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103. Compliance with Laws. The Owner shall carry out the acquisition, <br />design, construction and operation of the Project in conformity with all applicable laws, <br />including all applicable state labor standards, City zoning and development standards, <br />building, plumbing, mechanical and electrical codes, and all other provisions of the City <br />Municipal Code, to the extent that these laws, codes, and standards are consistent with <br />the provisions of the Development Agreement. The Owner shall also ensure that the <br />Project is constructed and operated in compliance with all applicable disabled and <br />handicapped access requirements, including without limitation the Americans With <br />Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et <br />seq., Government Code Section 11135, et seq., and the Unruh Civil Rights Act, Civil <br />Code Section 51, et seq. <br />200. OPERATION OF HOUSING <br />201. (a) BMR Units. The BMR Units shall be of a quality comparable to <br />all of the other rental units in the Project. The BMR Units shall be one and two bedroom <br />units initially distributed within the Project in accordance with the schedule set forth in <br />Exhibit C. Thereafter, the location of the individual BMR Units may float to account for <br />the Next Available Unit Requirement set forth below and as otherwise necessary for the <br />smooth and professional maintenance of the Project, provided that the location of BMR <br />Units shall be equitably distributed throughout the Project and the City's Director of <br />Community Development ("Director") shall be notified of any change or relocation of <br />BMR Units. <br />201. (b) Low Income Units. As described in Recital C above, the Owner <br />agrees to make available, restrict occupancy to, and lease not less than fourteen (14) of <br />the rental units on the Property exclusively to Low Income Households at Affordable <br />Low Income Rent, as defined below. For purposes of this Agreement, "Low Income <br />Households" shall mean those households with incomes that do not exceed the low <br />income limits for San Mateo County, adjusted for household size, as set forth in the <br />Guidelines, and as established and amended from time to time in accordance with the low <br />income limits for San Mateo County established by the State of California in the <br />California Code of Regulations, Title 25, Section 6932 or successor provision ("Low <br />Income Limits"). A qualified Low Income Household shall continue to qualify unless at <br />the time of recertification, for two consecutive years, the household's income exceeds the <br />Low Income Limits, then the tenant shall not longer be qualified. Upon the Owner's <br />determination that any such household is no longer so qualified, the unit shall no longer <br />be deemed a Low Income Unit, and the Owner shall make the next available unit, which <br />is comparable in terms of size, features and number of bedrooms, a Low Income Unit <br />("Next Available Unit Requirement") and take such other actions, including as <br />specified in Section 11, 1.7 of the Guidelines, as may be necessary to ensure that the total <br />required number of units are rented to Low Income Households. The Owner shall notify <br />the City annually if Owner substitutes a different unit for one of the designated Low <br />Income Units pursuant to this paragraph. <br />3 <br />AFDOCS/13476288.3 <br />1677\05\2006712.5 <br />1n8n017 PAGE 320 <br />