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Number of Bedrooms Assumed Household Size <br />Studio I <br />One 1.5 <br />Two 3 <br />Three 4.5 <br />Section 2.3 Increased Income of Residents. <br />(a) Extremely Low -Income Household to Very Low- or Low -Income <br />Household. If, upon recertification of a Household's Income, the Affordable Developer determines <br />that a former Extremely Low -Income Household's Income has increased and exceeds the <br />qualifying income for an Extremely Low -Income Household but does not exceed the qualifying <br />limit for a Very Low -Income Household or Low -Income Household, then, upon expiration of the <br />Resident's lease_ term: (l) such Resident's unit may be considered a Very Low -Income Unit or <br />Low -Income Unit, as applicable; (2) such Resident's Rent may be increased to a Very Low -Income <br />Rent or a Low -Income Rent, as applicable, upon six (6) months prior written notice to the Resident; <br />and (3) the Affordable Developer shall rent the next available Very Low -Income or Low -Income <br />Unit, as applicable, of comparable size to an Extremely Low -Income Household at an Extremely <br />Low -Income Rent. <br />(b) Very Low -Income Household to Low -Income Household. If, upon <br />recertification of a Household's Income, the Affordable Developer determines that a former Very <br />Low -Income Household's Income has increased and exceeds the qualifying income for a Very <br />Low -Income Household but does not exceed the qualifying limit for a Low -Income Household, <br />then, upon expiration of the Resident's lease term: (1) such Resident's unit may be considered a <br />Low -Income Unit; (2) such Resident's Rent may be increased to a Low -Income Rent, upon six (6) <br />months prior written notice to the Resident; and (3) the Affordable Developer shall rent the next <br />available Low -Income Unit of comparable size to a Very Low -Income Household at a Very Low - <br />Income Rent. <br />(c) Non -Qualifying Household. If, upon recertification of a Household's <br />Income, the Affordable Developer determines that a former Extremely Low -Income Household, <br />Very Low -Income Household or Low -Income Household has a Household Income exceeding the <br />maximum qualifying income for a Low -Income Household by more than ten percent (10%), such <br />Resident shall be permitted to continue occupying the unit and upon expiration of the Resident's <br />lease and upon six (6) months prior written notice, the Resident may continue to reside in the unit <br />and the Rent may be increased to the lesser of one -twelfth (1/12 1h) of thirty percent (30%) of actual <br />adjusted income of the Resident, or fair market rent. Affordable Developer shall rent the next <br />available Unit to an Extremely Low Income Household, a Very Low Income Household or a Low <br />Income Household as applicable to comply with the requirements of Section 2.1 above, at a Rent <br />not exceeding the maximum Rent specified in Section 2.2. The parties hereto agree that, <br />notwithstanding any increase in a Resident's income, such Resident may only be evicted from <br />their unit for cause consistent with the requirements set forth in Section 1946.2 of the California <br />Civil Code, <br />ATTY/AGR/2024.193.1—AFFORDABLE HOUSING LAND DONATION AGREE MENT —EMB ITG— RESTRICTIVE COVENANTSAGR <br />REV; 10-22-24 VR <br />Page 9 of 41 <br />