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and to facilitate linkages with other agencies so that clients receive needed services. GGRC is able to purchase services for clients that are not available from other publicly- funded agencies, including affordable supportive housing. ARTICLE 2. RENT, INCOME AND OCCUPANCY RESTRICTIONS All of the Affordable Bedrooms located on the Property shall be rented to Qualified Persons at an Affordable Rent. Notwithstanding the foregoing, Declarant may, in its sole reasonable judgment, elect to have a full -time manager residing on the Property in one of the dwelling bedrooms that is not one of the Affordable Bedrooms and such bedroom shall not be subject to the above affordability restrictions so long as such bedroom is occupied by a full -time on -site manager for the Property. Not more than once per year, Declarant may adjust rents in occupied Affordable Units to the most current level allowed consistent with the determination of Affordable Rent as defined in Section 1.01. City shall provide Declarant with a list of all rent ceilings reflecting the annual adjustments in the income limits for Qualified Persons provided by HUD and the State of California Department of Housing and Community Development ( "HCD "). Declarant must notify each tenant and City in writing of any increase in monthly rent for an Affordable Bedroom at least thirty (30) days in advance of the effective rent adjustment date. The written notice of rent increase provided to City shall indicate: (1) the rent adjustment for each Affordable Bedroom; (2) the new rental amount for each Affordable Bedroom; and (3) the effective date of the adjustment for each Affordable Bedroom. Failure to provide the notice required shall be considered a default by Declarant under this Declaration. The determination of the status as a Qualfied Person shall be made by Declarant prior to initial occupancy of an Affordable Bedroom and such determination shall be subject to review and approval by City. Each Qualified Person shall execute under penalty of perjury an income verification and information form ( "Income Verification and Information Form "), in a form reasonable acceptable to the City, certifying the tenant's income and qualification as a developmental disabled person. Declarant shall not discriminate against prospective tenants with qualified Public Housing Authority Section 8 certificates or vouchers who are otherwise qualified. Declarant shall notify City in writing whenever the tenant in an Affordable Bedroom changes. The notice shall indicate the name of the tenant vacating the Affordable Bedroom. Once the Affordable Bedroom is reoccupied, Declarant shall notify City in writing of the new tenant's name, initial occupancy date, rent paid per month and gross annual income and shall provide City with the Qualified Person's Income Verification and Information Form. Declarant shall obtain a copy of the federal income tax return for each tenant occupying an Affordable Bedroom for the taxable year immediately preceding such tenant's initial occupancy of the Affordable Bedroom, or if a tenant occupying an Affordable Bedroom certifies that he or she did not file or did not retain a copy of such tax return, other evidence, satisfactory to City, that tenant's income complies with the definition of a Qualified Person. Immediately prior to the first July 15 following the occupancy of an Affordable Bedroom by a Qualified Person, and on each anniversary date thereafter, Declarant shall re- certify the income of the tenant of each Affordable Bedroom by obtaining a new completed Income Verification and Information Form based upon the current income of such tenant. If an occupant of an Affordable Bedroom no longer qualifies as a Qualified Person due to an increase in income above the limitation set forth in Section 1.02 (b), the tenant may continue to occupy the Affordable Unit; provided, tenant pays as rent the lesser amount payable under state or local law or thirty percent (30 %) of the tenant's adjusted income, in which case the Affordable Bedroom and tenant shall be deemed to be in compliance with this Declaration. Exhibit D 3