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required by City in connection with the attachment of such liens to such items. Developer
<br />shall keep detailed records of such removal and shall make such records available to City
<br />upon written request from time to time.
<br />7.6. Obligation to Refrain from Discrimination. Developer covenants and
<br />agrees for itself, its successors, its assigns and every successor in interest to the Property
<br />or any part thereof, that there shall be no discrimination against or segregation of any
<br />person or group of persons on account of race, color, creed, religion, sex, mental orphysical
<br />disability, marital status, ancestry or national origin in the sale, lease, sublease, transfer,
<br />use, occupancy, tenure or enjoyment of the Property nor shall Developer itself or any
<br />person claiming under or through him establish or permit any such practice or practices of
<br />discrimination or segregation with reference to the selection, location, number, use or
<br />occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The
<br />foregoing covenants shall run with the land and shall remain in effect for the term of the
<br />Agreement.
<br />7.7. Loss of Proiect-Based Voucher Subsidy. It is anticipated that during the
<br />Term of Agreement the Project will maintain not less than fifteen (15) Project -Based
<br />Voucher ("PBV") Restricted Units ("PBV Restricted Units") provided by the Housing
<br />Authority, supported by Project -Based Section 8 rental subsidy payments and forty three
<br />(43) Project -Based Vouchers provided by Orange County (the "County PBV Restricted
<br />Units") (the 'Rental Subsidy"). If, during the Term of Agreement, there is a reduction,
<br />termination or nonrenewal of the Housing Authority's or County's Rental Subsidy through
<br />no fault of Developer, such that the Rental Subsidy shown on the Project Budget is no
<br />longer available (or available in a lesser amount), Developer may request approval of the
<br />City (a) to allow households with adjusted incomes that do not exceed sixty percent (60%)
<br />of AMI, adjusted for actual household size, to occupy the extremely -low income units (i.e.,
<br />a unit previously restricted to households with adjusted incomes that do not exceed 30%
<br />of AMI), and (b) to increase the rent on one or more of the Restricted Units, to rents that
<br />are affordable to households with an adjusted income that does not exceed sixty percent
<br />(60%) of AMI, adjusted for household size appropriate for the Restricted Unit.
<br />The rent increase is subject to the following requirements: (a) concurrently with the
<br />request, Developer shall provide the City with evidence of the anticipated reduction,
<br />termination, or nonrenewal of the Rental Subsidy, (b) a Management Plan (as defined in
<br />Section 6.1(d) of this Agreement) for the Project for the City's approval pursuant to
<br />Sections 6.1(d) and Exhibit F of this Agreement, showing the impact of the loss or
<br />reduction of the Rental Subsidy, (c) a proposed operating budget reflecting the rent
<br />increases (the "Operating Budget"), and (d) a description of efforts to obtain alternate
<br />sources of rent. The number of the Restricted Units subject to the rent increase and the
<br />amount of the proposed increase may not be greater than the number or amount required
<br />to ensure that the Project generates sufficient income to cover its operating costs, required
<br />deposits to replacement reserves, and debt service on approved financing as shown on the
<br />Operating Budget, and as is necessary to maintain the financial stability of the Project. In
<br />addition, upon a reduction, termination or nonrenewal of the Rental Subsidy as described
<br />above, Developer hereby agrees to the following:
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<br />The Cmssmads at Washington
<br />City NSP Loan Agreement
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