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Section 2.3 Allowable Rent. <br />A. Extremely Low -Income Rent. Subject to Section 2.3 below, the Rent <br />charged to Residents of the Extremely Low -Income Units shall not exceed an Extremely Low - <br />Income Rent. <br />B. Assumed Household Size. In calculating the allowable Rent for the Units, <br />the following "Assumed Household Sizes" shall be utilized if the Project receives an allocation of <br />low income housing tax credits, otherwise Assumed Household Size shall be determined pursuant <br />to the terms of Health and Safety Code Section 50052.5(h): <br />Number of Bedrooms Assumed Household Size <br />Studio 1 <br />One 2 <br />Two 3 <br />Three 4 <br />C. No later than November 1 of each calendar year, the City shall provide the <br />Owner with a schedule of permissible maximum Extremely Low -Income Rents for the succeeding <br />year. Under no circumstance may Owner raise rents above the permissible maximum rents as <br />allowed under the annual rent schedule provided by the City. <br />Section 2.4 Displacement Reduction Policy. Owner acquired the property with the <br />intent to provide housing for Extremely Low Income Households. At the time of acquisition, the <br />Property was operated as a market rate property, with no income limits or restrictions. As of the <br />Effective Date, there are currently ten (10) Units occupied by Existing Tenants. Due to the high <br />cost and low availability of housing in the greater Redwood City area, Owner shall follow a <br />Displacement Reduction Policy, in which Owner shall collect income verification information <br />from any Existing Tenant who wishes to voluntarily provide income verification information to <br />Owner to be used to determine each such resident's qualification for low income housing. For any <br />Existing Tenant that qualifies as an Extremely Low Income Household, such (i) Existing Tenant's <br />Rent shall be decreased to an Extremely Low Income Rent; and (ii) upon termination of occupancy <br />of a Unit by the Existing Tenant, such Unit shall be made available for rent by another Extremely <br />Low Income Household in accordance with this Agreement. For any Existing Tenant that qualifies <br />as a Low Income Household or Very Low Income Household, (i) such Existing Tenant's Rent <br />shall be decreased to a Low Income Rent or a Very Low Income Rent, as applicable; and (ii) upon <br />termination of occupancy of a Unit by the Existing Tenant, such Unit shall be made available for <br />rent by an Extremely Low Income Household. For any Existing Tenant that qualifies for a rent <br />reduction as provided above, such Existing Tenant shall provide annual income verification to <br />Owner and rent shall be adjusted based on the income level of the Existing Tenant. Those Existing <br />Tenants that either choose not to provide such income verification information or fail to qualify as <br />Low, Very Low or Extremely Low Income Households, shall not receive the benefits set forth <br />herein and shall continue to be treated and managed as market rate tenants until such time as their <br />tenancies are ended. As the tenancies of any such Existing Tenant that is not qualified as a Low, <br />ATTY/AGR/2022.389.02 - HARBOR VIEW PROJECT DA—AFFORDABLE HOUSING COVENANT (86 RENATO COURT) <br />REV: 03-15-23 VR <br />Page 5 of 21 <br />