Common use of Selection of Tenants Clause in Contracts

Selection of Tenants. (a) Borrower shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by Governmental Lender Executive Director in his reasonable discretion, pursuant to which Borrower shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan and the Management Plan, which plans are required to be submitted by Borrower and approved by Governmental Lender. Throughout the remainder of the Qualified Project Period, Borrower shall establish and maintain for the Project waiting lists of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender shall be afforded a priority marketing period for thirty (30) days after receiving written notice from Borrower that one or more Housing Units will become vacant at the Project, during which time Governmental Lender and Borrower shall work cooperatively to select tenants for any vacant Housing Units at the Project. Borrower shall provide prompt written notice to Governmental Lender when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42, 103 and 141 and the rules and regulations governing such sections, Borrower’s waiting list of prospective, eligible tenants for Housing Units at the Project shall include and follow the following order of priority for selection of tenants, and Governmental Lender will follow such order of priority: (i) Very Low and Low Income Households, as applicable, who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, who are listed on Governmental Lender’s waiting lists for affordable housing and who live and/or work in Anaheim; (iii) Very Low and Low Income Households, as applicable, who have applied for and have received rental vouchers from Governmental Lender; and (iv) Very Low and Low Income Households, as applicable, who live and/or work in Anaheim. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower rents a Housing Unit to a household holding a portable rental voucher, the rental agreement (or lease agreement, as applicable) between Borrower, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant holding a portable rental voucher shall be not more than 30% of tenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations applicable to portable rental vouchers), as would otherwise be permitted under the applicable portable rental voucher program. Thus, the subsidy payment to Borrower under any portable rental voucher shall not exceed the difference between the amount the tenant actually pays to Borrower towards such tenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (d) Notwithstanding anything to the contrary set forth in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreement, as applicable) for a Housing Unit to which a portable rental voucher or project-based Section 8 voucher is applied to charge a monthly rent amount higher than the Affordable Rent for such Housing Unit (up to the applicable fair market rent).

Selection of Tenants. (a) Borrower shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by Governmental Lender Executive Director in his reasonable discretion, pursuant to which Borrower shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan and the Management Plan, which plans are required to be submitted by Borrower and approved by Governmental Lender. Throughout the remainder of the Qualified Project Period, Borrower shall establish and maintain for the Project waiting lists of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender shall be afforded a priority marketing period for thirty (30) days after receiving written notice from Borrower that one or more Housing Units will become vacant at the Project, during which time Governmental Lender and Borrower shall work cooperatively to select tenants for any vacant Housing Units at the Project. Borrower shall provide prompt written notice to Governmental Lender when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42, 103 and 141 and the rules and regulations governing such sectionsLaws, Borrower’s waiting list of prospective, eligible tenants for Housing Units at the Project shall include and follow the following order of priority for selection of tenants, and Governmental Lender will follow such order of priority: (i) Very Low and Low Income Households, as applicable, who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, who are listed on Governmental Lender’s waiting lists for affordable housing and who live and/or work in Anaheim; (iii) Very Low and Low Income Households, as applicable, who have applied for and have received rental vouchers from Governmental Lender; and (iv) Very Low and Low Income Households, as applicable, who live and/or work in Anaheim. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower rents a Housing Unit to a household holding a portable rental voucher, the rental agreement (or lease agreement, as applicable) between Borrower, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant holding a portable rental voucher shall be not more than 30% of tenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations applicable to portable rental vouchers), as would otherwise be permitted under the applicable portable rental voucher program. Thus, the subsidy payment to Borrower under any portable rental voucher shall not exceed the difference between the amount the tenant actually pays to Borrower towards such tenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (d) Notwithstanding anything to the contrary set forth in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreement, as applicable) for a Housing Unit to which a portable rental voucher or project-based Section 8 voucher is applied to charge a monthly rent amount higher than the Affordable Rent for such Housing Unit (up to the applicable fair market rent).

