**DECLARATION OF RESTRICTIVE COVENANT**

**(RECIPIENTS)**

THIS DECLARATION OF RESTRICTIVE COVENANT (Declaration), dated as of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_[,]{.underline} 20\_\_, is given to
the United States Department of Housing and Urban Development (HUD) by
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(Recipient), its successors and assigns.

**RECITALS**

WHEREAS, the Recipient submitted an application for a Housing
Opportunities for Persons With AIDS (HOPWA) grant on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 20\_\_ and was subsequently
awarded a HOPWA grant in the amount of
\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_; and

WHEREAS, the Recipient entered into a HOWPA Grant Agreement (Agreement)
with HUD for Project Number \_\_\_\_\_\_\_\_\_\_ on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 20\_\_; and

WHEREAS, pursuant to the Agreement, the Recipient is obligated to
(acquire) (construct) (substantially rehabilitate) and operate a
\_\_\_\_\_\_ -unit housing project on property described in Exhibit A
hereto (Property), in which \_\_\_\_\_\_ units are to be maintained and
operated a facility to provide housing or assistance for eligible
persons with acquired immunodeficiency in accordance with the terms of
the Agreement; and

WHEREAS the AIDS Housing Opportunity Act, 42 U.S.C. 12901
[et]{.underline} [seq]{.underline}. (ACT), imposes minimum use
requirements on structures assisted with HOPWA funds for acquisition,
substantial rehabilitation and new construction activities; and

WHEREAS, the Recipient is required by the Agreement to cause to be
executed an instrument in recordable form which obligates the Recipient,
its successors and assigns to operate and maintain the HOPWA-assisted
structure in accordance with the Agreement, ACT, and HUD regulations as
provided for in the Agreement; and

WHEREAS, the Recipient under this Declaration intends, declares and
covenants that the restrictive covenant set forth herein shall be and is
a covenant running with the Property for the term described herein, is
binding upon all subsequent owners of the Property for such term, and is
not merely a personal covenant of the Recipient,

NOW, THEREFORE, in consideration of the premises and other valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the Recipient agrees and declares as follows:

1\. The Recipient, its successors and assigns shall operate the
supportive housing and provide supportive services throughout a period
of ten (10) years commencing from the date of initial occupancy or the
provision of initial services, in accordance with the terms of the
Agreement, ACT, HUD regulations, and applicable federal, state and local
laws.

2\. If HUD grants the Recipient a waiver of the minimum use requirements
imposed by the ACT and HUD regulations, HUD may authorize the Recipient,
its successors and assigns to convert the use of the project for the
benefit of low-income individuals as that term is defined under section
853(3) of the ACT. Upon expiration of the period during which the
Recipient is obligated to operate the Property in accordance with the
Agreement, this Declaration shall terminate and shall no longer be
effective.

3\. HUD, acting by and through a duly authorized official, may approve
such action as may be necessary to allow the transfer, conveyance,
assignment, lease, mortgage, or encumbrance of the Property, or to
accomplish the acts described above.

4\. This Declaration regulating and restricting the use and occupancy of
the Property (i) shall be and is a covenant running with the Property,
encumbering the Property for the term of this Declaration, (ii) is not
merely a personal covenant of the Recipient, and (iii) shall bind the
Recipient, its successors and assigns for the term of this Declaration.

5\. Any and all requirements of the laws of the State that must be
satisfied in order for the provisions of this Declaration to constitute
a deed restriction and covenant running with the land shall be satisfied
in full, and any requirements or privileges of estate are intended to be
satisfied, or in the alternate, an equitable servitude has been created
to insure that these restrictions run with the land. For the term of
this Declaration, each and every contract, deed, or other instrument
hereafter executed conveying the Property or portion thereof shall
expressly provide that such conveyance is subject to this Declaration,
provided, however, that the covenants contained herein shall survive and
be effective regardless of whether such contract, deed or other
instrument hereafter executed conveying the Property or portion thereof
provides that such conveyance is subject to this Declaration.

6\. The invalidity of any clause, part or provision of this Declaration
shall not affect the validity of the remaining portions hereof.

IN WITNESS WHEREOF, the Recipient has caused this Agreement to be signed
by its duly authorized representative, as of the day and year first
above written.

**RECIPIENT**

By

STATE OF )

)ss.

COUNTY OF )

On this day of \_\_\_\_\_\_\_\_\_\_\_, 20 , I, , a notary public
authorized to take acknowledgement, do hereby certify that , known to be
the duly authorized representative of , appeared before me and executed
said instrument freely and voluntarily for and in the name of for the
purposes herein expressed, and the seal thereto affixed is the official
seal of .

Notary Public

This Document was drafted by:

U.S. Department of Housing

and Urban Development

451 Seventh Street SW

Washington DC 20410

EXHIBIT A

TO

DECLARATION OF RESTRICTIVE COVENANT

PROPERTY

[LEGAL]{.underline} [DESCRIPTION]{.underline}