepted as a condition of Water Permit No. {INSERT PERMIT NUMBER} and is permanent and irrevocable, unless amended by the filing of a less restrictive deed restriction.

NOTICE IS FURTHER GIVEN that this agreement is binding and has been voluntarily entered into by Owner(s), and each of them, and constitutes a mandatory condition precedent to receipt of regulatory approval from the Water Management District relating to the Subject Property. This agreement attaches to the land for the duration stated above, and shall bind any successor or assignee of Owner(s).

NOTICE IS FURTHER GIVEN that present and/or future use of water at the Subject Property site is restricted by Water Management District Rules and Regulations to the water use requirements referenced above. Any intensification of water use on the Subject Property, as defined by District Rule 11, will require prior written authorization and permits from the Water Management District. Approval may be withheld by the Water Management District, in accord with then applicable provisions of law. Present or future allocations of water may not be available to grant any permit to intensify water use at this site. If any request to intensify water use on Subject Property is approved, connection charges and other administrative fees may be required as a condition of approval.

NOTICE IS FURTHER GIVEN that in the event intensification of water use on Subject Property occurs without such an authorizing permit, all water use on this site may thereafter be revoked in accord with Water Management District Rules, which state, “Intensification of Water Use without a permit shall provide cause for revocation by the District of all water use by any person on that Site.” Such revocation could cause the irrevocable extinction of any right or entitlement to water use, water use capacity, or water credit for the Subject Property.

NOTICE IS FURTHER GIVEN that intensification of water use on Subject Property occurs without the advance written approval of the Water Management District is a violation of District Rules and may result in a monetary penalty for each offense as allowed by Water Management District Rules. Each separate day, or portion thereof, during which any violation occurs or continues without a good faith effort by the responsible party to correct the violation shall be deemed to constitute a separate offense. All water users within the jurisdiction of the Water Management District are subject to the Water Management District Rules, including Rules 11, 23, and 148.

The Owner(s) and Water Management District each intend that this Notice and Deed Restriction act as a deed restriction upon the Subject Property. This document shall be enforceable by the Water Management District or any public entity that is a successor to the District.

The Owner(s) elects and irrevocably covenants with the District to abide by the conditions of this Notice and Deed Restriction to enable issuance of the referenced Water Permit(s). But for the limitations and notices set forth herein, issuance of a water permit with a fifty-percent connection charge reduction would otherwise be inconsistent with the Water Management District Rules and Regulations.

This Notice and Deed Restriction is placed upon the Subject Property. Any transfer of this property, or an interest therein, is subject to this deed restriction. This Notice and Covenant shall have no termination date unless amended by the filing of a less restrictive deed restriction.

The undersigned Owner(s) agrees with and accepts all terms of this document stated above, and requests and consents to recordation of this Notice and Deed Restriction Regarding Limitation on Use of Water on a Property for Affordable Housing. The Owner(s) further agree to notify any present and future tenant of the Subject Property of this terms and conditions of this document. (Signatures must be notarized).

OWNER(S) agrees to recordation this Notice and Deed Restriction in the Recorder’s Office for the County of Monterey. Owner(s) further unconditionally accepts the terms and conditions stated above.

By: Dated:

{OWNER’S NAME}

By: Dated:

Gabriela Ayala, Conservation Representative

Monterey Peninsula Water Management District