Selection of Tenants. (a) Borrower Developer shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by Governmental Lender Authority Executive Director in his her reasonable discretion, pursuant to which Borrower Developer shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan Program and the Property Management Plan, which plans program and plan are required to be submitted by Borrower Developer and approved by Governmental LenderAuthority pursuant to Sections 202, 408 and 411.2 hereof for the Manchester Project and as a Condition Precedent to the Closing. Throughout the remainder of the Qualified Project Affordability Period, Borrower Developer shall establish and maintain for the Manchester Project such waiting lists list of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Program, Property Management Plan, the Management Plan City Covenants and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the City Covenants and the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender Authority shall be afforded a priority marketing period for thirty first right of refusal in referring eligible tenants to Housing Units, which Authority may exercise at any time within sixty (3060) days after receiving written notice from Borrower Developer that one or more Housing Units will have become vacant at the Project, during which time Governmental Lender and Borrower shall work cooperatively to select tenants for any vacant Housing Units at the Manchester Project. Borrower Developer shall provide prompt written notice to Governmental Lender Authority when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Program, Property Management Plan, the Management Plan City Covenants and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42, 103 and 141 and the rules and regulations governing such sections, BorrowerDeveloper’s waiting list of prospective, eligible tenants for Housing Units at the Manchester Project shall include and follow the following order of priority for selection of tenants, and Governmental Lender Authority will follow such order of priority: (i) Very Low and Low Income Households, as applicable, who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, who are listed on Governmental Lender’s waiting lists for affordable housing and who live and/or work in Anaheim; (iii) Very Low and Low Income Households, as applicable, who have applied for and have received rental vouchers from Governmental Lender; and (iv) Very Low and Low Income Households, as applicable, who live and/or work in Anaheim. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower rents a Housing Unit to a household holding a portable rental voucher, the rental agreement (or lease agreement, as applicable) between Borrower, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant holding a portable rental voucher shall be not more than 30% of tenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations applicable to portable rental vouchers), as would otherwise be permitted under the applicable portable rental voucher program. Thus, the subsidy payment to Borrower under any portable rental voucher shall not exceed the difference between the amount the tenant actually pays to Borrower towards such tenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (d) Notwithstanding anything to the contrary set forth in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreement, as applicable) for a Housing Unit to which a portable rental voucher or project-based Section 8 voucher is applied to charge a monthly rent amount higher than the Affordable Rent for such Housing Unit (up to the applicable fair market rent).

Selection of Tenants. (a) Borrower Developer shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by Governmental Lender Authority Executive Director in his her reasonable discretion, pursuant to which Borrower Developer shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan and the Property Management Plan, which plans are required to be submitted by Borrower Developer and approved by Governmental LenderAuthority pursuant to Sections 2.2, 4.8 and 4.11.2 hereof and the Ground Lease for Phase II and as a Condition Precedent to the Closing. Throughout the remainder Affordability Period and the Term of the Qualified Project PeriodGround Lease, Borrower Developer shall establish and maintain for the Project Phase II such waiting lists list of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Plan, the Property Management Plan and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender Authority shall be afforded a priority marketing period for thirty (30) days after receiving written notice from Borrower Developer that one or more Housing Units will have become vacant at the ProjectPhase II, during which time Governmental Lender Authority and Borrower Developer shall work cooperatively to select tenants for any vacant Housing Units at the ProjectPhase II. Borrower Developer shall provide prompt written notice to Governmental Lender Authority when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Plan, the Property Management Plan and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42Laws, 103 and 141 and the rules and regulations governing such sections, BorrowerDeveloper’s waiting list of prospective, eligible tenants for Housing Units at the Project Phase II shall include and follow the following order of priority for selection of tenants, and Governmental Lender Authority will follow such order of priority: (i) Very Low and Low Income Households, as applicable, who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, who are listed on Governmental Lender’s waiting lists have applied for affordable housing and who live and/or work in Anaheimhave received rental vouchers from Authority; (iii) Very Low and Low Income Households, as applicable, who have applied are listed on Authority’s waiting lists for affordable housing and have received rental vouchers from Governmental Lenderwho live and/or work in Anaheim; and (iv) Very Low and Low Income Households, as applicable, who live and/or work in Anaheim. