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The tenant's rent will be reduced by the amount of this allowance and the tenant will be responsible for paying their unit's electricity/gas bill, telephone bill and internet service. Water, sewer, and garbage will be covered by the New Development's owner. Tenant responsibilities for cable television services will be addressed at the time an agreement is reached with the local cable operator. 13. Waitlists for the Kottinger Place Development and the Pleasanton Gardens Development that exist prior to the completion of the New Development will be merged into one waitlist. This will occur following the relocation of the households currently living in Kottinger Place Development and Pleasanton Gardens Development to the New Development. The order of the combined waitlist will be determined by date and time on which each household submitted its tenancy information for the Kottinger Place Development or the Pleasanton Gardens Development, respectively. 14. The City is considering and intends to make the new development a smoke-free facility. 15. It is anticipated that the New Development will be owned by the Limited Partnership formed by the Developer in accordance with state and federal tax credit requirements and that it will operate under a ground lease and the Regulatory Agreement with the City. 16. The Board, the City, and the Housing Authority will keep all of its respective residents informed regarding the New Development throughout the development process. 15. In anticipation of the New Development, the Board, the City, and the Developer will meet to discuss the potential roles and responsibilities of any existing employees of Kottinger Place Development and Pleasanton Gardens Development at the New Development. 16. In the event that despite making best efforts, the Developer, the Housing Authority or the City is unable to perform all tasks anticipated in this MOU including City approval of the New Development's PUD and HUD approval of the demolition and disposition of the Kottinger Place Development as authorized by the Housing Act of 1937, as amended, or if the necessary entitlements or environmental approvals under the California Environmental Quality Act ("CEQA") and the National Environmental Policy Act("NEPA") are not obtained, then, the Board, the Housing Authority, and the City shall meet in good faith to determine whether a mutually acceptable amendment to this MOU and/or modification to the scope of development for the New Development is feasible. If the Board, the Housing Authority, and the City are unable to agree on a mutually satisfactory modification, either the Board, the Housing Authority, and the City may agree to terminate the MOU and thereafter no party shall have any further rights or liability against the others under the MOU. 17. The term of this MOU will commence on the 5th day of November, 2013, and terminate upon the execution of the Transfer Agreement. Page 5 of 6 191\52\1404312.3.10 23.2013