Income and Rent Restrictions in Event of Loss of Subsidy. If the project based rental assistance or RAD Program rental assistance being received by the Project is terminated or substantially reduced, the occupancy and rent restrictions set forth in Sections 4(a)(i) and (ii) may be altered, but only to the minimum extent required for the financial feasibility of the Project, as determined by the City in its reasonable discretion in accordance with substantially similar underwriting criteria used by the City to evaluate the Project’s financial feasibility prior to the Closing Date, provided that, in any event, at least 40% of the units shall at all times be occupied by Tenants whose Adjusted Income does not exceed sixty percent (60%) of Median Income for the Area and the monthly rent paid by such Tenants shall not exceed 30% of 60% of Median Income for the Area; and provided, further, that a Very Low Income Tenant shall not be subject to eviction because of the loss of Section 8 tenant based or project-based rental assistance, other than through the action of the Very Low Income Tenant, including without limitation non-compliance with the terms and conditions of the tenant lease, so long as the Very Low Income Tenant continues to qualify as a Very Low Income Tenant and continues to pay the Tenant’s portion of the rent permitted to be charged that Very Low Income Tenant pursuant to Section 4(a) and is in compliance with all terms and conditions of the Tenant’s lease. In such event, the City shall use good faith efforts to meet with Owner within fifteen (15) days after Owner’s written request and determine any rent increase within sixty (60) days after Owner’s initial written request to meet. The relief provided by this section shall not be construed as authorizing the Owner to exceed any income or rent restrictions imposed on the Project by CDLAC, CTCAC or other agreements, and the Owner represents and warrants that it shall have obtained any necessary approvals or relief from any other applicable income and rent limitations prior to implementing the relief provided by this Section.
Income and Rent Restrictions in Event of Loss of Subsidy. In the event that the project based rental assistance is terminated or substantially reduced, the occupancy and rent restrictions set forth in Sections 4(a)(i) and (ii) may be altered but only to the maximum extent required for the financial feasibility of the Project, as a determined by the City in its reasonable discretion in accordance with substantially similar underwriting criteria used by the City to evaluate the Project’s financial feasibility prior to the Closing Date, provided that, in any event, at least 40% of the units shall at all times be occupied by Tenants whose Adjusted Income does not exceed sixty percent (60%) of Median Income for the Area and the monthly rent paid by such Tenants shall not exceed 30% of 60% of Median Income for the Area, less the utility allowance. In such event, the City shall use good faith efforts to meet with Owner within fifteen
