Subdivision or Development Name:

(Also known as: )

MONTGOMERY COUNTY, MARYLAND

DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

**** ********* ****, *** *****, Rockville, Maryland 20852

MODERATELY PRICED DWELLING UNITS

DECLARATION OF COVENANTS

FOR RENTAL SUBDIVISIONS

THIS DECLARATION OF COVENANTS, made this day of, 20, hereinafter set forth by, owner (hereinafter referred to as Declarant).

NOW, THEREFORE, Declarant hereby declares that all of the apartment rental units listed on Exhibit 1 attached hereto and hereinafter described as the Moderately Priced Dwelling Units (MPDUs) must be held, conveyed, leased and/or rented subject to the following covenants, conditions, and restrictions:

ARTICLE I

Declarant is the owner of all of the MPDUs set forth and described in Exhibit 1, which MPDUs are the subject of this Declaration of Covenants (Covenants).

ARTICLE II

For a period of 99 years beginning on the date that the first MPDU is available for rental, or such other period as established by law (the Control Period), the MPDUs must not be rented for an amount in excess of the maximum monthly rental price established from time to time in accordance with Chapter 25A of the Montgomery County Code, 2014, as amended, and all applicable Executive Regulations (Chapter 25A or Code). The MPDU Rents for the MPDUs during the Control Period, as more particularly set forth on Exhibit 1 attached hereto, are subject to adjustment from time to time.

ARTICLE III

During the Control Period, the MPDUs must not be sold for a price greater than that determined and approved by the County Executive prior to such sale and in accordance with Chapter 25A.

ARTICLE IV

Declarant, its assigns and successors, hereby irrevocably grants unto Montgomery County, Maryland (the County) all rights to enforce and maintain the terms, conditions, and requirements of these Covenants, in accordance with Article V below.

ARTICLE V

The Declarant or the County may enforce these Covenants by a proceeding at law or in equity against any person or persons violating or attempting to violate any covenant or restriction herein contained, to restrain any violation hereof, to recover damages or monies, or to proceed against the MPDUs described in Exhibit 1 or the land on which the MPDUs are located, to enforce any lien or obligation created by, or resulting, from a violation of these Covenants.

ARTICLE VI

These Covenants are binding upon the MPDUs, upon the Declarant and it successors and assigns, and upon all transferees and transferors of the title to the MPDUs for the term of these Covenants. Notwithstanding the foregoing sentence, these Covenants are not binding upon the tenants and lessees of the MPDUs.

ARTICLE VII

During the term of these Covenants, any sales contract, any deed of conveyance by the Declarant or its assigns or successors, any subsequent deed of transfer, or an assignment of a deed of conveyance by any subsequent owner of the MPDUs, must contain conspicuous language specifically reciting that the MPDUs are subject to these Covenants and the requirements of Chapter 25A, and referencing the date these Covenants were among the land records of Montgomery County (Land Records) and the Book and Page.

ARTICLE VIII

During the Control Period, the Covenants cannot be amended without the prior written consent of the County.

ARTICLE IX

These Covenants will terminate automatically on the day following the expiration of the Control Period.

ARTICLE X

A mortgagee or other secured party who has initiated foreclosure proceedings on a debt secured by a mortgage or deed of trust on an MPDU must notify the Department of Housing and Community Affairs in writing at least thirty (30) days prior to the date of the foreclosure sale. If the MPDUs are sold at a foreclosure (including by a deed in lieu of foreclosure) by the lender, the County shall cooperate with the lender and sign the necessary documentation to terminate the Covenants and record such termination among the Land Records. The County reserves the right to make a claim for payment to the County’s Housing Initiative Fund from any surplus proceeds resulting from such transfer, in accordance with Chapter 25A. No such payment will be required in the event the MPDUs are rented at the approved MPDU Rents for the remainder of the Control Period.

ARTICLE XI

The Declarant or the County may enforce these Covenants by a proceeding at law or in equity against any person or persons violating or attempting to violate intentionally or otherwise, any covenant or restriction herein contained, either to restrain any violation hereof or to recover damages or monies, or to proceed against the MPDU that is the subject of the violation to enforce any lien or obligation created by or resulting from these Covenants. No remedy conferred upon or reserved to the County by these Covenants is intended to be exclusive of any other remedy or remedies available at law or in equity, but each and every such remedy is cumulative and is in addition to every other remedy given under these Covenants. No delay or omission by the County in exercising any right or power accruing upon any failure to perform under this Article will impair any such right or power or will be construed to be a waiver thereof.

ARTICLE XII

In the event any provision of these Covenants shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of these Covenants.

JURATS APPEAR ON FOLLOWING PAGE

IN WITNESS WHEREOF, Declarant has caused these presents to be executed by (name) its (title), and does appoint (name) its authorized agent to acknowledge and deliver these presents.

DECLARANT:

(Insert typed name of business entity)

BY:

Name:

Title:

STATE OF )

)ss:

COUNTY OF )

I HEREBY CERTIFY that on this day of, 20, before me, a Notary Public in and for the aforesaid jurisdiction, personally appeared

(name), (title) of

(Declarant) and that he/she did acknowledge that he/she executed the foregoing instrument on behalf of (Declarant) for the purposes therein contained, and further acknowledged the foregoing instrument to be the act of (Declarant).

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

My Commission Expires:

NOTARY PUBLIC

Exhibit 1

Property Description

Subdivision or Development Name:

(Also known as: )

This property was acquired by on

The Deed is recorded at Book Page

The Record Plat is recorded in Plat Book at Plat Number

Lot: Block: Property Tax Identification Number(s):

LIST OF MPDUs

Street Address/Building Designation

Unit

No.

No. of Bedrooms

No. of Baths

Approved Rent

S:\Files\recurring\Housing\MPDU\Forms\Rental Forms\Covenants Declaration - Rental\Covenants_Rental_MPDU_Feb_2017.docx

Contact this candidate