KOTTINGER GARDENS PHASE 2 AGREEMENTS

u NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows. 1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits. "Actual Household Size" means the actual number of persons in the applicable household. "Adjusted for Family Size Appropriate for the Unit" shall be determined consistent with Section 50052.5(h) of the California Health and Safety Code, subject to the application of federal rules and regulations applicable to Project financing sources, including Section 42(g)(2) of the Internal Revenue Code of 1986 as amended (or successor provision). "Affordable Rent" means the following amounts, less a utility allowance and other fees and charges required to be paid by tenants of the Project on a non -optional basis: (i) for units that are restricted for rental to households with incomes of not more than sixty percent (60%) of AMI ("60% Units"), a monthly rent that does not exceed one -twelfth of thirty percent (30%) of sixty percent (60%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, and (ii) for units that are restricted for rental to households with incomes of not more than eighty percent (80%) of AMI ("80% Units"), a monthly rent that does not exceed one -twelfth of thirty percent (30%) of eighty percent (80%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit "Area Median Income" or "AMI" means the median income for Alameda County, California, adjusted for Actual Household Size, as determined pursuant to California Tax Credit Allocation ("TCAC") regulations. "City's Authorized Representative" means the City Manager of the City of Pleasanton. "City Documents" means the Loan Agreement, the Note, the Deed of Trust, the Ground Lease, and this Agreement. "Claims" is defined in Section 2.7. "Deed of Trust" is defined in Recital E. "Eligible Household" means a household for which gross household income upon initial occupancy does not exceed the maximum income level for a Restricted Unit as specified in Section 2.2 and Exhibit B and which includes at least one member who is age 62 or older or other qualifying resident as defined in California Civil Code Section 51.3. "Ground Lease" is defined in Recital B. "Indemnitees" is defined in Section 2.7. 3 OAK #4821-6084-0273 v5