RecDoc 2019-047033 Affordable Housing Reg Agmt

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household income eligibility or affordability requirements than those imposed hereby, the requirements (including without limitation, the rent and occupancy requirements imposed in connection with the use of project based Section 8 vouchers, housing choice vouchers, or other rent subsidies) of such other lenders, investors or regulatory agencies shall prevail. Without limiting the generality of the foregoing, if any residential units in the Project are subsidized with Section 8 project -based vouchers through a Housing Assistance Payment Contract with HUD or a local Housing Authority, the rules and regulations applicable to such program shall prevail with respect to the setting of rents, implementation of occupancy requirements, and determination of household Gross Income for such units. 2.2 Rents for Restricted Units. For all Restricted Units, rents shall be limited to Affordable Rents for households of the applicable income limit in accordance with Sections 2.1 and 2.1.1. The Restricted Units shall be allocated among affordability categories asset forth in Sections 2.1 and 2.1.1. Notwithstanding the foregoing, no tenant qualifying for a Restricted Unit shall be denied continued occupancy of a unit in the Project because, after admission, such tenant's household income increases to exceed the qualifying limit for such Restricted Unit. A household which at initial occupancy qualifies in a particular income category shall be treated as continuing to be of such income category so long as the household's Gross Income does not exceed one hundred forty percent (140%) of the applicable income limit. In the event the household Gross Income of a household that qualified at the applicable income limit at initial occupancy exceeds the applicable income limit for a unit, that unit will continue to be considered as satisfying the applicable income limit if the unit remains Rent -Restricted. In the event that recertification of tenant incomes indicates that the number of Restricted Units actually occupied by Eligible Households falls below the number reserved for each income group as specified in Section 2.11 Owner shall rectify the condition by renting the next available dwelling unit(s) in the Project to Eligible Households) until the required income mix is achieved. In the event of inconsistency between the provisions of this Section 2.2 and the rules applicable to the Project in connection with low-income housing tax credits, HUD financing, the HOME Program or the CDBG Program, or the regulations applicable to other sources of Project financing, the rules and regulations applicable to such other financing sources shall prevail. 2.3 Manager's Unit. One (1) dwelling unit in the Project may be used as a resident manager's unit, and shall be exempt from the occupancy and rent restrictions set forth in this Agreement. 2.4 No Condominium Conversion. Owner shall not convert the residential units in the Project to condominium or cooperative ownership or sell condominium or cooperative rights to the residential units in the Project during the term of this Agreement. 2.5 Non -Discrimination: Compliance with Fair Housing Laws. 2.5.1 Preference for Displaced Persons. At initial lease -up of the Project following completion of rehabilitation, Owner shall provide Eligible Households who have been OAK #9820-8711-2085 v4 ATTY/AGR.2019.148/Redwood Oaks Associates 11 LP - Regulatory Agreement