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B. Casualties. If one or more of the Units are damaged or destroyed by fire or <br /> other casualty and the use of such Unit(s) in conformance with the Use Requirement ceases <br /> during a period of repairs and/or reconstruction; provided that (i) PHA is timely notified of the <br /> casualty; (ii) Owner uses commercially reasonable efforts to cause the Unit(s) to be repaired or <br /> restored to substantially the same condition as existed prior to the event causing damage or <br /> destruction, (iii)the Unit(s) are actually repaired or restored within two (2) years after the date of <br /> the casualty, or such longer period as may be approved by HUD in writing, such approval not to <br /> be unreasonably withheld, conditioned or delayed, and (iv) the Unit(s) are thereafter operated in <br /> accordance with the Use Requirement for the remainder of the Restricted Period. <br /> C. Takings. If the Units are taken for any public or quasi-public use under <br /> governmental law, ordinance or regulation, or by right of eminent domain, or by private purchase <br /> in lieu thereof(a "Taking"), or if any other portion of the Disposition Property in which one or <br /> more of the Units are located, which property is necessary for a tenant's occupancy of one of the <br /> Units, has been subject to a Taking; provided that (i) PHA is timely notified of the Taking; (ii) <br /> Owner applies funds received as a result of the Taking to the acquisition and development of <br /> replacement residential units that will be operated in accordance with the Use Requirement, (iii) <br /> the new units are acquired or developed within two (2) years after the date of the Taking, or such <br /> longer period as may be approved by HUD in writing, such approval not to be unreasonably <br /> withheld, conditioned or delayed, and (iii) the new units are thereafter operated in accordance <br /> with the Use Requirement for the remainder of the Restricted Period. <br /> 3. Events of Default. In the event the Use Requirement ceases to be satisfied prior <br /> to the expiration of the Restricted Period: <br /> A. Notices of Violation. PHA shall give to each of Lessee and Owner written <br /> notice of the failure (a "Notice of Violation"). Each of Lessee and Owner shall have thirty (30) <br /> calendar days after the date on which a Notice of Violation is received in accordance with <br /> Section 8 below to cure the failure; provided that, if such Owner and/or Lessee uses <br /> commercially reasonable efforts to cure the failure within the prescribed thirty (30) day period <br /> and is unable to do so, HUD may approve in writing an extension of an additional thirty (30) <br /> calendar days to cure the failure, such approval not to be unreasonably withheld, conditioned or <br /> delayed. <br /> B. Events of Default. PHA is hereby authorized, and shall take whatever <br /> investigative steps it deems necessary to ensure compliance. If, after receiving a Notice of <br /> Violation, the failure is not corrected to the satisfaction of PHA within the prescribed amount of <br /> time, PHA may declare a default under this Section 3 (an "Event of Default") without further <br /> notice. <br /> C. Remedies. In an Event of Default by Owner and/or Lessee, to the extent <br /> permitted by applicable law, PHA shall have the right to seek specific performance of the Use <br /> Requirement and/or to enjoin any violation of the Use Requirement in a court of competent <br /> jurisdiction. The right to specific performance and injunction shall be in addition to all other <br /> remedies available under statute, at law or in equity. <br /> Page 3 of 16 <br />