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower Developer rents a Housing Unit to a household holding a portable rental voucherPortable Voucher, if required by the Executive Director in writing to the Developer, the rental agreement (or lease agreement, as applicable) between BorrowerDeveloper, as landlord, and the tenant subtenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant subtenant holding a portable rental voucher Portable Voucher shall be not more than 3040% of tenantsubtenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant subtenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations Section 8 Federal Program Limitations applicable to portable rental vouchersPortable Vouchers), as would otherwise be permitted under the applicable portable rental voucher Portable Voucher program. Thus, if required by the Executive Director in writing in accordance herewith, the subsidy payment to Borrower Developer under any portable rental voucher Portable Voucher shall not exceed the difference between the amount the tenant subtenant actually pays to Borrower Developer towards such tenantsubtenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (dc) Notwithstanding anything Developer hereby acknowledges and agrees that, upon completion of construction of Phase II and leasing of the Housing Units to Very Low and Low Income Households pursuant to this Agreement, Developer will have received governmental subsidies from Authority and from TCAC through the contrary set forth Tax Credits allocated to Phase II (and/or other subsidies included in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreementfinal financing sources for Phase II, as applicableapproved by Authority pursuant to Section 3.10) in exchange for a Housing Unit Developer’s agreement to which a portable limit the rents charged to tenants of Phase II to an Affordable Rent and Developer further acknowledges and agrees that acceptance of additional governmental rental voucher or project-based Section 8 voucher is applied subsidies resulting in total, cumulative rent payments to charge a monthly rent amount higher than the Developer in excess of an Affordable Rent for such any of the Housing Unit Units at Phase II would constitute an unjustified windfall to Developer at the expense of Authority and the federal and state governments. (up d) In the event of a conflict between this Agreement and the approved Marketing and Tenant Selection Plan, the Marketing and Tenant Selection Plan shall control. The Marketing and Tenant Selection Plan shall be completed and approved by Authority prior to the applicable fair market rentand as a Condition Precedent to Closing pursuant to Section 2.2.1(n).

Selection of Tenants. (a) Borrower shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by Governmental Lender the Issuer’s Executive Director in his or her reasonable discretion, pursuant to which Borrower shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan and the Management Plan, which plans are required to be submitted by Borrower and approved by Governmental LenderIssuer. Throughout the remainder of the Qualified Project Period, Borrower shall establish and maintain for the Project waiting lists of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender Issuer shall be afforded a priority marketing period for thirty (30) days after receiving written notice from Borrower that one or more Housing Units will become vacant at the Project, during which time Governmental Lender Issuer and Borrower shall work cooperatively to select tenants for any vacant Housing Units at the Project. Borrower shall provide prompt written notice to Governmental Lender Issuer when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42, 103 and 141 and the rules and regulations governing such sections, Borrower’s waiting list of prospective, eligible tenants for Housing Units at the Project shall include and follow the following order of priority for selection of tenants, and Governmental Lender Issuer will follow such order of priority: (i) Very Low and Low Income Households, as applicable, Households who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, Households who are listed on Governmental LenderIssuer’s waiting lists for affordable housing and who live and/or work in Anaheim; (iii) Very Low and Low Income Households, as applicable, Households who have applied for and have received rental vouchers from Governmental LenderIssuer; and (iv) Very Low and Low Income Households, as applicable, Households who live and/or work in Anaheim. In addition to the requirements set forth herein, all tenant selections shall also be in compliance with any and all other agreements between the City of Anaheim and/or the Authority and the Borrower entered into in connection with the financing of the Project. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower rents a Housing Unit to a household holding a portable rental voucher, the rental agreement (or lease agreement, as applicable) between Borrower, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant holding a portable rental voucher shall be not more than 30% of tenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations applicable to portable rental vouchers), as would otherwise be permitted under the applicable portable rental voucher program. Thus, the subsidy payment to Borrower under any portable rental voucher shall not exceed the difference between the amount the tenant actually pays to Borrower towards such tenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (d) Notwithstanding anything to the contrary set forth in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreement, as applicable) for a Housing Unit to which a portable rental voucher or project-based Section 8 voucher is applied to charge a monthly rent amount higher than the Affordable Rent for such Housing Unit (up to the applicable fair market rent).

