Hud-9634 Sample Use Agreement

Form HUD-9634 10/09

Appendix 15-1

SAMPLE USE AGREEMENT
Mark-up-to-Market Where a For-Profit Owner is
Transferring the Property to a Non-Profit Owner
or
Budget-Based Rent Increase for
Capital Repairs for a Nonprofit Owner
____________________

This Agreement entered into this _____ day of ________,
2000 by and between ______________________________ (herein
called “Housing 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, pursuant to section 24 of the Multifamily
Assisted Housing Reform and Affordability Act of 1997,
(P.L.105-65, 111 Stat. 1384) HUD is authorized in
connection with the expiration of section 8 project-based
Housing Assistance Payments contracts to renew such
contracts with owners of eligible projects upon such terms
and conditions as HUD considers appropriate; and,
WHEREAS, HUD may approve rent levels at budget-based
rents, not to exceed comparable market rents for the area,
and has determined to approve such budget-based rents as may
be necessary to restore or maintain the financial
soundness of certain eligible projects, to assist in
improvement of the management, and to maintain the low-tomoderate-income character of the eligible projects; and,
WHEREAS, HUD has determined that renewals providing for
increased section 8 budget-based comparable market rents may
be made available to eligible housing owners only if said
eligible housing owners have agreed to maintain the project
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Appendix 15-1

as affordable for low-income families and the housing owners
agree to accept future section 8 project-based contract
renewals for twenty (20) years in accordance with this Use
Agreement and the section 8 Housing Assistance Payments
contract for the project, subject to the availability of
appropriations; and
WHEREAS, the Housing Owner and HUD, or a section 8
Contract Administrator under an Annual Contributions
Contract with HUD, have entered into a section 8 Housing
Assistance Payments Contract for ________________________________
(project name or contract number) pursuant to said authority under
section 524, and the parties intend said contract to be incorporated
herein and made a part hereof.
NOW THEREFORE, in consideration of the mutual promises
set forth herein and in the said section 8 Housing
Assistance Payments Contract, the parties hereto agree as
follows:
1.

The Housing Owner, for itself, its successors and
assigns, covenants with HUD that the Housing Owner will
continue to operate the project in accordance with the
requirements of section 8 of the U.S. Housing Act of 1937
(42 USC 1437f), as amended, all applicable Federal
regulations, the section 8 Housing Assistance Payments
Contract and applicable HUD requirements for twenty (20)
years from the date of this Use Agreement.

2.

Subject to the availability of appropriations and so
long as Housing Owner is in compliance with all HUD
requirements, including but not limited to this Use
Agreement, HUD shall provide the Housing Owner and the Housing
Owner shall accept annual renewals of the section 8 Housing
Assistance Payments contract in accordance with its terms.

3.

In the event of a breach or a threatened breach of
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any of the above covenants and agreements by the Housing
Owner, HUD and/or any tenant of the project receiving the
benefits of the section 8 Housing Assistance Payments
Contract 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 are
violative of such covenants and agreements.

4. The Housing Owner shall not (a) impede the reasonable efforts
of tenants to organize as detailed in 24 CFR Part 245, or (b)
unreasonably withhold the use of any community room or other
available space appropriate for meetings which is part of the
mortgaged property when requested by:

(1) a resident tenant

organization in connection with the representational purposes of
the organization; or (ii) tenants seeking to organize or to
consider collectively any matter pertaining to the operation of
the mortgaged property.
5. The Housing Owner, for itself, its successors and
assigns, hereby agrees and acknowledges that this Use
Agreement shall be recorded in the appropriate land records and
that HUD and any successors and assigns and/or any third-party
beneficiary may file suit against the Housing Owner or any of
its successors or assigns for an order of the court demanding
specific performance of any of these covenants and agreements,
enjoining any acts which are violative of such covenants and
agreements, for an award of whatever damages can be proven
and/or for such other relief as may be appropriate.
Should any of the above covenants be held invalid in
whole or in part, it shall not affect or invalidate the
balance of such covenant or any other covenants.
In witness whereof, the parties hereto have hereunto
caused these presents to be executed on their behalf and
their seals affixed the day and year written below.

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Appendix 15-1

WITNESS
___________________________________________________________
(Housing Owner)
BY
___________________________________ ________________________
Secretary of Housing and
Urban Development Acting
by and through the
Assistant Secretary
for Housing - Federal
Housing Commissioner
BY
___________________________________ ________________________
(Authorized Agent)

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Appendix 15-1

ACKNOWLEDGEMENT BY OWNER BEFORE NOTARY PUBLIC
(Complete according to requirements of state of execution.)
ACKNOWLEDGEMENT BY COMMISSIONER:)
STATE OF
) SS:
CITY AND COUNTY OF
)
ON this _______________ day of _______________________,
20___, before me ______________________________, a Notary
Public in and for the City and County of ________________,
_____________________, appeared _________________________ to
me personally known and known to me to be the duly
Authorized Agent of ________________________________, and
the person who executed the aforesaid instrument bearing the
date of __________________, 20___, and acknowledged that he
executed the aforesaid instrument for and on behalf of
_______________________________ for the purposes herein.

_________________________________
(NOTARY PUBLIC)
My Commission Expires:

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Appendix 15-1

ACKNOWLEDGEMENT BY COMMISSIONER:)
STATE OF
) SS:
CITY AND COUNTY OF
)
ON this __________________ day of ________________,
20___, before me ___________________________, a Notary
Public in and for the City and County of ____________,
________________, appeared ______________________________ to
me personally known and known to me to be the duly
Authorized Agent of the Secretary of Housing and Urban
Development acting by and through the Assistant Secretary
for Housing - Federal Housing Commissioner, and the person
who executed the aforesaid instrument bearing the date of
_________________, 20___, and acknowledged that he executed
the aforesaid instrument for and on behalf of the said
Secretary of Housing and Urban Development for the purposes
herein.
_______________________________________
(NOTARY PUBLIC)
My Commission Expires:

OMB Control #2502-0587
Exp. (10/31/2012)
“Public reporting burden for this collection of information is estimated to average 1 hour. This
includes the time for collecting, reviewing, and reporting the data. The information is being
collected for purposes of establishing a use agreement between the owner and HUD and will be used
for that purpose. Response to this request for information is required in order to receive the
benefits to be derived. This agency may not collect this information, and you are not required
to complete this form unless it displays a currently valid OMB control number. No
confidentiality is assured.”

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