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6.1.G. - Page 6 Article IV Rental Affardabi�it Covenants Section 4.01. Rentaf Affordabilitv Co�enants. A. During the Rentaf Affordability Co�enants Term, OWNER co�enants and agrees that the Affordable Units shall be made a�ailable only to "persons and families of lower income" as those terms are defined by California Health and 5afety Code section 50079.5{a), whose gross incomes are t�etween sixty percent (6D°/o) and eighty percent (8D%) of HUD's Area Median Income for San Mat�o Cpunty ("AM�"), as adjusted from time to time (°QualFfied Lessees°) at "affordable rent" as defined in California Health and Safety Code section 5QQ53{b)(3). B. Each Affordable Unit shall be occupiad as the princi�al Residence of Qualified �essee and for no other purpose. A Quaiified Lessee shall not enter into agreements �or the sublease of the Affardable Unit or otherwise allow for the rental or lease of an Affordable Unit to any other person and any attempt ta sublease such unif shall render the iease of such Qualified Lessee null and void. C. Affordabfe lJnits sl�al! not exceed the maximum occupar�cy allowed pursuant to the general requirernents of the Uni#ed States Department of Housing and Urban developrrtent, which as of the date o� this Agreement, is two (2) persons per bedroam, plus one (1) person. D. Affordable Units with two bedroorr�s shall be leased #o households of no less than two persons. E. Occupancy of Affardable Llnits by and quafifcation of eligible lower-income tenants shall be the responsibility of the OWN�R or an authorized agent of the OWNER. Annual leases shafl be offered to Quafified Lessees of Affordable lJnits. Wthin 30 days of the annual anniversary date of occupancy of an Affordable Unit by a Qualified Lessee, OWNER shafi re-certify the qualifieations of the Qualified Lessee in accordar�ce with the requirements ofi this Article. If, upon recertification, OWNER determines that the Qualified �essee's Gross lncame, as that term is defined in section 1.02 above, has risen abave the then-in-effect allawable 80% area median incame, the unit shall become a Market Rate Unit and the next a�ailable, camparable unit shafl become an Affordable Unit, provided, howe�er, that in na evertt shalf the r�urttber of Affordable Units fall below twenty two (22), with eleven (1�) being one bedroam units and eleven (11) being two bedroom units. On #he conversion of the tenancy of an Afforda�le Unit to a Market Rate Unit, the Affordable Unit shall continue to be deemed an Affordabie Unit until the nex# comparable uni# becomes a�ailable. Sect�on 4.02. Term of Rental Affordabilit Co�enants. OWNER hereby agrees that the Rental Affordability Co�enants as described in Section 4.01 abo�e shafi Eae effecti�e as of #he date of recordation of this Agreement, and shall remain in effect until the fifty-fifth (55�) anni�ersary of said date (the "Rental Affordability Co�enants Term"). Section 4.�3. Compliance with Rentaf Affordabilifv Covenants In order to ensure corr�pliance with this Article, each of the following shall occur: A. OWNER shafE submit for review and approval by CITY, its MarEceting Plan ATTYIAGR/2p1'l.1411640 VETERANS WAY—AFFQR�ABILITY AGREEMENT R�V:12/29111 Page 4 of 20