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Exhibit 1 <br />(iii) To the extent the federal Tax Credit Program requirements conflict <br />with the requirements in this Section 2(e), relative to the continued occupancy by households <br />that do not qualify as 80% Income Households, the federal Tax Credit Project requirements shall <br />apply in place of the provisions in this Section 2(e). <br />(f) Occupancy Levels. Subject to state or federal laws and regulations, the <br />number of persons permitted to occupy each Restricted Unit shall not exceed the amount permitted <br />by TCAC or, if TCAC no longer sets maximum occupancy limits, two persons per bedroom, plus <br />one person. If a household, during the terms of its tenancy, adds members that exceed the <br />maximum occupancy allowed under this section, Owner shall provide written notification <br />informing the household that: it is over -occupancy; has been placed on a waiting list for an <br />appropriately -sized unit for a period of up to one -hundred and eighty (180) days; the expiration <br />date of the waiting list; and the terms for terminating the lease. A written status update will be <br />provided to the household at one -hundred and twenty (120) days, ninety (90) days, sixty (60) days <br />and thirty (30) days if applicable. To the extent that a tenant household occupying a Restricted <br />Unit as of the date of this Agreement is over -occupancy, such tenant household shall not be subject <br />to this subsection (f) as long as it continues to occupy the same Restricted Unit. <br />3. Owner, its successors and assigns shall not charge rents for the Restricted Units in <br />excess of the amounts set forth in Section 2(b) or (c), as applicable. <br />4. Owner shall adopt and include as part of its Management Plan (described in Section <br />10, below), written tenant selection policies and criteria for the Restricted Units which meet the <br />following requirements. <br />(a) Are consistent with the purpose of providing housing for 60% Income <br />Households and 80% Income Households. <br />(b) Are reasonably related to program eligibility and the applicants' ability to <br />perform the obligations of the lease. <br />(c) Give reasonable consideration to the housing needs of families that would <br />have a preference under 42 CFR §906.211 (Federal selection preferences for admission to Public <br />Housing); <br />(d) Provide for: <br />(i) The selection of tenants from a written waiting list in the <br />chronological order of their application, subject to Section 4(e) and 4(f) below, insofar as is <br />practicable; and <br />(ii) The prompt written notification to any rejected applicant of the <br />grounds for any rejection; <br />(e) Subject to applicable fair housing laws, give a first priory preference and <br />consideration, including but not limited to priority placement on a written waiting list of available <br />units, to the housing needs of households who have been permanently displaced or face permanent <br />displacement from housing in Santa Ana as a result of any of the following: <br />5 <br />Error! Unknown document property name. <br />