Selection of Tenants. (a) Borrower Developer shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by Governmental Lender Authority Executive Director in his her reasonable discretion, pursuant to which Borrower Developer shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan and the Property Management Plan, which plans are required to be submitted by Borrower Developer and approved by Governmental LenderAuthority pursuant to Sections 2.2, 4.8 and 4.11.2 hereof and the Ground Lease for Phase I and as a Condition Precedent to the Closing. Throughout the remainder Affordability Period and the Term of the Qualified Project PeriodGround Lease, Borrower Developer shall establish and maintain for the Project Phase I such waiting lists list of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Plan, the Property Management Plan and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender Authority shall be afforded a priority marketing period for thirty (30) days after receiving written notice from Borrower Developer that one or more Housing Units will have become vacant at the ProjectPhase I, during which time Governmental Lender Authority and Borrower Developer shall work cooperatively to select tenants for any vacant Housing Units at the Project. Borrower Phase I. Developer‌ shall provide prompt written notice to Governmental Lender Authority when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Plan, the Property Management Plan and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42Laws, 103 and 141 and the rules and regulations governing such sections, BorrowerDeveloper’s waiting list of prospective, eligible tenants for Housing Units at the Project Phase I shall include and follow the following order of priority for selection of tenants, and Governmental Lender Authority will follow such order of priority: (i) Very Low and Low Income Households, as applicable, who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, who are listed on Governmental Lender’s waiting lists have applied for affordable housing and who live and/or work in Anaheimhave received rental vouchers from Authority; (iii) Very Low and Low Income Households, as applicable, who have applied are listed on Authority’s waiting lists for affordable housing and have received rental vouchers from Governmental Lenderwho live and/or work in Anaheim; and (iv) Very Low and Low Income Households, as applicable, who live and/or work in Anaheim. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower Developer rents a Housing Unit to a household holding a portable rental voucherPortable Voucher, if required by the Executive Director in writing to the Developer, the rental agreement (or lease agreement, as applicable) between BorrowerDeveloper, as landlord, and the tenant subtenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant subtenant holding a portable rental voucher Portable Voucher shall be not more than 3040% of tenantsubtenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant subtenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations Section 8 Federal Program Limitations applicable to portable rental vouchersPortable Vouchers), as would otherwise be permitted under the applicable portable rental voucher Portable Voucher program. Thus, if required by the Executive Director in writing in accordance herewith, the subsidy payment to Borrower Developer under any portable rental voucher Portable Voucher shall not exceed the difference between the amount the tenant subtenant actually pays to Borrower Developer towards such tenantsubtenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (dc) Notwithstanding anything Developer hereby acknowledges and agrees that, upon completion of construction of Phase I and leasing of the Housing Units to Very Low and Low Income Households pursuant to this Agreement, Developer will have received governmental subsidies from Authority and from TCAC through the contrary set forth Tax Credits allocated to Phase I (and/or other subsidies included in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreementfinal financing sources for Phase I, as applicableapproved by Authority pursuant to Section 3.10) in exchange for a Housing Unit Developer’s agreement to which a portable limit the rents charged to tenants of Phase I to an Affordable Rent and Developer further acknowledges and agrees that acceptance of additional governmental rental voucher or project-based Section 8 voucher is applied subsidies resulting in total, cumulative rent payments to charge a monthly rent amount higher than the Developer in excess of an Affordable Rent for such any of the Housing Unit Units at Phase I would constitute an unjustified windfall to Developer at the expense of Authority and the federal and state governments. (up d) In the event of a conflict between this Agreement and the approved Marketing and Tenant Selection Plan, the Marketing and Tenant Selection Plan shall control. The Marketing and Tenant Selection Plan shall be completed and approved by Authority prior to the applicable fair market rent).and as a Condition Precedent to Closing pursuant to Section 2.2.1(n).‌‌

