Reso25-02 0024 PC Reso 901 El Camino Real

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Page 9 of 42 Number of Bedrooms Assumed Household Size Studio 1 One 1.5 Two 3 Three 4.5 Section 2.3 Increased Income of Residents. (a) Very Low-Income Household to Low-Income Household. If, upon recertification of a Household's Income, the Affordable Developer determines that a former Very Low-Income Household's Income has increased and exceeds the qualifying income for a Very Low-Income Household by more than ten percent (10%) but does not exceed the qualifying limit for a Low-Income Household, then, upon expiration of the Resident's lease term: (1) such Resident's unit may be considered a Low-Income Unit; (2) such Resident's Rent may be increased to a Low-Income Rent, upon six (6) months prior written notice to the Resident; and (3) the Affordable Developer shall rent the next available Low-Income Unit of comparable size to a Very Low-Income Household at a Very Low-Income Rent. (b) Non-Qualifying Household. If, upon recertification of a Household's Income, the Affordable Developer determines that a former, Very Low-Income Household or Low-Income Household has a Household Income exceeding the maximum qualifying income for a Low-Income Household by more than ten percent (10%), such Resident shall be permitted to continue occupying the unit and upon expiration of the Resident's lease and upon six (6) months prior written notice, the Resident may continue to reside in the unit and the Rent may be increased to the lesser of one-twelfth (1/12th) of thirty percent (30%) of actual adjusted income of the Resident, or fair market rent. Affordable Developer shall rent the next available Unit to, a Very Low Income Household or a Low Income Household as applicable to comply with the requirements of Section 2.1 above, at a Rent not exceeding the maximum Rent specified in Section 2.2. The parties hereto agree that, notwithstanding any increase in a Resident's income, such Resident may only be evicted from their unit for cause consistent with the requirements set forth in Section 1946.2 of the California Civil Code. (c) Termination of Occupancy. Upon termination of occupancy of a unit by a Resident, such Affordable Unit shall be deemed to be continuously occupied by a household of the same income level (e.g., Very Low-Income Household or Low-Income Household) as the last income level for which the vacating Resident qualified, until such Affordable Unit is reoccupied, at which time the income character of the Affordable Unit (e.g., Very Low-Income Unit or Low- Income Unit) shall be redetermined. In any event, Affordable Developer shall maintain the occupancy requirements set forth in Section 2.1 abovesubject to adjustment periods that may result from compliance with this Section 2.3. (d) Float Up. Notwithstanding any covenant of this Agreement to the contrary, in the event of a termination or material reduction of Section 8 project-based vouchers or other rental assistance for the Units, or upon a foreclosure of any deed of trust (or transfer of the Project by deed in lieu thereof), the Parties agree that the following shall apply: ATTY/RESO.0024/PC RESO 901 EL CAMINO REV: 04-11-25 VR