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Project ("HOME Affordability Restriction Period"), the HOME Units shall be subject to the
<br />affordability and occupancy requirements of this Agreement and shall be subject to the
<br />requirements of the HOME Program for the initial fifteen years period of the HOME
<br />Affordability Restriction Period. Developer shall provide the City with written notice of the
<br />designated HOME Units no later than the opening of escrow for the initial sale of any of the
<br />Units, which notice shall identify the unit and the unit size. The HOME Units shall include 1
<br />bedroom, 2 bedroom and 3 bedroom units. In no event shall there be fewer than six (6) HOME
<br />Units nor more than eleven (11) HOME Units.
<br />2.2 Occupancy as Principal_ Residence; No Short-term Rentals. The HOME Units
<br />must be occupied as the principal residence of the homeowner. The homeowner disclosures
<br />must provide that the prospective purchaser acknowledges and agrees that the HOME Unit
<br />must be occupied as the household's principal residence, and that the unit may not be subleased
<br />or made available as a short-term rental.
<br />2.3 Non -Discrimination; Compliance with Fair Housing Laws,
<br />2.3.1 Fair Housing. Developer shall comply with state and federal fair housing
<br />laws in the marketing and sale of the HOME Units in the Project.
<br />2.3.2 Non -Discrimination. Developer shall not restrict the rental, sale, lease,
<br />sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on
<br />the basis of race, color, religion, creed, sex, sexual orientation, gender identity, disability, marital
<br />status, ancestry, or national origin of any person. Developer covenants for itself and all persons
<br />claiming under or through it, and this Agreement is made and accepted upon and subject to the
<br />condition that there shall be no discrimination against or segregation of any person or group of
<br />persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
<br />Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision (m) and
<br />paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
<br />in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part
<br />thereof, nor shall Developer or any person claiming under or through Developer establish or
<br />permit any such practice or practices of discrimination or segregation with reference to the
<br />selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or
<br />vendees in, of, or for the Property or part thereof. Developer shall include such provision in all
<br />deeds, leases, contracts and other instruments executed by Developer, and shall enforce the same
<br />diligently and in good faith.
<br />2.3.3 Compliance with HOME Requirements. Developer shall comply with all
<br />applicable laws, rules, and regulations governing the use of the HOME Funds, including without
<br />limitation the requirements set forth in 24 C.F.R. Part 92, as amended, and the laws, rules, and
<br />regulations listed in Exhibit C. In the event of any conflict between this Agreement and
<br />applicable laws and regulations governing the use of the HOME Funds, the applicable laws and
<br />regulations shall govern.
<br />SF #4821-4436-6284 v2
<br />1619\01\3064651.1
<br />REV: 05-19-2021 SK
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