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(i) The Relocation Assistance and Real Property Acquisition Policies Act of <br /> 1970, and applicable HOME regulations at 24 CFR 92.353. <br /> (ii) Owner shall not refuse to lease units in the Project to certificate or voucher <br /> holders pursuant to 24 CFR Part 982 (Section 92.252(d)). <br /> (iii) Owner shall maintain the Project in compliance with the property <br /> standards at 24 CFR 92.251, for the entire term of this Agreement. <br /> (iv) Owner shall comply with Section 504 of the Rehabilitation Act of 1973 as <br /> amended, which prohibits discrimination on the basis of handicap in programs and activities <br /> receiving federal or City assistance,and shall comply with the non-discrimination requirements <br /> of 41 CFR 60-741.5(a). <br /> 2.3 Rents for Restricted Units; Unit Sizes. For all Restricted Units(other than the <br /> HOME-Assisted Units during the HOME Restriction Term), rents shall be limited to Affordable <br /> Rents for households of the applicable income limit in accordance with Section 2.1 and Exhibit <br /> B. The Restricted Units shall be allocated among affordability categories as set forth in Exhibit <br /> B. Notwithstanding the foregoing, no tenant qualifying for a Restricted Unit shall be denied <br /> continued occupancy of a unit in the Project because, after admission, such tenant's household <br /> income increases to exceed the qualifying limit for such Restricted Unit. A household which at <br /> initial occupancy qualifies in a particular income category shall be treated as continuing to be of <br /> such income category so long as the household's gross income does not exceed one hundred forty <br /> percent(140%)of the applicable income limit. In the event the gross household income of a <br /> household that qualified at the applicable income limit at initial occupancy exceeds the <br /> applicable income limit for a unit, that unit will continue to be considered as satisfying the <br /> applicable income limit if the unit remains Rent-Restricted. In the event a tenant's household <br /> income exceeds the limits specified in this Section, Owner shall apply the rules applicable to the <br /> Project pursuant to Section 42 of the Internal Revenue Code of 1986, as amended and the federal <br /> Regulations applicable thereto. In the event of inconsistency between the provisions of this <br /> Section 2.3 and the rules applicable to the Project in connection with low-income housing tax <br /> credits,the rules applicable pursuant to such financing source shall prevail. <br /> 2.4 Manager's Unit. One (1)dwelling unit in the Project may be used as resident <br /> manager's unit, and shall be exempt from the occupancy and rent restrictions set forth in this <br /> Agreement. <br /> 2.5 No Condominium Conversion. Owner shall not convert the Project to <br /> condominium or cooperative ownership or sell condominium or cooperative rights to the Project or <br /> any part thereof during the term of this Agreement. <br /> 2.6 Non-Discrimination; Compliance with Fair Housing Laws. <br /> 2.6.1 Preference for City of Pleasanton Residents and Employees. In order to <br /> ensure that there is an adequate supply of affordable housing within the City of Pleasanton for <br /> residents and employees of businesses within the City, to the extent permitted by law and <br /> consistent with the program regulations for funding sources used for development of the Project, <br /> 8 <br /> OAK #4832-3506-8205 v2 <br />