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202. (c) Monthly Rent. For purposes of this Agreement, "Monthly Rent" <br />means the total of monthly payments actually made by the household for (a) use and <br />occupancy of each BMR Unit and land and facilities associated therewith, (b) any <br />separately charged fees or service charges mandatorily assessed by the Owner which are <br />required of all tenants, other than security deposits, (c) a reasonable allowance for an <br />adequate level of service of utilities not included in (a) or (b) above, and which are not <br />paid directly by the Owner, including garbage collection, sewer, water, electricity, gas <br />and other heating, cooking and refrigeration fuels, but not including telephone service, <br />cable, and intemet service, and (d) possessory interest, taxes or other fees or charges <br />assessed for use of the land and facilities associated therewith by a public or private <br />entity other than Owner. A sample utility allowance schedule prepared by San Mateo <br />County as of the date of this Agreement is attached as Exhibit E. <br />203. Lease Requirements. At least ninety (90) days prior to occupancy of any <br />residential space in the Project, the Owner shall submit a standard lease form for approval <br />by the Director. The City shall reasonably approve such lease form upon finding that <br />such lease form is consistent with this Agreement and contains all of the provisions <br />required by the Guidelines. The Owner shall enter into a written lease, in the form <br />approved by the City, with each new tenant of a BMR Unit upon such tenant's rental of <br />the BMR Unit. Each lease shall be for an initial term of not less than one year, and shall <br />not contain any of the provisions which are prohibited by the Guidelines. <br />204. Selection of Tenants. Each BMR Unit shall be leased to tenant(s) selected <br />by the Owner who meet all of the requirements provided herein, and, to the extent <br />permitted by law, with priority given to those eligible households who either live or work <br />in the City of Menlo Park. The City may, from time to time, provide to the Owner names <br />of persons who have expressed interest in renting BMR Units for the purposes of adding <br />such interested persons to Owner's waiting list to be processed in accordance with <br />Owner's customary policies. The Owner shall not refuse to lease to a holder of a <br />certificate or a rental voucher under the Section 8 program or other tenant -based <br />assistance program, who is otherwise qualified to be a tenant in accordance with the <br />approved tenant selection criteria. <br />205. Maintenance. The Owner shall maintain or cause to be maintained the <br />interior and exterior of the Property in a decent, safe and sanitary manner, and consistent <br />with the standard of maintenance of first class multifamily apartment projects within San <br />Mateo County, California of the age of the Property improvements. If at any time Owner <br />fails to maintain the Property in accordance with this Agreement and such condition is <br />not corrected within five (5) days after written notice from the City with respect to <br />graffiti, debris, waste material, and general maintenance, or thirty (30) days after written <br />notice from the City with respect to landscaping and building improvements (or such <br />longer time in accordance with Section 301 of this Agreement), then the City, in addition <br />to whatever remedy it may have at law or at equity, shall have the right to enter upon the <br />applicable portion of the Property and perform all acts and work necessary to protect, <br />maintain, and preserve the Property, and to attach a lien upon the Property, or to assess <br />the Property, in the amount of the expenditures arising from such acts and work of <br />5 <br />AFDOCS/13476288.3 <br />1677\05\2006712.5 <br />1/1017 PAGE 322 <br />