Selection of Tenants. (a) Borrower shall be responsible for the selection of tenants for the Housing Units in compliance with all lawful and reasonable criteria, and shall adopt a tenant selection system that shall be approved (or disapproved) by the Governmental Lender Lender’s Executive Director in his or her reasonable discretion, pursuant to which Borrower shall establish and maintain a chronological waiting list system for selection of tenants in the order of priority set forth below, and which shall be set forth in the Marketing and Tenant Selection Plan and the Management Plan, which plans are required to be submitted by Borrower and approved by Governmental Lender. Throughout the remainder of the Qualified Project Period, Borrower shall establish and maintain for the Project waiting lists of eligible, prospective tenants to facilitate re-tenanting Housing Units in compliance with the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Further, subject to applicable Fair Housing Laws and in compliance with the Anaheim Municipal Code, in particular Section 18.52.160 thereof, Governmental Lender shall be afforded a priority marketing period for thirty (30) days after receiving written notice from Borrower that one or more Housing Units will become vacant at the Project, during which time Governmental Lender and Borrower shall work cooperatively to select tenants for any vacant Housing Units at the Project. Borrower shall provide prompt written notice to Governmental Lender when vacancies of Housing Units occur to facilitate timely re-tenanting of Housing Units pursuant to the approved Marketing and Tenant Selection Plan, the Management Plan and Anaheim Municipal Code. Subject to applicable Fair Housing Laws and Internal Revenue Code Sections 42, 103 and 141 and the rules and regulations governing such sections, Borrower’s waiting list of prospective, eligible tenants for Housing Units at the Project shall include and follow the following order of priority for selection of tenants, and Governmental Lender will follow such order of priority: (i) Very Low and Low Income Households, as applicable, who have been displaced from their residences due to programs or projects implemented by the City of Anaheim or another governmental entity; (ii) Very Low and Low Income Households, as applicable, who are listed on Governmental Lender’s waiting lists for affordable housing and who live and/or work in Anaheim; (iii) Very Low and Low Income Households, as applicable, who have applied for and have received rental vouchers from Governmental Lender; and (iv) Very Low and Low Income Households, as applicable, who live and/or work in Anaheim. In addition to the requirements set forth herein, all tenant selections shall also be in compliance with any and all other agreements between the City of Anaheim and/or the Authority and the Borrower entered into in connection with the financing of the Project. (b) Borrower shall not refuse to lease a Housing Unit to a holder of a portable rental voucher who is otherwise qualified to be a tenant in accordance with the approved tenant selection criteria. (c) In the event Borrower rents a Housing Unit to a household holding a portable rental voucher, the rental agreement (or lease agreement, as applicable) between Borrower, as landlord, and the tenant shall expressly provide that monthly rent charged shall be the Affordable Rent required hereunder for the Housing Unit (not fair market rent) and that the rent collected directly from such tenant holding a portable rental voucher shall be not more than 30% of tenant’s actual gross income pursuant to the applicable voucher program regulations; i.e., the rent charged to such tenant under the rental agreement shall be the Affordable Rent chargeable hereunder and not market rent for the area (as determined by a current rent reasonable review conducted in accordance with all federal laws and regulations applicable to portable rental vouchers), as would otherwise be permitted under the applicable portable rental voucher program. Thus, the subsidy payment to Borrower under any portable rental voucher shall not exceed the difference between the amount the tenant actually pays to Borrower towards such tenant’s rent and the Affordable Rent chargeable for the applicable Housing Unit hereunder. (d) Notwithstanding anything to the contrary set forth in this Section 5, the Executive Director may, in his sole and absolute discretion, and upon such conditions as the Executive Director may deem appropriate, permit the rental agreement (or lease agreement, as applicable) for a Housing Unit to which a portable rental voucher or project-based Section 8 voucher is applied to charge a monthly rent amount higher than the Affordable Rent for such Housing Unit (up to the applicable fair market rent).