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ATTY/RESO.0020/CC RESO APPROVING AMENDMENTS TO HPP GUIDELINES – EXHIBIT B REV: 05-04-26 LF Page 60 of 86 submission of such Annual Report. 2.5 Restrictive Covenant for Affordable Units on the Property. The Owner shall make available and rent the Affordable Units as follows: _________ (__) units shall be available and rented to households whose income does not exceed the maximum income for Extremely Low Income Households (collectively, the “Extremely Low Income Units”); (ii) _________ (__) units shall be available and rented to households whose income does not exceed the maximum income for Very Low Income Households (collectively, the “Very Low Income Units”); and _________ (__) units shall be available and rented to households whose income does not exceed the maximum income for Very Low Income Households (collectively, the “Low Income Units”). 2.6 Continuous Operation Covenant. The Owner covenants to and for the benefit of the City to cause the Development to be continuously operated, in accordance with the other provisions of this Section 2, throughout the Term. 2.7 Abandonment. The Owner shall not abandon or surrender the operation of all or any part of the Development during the Term, except due to material casualty or condemnation. 2.8 Affordable Rent. The monthly rent charged to a Qualifying Household for the occupancy of an Affordable Unit may never exceed an Affordable Rent for such Affordable Unit. 2.8.1 Rent Increases. Rent for Affordable Units may be increased only once per calendar year, based on changes in Area Median Income; provided that the City may, in its reasonable discretion, waive the restriction on number of rent increases in a calendar year. Notwithstanding the foregoing, annual rent increases shall not be more than five percent (5%) per year, and the rent for each Affordable Unit must never exceed an Affordable Rent for the Affordable Unit. 2.8.2 Determination of Household Income. Determination of Qualifying Household income shall be made by the Owner within six (6) months after recordation of this Agreement for those Affordable Units that are rented to Qualifying Households at the time of recordation, and subsequently at the time of initial application by an individual or family for occupancy of an Affordable Unit. At the time of initial application, the Owner shall require an applicant to complete the Income Certification Form and certify the accuracy of the information provided on such form. Annually thereafter, the Owner shall require each Qualifying Household occupying an Affordable Unit to recertify the Qualifying Household’s income on the Income Certification Form. The Owner shall make a good faith effort to verify the accuracy of income information provided in any Income Certification Form by an applicant for occupancy of an Affordable Unit or by a Qualifying Household occupying an Affordable Unit, by following the income eligibility determination requirements outlined in the City’s Affordable Housing Program Guidelines published on the City’s website. For purposes of this Section 2.8.2, the Owner may conclusively rely upon the evidence of the age of the occupant(s) of an Affordable Unit as presented in a valid California Driver’s License, other form of identification issued by the State of California or the United States Government, which includes a date of birth. All such verification information shall only be obtained by the Owner after obtaining the applicant’s or the Qualifying Household’s written consent for the release of such information to the Owner. Failure to consent in writing to the release of such income verification information to the Owner may disqualify an