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affordability restrictions set forth in this Agreement,and Owner covenants that it shall not enter <br /> into any agreement that is inconsistent with such restrictions without the express written consent <br /> of City. <br /> 2.1 Senior Housing. Owner has elected to operate the Project as a senior housing <br /> development and as such to require all dwelling units in the Project except for the manager's unit <br /> to be occupied or held available for occupancy by households that include"elderly" or"senior" <br /> residents in accordance with applicable law. To the extent applicable, the Project will be <br /> operated at all times in accordance with (a)the Unruh Act, including without limitation <br /> California Civil Code Sections 51.2, 51.3, and 51.4; (b)the federal Fair Housing Act, 42 U.S.C. <br /> Section 3607(b)and 24 CFR 100.304; (c)the California Fair Employment and Housing Act, <br /> Government Code Section 12900 et seq., and(d)all other applicable laws and regulations. <br /> Owner shall develop and implement appropriate age verification procedures to ensure <br /> compliance with this Section 2.1, and shall provide City with a copy of such verification <br /> procedures. Owner will indemnify, defend, and hold the Indemnitees harmless from all Claims <br /> arising out of Owner's failure to comply with applicable legal requirements related to housing for <br /> seniors. The indemnity provisions of this paragraph shall survive the expiration or other <br /> termination of this Agreement. <br /> 2.2 Affordability and Occupancy Requirements. Throughout the term of this <br /> Agreement(as defined in Section 4.1 below): (i) not less than sixty-four(64)of the residential <br /> units in the Project(including the three(3) HOME-Assisted Units described in Section 2.2.1 <br /> below)(i.e., 49%of the total number of units) shall be both Rent Restricted and occupied(or if <br /> vacant, available for occupancy)by Eligible Households whose gross household income is no <br /> greater than sixty percent(60%)of AMI; and(ii)the remaining units in the Project(except for <br /> the manager's unit which will not be subject to affordability or occupancy restrictions) shall be <br /> both Rent Restricted and occupied(or if vacant,available for occupancy) by Eligible Households <br /> whose gross household income is no greater than eighty percent(80%)of AMI. One(1)of the <br /> residential units in the Project shall be a manager's unit for which rent will not be restricted. <br /> Notwithstanding any contrary provision of this Agreement, for the duration of the HOME <br /> Restriction Term, the HOME-Assisted Units shall be subject to the rent and occupancy <br /> requirements set forth in Section 2.2.1. For the purpose of determining whether a household is <br /> an Eligible Household: (i) for the HOME-Assisted Units, during the HOME Restriction Term, <br /> gross household income shall be determined in accordance with Section 2.2.1.2(c) below, and (ii) <br /> for the remainder of the units in the Project, gross household income shall be determined in <br /> accordance with TCAC regulations and federal regulations applicable to low-income housing tax <br /> credits. <br /> Notwithstanding any contrary provision of this Agreement, for units that are subsidized <br /> with Section 8 project-based vouchers,the rules and regulations applicable to such program shall <br /> prevail with respect to the setting of rents, implementation of occupancy requirements, and <br /> determination of gross household income. <br /> In the event that recertification of tenant incomes indicates that the number of Restricted <br /> Units actually occupied by Eligible Households falls below the number reserved for each income <br /> group as specified in this Section 2.1 and Exhibit B, Owner shall rectify the condition by renting <br /> the next available dwelling unit(s) in the Project to Eligible Household(s) until the required <br /> 5 <br /> OAK #4832-3506-8205 v2 <br />